Marketing Management Assignment –

Soren Chemicals_Coracle

1. What is the addressable market size for Coracle? Is the first-year goal of $1.5
million sales reasonable?
a. The addressable market size is about 67.5 Million. At a 1.5 Million
target, a 2.2% market share is a very reasonable target to start with for
a new product.
2. Why is Soren Chemical struggling to sell Coracle? What are the implications of
the channel structure for pool chemicals? How would you describe the selling
process for Kailan MW versus Coracle?
a. The company was struggling to sell the product as the amount of product
awareness was not done. Although there was some level of effort from
the company, the final sale was delegated to the whole sellers, who did
not push the product as hard. Also the limitations by Soren to not allow
the wholesale companies to sell it as a private brand also further limited
its reach.
b. Channel structures ensured that the final user received a full range of
pool cleaning solutions rather than one specialized product that was a
speciality of Soren chemicals.
 c. The Differences is that kalian was supplied to very centralized
companies who understood the various advantages that the product
offered but coracle was targeted towards the consumer products market
where the advantages of the product and product awareness was not as
deep. The product was aimed at different product categories so hence
the difference in the selling process.
3. What is the highest price Soren Chemical can set for Coracle? What is
Coracle really worth to end-users? Given its superior performance, how can
Coracle be priced relative to the competition? What are the constraints? What
is the impact of a higher retail price on distributors? Retailers?
a. As one of the highest priced products in the market already, it would not
be advisable for the company to raise the prices of the product further.
b. Coracle has better cleaning properties but since the communication
process of its advantages has not reached end users, a better strategy to
establish its worth needs to be better communicated to the end users.
c. Given its higher superior performance, coracle is already higher priced
than its competitors.
d. The Constraints of raising process further is that already dismal sales of
the product may be further dented by the new raised price.
e. The Higher retail price would increase the margins given to the retailers
and distributors, but it is a two edged sword, while the dealer might be
motivated to push the product further, the higher price may be a
limitation to the consumer.
4. What action plan do you recommend for Coracle? Should Soren Chemical
adopt a “push” or a “pull” strategy?
a. Soren needs to adapt a pull strategy rather than a pull strategy. It
already has a very effective product so the main reasons why sales are
lagging is because it was launched in September which is almost the end
of the season. So the company needs to reformulate its communication
strategy and reach out to the consumers for the upcoming season to
make sure that the advantages of its products are effectively
communicated to ensure a product pull from the consumers side due to
its advantages rather than use a push strategy by which it would be
dependent on the retailers/whole sellers which did not work very
effectively during its launch.