Janmar Coatings Alternatives
Autor: luckytae • July 5, 2017 • Case Study • 507 Words (3 Pages) • 711 Views
Advantages and Disadvantages of Relevant Alternatives
Alternative 1: VP of Advertising
Increase of $350,000 in the DFW DIY corporate brand advertising with focus on television
• Advantages
o Will likely increase awareness level to at least 30% among DIY customers
o According to preliminary talks with ad agency, this amount increase in advertising will impact sales.
o While focus is still on DFW customers, television marketing will reach non-DFW consumers in about 15 counties
o Potential organic growth to retail stores
• Disadvantages
o Large upfront investment
o Nearly doubles advertisement budget to reach minimum result of 30% awareness level
o Focuses on mainly saturated DFW market rather than obtaining widespread distribution
o 75% of audience is not buying paint
o Large number of DIY consumers choose a retail outlet before deciding on a brand name product
Alternative 2: VP of Operations
Cut price across the board by 20%
• Advantages
o Allows for better chance at competing against larger companies for bigger market share in DIY market
o Dealers will not avoid selling to price sensitive customers which could increase size of the potential market
o Could improve effectiveness of current marketing campaigns such as newspaper ads to increase sales volume
o Could increase sales
• Disadvantages
o Could have negative effect on company quality image
o Must do approximately $22,105,263.20 (Ex.5) sales to keep same margins
o Any growth will have to come from converting competitor customers
o Costs are unlikely to decline
Alternative 3: VP of Sales
Hire additional sales rep to expand into non-DFW areas
• Advantages
o Potential for growing business in non-DFW areas which only has 16% account penetration
o Specialized responsibilities such as business development work for extra rep. could mean rest of the team can have more time to be more aggressive
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