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    CASE Analysis

    Uploaded by

    Sarbani Mishra
    The document contains sales and market share data for Pintura's Industrial Finishes Group (IFG). Key details include: 1) IFG generates 25% of Pintura's total revenue and focuses on plastic, metal, and wood coatings. Wood coatings make up 65% of IFG sales. 2) Within wood coatings, solvent-based products contribute 52.5% of sales and waterborne contributes 47.5%. 3) A new powder-based coating called Lena could potentially capture sales from solvent and waterborne products. Estimates show Lena capturing $254,800 in annual sales.

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    CASE Analysis

    Uploaded by

    Sarbani Mishra
    107 views16 pages
    The document contains sales and market share data for Pintura's Industrial Finishes Group (IFG). Key details include: 1) IFG generates 25% of Pintura's total revenue and focuses on plastic, metal, and wood coatings. Wood coatings make up 65% of IFG sales. 2) Within wood coatings, solvent-based products contribute 52.5% of sales and waterborne contributes 47.5%. 3) A new powder-based coating called Lena could potentially capture sales from solvent and waterborne products. Estimates show Lena capturing $254,800 in annual sales.

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    The document contains sales and market share data for Pintura's Industrial Finishes Group (IFG). Key details include: 1) IFG generates 25% of Pintura's total revenue and focuses on plastic, metal, and wood coatings. Wood coatings make up 65% of IFG sales. 2) Within wood coatings, solvent-based products contribute 52.5% of sales and waterborne contributes 47.5%. 3) A new powder-based coating called Lena could potentially capture sales from solvent and waterborne products. Estimates show Lena capturing $254,800 in annual sales.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    107 views16 pages

    CASE Analysis

    Uploaded by

    Sarbani Mishra
    The document contains sales and market share data for Pintura's Industrial Finishes Group (IFG). Key details include: 1) IFG generates 25% of Pintura's total revenue and focuses on plastic, metal, and wood coatings. Wood coatings make up 65% of IFG sales. 2) Within wood coatings, solvent-based products contribute 52.5% of sales and waterborne contributes 47.5%. 3) A new powder-based coating called Lena could potentially capture sales from solvent and waterborne products. Estimates show Lena capturing $254,800 in annual sales.

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    You are on page 1of 16

    Exhibit 1 Pintura's Annual Sales by Division (in $millions)

    Pintura Pintura
    Sales (%) Sales ($)
    Total annual revenue 100% $4,000
    Consumer Products Group (CPG) 35% $1,400
    Pintura International 40% $1,600
    Industrial Finishes Group (IFG) 25% $1,000
    Exhibit 2 U.S. and IFG Sales by Substrate
    U.S. Sales IFG Sales
    IFG% of
    (%) ($) (%) ($)
    U.S.
    Total annual revenue $6,000 $1,000 16.67%
    Plastic 40% $2,400 15% $150 6.25%
    Metal 20% $1,200 20% $200 16.67%
    Wood 40% $2,400 65% $650 27.08%
    Exhibit 4 IFG's Wood Coating Sales by Customer Group and Product Line (in $millions)
    Wood Coatings Sales Water Solvent
    Annual
    100% $650.00 47.50% $308.75 52.50% $341.25
    revenue
    Furnitur
    30% $195.00 70% $136.50 30% $58.50
    e
    Flooring 25% $162.50 20% $32.50 80% $130.00
    Cabinet
    20% $130.00 20% $26.00 80% $104.00
    ry
    Other 25% $162.50 70% $113.75 30% $48.75
    Exhibit 5 Wood Coatings Contribution Data (Direct Sales)
    IFG Contribution
    Selling Price COGS
    $
    Product Type (per unit) (per unit) (per unit) IFG Contribution %
    Solvent-based $28.00 $14.28 $13.72 49.00%
    Waterborne $34.00 $21.08 $12.92 38.00%
    Powder-based (Lena)* $38.00 $22.04 $15.96 42.00%
    *Potential Price
    0.42
    Estimated Adoption of Powder-Based Coatings Sales by Customer Group (in millions)

    Units
    Customer Group Product Line Annual Sales Units Sold Maintain %
    Maintained

    Furniture Waterborne $136.50 4.01 40% 1.61


    Furniture Solvent $58.50 2.09 60% 1.25
    Flooring Waterborne $32.50 0.96 80% 0.76
    Flooring Solvent $130.00 4.64 80% 3.71
    Cabinetry Waterborne $26.00 0.76 80% 0.61
    Cabinetry Solvent $104.00 3.71 80% 2.97
    Other Waterborne $113.75 3.35 40% 1.34
    Other Solvent $48.75 1.74 60% 1.04
    $650.00
    Assumptions
    Waste
    Solvent Waste 20%
    Waterborne Waste 18% 15% 2.0475
    Powder Waste 3%

    Price per Unit Given in the cas page6-7


    Solvent $28.00
    Waterborne $34.00
    Powder $38.00
    Adoption (sales:powder)

    Units Not Units Sold as


    Estimated Powder Calculated
    Maintained Powder (Adjusting
    Sales from Exhibit 4
    (powder) Wastage)

    2.41 2.05 $77.81


    0.84 0.69 $26.36
    0.19 0.16 $6.18
    0.93 0.77 $29.29
    0.15 0.13 $4.94
    0.74 0.62 $23.43
    2.01 1.71 $64.84
    0.70 0.58 $21.97
    $254.80

    Lena Introduction
    Customer GroupProduct Line Maintain % Switch %
    Furniture Solvent 60% 40%
    Flooring Solvent 80% 20%
    Cabinetry Solvent 80% 20%
    Other Solvent 60% 40%
    Furniture Waterborne 40% 60%
    Flooring Waterborne 80% 20%
    Cabinetry Waterborne 80% 20%
    Other Waterborne 40% 60%
    Annual Sales Forecasts for IFG Wood Coatings Customer Groups by Estimated Growth Rate in the United States (in millions)

    Customer Group Sales (2016) Growth Rate Sales (2017) Sales (2018) Sales (2019)

    Furniture $193.86 0.00% $193.86 $193.86 $193.86


    Flooring $165.46 4.20% $172.41 $179.65 $187.20
    Cabinetry $132.37 1.40% $134.22 $136.10 $138.01
    Other $161.55 0.50% $162.36 $163.17 $163.99
    $653.24
    Increase as a
    Total Sales (17-
    Customer Group Percentage of
    21)
    Total Sales
    Furniture $969.30 0.00%
    Flooring $937.56 11.76%
    Cabinetry $690.17 4.10%
    Other $819.95 1.49%
    nited States (in millions) Market share is constant
    Base year : 2016
    Sales Increase due to See
    Sales (2020) Sales (2021)
    Growth Exhibit 3
    $193.86 $193.86 $0.00
    $195.06 $203.25 $110.26
    $139.94 $141.90 $28.32
    $164.81 $165.63 $12.20
    Annual Sales Forecasts for IFG Wood Coatings Customer Groups by Estimated Growth Rate in the United States and Market

    Customer Group Sales (2016) Growth Rate Sales (2017) Sales (2018) Sales (2019)

    Furniture $193.86 5.00% $203.55 $213.73 $224.42


    Flooring $165.46 5.20% $174.06 $183.12 $192.64
    Cabinetry $132.37 2.40% $135.55 $138.80 $142.13
    Other $161.55 5.50% $170.44 $179.81 $189.70

    Increase as a
    Customer Group Sales (17-21) Percentage of
    Total Sales
    Furniture $1,124.76 13.82% Grwoth + stealing
    Flooring $965.66 14.33% marketgrwoth
    Cabinetry $711.06 6.92%
    Other $951.21 15.08%
    e United States and Market Share Growth Rate (in millions)

    Sales Increase due to


    Sales (2020) Sales (2021)
    Growth & Share
    $235.64 $247.42 $155.46
    $202.65 $213.19 $138.36
    $145.54 $149.04 $49.21
    $200.13 $211.14 $143.46

    oth + stealing
    Change in Contributions by Estimated Adoption of Lena by Customer Group (in millions)

    Solvent Sales
    Current Sales If Lena Was Introduced
    Before Solvent Lena

    Customer Group Sales ($) Margin ($) Sales ($) Margin ($) Sales ($)

    Furniture $58.50 $28.67 $35.10 $17.20 $26.36


    Flooring $130.00 $63.70 $104.00 $50.96 $29.29
    Cabinetry $104.00 $50.96 $83.20 $40.77 $23.43
    Other $48.75 $23.89 $29.25 $14.33 $21.97

    Waterbone Sales
    Current Sales If Lena Was Introduced
    Waterborne Lena
    Customer Group Sales ($) Margin ($) Sales ($) Margin ($) Sales ($)
    Furniture $136.50 $51.87 $54.60 $20.75 $77.81
    Flooring $32.50 $12.35 $26.00 $9.88 $6.18
    Cabinetry $26.00 $9.88 $20.80 $7.90 $4.94
    Other $113.75 $43.23 $45.50 $17.29 $64.84

    NOTES

    Contribution (%)
    Solvent-based 49.00%
    Waterborne 38.00%
    Lena 42.00%

    Lena Introduction
    Customer Group Product Line Maintain % Switch %
    Furniture Solvent 60% 40%
    Flooring Solvent 80% 20%
    Cabinetry Solvent 80% 20%
    Other Solvent 60% 40%
    Furniture Waterborne 40% 60%
    Flooring Waterborne 80% 20%
    Cabinetry Waterborne 80% 20%
    Other Waterborne 40% 60%
    Was Introduced
    Lena After
    Total Margin
    Margin ($) (After lena) Diff. ($)
    ($)
    $11.07 $28.27 ($0.39) See Exhibit 4
    $12.30 $63.26 ($0.44)
    $9.84 $50.61 ($0.35)
    $9.23 $23.56 ($0.33)
    ($1.51)

    Was Introduced
    Lena
    Total Margin
    Margin ($) Diff. ($)
    ($)
    $32.68 $53.43 $1.56
    $2.60 $12.48 $0.13
    $2.07 $9.98 $0.10
    $27.23 $44.52 $1.30
    $3.08
    Wood Coatings Cost by Usage Data

    Real Costs to
    Waste Manufacturers
    Selling Price
    Product Type (per unit) Minimum Maximum Minimum Maximum
    Solvent-based $28.00 12% 30% $31.36 $36.40
    Waterborne $34.00 12% 30% $38.08 $44.20
    Power-based (Lena) $38.00 2% 6% $38.76 $40.28
    Wood Coating Sales by Distribution Channel (in millions)

    Direct Channel Indirect Channel


    Customer Group Total Sales Sales % Sales $ Selling Costs % $ Selling Costs
    Furniture $195.0 60% $117.00 $8.19 40% $78.00 $16.4
    Flooring $162.5 35% $56.88 $3.98 65% $105.63 $22.2
    Cabinetry $130.0 30% $39.00 $2.73 70% $91.00 $19.1
    Other $162.5 65% $105.63 $7.39 35% $56.88 $11.9
    TOTAL $650.0 $318.50 $22.30 $331.50 $69.62
    See Page 7

    Direct Indirect
    60% of furnit 40
    65 other 35%
    35 65%indirecflooring
    30% 70%infiect cabin

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