12 May HOW LARGE IS THE MARKET FOR CORACLE IN RETAIL DOLLARS?
Below are the sections you are to use, what they have to entail and the appadnages you are suppose to solve for.
A. Market Size
How large is the market for Coracle in retail dollars? (Highlight this value in yellow.) What market share will Coracle have to achieve in order to make its first-year goal of $1.5 million in sales? (Highlight this value in yellow.) Was the first-year sales goal reasonable? (Include either “yes” or “no” in your answer and highlight that word.) Explain your reasoning.
B. Channel Structure
How does the channel structure for Kailan MW differ from that of Coracle? What are the implications of channel structure on the marketing of pool chemicals?
C. Consumers’ Pricing Considerations
On an annual basis, how much does using Coracle save consumers over using no clarifier at all? (Highlight this value in yellow.) On an annual basis, what is the economic value to the customer (EVC) of using Coracle rather than ClearBlu? (Highlight this value in yellow.) On an annual basis, how should Coracle be priced at retail? Explain your reasoning.
D. Channel Members’ Pricing Considerations
How much gross profit will distributors and retailers lose in a year on the sale of other chemicals for each customer that uses Coracle? (Highlight these numbers in yellow.) Assume that Soren Chemicals sets the retail price of Coracle (“lost margin price”) at the price where the gross profit that retailers make on Coracle just offset the gross profit that retailers lose on other chemicals when a customer uses Coracle. Complete the table below and include it in the text of your case. Assume that the trade margins for wholesalers and retailers follow industry standards. What conclusions can you make about the current price of Coracle?
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