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INTRODUCTION
US PAINT COATINGS INDUSTRY
BROAD SEGMENT, %
Architectural coatings
Original Equipment Manufacturing (OEM)
Special purpose coatings
22%
43%
35%
Estimated 2004- Over $16 billion in total industry sales
Considered a mature market
MARKET SEGMENT, %
14%
50%
36%
Private Name
Controlled by
Major
Corporation
Specialty Stores
Hardware
Stores and
Lumberyard
Product lines
Location
Headquarters in
Dallas, Texas
Financial
In 2004, $12
million in sales,
$1,140,000 in
net profit before
taxes.
Over past
decade, average
4% dollar sales
increase per
year.
In 2004, 60% of
net sales = cost
of goods sold +
freight expenses
Distribution
Distributes its
products through
200 independent
paint stores,
lumberyards and
hardware outlets.
80 stores located
in DFW area
Promotional Efforts
3% of net
sales on
advertising
and sales
promotion
efforts.
55% of
advertising and
sales promotion
dollars
Cooperative
advertising
programs
45% of
advertising and
sales promotion
dollars In-store
displays,
corporate brand
advertising,
outdoor signs,
regional
magazines,
premiums and
advertising
production
costs.
PROBLEM
DEFINITION
where and how to deploy corporate
marketing efforts among the various
architectural paint coatings markets
served by the company.
SWOT ANALYSIS
Internal Factors
Strengths
Weaknesses
External Factors
Opportunities
Threats