Soren Chemical –

Case Analysis
SUBMITTED BY GROUP 10 (B2B – 1)

AMAN JAIN 024006

PARICHITA RAGHAV 024033
PULKIT DHANAVA 024036
RONIT GUHA ROY 024042
Important Facts

 Soren Chemical – Industrial-strength cleaning solutions company, founded in 1942, with revenue of
$450 Million in 2007

 Had over 350 products in Industrial chemicals and water-cleaning solutions segment

 2 main types of water clarifiers produced - Kailan MW for large water park facilities and newly
developed Coracle for residential pools

 Historically, company focused on B2B sales with Kailan MW product, but wanted to enter B2C
market through Coracle product
Key Issues
 Soren Chemical launched Coracle in September 2006, with volume target of 50,000 gallons for the
first year of sales

 But by Feb 2007, Soren only sold 3,735 gallons, with revenue of $111,000 against expected sales of
$1.5 million (for full year)

 Formulators were focused on selling diluted version of Kailan MW, under private label

 No exclusive demand of Coracle from Pool Service Professionals and contractors

Recommendations - Marketing Mix
Elements
 Target Segment – Residential pool owners

 Product - Coracle could be applied fewer number of times, with less use of shock treatments &
enzymes, thus was cost effective as compared to competitor’s product

 Promotion – Since Coracle was effective in terms of annual cost, promotion explaining cost-saving
value proposition should be focused directly on pool owners (example, through TV ads), rather than
through specialty retailers and pool service professionals
Recommendations - Marketing Mix
Elements

 Keeping same cost per container and cost per treatment at retail level, the margin % of retailer can be
increased by 5% (from 15% to 20%) and distributor’s margin can be increased from 30% to 35%.
This can help to push products to residential pool segment and can increase sales through the
distributor’s channel. Subsequently, Soren Chemical can reduce its gross margin % by 5% (from
35% to 30%), for short term, till the product develops significant market share.
Thank You!!!