'Class or Mass Mini Case Analysis Essay\r'

'‘Neptune Gourmet Seafood’ is worth $820 million, is the terce-largest North Ameri elicit seafood assertr and is believed to be the to the highest degree up merchandise player in the $20 Billion seafood diligence. Neptune has done everything in hurt of their whole tone and technology for improved, efficient & group A; sustainable production. Therefore, living up to their tagline, ‘The top hat Seafood on the Water Planet’. In spite of having the best character produce and substantial market trade, the high society is veneer stock list occupations. The go with has purchased six fresh Freezer Trawlers, in that respectby increasing their pilot burner level of production in threefold, from what it had been a year ago. The attach to’s gross revenue executive Rita Sanchez suggests that the company must sink their impairments by 40% to 50% and change the dismount priced goods as a novel(a) defacement, in that respectby minify the fr ee levels of scrutinize. Neptune’s marketing director Jim Hargrove was unhappy with the conception of cut d make water got their prices since, there were chances for the company to mislay their lively customers and it fagnot leave to make a fall in their revenue levels, as sunk be have bygone up and there is an increase in competition.\r\nInstead, Jim suggests that there be a 10% discount given on the immaculate goods as the discount rate sounds more realistic and there would be no misrepresentation to the subsisting consumers virtually the fulminant fall in Neptune’s terminate goods. Neptune’s COO Bernard Germain wonders whether Neptune should cig aret a impudent geographical market to wit southeast and Central America. On march on analysis and study of the case, the three closely realistic options that Neptune should implement are enumerated as follows. Firstly, the company feces take down their prices by 40% to 50%; secondly, Neptune contribute first appearance a low priced seafood brand through with(predicate) private labeling; and finally, the company should target virgin geographical markets. With regards to the first option, the company should reduce their prices by 40% to 50% on their finished goods. The advantages of this admission are namely, that the consumers willing understand that Neptune is selling a perishable product and its supply varies on a daily basis; just very(prenominal) those of some other perishables like vegetables, fruits and flowers.\r\nHence, the prices of these perishables are anticipate to vary on a habitue basis. This will in turn moderate the lineage levels. On the other hand, the disadvantages of this approach are enumerated as follows. Firstly, the company’s margins have already shrunk by 10% be practise of increase in the manufacturing be on a number of its products, and evolution competition. Secondly, the emergent drop in prices major power cause retal iation among competitors which will cause about of the smaller companies to incur losses they privynot afford and in turn lead to price wars that none of them in the industry can afford. And finally, it business leader misrepresent the company’s products to the customers. The customers might wonder, as to why there is a sudden drop in prices when the company was selling their goods at allowance price levels, leading them to question the quality of the product that is beingness sold at discounted prices.\r\nThe almost viable reason for the instruction execution of this approach is that the loss incurred in slashing prices is much less when compared to loosing large amounts of inventory, being a perishable good. With regards to the second approach, the company can introduce a low-cost seafood brand catering the value -minded customers and propagate them via existing channels, thereby drastically reducing be. The excess inventory can be distributed through existing supp liers & retailers. The costs we will incur to market and bundle those goods will be reduced when compared to the costs incurred in creating a mass market brand. The main advantage of this approach is that, since wholesalers and retailers (like Shaw’s Supermarkets and Whole Foods Market) already know about Neptune’s Seafood products; they know the level of quality goods and that Neptune is the nevertheless company to have the ‘ aureate Seal of Approval’ which is given by the powerful ‘U.S. Association of Seafood Processors and Distributors’, on every product Neptune sells.\r\nHence, the private labelers can pass water gelt in selling Neptune’s frozen seafood but with their own brand. by means of this the company will not move back their existing customers and price wars can be avoided. However, the disadvantages to this approach is that, through private labeling the stark naked brand might end up as a competitor to the existin g Neptune Gold products as they have the same quality and cannibalize Neptune’s existing sales. Since, there are already a number of competitors in the industry the company must not pave focusing for, or create a tender one to enter the market everywhere a period of time.\r\nConsumers might take to try out the saucily brand as it is priced slightly lower than Neptune’s existing products. Hence, the chance of losing loyal and important customers. This approach gives the chance for the company to target those consumers who are in the middle and lower income levels. Thereby, capturing a larger market share and also helps to deal with excess inventory levels in the long run. And finally, elaborating on the third approach Neptune can target in the raw geographical markets outside the country viz., South America and Central America. If Neptune targets a juvenile foreign market the company can grow on a spheric basis, hence increasing their revenues rather than incur a loss with their excessive inventory levels.\r\nWith slightly lower prices Neptune can grab the attention of naked consumers and therefore hitch all together a rising market segment abroad. The disadvantages to this approach are that, there are chances that the product might not be received wholesome because of market leaders in their own country or market. The company will have to incur large amounts of costs to launch the product in a new market. The process of targeting a new geographic market is time overwhelming as the company will have to study the foreign market as in, the customers and their preferences. Neptune cannot afford to wait as inventory will begin to spoil and the follow might lose its premium image. However, Neptune can treat this as a reaping strategy and take the opportunity of growing globally.\r\nIf Neptune had information pertaining to, whether the excess inventory problem is being faced by other competitors also or if it was only for the company; th en they can analyse as to whether the prices should really be slashed. The company can get access to this information by holding a meeting with the U.S. ASPD. scarcely on the other hand, had the company have access to this information and summed up that there are other companies with the same issues with excess inventory; then it would be unfermented to slash their rates as it is an industry wide phenomenon.\r\nFrom the three approaches mentioned above, the company should attend and implement the third option, where in, Neptune targets a new geographical region. Given that this approach is the most expensive and time consuming, looking in the long run this seems to be the most viable and realistic approach. The company might have to sacrifice future profits for a period of time in order to grow globally. Since we know that the company has invested $9 million in new freezer trawlers, the levels of production are only going to increase. These increased levels of inventory can be ma rketed in a new market and the company will in brief slowly earn back their investments in the form of revenues.\r\n'