Phillips Foods, Inc. – Introducing King Crab to the Trade

Executive Summary:

The Phillips Foods, Inc., case discusses target marketing for specialty seafood. Phillips Foods, Inc. was founded in 1914 by Augustus Phillips on Hoopers Island, Maryland. Phillips had developed a reputation for fresh seafood caught and sold locally. By 2006, Phillips Foods had three business units that were generating profits and became one of the largest seafood businesses in the United States. The restaurant division operates 8 full-service restaurants as well as fast food restaurants, mainly in airports. The food service division services restaurants and foodservice institutions. The retail products division services grocers and retail food …show more content…

Recommendations:
My recommendation for Phillips Foods is for them to take the king crab product to the IBSS. In doing some analysis with the provided numbers in this case, I have concluded the feasibility of the trade show to be high. Ron has spent roughly $80K (half) of his budget on the first phase of marketing King crab through trade publications. Ron can easily spend phase two on the same publications or he can take up Cherry on her offer. Appendix A, shows that Ron will need approximately 19 people to effectively manage the tradeshow and its volume. Based on this headcount, it will cost Phillips $164,700, of which Ron will be responsible for $82,350. Ron and Cherry are both understand the importance of spreading the word of their brand, since they have made progress in the food service industry. The tastes of consumers and purchasing habits in grocery stores is changing it would be a great opportunity to display their product. According to the case, tradeshows are an avenue to display products, set up tastings, and catch the eye of potential retailers and grocery store merchandisers. Appendix A further analyses the potential draw at the IBSS show and affirms that 8% capture will provide significant traction in acquiring the attention of a new audience that actually shows interest and is looking for new products for their chain. Continuing to advertise in trade