Soren Chemical: Why is the New Swimming Pool Product Sinking? Case Study Analysis Submitted by Group
Introduction Soren Chemicals was founded in 1942 by Timothy Soren to sell industrial-strength cleaning solutions. Since then, the company had expanded its focus to include industrial chemicals for lubricants and fuels, as well as a range of chemical solutions for treating drinking water and wastewater. Historically, Soren Chemical had concentrated on business-to-business sales and placed little emphasis on creating consumer awareness of its products. Objective Jen Moritz, the protagonist of this case study, is a marketing manager in the Water Treatment Products group with responsibility for chemicals used in drinking and pool water Since the product was launched in September 2006 and the results collected in February 2007, we cannot estimate the impact that the off-season has on the sales of the product. Normally, the sales would be higher in the spring and summer months between March to July, since more people would be using the swimming pools when the weather is warmer. It is possible that this point escaped the attention of Moritz and was not taken into consideration while estimating demand.
Alternative strategies and recommendations Since the current annual cost at retail price is $39.06, which is less than the annual average cost of clarifiers at retail prices ($50), there is scope to increase the gross profit margin of the retailer and distributor and thereby increase the retail price of Coracle by approximately $10 without drastically affecting sales. This way there is more incentive for the distributors and retailers to promote the sales of Coracle. Reduce the gross profit margin of Soren Chemicals from the current 35% and consequently increase the gross profit margin of the retailers and distributors. This way the retail price to the customer won’t be affected. However, the company will suffer from reduced profits at the expense of better sales revenue. This strategy is
Soren Chemicals Case Study 1. What is the addressable market size for Coracle? Is the first-year goal of $1.5 million sales reasonable? Answer: Currently there are 3 major players in the residential pool clarifier market, Keystone chemicals, Kymera and Jackson Laboratories as well as several distributors who are diluting and private lebeling Soren’s Kailan MW for residential use. Soren’s Jen Moritz estimates that these players have between 15 and 20 percent (15-20%) of the residential pool market…
Although Soren Chemical has had success in the recreational pool clarifier market, the new Coracle consumer brand that targets the small recreational and household swimming pools has suffered a very disappointing sale of merely 3,725 gallons at $110,000 through the first half of the selling season when Soren has predicted a $1.5 million in sales and 100,000 unit in volume for Coracle. The issue currently faced by Soren is that Coracle’s sales is heavily dependent on the wholesale distributors’ willingness…
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electrons could be arranged in a stable configurations within an atom and that the mathematically stable arrangements could account for the similarities and regularities among chemical elements that the periodic table of the elements displays. It was becoming clear that the electrons were responsible for chemical affinities between elements, that chemistry was ultimately electrical. Thomson just missed discovering X rays in 1884. He was not so unlucky in legend as the Oxford physicist…