Introduction
The paint industry of the United States is a well-established market. In the year 2004, the paint industry of the United States was of worth sixteen billion dollars which is deemed to be quite a hefty amount regarding mere paint market. It is growing at a moderate pace. The pains industry of the United States comprised of three parts. These are architectural paint coatings, original equipment manufacturing coatings and the last one is special purpose coatings. Firstly, architectural coatings refer to the paints which are done for the general purposes. For instance, they are used in the residential places, commercial markets, institutional structures and another kind of edifices. In this kind of paint industry, main purchasers could be private or governmental contractors, the persons who resort to paintings as their professional work and the people who like to do the paint by themselves. As a matter of fact, 35% of the market is using the original equipment manufacturing coatings. These are the paints which are used to paint the products in the manufacturing process like cars, trucks, furniture and other automobile products. It is mostly sold to one manufacturer to the other. The last one is special purpose coatings. It is referred to the coatings which are applied in the open market rather than in the factories.
Problem Statement
The current problem being faced by the Janmar coatings is how to employee marketing efforts in the architectural paint coatings and how to do it by keeping in view the cost effectiveness. The maximum buyers in the United States of America resort to the architectural paint coatings for their needs. Therefore, the company should concentrate to boost its efforts up to raise its revenue in this field. The problem is also that what should be the best channel to market its products.
Alternatives
Increase the budget of advertising and there should be profound emphasize on the marketing of the products through the Television channel.
Prices can be cut to increase sales. It is important to note that prices should be by keeping the budget unchanged.
The company can add more sale representatives to garner more retail accounts from the market.
Costs must be controlled by closely monitoring the routine operations.
The company should break the population into segments according to the some criteria and market it accordingly.
Evaluation of alternatives
In 2004, the net profit (before cutting the taxes) of the Janmar coatings incorporation was 1.14 million dollars. Each of the alternatives must go ahead this number. Therefore, it must be profitable enough to function. Price reduction must be adjusted in the margin by contributing something in the other fields. The company must keep its costs down by having a keen observation over the unwanted expenses which may incur and may go unnoticed sometimes. It also takes into account that after the expansion of marketing ambit, whether the market share would increase in the Dallas-Fort areas or not.
Recommendations
As a matter of fact, people of the United States of America are living in a heterogeneous society. Everybody has needs and wants different to one another. Therefore, they are to be catered accordingly. The Janmar Coatings Incorporation can divide the whole population where it is located in diversified segments. It can do it by the type of paintings people go for. After doing that, it can run different advertising campaigns on each of the segment according to the availability of the media channel. I suggest that people in the current world are using social media a great deal. Therefore, they can be reached there. Online bookings and purchases should be entertained. Moreover, a team must be made to reach the work on call. This strategy will be very effective if implemented properly.
