Introduction
The privately held corporation, Janmar Coating, Inc., sells their produced architectural paint and sundries under the Janmar name. The firm markets and distributes its products in 50 counties, primarily in the Dallas Fort Worth metropolitan area and other areas in Texas, Oklahoma, New Mexico, and Louisiana. Not only does Janmar Coating, Inc. market architectural paints, but the corporation also operates a large OEM coating division.
Definition of the problem
President Ronald Burns must amass a decision to implement marketing efforts amongst the architectural paint coating market served by Janmar Coating, Inc. Therefore, Burns will evaluate all recommendations given by the Vice Presidents of the company. He must determine if the implementation of a corporate brand advertising to achieve awareness within the Dallas Fort Worth do-it-yourself market, execution of a price cut on all paint products, or employment of another sales representative to focus on the non-DFW areas would be best for the business.
Alternatives and Uncertainties
The firm has four major alternatives, many of which were presented by the Vice Presidents of the Janmar Coatings, Inc.
1. To increase advertising by $350,000 for television promotion specifically to attract the do-it-yourself within the Dallas Fort-Worth market.
2. To reduce prices by 20% but utilize current marketing budget to disseminate price cuts.
3. To hire an additional sales representative whose attentions will be on the non-DFW areas with a primary responsibility for acquiring retail accounts.
4. To make no change but nevertheless continue to guard the margins and control costs.
Every alternative consist of many uncertainties. For example, alternative one to increase advertising in ...
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..., Inc. must hire a sales rep whose sole responsibility is to increase sales in the non-DFW areas. The Vice President of Sales must set sales goals for the current sales representative to increase market penetration in both the DFW and non-DFW areas. One job duty of the new sales representative will consist of developing leads and presentation for new retail accounts. The sales representative will also be in charge of soliciting business from professional painters to utilize our independent paint stores, lumberyards, and hardware outlets.
Conclusion
In closing, hiring the sales representative would allow the firm to take advantage of one it major opportunities in increasing market share in the non-DFW markets. With the continued increase of home improvement stores in the populated metropolitan areas, the firm could maintain a competitive advantage in the rural areas.
In the early 2000’s Lowe’s was rapidly intensifying its presence nationwide. The company carried a varied assortment of home improvement products and catered to the needs of retail as well as commercial business customers. Lowe’s expanded their reach by acquiring a 41-store chain, Eagle Hardware and Garden, and engaging in a strategic alliance with HGTV to obtain a more profound existence in their market (Rouse, 2005). By 2004, Lowe’s operated almost 1,000 stores with plans to continue expansion across the nation (Rouse, 2005). The company has a core competency in helping customers meet their home improvement needs at a low price. In order to use this core competency to gain a competitive advantage, the company has focused on key functional strategies. To continue their success, Lowe’s must specifically focus on marketing, logistics, and human resource management strategies.
(The retail industry main aspect includes small stores that sell products directly to consumers. Mike took over the lease of a building and wanted to transform it into a fully functional department store that offered a variety of products.)
This will help them in achieving maximum sales. The company’s marketing team should first collect information regarding the income level of customers who live in the vicinity of the potential store location. They should determine income of the area’s population in order to make sure that it matches that of their typical customers. They should also take a look at education level as well occupational information for the area in question.
of product with the rest of the retailers may not be good idea. This kind of business most likely
Due to the good establishment of the business, it has huge market national. The company has therefore opened many retail shops and stores all over the country to ensure that their products are accessible to the customers. The entity provides a favorable environment, and many clients view the place as a fun shopping place to be. The retailer has targeted a big pool of customer because of the variety of products it sells. The stores products vary from kitchen goods, jewelry, and electronics clothes to hardware
The sales leads are now centralized and accessible across branches rather than individually gathered and processed by salespeople. In standardizing customer information, it now makes the marketing teams, analytic teams, and customer managers on the same page. It creates a “friendly competition” that encourages close cooperation for all areas. One major cost that this new strategy created was the confusion of different areas in RBC. Product managers and customer managers often misunderstood what way of action was appropriate, which lead to another problem: it took more time to make decisions. A benefit of this change is that there was no fighting for resources and instead cooperation. Another benefit would be the divisional organization, which can be seen in Exhibits 3a and
Content 1.Preface 2.Introduction 3.Problem definition 4.Summary 5.Conclusion 6. Chapter 1: External analysis of Home Depot Inc. 7. Chapter 2: Internal analysis of Home Depot Inc. 8. Chapter 3: Strategic forces. 9.
The sales director proposed that if the firm were to reduce the price of Item 345 to FF15.00/m, they would be able to increase sales to 175,000 units (or 25% of industry volume). But if they were to keep the price at the current value of FF20.00/m, they would be able to sell not less than 75,000 units (or 11% of industry volume).
Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.
Two recommendations for promoting direct-sales through consumer and the business; One is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.
Expansion of the operation to geographical areas to the north, south, east and west of Sherwood Forest for an opportunity to create new avenues of revenue.
Berkman, Herald W. and Gilson, Christopher. Advertising: Concepts and Strategies, 2nd ed.. (New York: Random House, 1987). 244.
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
All the available alternatives having various (favorable and unfavorable) consequences should be analyzed and then it should be compared with one another, or against the desired objective like sales, volume, revenue etc. The alternatives with favorable and unfavorable consequences should be analyzed before it is compared against one another.
...t in both direct and indirect ways. Direct sell will include, sell in online forums or use direct mail to reach our customers. When selling directly, we can take the time to showcase our product’s distinct attributes. Before turning sales over to a distributor, we will build a base of direct sales to prove the product will sell. Using an indirect approach, we will persuade stores to carry our products. While more time-consuming, approaching retailers in store or at trade shows gives us more control over how our product is displayed and how it’s presented to customers. For indirect sales incorporate a middleman in some way or another. A distributor’s functions include stocking, ease of ordering and quick delivery with no pioneering sales efforts. Intermediaries have expertise and contacts, but they may require minimum order quantities and an established sales record.