Ann Nguyen
Janmar Coatings, Inc.
5. Which segment or segments should Janmar Coatings pursue?
Janmar Coatings should invest in the doit yourselfer segment of the market. The company already held a high percentage in the home construction market. By aggressively pricing their products, Janmar needs to pursue a different market. The paint market in the DFW metropolitan area is a prosperous segment for their products. Janmar
Coatings should pursue the NonDFW household market due to the potential growth that exists there already. Due to low population number in the nonDFW areas, there is not much distribution going to those counties.
6. What strategy should Janmar Coatings adopt to reach the segment sought?
Hire a new sales representative to focus on reaching accounts outside DFW. This strategy could increase sales in places that are already declining. The direct cost to have a representative in the field is $60,000 per year, which gives Janmar Coatings the room to work with and generate the sales needed.