Essay About Potential Organic Growth And Dfw Diy

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