Wattyl and its Markets
Wattyl is a company dealing with the manufacturing, selling and distribution of paint and services coating. It has its operations in both Australia and New Zealand. It produces a wide range of paints, lacquers, varnishes and special purpose and protective coatings. It has a range of customers mostly being home occupiers, contract painters and industrial customers. 1. 2 The stability of wattyls position in the retail market 1. 2. 1 Its strengths Increase of the sales of Wattyl markets in Australia by 1%. The sales of Wattyl increased in the financial year of 2006 compared to the weak sales in the 2005 financial year.
The increase was attributed to the increase of the products price across the business that was necessary to recover the cost of raw materials and packaging that had increased tremendously in the 2005 financial year. (Griffin, Joseph, & Shap, 1996). The market was strengthened by introduction of new Wattyl product, up dating of some of its products such as wood care and kill rust products and the increased demand for products like i. d that had gained its popularity due to its content that had no residual paint oduors.
Increase of the earning in 2006, because of the company’s previous savings, attainance of the control over its production costs and the improved performance in service and product delivery. It helped attract more customers that enjoyed the improved service delivery. The company increased efficiency was another wattyl’s strength. The contributing factor to the increasing efficiency was deleting of stock keeping units by a thousand. A factor that further contributed to the easing the manufacturing and distributing channels.
Key Drivers are the following key issues: Reduction in labour costs. The reduction of the money spent on paying the employees need to be reduced through, improvement of hiring policies across the business. When reduced, the production cost of the company’s product will go down, leading to reduction of the product cost that means, many customers will prefer their products since they are cheaper. Company owned store networks- The Company is likely to improve its supplying strategy since it has its own store. 1. 2. 2Threats The company is faced by several threats;
Expense control. The expenses of the production of the company should be well controlled and ensured that they are reduced for fair competition with the other competitors. The currency exchange should be revised at its markets in New Zealand. The recovery rate of the home-based market for its products has been slow and has shown no signs of improving. More focus in this process is needed. Wattyl has a range of product brands in both Australia and New Zealand markets. The products have won the retail market in Australia. (Camesasca & Peter, 1999).