SWOT Analysis:
Strengths
High quality products
High quality service with
Knowledgeable sales representatives that know customers personally
Mature market 1-2% sales growth long-term
Shelf goods 43% of total industry dollar sales
Specialty paint stores & lumberyards most frequently patronized
Distributes through 200 independent paint stores
Maintaining margins while increasing R&D, material, & labor costs
Market to major business/financial center (DFW)
Total sales/year increasing dollars sales rate 4% each year
Weakness
Slow sales growth
Reduce emissions of volatile compounds
Compliance w/ EPA = low profit margins
Presence in DFW do it yourself market, in-home centers
Non-DFW market
New accounts, only added 5 in last 5 years
High costs for product
DFW Sales decreased
Paint gallon-age hasn 't changed in years
Highest priced paint in service area, especially in DFW
Awareness of the company
Opportunities
Need to increase customer awareness by 30%
Increase demand for paint sundries due to trend towards do it yourself painting
Interior more popular than exterior
Expand beyond paint
Primarily in DFW area, so advertising outside of DFW
Increase advertising over all mediums, catalogs etc
Develop new retail accounts leads and penetrations
Professional painters could solicit business to them
Discount coupon offers on every purchase after first to build loyalty
Increase contractor sales
Number of paint companies are declining at a rate of 2 to 3% a year
US Paint industry is maturing, over $13 billion in 1997
Threats
Research & design= low profit margins
Customers choose store first, then brand
Companies like Wal-Mart becoming bigger
Competition from cheaper paint brands
More options besides painting
Competition in DFW market
Competition in non-DFW market
Sherwin Williams, Benjamin Moore, Sears, Kmart, Home Depot etc., strong brand