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Soren Chemical Essay

422 words - 2 pages

Case: Soren Chemical

1. How do the needs of pool professionals and residential customers differ?

● Pool Professionals
o Cloudy water in the commercial market were waterborne disease and swimmer safety
o (Typically bought supplies from the wholesale distributors)

● Residential Customers
o Emphasized aesthetics and perceived cleanliness.
o (Approximately 80% of consumers maintained their own pools and generally purchased supplies from local specialty retailers or national retailers)

2. In what ways are the goals of Soren Chemical not aligned with the goals of distributors and retailers when selling Coracle?

● While Soren Chemical’s new strategy was to develop Coracle as a consumer ...view middle of the document...

4. What actions will distributors and retailers not take that Soren Chemical would like them to take?

• Distributors and retailers are not making space for Soren’s product.

5. What are the advantages and disadvantages of lowering the wholesale price (that Soren Chemical charges) as a way to motivate the Coracle distributors and retailers?

• Advantages:
o By lowering, there could be more profit margin for distributors and retailers which will incentivize them to promote more aggressively.
• Disadvantages:
o By lowering, Soren could put themselves into a price war
6. Would guaranteeing retailers exclusive territories for Coracle help motivate the retailers? What new issues would it introduce?
• It could motivate the exclusive retailer to promote Coracle in a more aggressive fashion but if they don’t perform, Soren could put themselves in a very volatile position with no alternative retailers during the exclusivity.

7. Would are the advantages and disadvantages of advertizing Coracle directly to the consumers?
• Advantages:
o It could further expand market and increase their share.
o Soren could potentially recognize the real customer needs (such as smaller container with lower price per purchase) by going direct.
o Adequate PR could be designed and launched.
• Disadvantages:
o It is not their area of expertise – high risk of failure
o Would require additional hiring to accommodate direct to consumer strategy
o May further discourage distributors and retailers as they may be competing for customers.

8. What other solutions can you identify?
• Reevaluate their horizontal competitors in the direct to consumer market.

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