B2B Soren Chemical Case Solution

Case Analysis
Soren Chemical: Why is the new swimming

pool product sinking?
 About Soren Chemical Company
– Founded in 1942, generated revenue of $450 Million in 2007
– Over 350 products, wide range of Industrial chemicals and water-cleaning

solutions
– Kailan MW and Coracle are two types of water-clarifiers.
– Historically Company had concentrated on B2B sales but now it is investing

selectively in developing products for consumer markets.
 About Kailan MW and Coracle products

– Kailan MW is used primarily for cleaning large commercial pools and water
parks (B2B) while Coracle is used for cleaning residential pools (B2C).
– Revenue of kailan MW: $6.1 Million in 2006, 7% growth expected in 2007
– Revenue of Coracle: $0.111 Million (in 6 months) against annual target of $1.5
Million (85% short of target)
 Commercial-Use Clarifier Market Characteristics
– Market Size: $30 Million (2007), relatively mature market
– Distribution Channel: Manufacturer-Formulators-Water parks & Commercial Pools

(Formulators carry full range of pool-cleaning products and provide value-added
services tailored to customer specs)
– Key Influencers: Formulators, water-safety consultants, Pump & Filter mfgs.
– Buyer Behaviour: Professional and understand the use, benefits and importance
of clarifiers for their business. Safety of their customers matters most.
Marketing strategy for Kailan MW

• Strong partnership with Formulators.
• Sold under “Private Label Brand”.
• Product USPs are attacks organic debris which can pass through filters, effective
for long period, lower qty needed.
 Residential Pool Clarifier Market Characteristics
– Business Model: B2C
– Market Size: $67 Million (9000000*25%*$50*14.88/25), Untapped market in

nascent stage.
– Distribution Channels:
(a) Manufacturer-Distributors-Retailers/Pool Service professionals-Pool Owners
(b) Manufacturer- Mass Retailers-Pool Owners
– Key Influencers: Pool Builders, Cleaning & Servicing cos., independent contractors,
Retailers and Wholesale Distributors
– Buyer Behaviour: Lack of awareness among Pool-Owners (emphasis on aesthetics

and perceived cleanliness)
– Major Brands: Clearblu, Hydropill and Purity

 Marketing Strategy for Coracle
– In order to reach wide and fragmented market, adopted 2-level distributor
channel with margins as per industry norms.
– No private-labeling, focus on building Soren as consumer brand.
– Packaging highlights product benefits and potential savings.
– New website formed during product launch
– Press release in three trade journals targeting professionals and retailers.
– Good enquiry system adopted- receiving queries, sharing technical data with them
and passing on the interested customers information to appropriate wholesale
distributors.
– Aggressive pricing vis-à-vis competitors.
– Realistic target of $1.5 Million (2.2% market share)
– Survey conducted in 6 months after product launch to gauge customer feedback.
What went wrong??

 Reasons for failure
– Lack of support from Distributors: Distributors are focused on selling unbranded
products/ diluted kailan thereby earning better margins. Also, since use of Coracle
will reduce the consumption of other pool chemicals by 20%-30%, its promotion
will result in reduction of their overall revenue.
– Lack of awareness among Pool Owners: Customers are happy with pool looking
clearer and hence get satisfied with compromised products at lower price.
– No exclusive demand of Coracle from Pool Service Professionals and contractors
 Recommendations (for immediate 3 months)

– Create Pull Demand by aggressive marketing campaign targeting 40-50K Pool
Service Professionals and independent contractors-
(a) Aggressive Mailing campaign
(b) Huge advertising in trade journals

(c) prominent display counter in trade-shows
(d) Message should be centered around 20-30% savings of pool chemicals by use
of Coracle resulting in higher profits for professionals and contractors.
(e) Focus on Lower annual cost compared to ClearBlu ($39.06 vs $56.25)
 Recommendations (considering long-term results)

– Impart education to Pool Owners regarding adverse affect of waterborne
diseases: Live Demos in societies, buzz around rewarding cleanest pool in city etc.
This will increase the % of customers using clarifiers regularly
– Made Pool Owners aware about potential savings and economic benefits of
using Coracle.
– Price revision to $30: Survey indicates acceptable treatment price of $50/annum.

Retail price of $30 will lead to treatment price of $46.8/annum, hence
acceptable. Soren will have cushion to bear the marketing expenses and
additional distributor margin to promote sale.
Thank You !

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Case Analysis

Soren Chemical: Why is the new swimming

– Over 350 products, wide range of Industrial chemicals and water-cleaning

– Kailan MW and Coracle are two types of water-clarifiers.

– Historically Company had concentrated on B2B sales but now it is investing

 About Kailan MW and Coracle products

– Revenue of kailan MW: $6.1 Million in 2006, 7% growth expected in 2007

– Distribution Channel: Manufacturer-Formulators-Water parks & Commercial Pools

– Key Influencers: Formulators, water-safety consultants, Pump & Filter mfgs.

Marketing strategy for Kailan MW

• Sold under “Private Label Brand”.

– Market Size: $67 Million (9000000*25%*$50*14.88/25), Untapped market in

(a) Manufacturer-Distributors-Retailers/Pool Service professionals-Pool Owners

(b) Manufacturer- Mass Retailers-Pool Owners

– Buyer Behaviour: Lack of awareness among Pool-Owners (emphasis on aesthetics

– Major Brands: Clearblu, Hydropill and Purity

– No private-labeling, focus on building Soren as consumer brand.

– Packaging highlights product benefits and potential savings.

– New website formed during product launch

– Press release in three trade journals targeting professionals and retailers.

– Aggressive pricing vis-à-vis competitors.

– Realistic target of $1.5 Million (2.2% market share)

– Survey conducted in 6 months after product launch to gauge customer feedback.

What went wrong??

– No exclusive demand of Coracle from Pool Service Professionals and contractors

 Recommendations (for immediate 3 months)

(a) Aggressive Mailing campaign

(b) Huge advertising in trade journals

(e) Focus on Lower annual cost compared to ClearBlu ($39.06 vs $56.25)

 Recommendations (considering long-term results)

– Price revision to $30: Survey indicates acceptable treatment price of $50/annum.

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– Market Size: $67 Million (900000025%$50*14.88/25), Untapped market in