Janmar Coatings
JanMar Case Study Case Analysis
United States Paint Industry
The US paint industry is divided into three broad segments: architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose lacquers. The paint industry is a maturing industry. In 2004, sales were estimated to be slightly over $16billion and an average growth of 1-2% per year.
Architectural Paint Coatings Industry
The industry estimates that architectural coatings and sundries (brushes, paint removers, thinners, etc.) created sales of $12 billion in 2004. The architectural paint coatings segment is also considered to be projected between the 1-2% increase per year. The demand level for this segment is reflected by the level of home improvements and redecorating, the sales of new and existing homes, commercial and industrial construction.
Competition
Competition within this segment has been a result of slow sales growth and new governemtn regulations. The number of competitors has decreased by 40%; however, major competitors with low prices have come into place such as Sherwin-Williams and others who account for 60% of sales within the segment. They market paint under their own names as well as for private retailers.
Architectural Sales Breakdown and Consumer Purchase Behavior
About 50% of architectural sales are sold under private controlled brands such as Sears and Wal-Mart, 36% of sales are sold in specialty paint stores, and 14% are sold in hardware and lumberyards. There are three types of buyers of architectural paint which account for percent of total sales: “Do It Yourselfers” who account for 50%, professional painters who account for 25% and contractor/government sales who account for 25%. Home Improvement Research indicated that the “Do It Yourselfers” have increased the product line carried by retail outlets and spend on average $74.00 per purchase on architectural paints and $12 on sundries.
JanMar Coatings, Inc. Company
JanMar, Inc. is a privately held
United States Paint Industry
The US paint industry is divided into three broad segments: architectural coatings, original equipment manufacturing (OEM) coatings, and special-purpose lacquers. The paint industry is a maturing industry. In 2004, sales were estimated to be slightly over $16billion and an average growth of 1-2% per year.
Architectural Paint Coatings Industry
The industry estimates that architectural coatings and sundries (brushes, paint removers, thinners, etc.) created sales of $12 billion in 2004. The architectural paint coatings segment is also considered to be projected between the 1-2% increase per year. The demand level for this segment is reflected by the level of home improvements and redecorating, the sales of new and existing homes, commercial and industrial construction.
Competition
Competition within this segment has been a result of slow sales growth and new governemtn regulations. The number of competitors has decreased by 40%; however, major competitors with low prices have come into place such as Sherwin-Williams and others who account for 60% of sales within the segment. They market paint under their own names as well as for private retailers.
Architectural Sales Breakdown and Consumer Purchase Behavior
About 50% of architectural sales are sold under private controlled brands such as Sears and Wal-Mart, 36% of sales are sold in specialty paint stores, and 14% are sold in hardware and lumberyards. There are three types of buyers of architectural paint which account for percent of total sales: “Do It Yourselfers” who account for 50%, professional painters who account for 25% and contractor/government sales who account for 25%. Home Improvement Research indicated that the “Do It Yourselfers” have increased the product line carried by retail outlets and spend on average $74.00 per purchase on architectural paints and $12 on sundries.
JanMar Coatings, Inc. Company
JanMar, Inc. is a privately held