SPRING 2017 MAR 4804/U02 (MMC) Dr. Bruce Seaton Take Home Exam #1 Name: Carlos Melian THE#1 This question is based on the Janmar Coatings, Inc. case. Parts a) and b) are to be answered independently. a) Mr. Ronald Burns is the President of Janmar Coatings, Inc. As he reviews the data of Case Exhibit 2 he recognizes that, while Janmar is showing some dollar sales growth due to price increases, the company is essentially in a “no growth mode”. In his search for an avenue of growth Mr. Burns is charging you with the task of determining whether Janmar should focus on the Household Market or the Professional Painter Market. Use the case materials and the worksheets posted on Blackboard to …show more content…
After reviewing the performance of Janmar Coatings, Inc., my recommendation for Mr. Burns, is to focus on the household market, because it shows the most promise in expanding their sales growth and growth capability. Compared to the professional painter market, the household market has potential for a much larger market share that is looking for large volumes of product distribution. More awareness of your product can mean more sales, and since the total sales of the company are comprised of 78%, expanding awareness of the brand and products via a new advertising strategy, will be beneficial for the sales growth of the company. Advertisements are the correct approach to gaining results in the market, the more people are introduced to your product the more results and recognition you can get on the household market. In the household market distribution will be key in order to thrive, which is why another recommendation to Mr. …show more content…
After reviewing the data presented in exhibit 4, the graphical data obtained, shows us that the correlation coefficient is 0.99, which indicates that the awareness of company products has a strong relationship to the last brand bought. The Correlation coefficient is the linear dependence of two variables since the number is close to 1 there is almost a perfect upward correlation between the two variables. One reason for this strong correlation is company performance, if the performance of the company is doing well brand awareness will increase since more people are buying the company’s products, making the last brand bought be impacted as well. Another reason as to why they have a strong correlation is the quality of the product, if the product has high quality in both household and painter markets, customer brand awareness will be maintained across different products. Finally, advertising is what has the most impact in brand awareness, because it is what makes your brand reach the most people. It is clear that from the data gathered consumer brand advertising increases brand awareness, which increases sales because consumers will purchase based on the brand’s popularity. The customer’s last brand bought will always be the one that customers have the most brand