There are high barriers of entry to enter the fishing industry. May causes the untrusted from the costumer. Financial Short term — will the alternative create strong cash flow in the short term? Additionally, discounting prices or introducing mass-market brand would tarnish image.
Going forward Neptune management must be more cautious in matching investment in production to growth in market demands. Recently they are facing the challenge of inventory pileup in a short period of time due to the investment in state-of-the-art freezer trawlers, along with new fishing regulations.
May have additional cost for event planning. The two sides of the decision to either cut prices or introduce a new line are best highlighted by the interests and concerns of Jim Hargrove and Rita Sanchez: Will increase the quantity sold, and reduce the inventory.
Will attract more customers and open a new channel of distributes. Will hurt the brand image. Write the start up plan and the process of how to implement the new line.
Neptune being vertically integrated utilizes its own supply division and logistics processes to facilitate delivery of its products. If it fails to make the right strategic move at this fork in the road Neptune may continue to lose margins on wasted inventory and be placed in a weaker position where it may need to respond to competitor action.
Strategists within the firm have suggested involving price cuts and introduction of a second less expensive line of fish products.
Through this the company will not lose their existing customers and price wars can be avoided.
This approach gives the chance for the company to target those consumers who are in the middle and lower income levels. She argued that selling the excess inventory at a loss was better than not selling it at all. 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.
Evaluation criteria and definitions. This will tempt its customers to buy two products and getting one free thus availing of the promotion.
Thus, Neptune Gourmet positions itself as a high end firm and prides itself on high quality and a superior product that sets it apart from its competitors. However Neptune uses its pricing strategy to set itself apart and positioning itself as a firm that produces premium products for sale.
Neptune would need to create new brand differentiate it from the exciting Gold line. The company might have to sacrifice future profits for a period of time in order to grow globally. Get Full Essay Get access to this section to get all help you need with your essay and educational issues.
Brand Image — will brand image be damaged by the alternative? If 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; then they can analyse as to whether the prices should really be slashed.
Profit are mainly made from four different channels: The process 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.
The decision is important, as its implication will result in major consequences to Neptune. For the new product, instead of calling it Neptune Silver, it could emphasis on it sustainability to make it more attractive.
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.
Neptune thus must focus on its large volume sales to restaurants and its low volume sales to store customers.Class or Mass Mini Case Analysis Essay. A. Pages:5 Words This is just a sample. ‘Neptune Gourmet Seafood’ is worth $ million, is the third-largest North American seafood producer and is believed to be the most up market player in the $20 Billion seafood industry.
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