Business Marketing Case Study
Content
Business Marketing Case Study
Soren Chemical
8/11/2010 Soren Chemicals Group 12 Richa Aggarwal Praveen Sangwan Puneet Madan Piyush Nandan 2009193 2009227 2009230 (Ticket Holder) 2009307
Introduction Jen Moritz, the marketing manager for Soren Chemical Co. is struggling with the poor sales performance of Coracle, a new clarifier for residential swimming pools. The performance is puzzling because Coracle is chemically similar to another Soren product that has sold well for treatment of larger pools. Soren distributes the other product B2B through "chemical formulators" serving the commercial pools market but Soren uses wholesale distributors to sell Coracle. Given the slow start in establishing Coracle as a consumer brand, Moritz suspects that the go-to-market strategy may be flawed, but she is unsure where the problem lies; she examines channel strategy, distribution partners, the Coracle pricing scheme, the threat of competitors' offerings, and other potential problem sources. Problem Definition On one side kailan is performing well and growing but on other hand Coracle poor sales performance raising lot of questions for Jen Moritz. Moritz is confused how he can push the sales of new product. Issues Price Communication Although the annual cost, retail price of Coracle is second lowest among all 4 players in this segment, the per container cost is $25 which is the highest among all. Although on annual basis customers are saving as compared to other products but per container price is something which might not be communicating what the company wants to. Channel Issue Second issue is with the marketing channel the company has chosen. For this product the company is following consumer-oriented approach unlike its another product Kailen MW. The company is in B2B market and exploring consumer- oriented approach for this product
Consumer Awareness Consumers seem to be unaware of the value and proposition of this product. They have not understood the benefits of the product partly due to wrong price assumption and partly due to the new marketing channel which the company has adopted for this particular product. Recommendation The main issue concerning in this case is about pricing and brand awareness, once the awareness is spread about product efficiency sales of cornacle automatically start to pick up and consumer perception of high price or competitive pricing is differentiated on basis of product quality, other issue that is from channel side may be the other retailers are getting high margin on other product so that may be also a reason of retailer don t push product sale.
Soren Chemical
8/11/2010 Soren Chemicals Group 12 Richa Aggarwal Praveen Sangwan Puneet Madan Piyush Nandan 2009193 2009227 2009230 (Ticket Holder) 2009307
Introduction Jen Moritz, the marketing manager for Soren Chemical Co. is struggling with the poor sales performance of Coracle, a new clarifier for residential swimming pools. The performance is puzzling because Coracle is chemically similar to another Soren product that has sold well for treatment of larger pools. Soren distributes the other product B2B through "chemical formulators" serving the commercial pools market but Soren uses wholesale distributors to sell Coracle. Given the slow start in establishing Coracle as a consumer brand, Moritz suspects that the go-to-market strategy may be flawed, but she is unsure where the problem lies; she examines channel strategy, distribution partners, the Coracle pricing scheme, the threat of competitors' offerings, and other potential problem sources. Problem Definition On one side kailan is performing well and growing but on other hand Coracle poor sales performance raising lot of questions for Jen Moritz. Moritz is confused how he can push the sales of new product. Issues Price Communication Although the annual cost, retail price of Coracle is second lowest among all 4 players in this segment, the per container cost is $25 which is the highest among all. Although on annual basis customers are saving as compared to other products but per container price is something which might not be communicating what the company wants to. Channel Issue Second issue is with the marketing channel the company has chosen. For this product the company is following consumer-oriented approach unlike its another product Kailen MW. The company is in B2B market and exploring consumer- oriented approach for this product
Consumer Awareness Consumers seem to be unaware of the value and proposition of this product. They have not understood the benefits of the product partly due to wrong price assumption and partly due to the new marketing channel which the company has adopted for this particular product. Recommendation The main issue concerning in this case is about pricing and brand awareness, once the awareness is spread about product efficiency sales of cornacle automatically start to pick up and consumer perception of high price or competitive pricing is differentiated on basis of product quality, other issue that is from channel side may be the other retailers are getting high margin on other product so that may be also a reason of retailer don t push product sale.
