Case Study: Residential Repaint And Professional Coatings

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The purpose of the following study is to determine how a recent price increase will affect the demand of Sherwin William’s three main customers segments, Do It Yourselfers (D.I.Y.), Residential Repainters, and Professional Coatings. Through an analysis of each segment’s price elasticity and demand functions, Sherwin Williams hopes to develop strategies to better cope with possible changes in demand. As customer relationships are incredibly important to the company, especially with customers in the Residential Repaint and Professional Coatings segments, it is vital for the company to know how its customers will react to changes in price and develop strategies to counteract any reduction in the demand for its products.
Causes of the Price
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This segment consists of customers with more specialized needs and product requirements then other professionals. This market segment generally makes paint and related purchases less frequently then the Residential Repaint segment, but more frequently than the D.I.Y. segment. Due to the extremely specialized needs of customers in this segment, competition is minimal due to the limited number of products and companies that can fulfill the needs and specifications of this segment. Sherwin Williams recently took additional steps to sure-up its leadership in this market segment by acquiring coatings company Valspar, who’s products and operations are specifically designed to cater to this segment’s …show more content…
These three areas tend to be one’s at which Sherwin Williams excels compared to its competition. For example, Sherwin Williams has an entire force of employees (Sales Representatives, Account Managers, and Product Specialists) whose job it is to build, grow, and maintain relationships with its Residential Repaint segment. Other factors important to this segment are price, which Sherwin Williams structures more competitively than its D.I.Y. segment, and product

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