Essay Soren Chemical Case Analysis

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Soren Chemical Case Analysis

Jaimie DeVries
Mark Lesko
Katherine Milliken
Lori Quintavalle

Florida Atlantic University

Advanced Marketing Management – MAR 6815 – Online – Fall 2010

Dr. Gopalkrishnan Iyer

October 25, 2010
Problem Statement

Soren Chemical produces industrial strength chemicals, cleaning solutions, and chemical solutions for treating water. Since it’s founding in 1942, Soren has operated as a business-to-business company. They have recently introduced Coracle, a pool clarifier aimed at the consumer market. The goal for first year sales is $1.5 million. At 6 months, sales of Coracle are just $111,000. For Coracle to improve sales in the second half of the year and come closer to meeting the first
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It would require more sales for Soren to make up for such a large marketing expense.
Decision Criteria With the selling season for residential pool chemicals almost over, Soren must make its decision on a push and pull strategy to best salvage what remains of the current year and position Coracle for next year’s selling season. Reaching the goal of $1.5 million in sales of Coracle has become increasingly unrealistic, so it is important to at least see more improvement in the amount of sales for the rest of the year. Because of such poor sales performance in the first half of the year, Soren must choose the channel management strategy requires minimal investment and best creates a chance for Coracle to be in greater demand going into year two.
Analysis of Alternatives A lack of experience in business-to-consumer marketing is apparent in Soren’s current communications to end-users. This market, unlike the market for commercial-use chemicals, emphasizes the use of clarifiers to ensure “perceived cleanliness” and clarity of water. The consumer market also appears to be minimally price-sensitive, as communications regarding annual savings are relatively ineffective in increasing sales of Coracle. Soren’s marketing efforts in the first half do not fall in line with the demands of their new customer. A pull strategy would involve adjusting communications to speak more directly to the very different concerns that pool owners and service
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