Soren Chemical Case Analysis

Soren Chemical Case Analysis

MKTG 640

Soren Chemical was founded in 1942 as a cleaning solution manufacturer and eventually expanded to many other chemical products such as lubricants and treatments for bodies of water, namely swimming pools. Historically, Soren Chemical was primarily a B2B business, selling its products to formulators who would mix and rebrand their products, and enjoyed many successes in doing so. In 2002, Soren began developing brands for consumers as well in an effort improve revenue potentials and build an equitable brand. The pool water clarifier market was identified as a good place to start with nearly 9 million residential swimming pools in the United States vs the 300,000 commercial pools or waterparks that were currently being targets, albeit through formulators. For this, Jen Moritz was tasked with responsibility to develop this market.

Soren’s main clarifying product is called Kailan MW, although consumers wouldn’t know that because this is sold to formulators that repackage the product to distribute for commercial use. In its current state, this product could not be used for smaller swimming pools due to its concentration. Thus, Coracle was developed as a diluted product, suitable for use in swimming pools, and with a name that could be developed as a brand consumers will know. Coracle entered the market with a retail price of $25.00 per container, which is the highest cost per container amongst its competitors, however it was the second highest if you considered cost per gallon, and the 2nd lowest if you compared the quantity needed for each treatment, and the number of treatments needed per month/per season. So while the sticker suggested a high price, there is real value that is hidden in the Coracle product. Additionally, the use of Coracle could reduce the necessity for, or the quantity of, certain other pool chemicals, adding even more value to the pool owner on a macro level. Soren released Coracle in 2006 along with a new website and a full PR campaign addressed to pool service professionals and specialty retailers. Soren demonstrated its performance advantage and initially received 2000 inquiries from service professionals, yet initial sales were a disappointment at best. With a target of $1.5M, the $111,000 in sales as of February was a short sign of failure. Is the market big enough to allow Coracle to enter? Is our marketing strategy lacking effectiveness or volume? Are we not communicating the value properly? Is the pricing model not attractive? Are we exploring the right delivery channels? Was the market share and brand equity of competitors misjudged? These are all questions that must be answered if Jen Moritz is to save this venture and achieve the targeted revenue.

First, we shall examine Soren in terms of their strengths, weakness’, opportunities, and threats in relation to the Coracle brand.