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Title: Paint industry

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Subject: Business
Author:
Date: April 12, 2003
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Length: 2 / 562
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cost: 95% i.e 60% of net sales - The company spends 3% (360,000) of net sales on advertising (55% of this together with retail accounts). o Distribution through 200 independent paint stores, lumberyards, and hardware outlets o 40% of outlets in the DFW area (11 country) o 60% in the other 39 countries o 14 stores in the DFW carry Jones Blair exclusively The company is focusing on the DFW area, whereas 60% of their sales are generated in the non DFW areas I don?¦t agree with VP Alex, bolstering DFW area will not help, as market is declining ?« An increase of $350,000 would mean to increase marketing expenditure by nearly 100% up to ca...

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6% of net sales. Moreover 75% of buyers do not buy due to marketing ?« Nevertheless, as the consumer first chooses the shop an then the brand, they should focus on the outlets and branding within these outlets rather than advertising in tvs. I agree partially with VP of operations: ?« DFW is to narrow ?« Do it yourselfer paint market is important ?« Cutting price by 20% is to harsh, due to high costs I agree partially with VP Sales Non DFW area Account penetration is too low (only 15%) Add sales rep...

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