1. In this case, it is estimated that there are 9 million residential pools in the U.S. The average length of pool usage is 5 months, from May to September, with less people swimming in cold weather from October to April. The majority of chemicals are used during these warm months, but only 25% of these people use chemicals and clarifiers regularly. That being said there are only around 2,250,000 pools that use clarifiers regularly (9,000,000*.25). From this number, it can be concluded that the maximum reasonable marketing revenue for residential pools is roughly $52,309,152 (39.06*2,250,000*.25*14.88/25) based on the manufacturer price of Coracle. Coracle's main competitors, Keystone Chemical, Jackson Laboratories, and Kymera each possess 15%-20% of the market share, leaving 40%-55% of the market share to Coracle and other smaller competitors. If you factor in Coracle's three main competitors along with the many other smaller-scale suppliers, it can be suggested that roughly 15% of the market share is what Coracle needs to address. It can then be concluded that the addressable market size for Coracle is around $7,846,373 (.15*52,309,152). I would conclude from the above analysis that the first year goal of $1.5 million in sales is reasonable for Coracle. If you divide the addressable market size of $7,846,373 by 5 (5 months of average pool usage), it comes to around $1.57 million, only slightly higher than the target $1.5 million.
2. One of the reasons Soren Chemical is struggling to sell Coracle is because it is new to developing a brand and relatively inexperienced with marketing to wholesalers, retailers, pool services and consumers. This inexperience has led to miscommunication in its marketing channels, causing only 30% of consumers who inquired about Coracle to actually receive the information regarding the product. Also 70% of consumers stated that Coracle was not even offered by their distributers. These issues clearly point to the fact...
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