Case Analysis: Soren Chemical
Autor: heychill • April 18, 2016 • Case Study • 1,344 Words (6 Pages) • 1,119 Views
Case Analysis: Soren Chemical
Overview
Soren Chemical sells industrial-strength cleaning and treatment solutions. In 2006 their product line included over 350 products, and their company revenue was around 450 million dollars. They have a particularly successful product called Kailan MW, which is a water clarifier used in large recreational water parks and pools. Kailan MW boasted a revenue of 6.1 million dollars in 2006, and was on pace to increase 7% in 2007. Seeing the success of it’s other products and the untapped market potential of smaller residential pools, Soren Chemical developed a product similar to Kailan MW, but specifically for smaller household pools, called Coracle. With their new product, Coracle estimated 100,000 units sold in its first year, but halfway through the first season it had only sold 7,450 units. In the following paragraphs we will discuss Coracle’s strategy and where it went wrong, as well as talk about how they can potentially improve their strategy and increase their sales.
- Target Market
Coracle’s target markets are the specialty retailers and service professionals who will then provide the product to the owners of the 9 million residential swimming pools in the United States, all which need consistent maintenance. The chart below illustrates that approximately 80%, or 7,200,000 of these pool owners maintain it themselves, buying the necessary supplies at special retail stores. The other 20% (1,800,000) rely on the service professionals to provide the supplies and maintenance.
[pic 1]
Specialty Retailers | 80% (of 9,000,000) | = 7,200,000 |
Service Professionals | 20% (of 9,000,000) | = 1,800,000 |
- Goals
With a goal of only 100,000 units sold, Coracle’s target was quite realistic, since that many units would only clean a little over 1% of the nations residential swimming pools. 1% is a very reasonable goal for a new product to achieve with a proper plan of action and strategy.
1.11% x 9,000,000 pools = 100,000 |
- Position, Price and Advertising
Coracle’s position focused on the fact that its product saved the user 20% to 30% annually on pool chemical costs. Soren Chemical made this their central focus and marketing message, even prominently putting it on the bottle. Part e. of this case analysis goes into more detail of how successful their effort was.
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