Class or Mass Mini Case Analysis Essay

Neptune Gourmet Seafood is worth $820 million, is the triplet- big(a)st North Ameri can seafood manufacturer and is believed to be the well-nigh up foodstuff player in the $20 Billion seafood persistence. Neptune has done everything in terms of their quality and technology for improved, good & sustainable production. Therefore, living up to their tagline, The Best Seafood on the Water satellite. In spite of having the best quality produce and substantial market place share, the familiarity is facing arsenal problems. The fraternity has purchased six new freezer Trawlers, thitherby increasing their original level of production in leadfold, from what it had been a year ago. The companys sales executive Rita Sanchez suggests that the company must make out their prices by 40% to 50% and sell the belittleder priced goods as a new disgrace, on that pointby reducing the excess levels of inventory. Neptunes merchandise director Jim Hargrove was unhappy with the idea of slas hing their prices since, there were chances for the company to support their lively customers and it cannot afford to make up a fall in their revenue levels, as sunk costs have gone up and there is an increase in competition.Instead, Jim suggests that there be a 10% synthesis given on the finished goods as the discount rate sounds much realistic and there would be no put offation to the real consumers nigh the sudden fall in Neptunes finished goods. Neptunes coo Bernard Ger of import wonders whether Neptune should target a new geographic market viz. southwest and Central America. On further analysis and study of the case, the three most realistic options that Neptune should implement are enumerated as follows. Firstly, the company can reduce their prices by 40% to 50% secondly, Neptune can launch a low priced seafood brand through private labeling and finally, the company should target new geographical markets. With regards to the first option, the company should reduce t heir prices by 40% to 50% on their finished goods. The advantages of this approach are namely, that the consumers will understand that Neptune is selling a perishable product and its supply varies on a daily rump just like those of other perishables like vegetables, fruits and flowers.Hence, the prices of these perishables are expected to turn on a regular basis. This will in turn chasten the inventory levels. On the other hand, the disadvantages of this approach are enumerated as follows. Firstly, the companys margins have already shrunk by 10% because of increase in the manufacturing costs on a number of its products, and growing competition. Secondly, the sudden escape from in prices mogul cause retaliation among competitors which will cause some(a) of the smaller companies to incur expirationes they cannot afford and in turn become to price wars that none of them in the industry can afford. And finally, it might misrepresent the companys products to the customers. The cu stomers might wonder, as to why there is a sudden drop in prices when the company was selling their goods at bonus price levels, leading them to question the quality of the product that is being exchange at discounted prices.The most viable reason for the implementation 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 affordable seafood brand catering the value -minded customers and distribute them via existing channels, thereby drastically reducing costs. The excess inventory can be distributed through existing suppliers & retailers. The costs we will incur to market and package 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 Shaws Supermarkets and Whole Foods Market) already know n ear Neptunes Seafood products they know the level of quality goods and that Neptune is the scarce company to have the specie Seal of Approval which is given by the powerful U.S. linkup of Seafood Processors and Distributors, on every product Neptune sells.Hence, the private labelers can make salary in selling Neptunes frozen seafood but with their receive brand. with this the company will not lose their existing customers and price wars can be avoided. However, the disadvantages to this approach is that, through private labeling the new brand might end up as a competitor to the existing Neptune Gold products as they have the same quality and cannibalize Neptunes existing sales. Since, there are already a number of competitors in the industry the company must not pave way for, or take a crap a new one to enter the market over a uttermost of time.Consumers might want to try out the new brand as it is priced slightly lower than Neptunes existing products. Hence, the chance of l osing leal and valuable 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 to a fault helps to deal with excess inventory levels in the long run. And finally, elaborating on the third approach Neptune can target new geographical markets outside the rural area viz., South America and Central America. If Neptune targets a new foreign market the company can grow on a global basis, indeed increasing their revenues rather than incurring a loss with their excessive inventory levels.With slightly lower prices Neptune can grab the attention of new consumers and thusly capture all together a new market subdivision abroad. The disadvantages to this approach are that, there are chances that the product might not be received well 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 n ew market. The carry through of targeting a new geographic market is time consuming 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 decompose and the Company might lose its premium image. However, Neptune can treat this as a growth strategy and take the opportunity of growing globally.If Neptune had selective information pertaining to, whether the excess inventory problem is being faced by other competitors also or if it was only for the company then they can break apart as to whether the prices should really be slashed. The company can get admission price to this information by holding a meeting with the U.S. ASPD. But 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 wise to slash their rates as it is an industry wide phenomenon.From the three approach es mentioned above, the company should consider 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 marketed in a new market and the company will soon slowly light up back their investments in the form of revenues.