What or how much is the value (monetary) advantage of Coracle over the competitor brands. Ans. Company Name (A) Cost of 1 containe r (B) Total no. of ounces in one containe r (No. of gallons in a containe r * 128) (C ) Soren Chemical $25 .5 * 128 = 64 .25 * 128 = 32 64/10 = 6.4 32/5= 6.4 6.4/2 = 3.2 1.5625 containers 3.125 containers 5 containers $ 39.0625 No. of treatmen ts possible in a container (C / no. of ounces per treatmen t ) (D) No of months one container will last for (D/ replaceme nt cycle) (E) *1 gallon = 128 ounces Average containers required in 5 months(Avg . Month of pool usage(5)/ E) Cost for 5 months

Key Stone $15 Chemical Jackson Labs $15

6.4/ 4 = 1.6

$ 46.875

1 * 128 = 128/32 = 128 4

4/4 =1


This table signifies that the annual cost of Coracle is much less than its significant competitors, and to add this Coracle is a far superior product as it reduces the annual chemical cost to 30 %, also it helps to get rid of dangerous waterborne pathogens such as E.Coli and cryptosporidium.

Q2. How to convince the retailer to push Coracle in the market without either becoming unattractive to the consumer or compromising the profit margin?
Ans.  Based on the survey which Motitz carried out, the company should target the untapped market, which includes the 70% respondents which were not able to recall the receiving of Coracle supply, which had been sent to them in response to their enquiries. Secondly, the company should also target the 70% of those respondents who showed their interest in coracle but were denied of the product because of loose distributers. They need to generate awareness among the consumers with proper advertising about the superior quality and benefits of Coracle. As this is the first product which will be the face of the Soren Chemicals and will help them to introduce in the B2C market.

 

The product is cheaper in the long run and requires less man-hours than the competitor because it is used every other day compared to the competitor’s product which required daily use. the remaining 75% of the market can be covered by Soren chemicals. Soren want to increase market share through a low-price policy but distributors and retailers prefer to work with high margins. So it would cause the demand for clarifiers rises. E2— Equilibrium point respectively for initial and final demand-supply. They should be told that on an average $300 is their average spent on chemicals and by spending a mere $50 annually. From the above graph we can observe that when demand of product increases supply for the same also increase and subsequently price also increases. Price P2 E2 S2 S1 P1 E1 1 D1 D2 Q1 Q2 Quantity Note: S1—Initial supply S2 –Final Supply D1—Initial Demand D2—final demand P1—Initial price p2—Final price E1.   The company should generate awareness among the masses as to how to make use of clarifiers regularly as only 25% of the market is aware about the use of clarifiers. they can reduce the expenditure on chemicals by 30%. By Srish Nigam (2013189) Shubham Ararwal (2013190) Sudipta Kumar Bahali (2013193) Siddhath S. and would can create a brand name which would also help retailers to make profit. So if the demand of product will increase price will also supply will also increases through which retailer can make profits without compromising profit. Negi (2013192) Suhas A R (2013194) Shubhangi Bhargav (2013191) Garima Sehrawat (2013204) Group-2 Sec-C . Please refer below graph to understand supply and demand.

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