Operations Research Paint Company
Introduction
Globesco Inc. is a local paint manufacturer which develops, produces and distributes various types of paints in the Philippines. It has been in the industry for over 50 years and has established itself as one of the major players in the industry. Globesco currently carries three brands of paint namely, Sphero, Manor and Canadian. Sphero is the flagship brand of Globesco while Manor and Canadian caters to mid-level and low-level income class, respectively. Each of these brands has numerous sub-types which caters different needs of the consumers.
The paint industry is divided into two distinct sectors. The first sector is the architectural sector, which is composed of decorative paints for homes, offices and buildings; while the other sector is the industrial sector, which composed of paints that are factory-applied to manufactured goods as part of the production process such as automotive and appliance coatings. Brand equity is particularly important in the architectural sector and not too much in the industrial. The key factor in the industrial is as simple as meeting specification requirements. Because of this, margins are lower and the one with the cheapest price wins. The industrial sector is dominated by niche players which capitalize on by the niche markets.
Globesco is particularly known for its industrial paint products. However, because of the lower margins in the industrial sector, Globesco would like to pursue the architectural sector despite the tough competition taking place in this sector. The architectural sector is basically dominated by the top 3 brands namely Boysen, Davies and Welcoat. In order for Globesco to compete in this industry, the group proposes that Globesco offer painting services as well. This will be seen as a paint service bundle wherein Globesco paint brands will be used in the paint services. With this, Globesco will be able to pursue a niche market and compete in the architectural sector.
Operations Research
Globesco Inc. is a local paint manufacturer which develops, produces and distributes various types of paints in the Philippines. It has been in the industry for over 50 years and has established itself as one of the major players in the industry. Globesco currently carries three brands of paint namely, Sphero, Manor and Canadian. Sphero is the flagship brand of Globesco while Manor and Canadian caters to mid-level and low-level income class, respectively. Each of these brands has numerous sub-types which caters different needs of the consumers.
The paint industry is divided into two distinct sectors. The first sector is the architectural sector, which is composed of decorative paints for homes, offices and buildings; while the other sector is the industrial sector, which composed of paints that are factory-applied to manufactured goods as part of the production process such as automotive and appliance coatings. Brand equity is particularly important in the architectural sector and not too much in the industrial. The key factor in the industrial is as simple as meeting specification requirements. Because of this, margins are lower and the one with the cheapest price wins. The industrial sector is dominated by niche players which capitalize on by the niche markets.
Globesco is particularly known for its industrial paint products. However, because of the lower margins in the industrial sector, Globesco would like to pursue the architectural sector despite the tough competition taking place in this sector. The architectural sector is basically dominated by the top 3 brands namely Boysen, Davies and Welcoat. In order for Globesco to compete in this industry, the group proposes that Globesco offer painting services as well. This will be seen as a paint service bundle wherein Globesco paint brands will be used in the paint services. With this, Globesco will be able to pursue a niche market and compete in the architectural sector.
Operations Research