Soren Chemical Case Study
The main problem, as depicted within the case study, is the significantly low sales of Soren Chemical’s new product, Coracle. Since the sales of the new product were way below what Jen Moritz had anticipated, it is apparent that the new product had registered poor performance in the market. The company needs to employ effective market strategies through which it would increase the number of Coracle units, which would sold in the subsequent financial year. The growth of Coracle is apparently lower than its counterpart pool clarifier, Kailan MW. Moritz conviction that Coracle had a large potential market demonstrates that there is more that can be done to salvage the new product from market failure. The urgent challenge which Soren Chemical needed to overcome is to convince retailers that the product had the potential of significant growth in the market. It is only through this conviction that the company would be able to ensure that its new clarifier is shelved and presented to buyers. The residential pool owners’ lack of knowledge, on how much they would save through the purchase Coracle, is another challenge which is faced by the company in its efforts of popularizing the new product. Coracle was already tailored to meet the specification of residential pools, but its resultant performance in the market did not improve adequately. It is the safety concerns which would be attributed to the low financial performance of the company. The clarifier market, within residential pools, is depicted as untapped. It is as a result of this that Coracle was refined, so that it would fit into this market. It is through innovativeness in the development process that Coracle was created for less frequent use and reduced bather loads. The fragmentation of the residential pool market depicts the significant opportunities therein. This is depicted by the reality that there were more residential than commercial pools within the US market. The variance in purchase behavior, between private and professional consumers of clarifiers, demonstrates the need for the company to change its marketing tactics for Coracle. The company also needed to overcome the competition from Kymera, Jackson laboratories and Keystone Chemicals. The dilemma which faces Moritz depicts the role of effective decision making in overcoming the Coracle’s performance problem. The marketing plan, which was presented by Moritz, had not taken into consideration of the competitive market climate. It is as a result of this that the marketing efforts were faced with the dilemma of promoting Coracle within the market, which they had little understanding of, unlike the competitors who were conversant with the market. It is evident from the case study that the marketing challenge involved retailers, distributors and as well as consumers. Moritz indicates that they needed to align the market incentives with that of the competitors. This reveals that there was inadequate planning on how to provide better or superior incentives in order to attract the target market. More importantly, the company needed to work promptly before the peak for residential purchases of clarifiers was over. Persuasive Evidence/Argument
The poor performance by Coracle could be attributed to the fact that it is new in the market. Since the clarifier market is described as mature, a new product, such as Coracle, would inevitably meet challenges of attaining a competitive advantage, early in its introduction to the market. However the performance of Kailan MW, at its introduction to the market, was more impressive than Coracle. This reveals that there was inadequate awareness within the market about the functional benefits and the cost savings, which would result from the purchase and use of Coracle in clarification of residential pools. The marketing strategies, which were employed in the promotion of Coracle, are not specified within the case study. Nonetheless,...
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