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Hire Writer Hence, the prices of these perishables are expected to vary on a regular basis.
This will in turn normalize the inventory levels. On the other hand, the disadvantages of this approach are enumerated as follows. Secondly, the sudden drop in prices might cause retaliation among competitors which will cause some of the smaller companies to incur losses they cannot afford and in turn lead to price wars that none of them in the industry can afford.
The customers might wonder, as to why there is a sudden drop in prices when the company was selling their goods at premium price levels, leading them to question the quality of the product that is being sold 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 low-priced seafood brand catering the value -minded customers and distribute them via existing channels, thereby drastically reducing costs. 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.
Through this the company will not lose their existing customers and price wars can be avoided.
Since, there are already a number of competitors in the industry the company must not pave way for, or create a new one to enter the market over a period of time. Hence, the chance of losing loyal 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 also 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 country viz.
If Neptune targets a new foreign market the company can grow on a global basis, hence 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 therefore capture all together a new market segment 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.
Company Profile Jumbo Group of Restaurants began with Jumbo Seafood, a home-grown seafood restaurant that was established in and best known for its chilli and black pepper crabs. Neptune Gourmet Seafood should launch ready to eat sea foods and should sell some old ships even though it is sunk cost and use the proceeds to expand. Download-Theses Mercredi 10 juin “Class or Mass” [fictitious case: Neptune Gourmet Seafood]: What features of Neptune’s business position led to the discussion of whether or not to add a new, lower-priced option to the company’s product line? Neptune has an inventory problem. They wanted to ensure they got the freshest fish and the best due to their introduction to improve they ended up catching too much.
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 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 spoil 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 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.
The company can get access to this information by holding a meeting with the U. 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 approaches 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. These increased levels of inventory can be marketed in a new market and the company will soon slowly earn back their investments in the form of revenues. How to cite this page Choose cite format:“Class or Mass” [fictitious case: Neptune Gourmet Seafood]: What features of Neptune’s business position led to the discussion of whether or not to add a new, lower-priced option to the company’s product line?
Neptune has an inventory problem. They wanted to ensure they got the freshest fish and the best due to their introduction to improve they ended up catching too much.
Essay on Class- or Mass Words | 16 Pages. Class – or Mass? A. Executive Summary: Neptune Gourmet Seafood is currently struggling with what appears to . iridis-photo-restoration.com is the place to go to get the answers you need and to ask the questions you want.
Neptune Gourmet Seafood is the North Americas third largest seafood producer. They are having tagline The Best Seafood on the Water Planet” and they adhere to that.
In order to preserve the company premium image, Neptune had made a huge investment in new technology to improve catching processes to be more efficiently. Case Analysis: Class or Mass Essay Sample Executive Summary: The North America’s third – largest seafood producer Neptune Gourmet Seafood is known for the brand reputation, premium product and quality they served in the high-end seafood industry.
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