JanSan Category Opportunity: A Strategy for Growth Market Overview
The Opportunity $21 billion end-use market. IDC customers are already buying JanSan from other distribution. Penetration of existing accounts helps reduce the risk of competition within the account. Penetration of existing accounts costs less and is less time consuming than acquiring a new account. JanSan included in the consumable commodities category. Most buyers are the same as your current contacts.
The Market Breakdown Paper/Plastics $8.799 billion 41.7% Chemicals $7.638 billion 36.2% Supplies $2.363 billion 11.2% Power Equipment $1.477 billion 7.0% Other Janitorial $0.823 billion 3.9% $21.10 billion 100% Source: ISSA 2002 Report on Sanitary Supply Distributor Sales
Sales By Distribution Segment Source: ISSA 2002 Report on Sanitary Supply Distributor Sales
Sales By Distribution Area Source: ISSA 2002 Report on Sanitary Supply Distributor Sales
Sales By Market Segment Change vs 2000 Industrial $2,891 -8% Contract Cleaner $2,602 33% Commercial $2,553 30% Health Care $2,532 17% Educational $2,426 -12% Restaurants/Clubs $2,005 28% Retail $1,899 21% Hotels/Motels $1,329 Government $1,245 -9% Transportation $537 -35% Residential $511 -34% Religious $380 -3% Recreation $190 -28% Source: ISSA 2002 Report on Sanitary Supply Distributor Sales
Current Market Conclusions Market dominated by Janitorial Distributor (63%) Majority of accounts are local -- within a 60 mile radius (56%) IDC included in “other Specialty Distributors” that service less than 4% of the market Strong IDC market segments like Commercial (30%) and Retail (21%) show double digit growth in this category
Possible IDC Advantages over the “Typical” JanSan Distributor Technologically Sophisticated Reporting Internet ordering “Evolved” marketing strategies “Evolved” sales strategies “Evolved” stocking strategies Single source with office products Overall “ease” of doing business
JanSan Category Opportunity: A Strategy for Growth JanSan Industry “Buzz Words”
Commonly Used JanSan “Buzz Words”
Other potential contacts Who To Call On? Vision 2004 data shows that over 60% of OP buyers also purchase JanSan items Other potential contacts Custodial Engineer Facilities Manager Director of Environmental Services Maintenance Department Manager Safety Coordinator Director of Housekeeping