Being a a-to-B enterprise Sorer never concentrated on branding of TTS products and creating the customer awareness, however they tried developing brands for products that had potential in consumer market, but had little success. Distribution Network of Sorer Sorer generally sold its products to the customers through three sources. 1) Through Formulators, who produced other pool products and delivered it to customers with added services. ) Through wholesale distributors, who distributed the products to pool services professionals, pool specialist retailers, who served the residential pool owners. ) Through Mass retailers, who directly served the Pool Owners? Competing products (In-house and external) Kaolin MAKE. In house product, and is mainly used in large water bodies and it is not suitable for the smaller water bodies and personal pool. It is distributed through Formulators, who produce or source other pool chemicals.
How Kaolin NV is a threat to Coracle: Few formulators were producing a diluted version of Kaolin NV, with a private label and supplying it to the smaller pools and pool maintenance people. Other competitions: Though there are similar products in the market, the main competition for Coracle came from Jackson Labs Clearly, which is priced low, and is of higher quality purifier. The only advantage of Coracle over Clearly is the quantity of the product that has to be used.
Thus Coracle had a better advantage over others when it comes to customer satisfaction. Declining sales for Coracle- Why? Only 30% of the customers who received the Coracle product recollected the name, indicating that the brand name is not familiar And 70% of the people, who approached the whole sale distributor, were not offered the coracle, indicating that the distributors were not very much interested in selling the product.
Possible corrective measures: There are two possible options for increasing the sales of Coracle, Options Creating more awareness about Coracle among end user, by increased advertising which would require $600 000 budget so that people know about product and its advantages and they would remember the brand name Options To increase the margin for the wholesalers and retailers, so that they will aggressively sell the product to the end users.
Option 1- Analysis Mortise's target is to sell 100,000 units of container for the first year of sales. Considering $5. 21 of gross profit per container Sorer would have 100000*$5 $521000 but this is not sufficient for $600000 advertising budget. Option 2- In terms of quality Siren's Coracle is in direct competition only with Jackson Clearly, although the dosage required by Clearly is more than required b which reduces Annual cost for Sorer Chemical.
Hence there is a considerable available for Sorer to have retailer and wholesaler increase their per contain From the calculations shown in below exhibits and exhibit 2, we can see eve having retailers price as $30 per container (example), Sorer is at significant advantage on annual cost and e keeping its own gross margin and thereby profit more or less the same. Exhibits*.