Class or Mass
A. Executive Summary: Neptune Gourmet Seafood is having issues with what appears to be a temporary problem of excess inventory. Due to new coastal laws, investments in new freezer trawlers and fishing technology, Neptune has increased their average catch size. The demand in high-end market hasn’t been able to catch up with the increasing supply, and Neptune has been struggling with making a decision on how to deplete excess inventory (60 days) of their “Gold Label” branding. My recommendation is to launch a new mass-market product under a different product name to deplete the excess inventory for the short-run, and to capture more of the North American seafood market share in the long-run. Finally, in the …show more content…
D. Evaluation Criteria and Definitions:
The following criteria are used in evaluating what is best for Neptune Gourmet Seafood 1. Financial Short term – will the alternative create strong cash flow in the short term? 2. Financial Long term – will the alternative create strong cash flow in the long term? 3. Quality of goods produced – will the alternative create or maintain the high-quality products for Neptune’s customers 4. ASPD Approval - will the alternative keep Neptune in good standing with the ASPD 5. Brand Image – will the alternative damage Neptune’s brand image 6. Competitor’s Response – will competitors provide an aggressive response that could danger Neptune’s future success 7. Low Risk – will the alternative have be successful
E. Alternatives: The two potential solutions described in the case by Rita Sanchez is to reduce price of current inventory by 40-45% or launch a new low-end brand targeting value-conscious consumers to sell the surplus of inventory by reaching value consumers. On the opposing side, Jim Hargrove believes this would hurt the premium brand image that Neptune has created and recommends selling off old ships with a price reduction of 10% on products. Additionally the fourth alternative would be to stick to the status quo to maintain reputation and premium brand