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Prepared by :
Iwan Kurniawan Anita Hutahayan Yan Anantakusumo Rizki Setyo P
.Company Background Founded in 1942 by Timothy Soren Sell : Industrial-strength cleaning solutions Industrial chemical for lubricants and fuels Chemical solution for treating drinking water and wastewater. 350 products line 2006 revenue is $450 million.
5 microns.Coli and Cryptosporidium) . Effective in dealing with: Oil (deodorant.Product Background Kailan MW Flocculants. dangerous pathogens such as E. hair spray. lotion cause odoor and Cloudiness) Combat organic debris (algae. (Clarifier) Flocculants can be thought as chemical nets that works in water to filters particles as small as 0.
000 gallon of water Soren estimated for 2007 US Market for specialty commercial use clarifiers to be approx USD 30 Millions . hair spray and lotions hiwch cause odors na dcloudiness in water (safety hazard) One gallon of Kailan MW could effectively threat approximately 500.Product Specifications Soren sold Kailan MW and Coracle are “flocculants” chemicals that suspended particles in liquids to angglomreate into larger. heavier particles called “flocs” Kailand MW found in 2002 that effective in dealing with oils that come from deodorant.
retail price Cost per treatment. retail price Purity HydroPill ClearBlu Annual cost. retail price .PRICING Pricing .Coracle & It's competitors 60 50 40 30 20 10 0 Coracle Cost per container.
25 30% 6.84 25% 4.96 14.gross margin Distributor .gross margin Retailer .21 19.88 35% 5.21 .50 21.75 3.72 14.21 18.6 20% 3.28 3.375 14.88 35% 5.PRICING Pricing Simulations Retail Price Retailer .gross profit Soren Chemical Price Soren Chemical gross margin Soren Chemical gross profit If Distributor Margin 30% 20% 25% 25 22 23 15% 15% 15% 3.88 35% 5.gross profit Distributor Price Distributor .
Problem Identifications Coracle as one of clarifiers product that produced by Soren Chemical which targetiing residential pools that have smaller size againts commercial pools The Targeted residential pools of coracle have a lower volume of water. lower volume of swimmers. and less intense maintenance program Estimated thered are 9 millions residential pools in US Currently corracle has 3 leading competitors for residential pools clairifiers (each of competitor has a 15% to 20% share: Keystone Chemical Kymera Jacson Laboratories .
normally people will swim in summer time (May-September) .5 Millions The frequency of usage of residential pools and residential pool chemicals will be increased from May (the average months of pools usage are 5 months).Problem Identifications The first year goal for coracle is USD 1.
The Analysis .
pools services professionals sides. pool services professionals. pools speciality retailers sides and mass retailers will also impact the sales of coracle. wholesales distributors. If consumers decide not to use the pools until next may.The Analysis Consumers. mass retailers neet to take time to know the Coracle brand The Stock in the consumers sides. and no need to purchase the clarifiers like Coracle Consumer market of residential pools emphasized more on aesthetics and . pools specialty retailers. they may not maintain the pools.
meanwhile Coracle targets at residential segment.The Analysis 30% of the renspondents recalled receiving the corracle materials that soren Chemical had sent in response to their inquiries. Furthermore. At least 2 formulators who dilute Kailan KW with a private label and sell to distributors for consumer market and this will compete with coracle The Retail price for Sore per container of 0. and this is based on a .5 Gallons has been settled as USD 25. 70% of the renpondents stated that their distributors had not offered Coracle or it seems Coracle’s sales team did not deliver sufficient efforts to introduce this kind product Ther is unclear gap between Kailan MW and Coracle even though kailan MW targets at the segment of commerical pool and water parks.
(from price perspective and advantage) .Coracle SWOT Strength Has Kailan MW advantage as product. retailer. Reducing pool’s owner annual chemical cost by 20% to 30% Weakness New product/Entry. End users do not realize the value of Coracle relative to other clarifier. Higher unit price than competitors. and profesional. Distributors does not attracted enough to promote Coracle. Coracle only promotes to distributor.
Threat Need additional $600. aesthetics . 70% respondents states that coracle had not been offered by distributor.000 as advertising budget. Different purchasing behavior between professional (from wholesale distributor) and consumers. ( buy from retailers.Coracle SWOT (Cont’d) Opportunity Potential Great Demand 70% respondents had not receive Coracle material yet.
it can not refered as good season for sales. Review the agreement between Soren and distributor about “differentiated Chemical Agent”. Accept Morrits marketing budget proposal.The Alternatives Soren had launched Coracle in insuitable month because September is the last busy month for swimming season. Review the pricing and package strategy because it has sensitive to end consumer. . Can be add some physical evidence and free testing. Consumer education. to promote to end user not only to distributor chain.
20% $22 25% $23 Promote aggresively to end consumer. Soren has to try to bypass the wholesale distributors. (swimming seasons). Renegotiating with wholesale distributor about gross margin about 20% decreasing retail price. selling limited range to wall mart and homedepot. .Action Plan Priority the restructuring of pricing product strategy. Re-launch the product to the market on summer. Educate consumer about the advantage of products.
and make then aware about the facts the product offering Define clear margins for the distributers who may sell the diluted product .Conclutions and Suggestions Opportunity exists in terms of margins for the distributers and retailers Deliver clear message to the end users.