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    Case Analysis - Soren Chemicals

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    HimanshuGarg
    Soren Chemicals launched a new swimming pool clarifier product called Coracle to target the residential pool market but it is not meeting sales targets. There are several reasons for its poor performance: it was launched late in the swimming season; distributors prefer to sell unbranded or diluted versions for higher margins; and pool owners lack awareness of Coracle's benefits. To revive Coracle's sales, the report recommends an advertising campaign to create demand, emphasizing the 20-30% savings over other chemicals, focusing on Coracle's lower annual cost versus competitors, and compensating retailers and distributors for lower margins from Coracle sales.

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    Case Analysis - Soren Chemicals

    Uploaded by

    HimanshuGarg
    2K views4 pages
    Soren Chemicals launched a new swimming pool clarifier product called Coracle to target the residential pool market but it is not meeting sales targets. There are several reasons for its poor performance: it was launched late in the swimming season; distributors prefer to sell unbranded or diluted versions for higher margins; and pool owners lack awareness of Coracle's benefits. To revive Coracle's sales, the report recommends an advertising campaign to create demand, emphasizing the 20-30% savings over other chemicals, focusing on Coracle's lower annual cost versus competitors, and compensating retailers and distributors for lower margins from Coracle sales.

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    Case Analysis_ Soren Chemicals

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    Soren Chemicals launched a new swimming pool clarifier product called Coracle to target the residential pool market but it is not meeting sales targets. There are several reasons for its poor performance: it was launched late in the swimming season; distributors prefer to sell unbranded or diluted versions for higher margins; and pool owners lack awareness of Coracle's benefits. To revive Coracle's sales, the report recommends an advertising campaign to create demand, emphasizing the 20-30% savings over other chemicals, focusing on Coracle's lower annual cost versus competitors, and compensating retailers and distributors for lower margins from Coracle sales.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    2K views4 pages

    Case Analysis - Soren Chemicals

    Uploaded by

    HimanshuGarg
    Soren Chemicals launched a new swimming pool clarifier product called Coracle to target the residential pool market but it is not meeting sales targets. There are several reasons for its poor performance: it was launched late in the swimming season; distributors prefer to sell unbranded or diluted versions for higher margins; and pool owners lack awareness of Coracle's benefits. To revive Coracle's sales, the report recommends an advertising campaign to create demand, emphasizing the 20-30% savings over other chemicals, focusing on Coracle's lower annual cost versus competitors, and compensating retailers and distributors for lower margins from Coracle sales.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    CASE ANALYSIS

    STRATEGIC MARKETING



    Soren Chemicals: Why is the New Swimming Pool Product
    Sinking

    Group Members:
    Ankit Garg 13125010
    Himanshu Garg 13125020
    Rajan Dokania 13125041
    Shivani Gupta 13125051
    Shrikant Gupta 13125052
    Udit Jain 13125055
    About Soren Chemicals:
    Founded in 1942, generated revenue of $450 Million in 2007
    Over 350 products, wide range of Industrial chemicals and water-cleaning solutions
    Kailan MW and Coracle are two types of water-clarifiers
    Historically Company had concentrated on B2B sales but now it is investing
    selectively in developing products for consumer markets
    Kailan MW and Coracle products
    Kailan MW is used primarily for cleaning large commercial pools (capacity 1 million
    gallons) and water parks (B2B) while Coracle is used for cleaning residential pools
    (B2C)
    Revenue of kailan MW: $6.1 Million in 2006, 7% growth expected in 2007
    Revenue of Coracle: $111000 (7450 units) in 6 months against an annual target of
    $1.5 Million (100000 units)
    Market Characteristics
    Market Size: $30 Million (2007), relatively mature market
    Distribution Channel: Manufacturer-Formulators-Water parks & Commercial Pools
    Key Influencers: Formulators, water-safety consultants, Pump & Filter manufacturers
    Buyer Behaviour: Professional and understand the use, benefits and importance of
    clarifiers for their business, safety of their customers matters most
    Reasons for failure:
    Soren has launched Coracle in the month of September which is the last month of
    swimming season
    Lack of support from Distributors: Distributors are focused on selling unbranded products/
    diluted Kailan to earn better margins on these products. Also, since use of Coracle
    will reduce the consumption of other pool chemicals by 20%-30%, its promotion will
    result in reduction of their overall revenue and profits.
    Lack of awareness among Pool Owners: No exclusive demand of Coracle from Pool Service
    Professionals and contractors


    Companys Dilemma:
    1. Does residential pool owners are aware about the benefits of Coracle over its
    competitors
    2. Per unit prices of Coracle are higher than that of its competitors HydroPill, Clear Blu
    and Purity
    3. Challenges of pass through sales of distributors and retailers as their margin will take
    a hit, if they continue selling Coracle at current price levels
    Analysis:
    Excel sheet as been attached for calculation part which is attached below and it has following
    tabs:
    1. Tab1: Potential Market
    2. Tab2: Value pricing of Coracle
    3. Tab3: Competitive Parity
    4. Tab4: Retailers new margin
    5. Tab5: Distributors new margin
    Soren Chemicals.xlsx

    Recommendations:
    We are suggesting following recommendations to revive the B2C market for Coracle (Soren
    Chemicals):
    (a) Aggressive Mailing campaign, advertisements, display counter in trade-shows to
    create awareness among pool owners about Coracle and capture the untapped market
    of $112.5 mn
    (b) Promote the Value proposition of 20-30% savings of pool chemicals by use of
    Coracle resulting in higher profits for professionals and contractors
    (c) Focus on Lower annual cost compared to ClearBlu ($39.06 vs $56.25) to gain
    competitive advantage
    (d) Retailers and Distributors should be compensated for their margins as $17.11 and
    $22.71 respectively as sale of Coracle will result in losses for them and it should in
    accordance with the excel sheet attached above

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