Soren Case Analysis
Suppakan Nivitchanyong
ID25VE37
Individual analysis of Soren Chemical Case Analysis
May 18, 2014
Situation Analysis
Soren Chemical founded in 1942 to sell industrial-strength cleaning solutions. In 2006, the Soren Chemical product line included over 350 products, and company revenues were $450 million. Historically, Soren Chemical had concentrated on business-to-business sales and placed little emphasis on creating consumer awareness of its products. However, in 2002, Soren start to developing brands for products that had the potential in the consumer market and continued to invest opportunistically in products with potential beyond the traditional “B2B” core. Jen Moritz was a marketing manager in the Water Treatment Products group with responsibility for chemicals used in drinking and pool water treatment. In 2005, the sales team learned that at least two of its formulators had begun marketing a diluted version of Kailan MW as a private label clarifier for the residential pool market. Moritz recognized that there was a significant, untapped market if the product could be appropriately refined for use in smaller residential pools.
In September 2006, Soren Chemical had launched Coracle, a new water clarifier for use in small recreational and household swimming pools. Moritz was responsible for marketing the new clarifier. For the first year of sales, the volume target was 50,000 gallons (100,000 units). After the first half of the selling season, Soren had sold just 3,725 gallons, or 7,450 units. Assume an end of the season in May 2007, The target volume of the first half should be about 75% of the target or 37,500 gallons (75,000 units); Moritz market and sold Coracle at only about 10% of the first half target. Moritz also had responsibility for marketing Kailan MW, larger clarifier unit used primarily in large recreational water park facilities. Kailan MW was unsuitable for smaller-scale applications. Therefore, Soren plan to market Coracle, a small size water
ID25VE37
Individual analysis of Soren Chemical Case Analysis
May 18, 2014
Situation Analysis
Soren Chemical founded in 1942 to sell industrial-strength cleaning solutions. In 2006, the Soren Chemical product line included over 350 products, and company revenues were $450 million. Historically, Soren Chemical had concentrated on business-to-business sales and placed little emphasis on creating consumer awareness of its products. However, in 2002, Soren start to developing brands for products that had the potential in the consumer market and continued to invest opportunistically in products with potential beyond the traditional “B2B” core. Jen Moritz was a marketing manager in the Water Treatment Products group with responsibility for chemicals used in drinking and pool water treatment. In 2005, the sales team learned that at least two of its formulators had begun marketing a diluted version of Kailan MW as a private label clarifier for the residential pool market. Moritz recognized that there was a significant, untapped market if the product could be appropriately refined for use in smaller residential pools.
In September 2006, Soren Chemical had launched Coracle, a new water clarifier for use in small recreational and household swimming pools. Moritz was responsible for marketing the new clarifier. For the first year of sales, the volume target was 50,000 gallons (100,000 units). After the first half of the selling season, Soren had sold just 3,725 gallons, or 7,450 units. Assume an end of the season in May 2007, The target volume of the first half should be about 75% of the target or 37,500 gallons (75,000 units); Moritz market and sold Coracle at only about 10% of the first half target. Moritz also had responsibility for marketing Kailan MW, larger clarifier unit used primarily in large recreational water park facilities. Kailan MW was unsuitable for smaller-scale applications. Therefore, Soren plan to market Coracle, a small size water