soren case

MARKETING MANAGEMENT-SOREN CHEMICAL-CASE ANALYSIS Q1. What or how much is the value (monetary) advantage of Coracle over the competitor brands. Ans.

*1 gallon = 128 ounces

Company Name (A)

Cost of 1 containe r (B)

Total no. of ounces in one containe r

No. of treatmen ts possible in a container (C / no. of ounces per treatmen t ) (D)

No of months one container will last for (D/ replaceme nt cycle)

.5 * 128 = 64

64/10 = 6.4

.25 * 128 = 32

32/5= 6.4

(No. of gallons in a containe r * 128)

Average containers required in 5 months(Avg . Month of pool usage(5)/ E)

Cost for 5 months

6.4/2 = 3.2

1.5625 containers

$ 39.0625

6.4/ 4 = 1.6

3.125 containers

$ 46.875

4/4 =1

5 containers

$75

(E)

(C ) Soren Chemical

$25

Key Stone $15 Chemical Jackson Labs

$15

1 * 128 = 128/32 = 128 4

This table signifies that the annual cost of Coracle is much less than its significant competitors, and to add this Coracle is a far superior product as it reduces the annual chemical cost to 30 %, also it helps to get rid of dangerous waterborne pathogens such as E.Coli and cryptosporidium.

Q2. How to convince the retailer to push Coracle in the market without either becoming unattractive to the consumer or compromising the profit margin? Ans. 

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Based on the survey which Motitz carried out, the company should target the untapped market, which includes the 70% respondents which were not able to recall the receiving of Coracle supply, which had been sent to them in response to their enquiries. Secondly, the company should also target the 70% of those respondents who showed their interest in coracle but were denied of the product because of loose distributers. They need to generate awareness among the consumers with proper advertising about the superior quality and benefits of Coracle. As this is the first product which will be the face of the Soren Chemicals and will help them to introduce in the B2C market.

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The company should generate awareness among the masses as to how to make use of clarifiers regularly as only 25% of the market is aware about the use of clarifiers, the remaining 75% of the market can be covered by Soren chemicals. They should be told that on an average $300 is their average spent on chemicals and by spending a mere $50 annually; they can reduce the expenditure on chemicals by 30%.The product is cheaper in the long run and requires less man-hours than the competitor because it is used every other day compared to the competitor’s product which required daily use. So it would cause the demand for clarifiers rises, and would can create a brand name which would also help retailers to make profit. Soren want to increase market share through a low-price policy but distributors and retailers prefer to work with high margins. So if the demand of product will increase price will also supply will also increases through which retailer can make profits without compromising profit.

Please refer below graph to understand supply and demand. Price P2

P1

S2 E2

S1

E1 1

D2

D1

Q1 Q2 Quantity Note: S1—Initial supply S2 –Final Supply D1—Initial Demand D2—final demand P1—Initial price

p2—Final price

E1, E2— Equilibrium point respectively for initial and final demand-supply. From the above graph we can observe that when demand of product increases supply for the same also increase and subsequently price also increases. By Srish Nigam (2013189) Shubham Ararwal (2013190) Sudipta Kumar Bahali (2013193) Siddhath S. Negi (2013192) Suhas A R (2013194) Shubhangi Bhargav (2013191) Garima Sehrawat (2013204) Group-2 Sec-C