Case Analysis Of Soren Chemical

MRK 526: Management of Marketing Channels

Soren Chemical

Case Analysis

Name: Amanda Man

Student Number: 053405098

Due Date: 3/18/2014

Course Code: MRK 526

Submitted to: Professor Steven Litt

Executive Summary

Soren Chemical had just launched Coracle. Jen Mortiz, an employee of Soren Chemical who is responsible for marketing the residential brand clarifier, Coracle, have failed to meet the targeted volume and sales. There are several issues regarding to branding strategy, channel strategy, push and pull strategy, and shelf space that challenges this particular individual.

However, the biggest problem was to figure a way to resolve its failure towards meeting their target volume/sales by reconstructing their distribution channel to successfully push Coracle in the residential market to end consumers.

With a thorough situation analysis of the internal environment versus external environment and a SWOT matrix, a set of organizational objectives is created for the company to retrieve best result in resolving the issues and problems.

These objectives are regarding to,

1. Gaining market share with an annual growth

2. Defining a channel structure that can reduce operational cost

3. Generate a higher growth margin.

To achieve these objectives, the document includes several possible alternatives that the company can choose from, where each alternative is provided with several benefits and loss.

These alternatives include:

1. Elimination of Wholesale Distributors

2. Taking on Moritz Proposal

3. Going for Private Label

After analyzing all the alternatives, the most appropriate alternative would be alternative #1. Reasons, Soren Chemical can benefit the most out of all the options suggested...

... middle of paper ...

...s Sold 335.0 339.0 345.0 345.0

Gross Profit 103.8 105.0 105.0 105.0

Selling, General, & Administrative Expense 29.5 29.9 30.6 30.6

Research & Development 7.7 7.9 9.0 9.0

Marketing Expenditure - - - 0.6

Depreciation 15.0 16.0 15.0 15.0

Operating Expense 52.2 53.8 54.6 55.2

Operating Income 51.6 51.2 50.4 49.8

Provision for Tax 11.8 10.9 12.0 13.0

Net Income 39.8 40.3 38.4 36.8

• Alternative 2: Pursuing with the increases operational cost because of the execution of a mailing and advertising campaign which is added above as marketing expenditure. The additional $600,000 budget does make a huge difference in the outcome of the company’s net income.

Source

Rangan, V. Kasturi, and Sunru Yong. "Soren Chemical: Why Is the New Swimming Pool Product Sinking?" Harvard Business Publishing. Harvard Business School, 30 Nov. 2011. Web. 17 Mar. 2014.