FLARE CASE STUDY

Group 10
 B UYI N G B E HAV I O U R

YOUNGE 18 35 Luxury brand favored

64 OLDER
R Brand oriented
Heavy perfume user
Prefer images of elegance &
exclusivity Prefer classical fragrances

Word of mouth is influential Loyal

Tries new product Familiar with Loveliest

 Founded in 1942 by Timothy Soren in US
INTRODUCT
ION
Deal into industrial chemicals for
lubricants and fuels as well as a range of
Chemical solutions for treating drinking
water and wastewater

In 2006, Soren Chemicals included over 350

products with Co. revenue of USD 450Mn

Historically, they concentrated on B2B

sales and placed little emphasis on
creating consumer awareness of its
products

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 PRODUCT
BACKGROUND

Kailan MW Coracle
• Flocculant chemical that cause • Launched in September 2006,
suspended particles in liquids to flocculant chemical that cause
agglomerate into larger, heavier suspended particles in liquids to
particles called flocs, later to be agglomerate into larger, heavier
filtered out particles called flocs, later to be
• Better than other pool clarifiers in filtered out
terms of having ability to combat • Had all properties of Kailan MW
organic debris including but manufactured for the use in
waterborne pathogens Personal pools, smaller water
• One gallon of Kailan MW treated pools
500,000 gallons of water • Launched to counter competitors
(approx.), therefore suitable for in the category of domestic pool
big commercial water pools and cleaner (Keystone Chemicals,
water parks Kymera, Jackson labs)
• Economically comparable and
lesser expensive with overall
superior quality
 Market Share of Coracle

9 million 25% 15-20% 40 - 55%

Residential water Consumers are Market share of Coracle's market

pools in US familiar with the competitors share
clarifiers
Number of residential swimming pools = 9 million
%age of consumers who use clarifiers regularly = 25%
Annual average cost of clarifiers at retail prices =$50

Hence the residential pool clarifier market is roughly around

$112,500,000 (=9,000,000*0.25*50)
Addressable market = 40% * 112,500,000 = $45,000,000 as 60% is
captured by the old players

Target market= $1,485,000 (=3.3%)

Watching the advantages of Coracle, the annual retail price of

Coracle (=$39.06) is comparably less w.r.t. Keystone’s Purity
(=$46.88). Thus the first-year goal of 1.5 million-dollar sales is
reasonable.
Why is Soren chemical is struggling to
sell Coracle?

• Lack of awareness about the customers about the safety and cost analysis of the coracle for
the whole year.
• Lack in pushing the product through distribution channels as 70% of customers say they did
not find the product in the distribution centers.
• Inexperienced with the consumer brand marketing as the company has only sold B2B
product historically.
• Unable to communicate the benefits of coracle to the consumer
• Distribution channels are putting high margin on the coracle of around 30% which is
higher than competitor's product which is 20% and thus increasing the coracle price.
Should Soren chemical adopt a push or pull strategy?
• The 1st step therefore
Any one of the two will not work
should be aggressive
because the product is new.
marketing that will also detail
them about the distribution
channel where the product is
available.

• Push strategy is done mainly • Pull will work after pushing the • Push strategy like Trade Fair exhibition
during the launch of a new product when it is being newly and all in the beginning is recommended
product to make the launched! to make the product's presence felt in
products presence felt. • Pull is like- Giving discounts to the market.
• As only 25% consumers lure consumers. This is • Pull strategy like newspaper ads, social
know about the clarifiers, at consumer-centric activity by the media marketing will follow then to
first we should make the company where we sell the attract the consumers.
consumers aware about any product by keeping consumers
such product available. in our focus!
How will competition affect the price of coracle in the market?

As the product is Henko Detergents!

The consumers need
differentiated based Also, as there is When they were
to understand the launched in the
on functionality but if seasonality factor
technical benefits of market, they were
the consumers are not involved, aggressive
the product and long costlier. But as Henko
made aware of about marketing based on
term saving related to was unable to control
the product by the push & pull strategy
this quality product so the distribution
means of will help the product
that with the given channel as well as
demonstration and in gaining the market could not deliver the
POD it can sustain the
aggressive marketing share at the given understanding of POD
market with the given
beforehand, the price among the
price tag
competition might consumers, they were
lead to lowering of the eventually wiped out
price in the market of the market and
now they sell cheap in
the Indian Market
THANK YOU