Soren Chemicals: Why is the new swimming pool product sinking ?

Case Analysis
Founded in 1942 by Timothy Soren
Provides industrial strength cleaning solutions, lubricants, fuels and other
industrial chemical solutions for water treatment.
A leading player in the B2B segment with highly successful Kailan MW water
clarifier.
Over 350 products and revenues worth $350mn
Minimal presence in the consumer market.
Since 2002, started investments in developing products targeted specifically
for consumer market
Product Background
Kailan MW Flocculants. (Clarifier)
Flocculants can be thought as chemical nets that work in water to filters
particles as small as 0.5 microns.
Effective in dealing with:
- Oil (deodorant, hair spray, lotion cause odoor and Cloudiness)
- Combat organic debris (algae, dangerous pathogens such as E.Coli and
Cryptosporidium)
Problem Identification
Soren Chemical launched Coracle only in September 2006, which is the last
busy and most suitable month for swimming. The sales team for Coracle did
not consider following effects:
Inappropriate launch time Launched at the end of swimming season
September giving lesser time to market it
Wrong Positioning benefit of aesthetics and perceived cleanliness
were not pitched in mostly valued by consumers
Problems with distributors Around 70% of respondents complained
that Coracle was not provided by the distributors
Currently corracle has 3 leading competitors for residential pools clairifiers
(each of competitor has a 15% to 20% share:
o Keystone Chemical
o Kymera
o Jacson Laboratories
Coracle SWOT
Strength
o Kailan MW has an advantage in the quality of the product.
o Reducing pools owner annual chemical cost by 20% to 30%
Weakness
o New product/Entry.
o Higher unit price than competitors.
o Distributors do not attracted enough to promote Coracle.
o Coracle only promotes to distributor, retailer, and professional.

o End users do not realize the value of Coracle relative to other clarifier.
(from price perspective and advantage)
Opportunity
o Potential Great Demand
70% respondents had not received Coracle material yet.
70% respondents state that coracle had not been offered by
distributor.
Threat
o Need additional advertising budget.
o Different purchasing behavior between professional (from wholesale
distributor) and consumers. (buy from retailers, aesthetics and
perceived cleanliness)
Create awareness among the masses regarding the benefits
Educate consumer about the superiority of products.
Re-launch the product to the market on summer. (Swimming seasons - May).
Review the pricing and package strategy because it has sensitive to end
consumer.

SOURCE PROBLEM
Awareness of product
Lake of Positioning benefit of aesthetics and perceived cleanliness
were not pitched in mostly valued by consumers
Inappropriate launch time Launched at the end of swimming season
September giving lesser time to market it
Problems with distribution Around 70% of respondents complained
that Coracle was not provided by the distributors
No shelf space
Currently corracle has 3 leading competitors for residential pools clairifiers
(each of competitor has a 15% to 20% share:
o Keystone Chemical
o Kymera
o Jacson Laboratories
BRAND POSITION
Products Benefit
Price benefit
USP
SOLUTION
Re-launch Create new campaign on summer time - Awareness
Promote aggressively to consumer (Re-launch, Pool Party activities) - Awareness
Direct email Marketing: Educate consumer about the superiority of products.
Reducing pools owner annual chemical cost by 20% to 30%
Partnership with cleaning service company Discounts
Increase the price for retailer more shelf space