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Soren Chemicals: Why is the new swimming pool product sinking ?

Case Analysis
 Founded in 1942 by Timothy Soren
 Provides industrial strength cleaning solutions, lubricants, fuels and other
industrial chemical solutions for water treatment.
 A leading player in the B2B segment with highly successful Kailan MW water
clarifier.
 Over 350 products and revenues worth $350mn
 Minimal presence in the consumer market.
 Since 2002, started investments in developing products targeted specifically
for consumer market
Product Background
 Kailan MW Flocculants. (Clarifier)
 Flocculants can be thought as chemical nets that work in water to filters
particles as small as 0.5 microns.
 Effective in dealing with:
- Oil (deodorant, hair spray, lotion cause odoor and Cloudiness)
- Combat organic debris (algae, dangerous pathogens such as E.Coli and
Cryptosporidium)
Problem Identification
 Soren Chemical launched Coracle only in September 2006, which is the last
busy and most suitable month for swimming. The sales team for Coracle did
not consider following effects:
 Inappropriate launch time – Launched at the end of swimming season
September giving lesser time to market it
 Wrong Positioning – benefit of aesthetics and perceived cleanliness
were not pitched in – mostly valued by consumers
 Problems with distributors – Around 70% of respondents complained
that Coracle was not provided by the distributors
 Currently corracle has 3 leading competitors for residential pools clairifiers
(each of competitor has a 15% to 20% share:
o Keystone Chemical
o Kymera
o Jacson Laboratories
Coracle SWOT
 Strength
o Kailan MW has an advantage in the quality of the product.
o Reducing pool’s owner annual chemical cost by 20% to 30%
 Weakness
o New product/Entry.
o Higher unit price than competitors.
o Distributors do not attracted enough to promote Coracle.
o Coracle only promotes to distributor, retailer, and professional.

 .May). (Swimming seasons .  70% respondents state that coracle had not been offered by distributor. (from price perspective and advantage)  Opportunity o Potential Great Demand  70% respondents had not received Coracle material yet. aesthetics and perceived cleanliness) Create awareness among the masses regarding the benefits  Educate consumer about the superiority of products. (buy from retailers.o End users do not realize the value of Coracle relative to other clarifier.  Review the pricing and package strategy because it has sensitive to end consumer. o Different purchasing behavior between professional (from wholesale distributor) and consumers.  Threat o Need additional advertising budget.  Re-launch the product to the market on summer.

Awareness Direct email Marketing: Educate consumer about the superiority of products. Pool Party – activities) .SOURCE PROBLEM  Awareness of product  Lake of Positioning – benefit of aesthetics and perceived cleanliness were not pitched in – mostly valued by consumers  Inappropriate launch time – Launched at the end of swimming season September giving lesser time to market it  Problems with distribution – Around 70% of respondents complained that Coracle was not provided by the distributors  No shelf space  Currently corracle has 3 leading competitors for residential pools clairifiers (each of competitor has a 15% to 20% share: o Keystone Chemical o Kymera o Jacson Laboratories BRAND POSITION Products Benefit Price benefit USP SOLUTION Re-launch – Create new campaign on summer time .Awareness Promote aggressively to consumer (Re-launch. Reducing pool’s owner annual chemical cost by 20% to 30% Partnership with cleaning service company – Discounts Increase the price for retailer – more shelf space .