Soren Chemical

SWOT
Strength
A specialty chemical company with product
line of 350 products.
Kailan MW ability to combat organic debris.
Opportunity
Revenue and profit growth coming from water
treatment group. Healthy growth in a relatively
mature market.
$30 Mn market in the US for large scale,
commercial use clarifiers such as Kailan MW.
Build a consumer brand in pool water clarifier
market.

Weakness
Kailan MW unsuitable for smaller scale
applications such as residential pools.
Threats
Competition from Keystone Chemicals,
Kymera and Jackson laboratories in the
residential pool clarifier market.

FAB of Kailan MW
Flocculants are effective for microscopic particles that cannot be removed through physical filtration alone.
Flocculating agents react with water to form insoluble hydroxides that physically trap small particles into the
floc.
Feature
Effective in dealing with oils
that come from deodorant ,
hair spray and lotions(0.5
micron) which cause odors
and cloudiness in waters.

Trap algae as well as

dangerous waterborne
pathogens such as E Coli and
cryptosporidium.

Advantage
Captures the smallest particles
and quickly reduces
cloudiness as cloudy water is a
safety hazard.

Benefit
Enhances pool safety as it
enables divers to see the depth
of pool and lifeguards to see
swimmers below the surface.

Effectiveness over a longer

period

Pool operators could use it

every other day rather than
daily application with
competing clarifiers.
Reduced chances of falling
sick

Protection from waterborne

pathogens

Advantages of using Coracle

Coracle oxidizes organic contaminants such as oils, freeing up chlorine to serve its primary function of fighting
waste.
Reduces the need for shock treatment and enzymes.
Benefits
Reduced pool owners annual chemical costs by 20 to 30%.
Solutions : Complex systems of pumps, chemicals and UV or ozone technology used to make the water clean
with minimal odor.
Tasks performed by Formulators
Bulk Breaking

Assortment : Full range of pool chemicals including chlorine tablets or liquids, cleaners, enzymes, shock
treatments, and algaecides
Custom blending and packaging services tailored to customer specifications.
Customized maintenance programs : Work with water safety consultants, pump and filter manufacturers, as well
as chemical manufacturers.
No. of Levels :
1 Stage : WalMart and Do it Yourself retailers such as Home Depots or Lowes. 80% consumers maintained
their own pools
2 Stage : Wholesale distributor serving specialty retailers and service professionals
3 stage : Formulators selling to Wholesale distributor serving specialty retailers and service professionals
ISSUES before launch
How does Soren Chemical convince distributors to push Coracle and retailers to create shelf space for it?
Wholesale distributors marketed chemicals under their own label.
Is the product priced so that economics are attractive to our channel partners?
Higher margins of 30% for distributors as it is a differentiated product. Need to push the product in absence of
mass media advertising. 15% for specialty retailers and service professionals which is the normal margin.
Understanding of consumers : Image of themselves
Symptoms
Volume target for 1st year of sales : 50,000 gallons (100,000) units or $1.5 Mn in sales
Achievement : 3725 gallons or 7450 units ; $111,000
Soren received over 2000 enquiries from service professionals and specialty retailers in the first 3 months of
2007 in response to press release in trade association journals.
30% of the respondents recalled receiving the coracle materials that Soren chemical had sent in response to its
enquiries.
70% of the respondents stated that Coracle had not been offered by their distributors.
Problem
1. Soren chemical sold Coracle through wholesale distributors which service the B2B market consisting of
pool builders, cleaning and service companies, and independent contractors.
2. 80% of the consumers who maintained their own pools purchased from local specialty retailers or
national retailers. National retailers purchased from formulators . Formulators will not sell to mass
retailers as the company did not allow private branding for Coracle.
3. The use of Coracle does not require chlorine, shock treatment and enzymes, reducing pool owners
annual chemical costs by 20 to 30%. Any product which reduces the demand for assortment of pool
chemicals sold by wholesalers will be resisted by them.
Solution
1. Soren Chemical should sell directly to national retailers and specialty retailers.
2. They can create a new set of distributors to serve the specialty retailers.
3. Create pull from service professionals to provide a jumpstart for Coracle. Requires a budget of $600,000
to conduct a mailing campaign and run advertising in industry publications?????????????