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mortgage levels also had some impact on total sales. When the house market slowed
down, people tended to spend more on DIY activity to improve the attractiveness of their
houses, with an inevitable effect on the level of paint sales. For the branded product range,
alterations in colour demand meant that sales volumes needed to be continually
monitored. The trends in demand are in Table 4D.
The current branded product range had ten colours produced in two tin sizes, one and two
litres. Sales varied considerably within the range with the best selling line over the past 5
years varying between brilliant white, Table 4D.  Five year branded sales history by type -
000's litres, with year 5 most recent.
Year
                        
1
2     
3     
4     
5
Brilliant white   
400    
425   
500   
600   
750
Magnolia               
325    
400   
420   
400   
425
Oyster                 
200    
220   
250   
275   
325
Sand gold              
260    
280   
280   
270   
260
Black 
225    
380   
380   
400   
550
Lime green         
160    
120   
200   
160   
125
Clear blue            
450    
400   
450   
550   
650
Aluminium          
500    
200   
350   
440   
640
Bitumen                
200    
300   
450   
700   
600
Textured white     
300    
300   
300   
500   
450
Total branded       
3020   
3025   3610   4795   4775
aluminium, and bitumen. Homecolour had a reputation in the trade, and among the more
knowledgeable customers, for producing higher quality exterior paint than the competition,
and it was in this sector of the market that the company achieved its highest sales. Market
surveys suggested that the company had around a 5 per cent quality advantage over the
competition. The own label production was much more varied in colour and tin size - the
company, over the past 2 years, had produced around 50 different colours in up to 5
different tin sizes. Currently there were considerable variations in the type of packaging
that was provided in the own label and branded sectors. The company had yet to
standardise on a single branded theme and the level of instructions on the packaging
varied considerably throughout the product range. Each pack had the Homecolour logo,
and limited instructions.
As the recession worsened, there was a steady increase in the number of consumers
turning to DIY for their decorating. A considerable number of consumers without
experience of decorating were now buying paint. A survey had revealed that an increasing
number of customers were finding paint quality dissatisfying because of their failure to
properly prepare surfaces. This survey revealed that 46 per cent of current customers
failed to remove current paint from surfaces; and over 50 per cent expected that one coat
of paint would be sufficient to cover all previous paint or wallpaper products. In order to
remain competitive, against the two major companies in the market, Homecolour had to
ensure that a high level of stocks were maintained in the major outlets. The pressures on
selling space within most retail outlets were becoming intense, and shortage of stock had
in several cases ended in  the company being  de-listed by three regional DIY chains. The
current sales pattern had shown that the company was experiencing major problems in
certain of the outlets with sales significantly below plan. Own brand sales were 20 per cent
down on plan  - which had envisaged a 5 per cent increase in volume; while branded
products were within 2 per cent of plan  - based on an 8  per cent volume increase over
the previous year.
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