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paint industry since 1990
? The EPA proposed plan for 25% reduction of VOC in 1996, 35% in 2000, and 45% in 2003, furthering the low profit margins in the paint industry
? Do-it-yourself painters first choose a retail outlet for paint and paint sundries, then choose a paint brand
? 4 Step Buying decision process: decide on project/product, gather information (first from friend/relatives), decide on store, and then decide on product
? New distribution strategy
? Lack of available technology and the difference in paint formulations for regional climatic needs, a small number of regional paint manufacturers can successfully compete against the nationally distributing paint manufacturers
? 200 independent paint stores, lumberyards, & hardware outlets
? 40% of outlets in the DFW area
? Markets paint & sundry items in over 50 states including Texas, Oklahoma, New Mexico, & Louisiana
? 60% of sale in architectural coating segment go to Sherwin-Williams, Benjamin Moore, the Glidden unit of Imperial Chemicals, PPG Industries, Valspar Corporation, Grow Group, and Pratt & Lambert
? 50% of sales in the architectural coatings are sold under private controlled, or store brands in Sears, Kmart, Wal-mart, and Home Deport
? Retail outlets outside the DFW area with paint and sundry purchases exceeding $50,000 annually carry only this product line...
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