Why is the New Swimming Pool Product Sinking
Company Background * Founded in 1942 by Timothy Soren * Sell : * Industrial-strength cleaning solutions * Industrial chemical for lubricants and fuels * Chemical solution for treating drinking water and wastewater. * 350 products line * 2006 revenue is $450 million.
Product Background * Kailan MW Flocculants. (Clarifier) * Flocculants can be thought as chemical nets that works in water to filters particles as small as 0.5 microns. * Effective in dealing with: * Oil (deodorant, hair spray, lotion cause odoor and Cloudiness) * Combat organic debris (algae, dangerous pathogens such as E.Coli and Cryptosporidium)
Product Specifications * Soren sold Kailan MW and Coracle are “flocculants” chemicals that suspended particles in liquids to angglomreate into larger, heavier particles called “flocs” * Kailand MW found in 2002 that effective in dealing with oils that come from deodorant, hair spray and lotions hiwch cause odors na dcloudiness in water (safety hazard) * One gallon of Kailan MW could effectively threat approximately 500,000 gallon of water * Soren estimated for 2007 US Market for specialty commercial use clarifiers to be approx USD 30 Millions
Pricing
Problem Identifications
* Coracle as one of clarifiers product that produced by Soren Chemical which targetiing residential pools that have smaller size againts commercial pools * The Targeted residential pools of coracle have a lower volume of water, lower volume of swimmers, and less intense maintenance program * Estimated thered are 9 millions residential pools in US * Currently corracle has 3 leading competitors for residential pools clairifiers (each of competitor has a 15% to 20% share: * keystone Chemical * Kymera * Jacson Laboratories * The first year goal for coracle is USD 1,5 Millions * The frequency of usage