Soren Chemical: Why Is the New Swimming Pool Product Sinking?
When the initial annual goal of $1.5 million was set, it seemed to be realistic. Of the 9 million residential pools in the United States, 80% maintain their own pools providing 7.2 million pools in the market who are maintained by the owner. Additionally, the other 20% who do not maintain their own pools use some sort of service professional, and while they are not purchasing cleaner on their own, these 1,800,000 pools are still using clarifiers and these too are still potential customers. With around 60% of the clarifier market share occupied by Keystone, Kymera and Jackson Labs, 3.78 million pool owners are using the big three products. This leaves 2.52 million pool owners not currently committed to a brand.
SWOT ANALYSIS
Strengths
-Well established commercial poo product
-better product (deals with organic contaminants which are more effective)
-Increased cost saving
- building individual brand name
Weaknesses
-Higher unit price
-inability to attract distributors and retailers
-inexperience in marketing consumer-oriented brands
Opportunities
- there are 9 million residential pools
-few established brand
-cost saving and perceived cleanliness – primary requirement
-brand building could allow launch of other products
Threats
-competitors (Keystone, Kymera and Jackson Labs)
-30% distributors margin
-fragmented consumer market
formulators produced diluted version of Kailan MW
Issue
Coracle has failed to achieve the required levels of awareness needed to meet Soren’s sales goal. Despite the awareness that is present for the Coracle in the form of inquiries from retailers, distributors are not offering the product, indicating a less than optimal relationship with the players on the distribution level.
Solution
In order to get back on the right track, Soren Chemical has two alternatives to consider
*to employ a Pull Strategy to try and establish a strong customer base...