...Task 2 Neptune Gourmet Seafood needs to get rid of the surplus inventory and avoid tarnishing the brand image and should give priority to its brand name which the firm has preserved for years. The major issue Neptune Gourmet Seafood faces is the excess inventory for existing demand. The company is in the growth stage of the product life cycle and should either increase the demand to match the supply or decrease the supply to match the demand. Neptune to increase the demand has to expand their market and ameliorate the marketing strategies to penetrate into the existing market and to enter the market in isolated places where Neptune is not currently serving. This could consolidate Neptune’s position at other market by attracting new customers from new geographical area. If Neptune introduces Neptune Silver consumers prefer new product line because they get the same quality at a lower price diluting the high end line equity. There should be some differentiation in the quality to reduce the price otherwise customers will migrate to a low end brand from high end brand. 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 geographically. The inventory pile up is a temporary issue because the seafood stocks have risen because of the added ships. Neptune has to look for some whole seller to sell their surplus with marginal profit or without a loss and without involving the firm’s brand...
Words: 319 - Pages: 2
...Abstract Neptune Gourmet Seafood is facing a problem with oversupply for existing demand. It can either decrease supply to match demand or increase demand to match supply. I recommend the latter. I further recommend the way to increase demand is for Neptune to increase its marketing efforts in its existing markets and to penetrate other markets it currently is not in. The Competitive Environment Neptune is a 40-year-old, $820,000,000 company, specializing in quality shell and non-shell seafood in a $20 million industry. It is North America¡¦s third-largest seafood producer, but that designation is misleading, because its revenues account for only 4.1% of the total market. As such it is but one of many firms operating in the seafood processing industry, one whose market structure could be termed monopolistic competition. The industry is not limited to North American firms such as Neptune, but also includes companies from China, Peru, Chile, and Japan, competition from which has pushed Neptune to upgrade its fishing fleet and which also has helped shrink the company¡¦s margins by 10%.. Neptune markets to the high end of the market, differentiating itself from the competition by its quality, selling its high-end brand at 25-30% above the rest of the market. Their years of ex perience coupled with the company¡¦s value development pose a threat to any new firm trying to enter the market. It is the only member company of the U.S. Association of Seafood Processors and Distributors...
Words: 3450 - Pages: 14
...excess inventory faced by Neptune Gourmet Seafood. The various reasons for the problem have been explored. The alternatives have been examined on basis of criteria defined. The report also provides recommendations and action plan. I hope you find this report satisfactory. Sincerely yours, Shubham Gupta Research Associates, Inc. 1212 Trace Dr., Suite 3 Austin, Texas 78741 2 Executive Summary Neptune Gourmet Seafood is North America’s third largest producer of seafood offering premium quality products. The latest advancement in trawler technology and government regulation has lead to a situation of excess inventory. The situation is not expected to change in future. The problem is to find a suitable step to increase demand. The options are to offer a 50% price cut or launch a new value priced brand without affecting its existing offering. It’s recommended to launch a new brand. The brand promotion should differentiate between the two brands to prevent cannibalization. This will increase the market size and be a sustainable strategy to the problem. 3 Table of Contents Serial No. Contents Page 1. Situational Analysis 4 2. Problem Statement 5 3. Options 6 4. Criteria 6 5. Evaluation of Option 6 6. Recommendation 8 7. Action Plan 8 4 Situational Analysis Neptune Gourmet Seafood is in the business of selling...
Words: 1271 - Pages: 6
...Submitted to By Executive Summary Neptune Gourmet Seafood, North America's third-largest seafood producer. Neptune was an upmarket premium brand, and Neptune wants to preserve its premium image among customers. Recently they made huge investment in technology to improve catching processes but in turn it leads to problem of piling up of inventory. The solution of this problem depends up on the nature of problem; if problem is Neptune specific and temporary then they can do away with it by dumping it into some other market, but if it is industry wide phenomenon then they must launch a low price brand. Table of Contents Serial No.ContentsPage No.1Situation Analysis52Problem Statement53Options54Criteria65Evaluations of options66Recommendations77Action Plan7 Situational Analysis Neptune Gourmet Seafood, North America's third-largest seafood producer. It has nearly 4% market share. Neptune was an upmarket premium brand. They are having tagline "The Best Seafood on the Water Planet" and they adhere to that. Neptune focus was always on to preserve its premium image among customers by improving their product continuously The company reached its consumers, who were extremely demanding, through various channels. Neptune generated about 30% of its revenues by selling frozen and processed fish products to U.S. grocery chains. The Neptune's Gold line of seafood products, manufactured in two sophisticated plants near Cedar Key, Florida...
Words: 2467 - Pages: 10
...CLASS OR MASS CASE ANALYSIS 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 future Neptune’s management should better analyze the growth in market demand when making such heavy investments in production. B. Situation Analysis Summary: Currently Neptune Gourmet Seafood is North America’s third largest seafood producer with 4.1% in market share (See Appendix F1) . Known for their high quality, Neptune has a reputation to uphold and caters to offering the best product possible to keep their customers satisfied. Neptune currently markets its product to a variety of customers bringing in revenue from different channels: * 30% of revenue from grocery chains * 33% of revenue from wholesalers * 33% of revenue from suppliers & cruise lines within 250 miles of Fort Lauderdale’s headquarter * 4% of revenue from...
Words: 3215 - Pages: 13
...analysis my recommendation would be to slash prices in a phased and methodical manner so as to protect our image as well as solve the excessive inventory problem. Executive Summary Neptune Gourmet Seafood is one of the largest seafood producers in North America. It is an upmarket brand charging a premium of over 25% over its competitors. Recently they made huge investment in technology to improve catching processes which lead to an increased inventory. They are now faced with the solution of this problem of excess inventory handling. Launching a new low price brand would cannibalize their premium brand so they should go in for a price reduction. This could be done in phases wherein they could employ an extensive marketing of their cost leadership and increased quality standards. Word Count: 99 Table of Contents Serial No. Contents Page No. 1 Situation Analysis 1 2 Problem Statement 1 3 Options 1 4 Criteria 2 5 Evaluations of options 2 6 Recommendations 3 7 Action Plan 3 Situational Analysis Neptune Gourmet Seafood is North America's third-largest seafood producer. It has nearly 4% market share. Neptune was an upmarket premium brand. Neptune had emerged as the supplier of choice to the best restaurants within 250miles of its Fort Lauderdale headquarters as well as to the biggest...
Words: 1056 - Pages: 5
...Abstract The fish market is a 20 billion dollar industry and one company has played a major role. Neptune Gourmet Seafood is an 820 million dollar corporation that has just recently invested heavily in technology, allowing their trawlers to move further out to sea to fish and maintain the quality the company has been known for. In doing so, they have found themselves reaching a decision point. Even though they have been going further out to sea, they have been bringing back larger than normal catches and because of this, their warehouse finished goods inventory has become bloated, with twice the normal supply on hand. This paper will address the decision process. In doing so we will define the problem, look at the decision dimensions, provide analysis of the supply and demand drivers as well as elasticities most relevant in the case, look at industry structure and concentration, and look at expectations of equilibriums and game theory as the future plays out. From this we can draw a conclusion and recommendation. Class or Mass Case Study The fish market is a 20 billion dollar industry (Kesner & Walters, 2005, para. 5) and one company has played a major role. Neptune Gourmet Seafood is an 820 million dollar corporation (Kesner & Walters, 2005, para. 5, 9) that has just recently invested heavily in technology, allowing their trawlers to move further out to sea to fish and maintain the quality the company has been known for. In doing so, they have found themselves...
Words: 2931 - Pages: 12
...Class – or Mass? A. Executive Summary: Neptune Gourmet Seafood is currently struggling with what appears to be a temporary problem of excess inventory. A combination of new coastline regulations and an investment in new fishing vessel technology and freezer trawlers has increased their average catch size while demand in the current segment has not grown as quickly. The Neptune management team is faced with a decision of how to clear out its excess inventory that is not moving fast enough under its Neptune Gold branding. My recommendation is to launch a mass-market product under a different product line in order to monetize excess inventory and position Neptune to capture more of the North American seafood market share. Going forward Neptune management must be more cautious in matching investment in production to growth in market demands. B. Situation Analysis Summary: Neptune Gourmet Seafood is currently North America’s third largest seafood producer with 4% in market share. Tagged “The Best Seafood on the Water Planet”, Neptune has a reputation to maintain and focuses heavily on its product to keep its customers satisfied. Neptune has done a great job reaching a variety of customer. 30% of revenues from grocery chains, 33% from wholesalers distributing across the U.S., and the remaining third coming from sales to the biggest cruise lines and also choice restaurants within 250 miles of Neptune’s headquarters. Through the situation analysis it is apparent that...
Words: 3975 - Pages: 16
...Class or Mass? I. Brief Overview Neptune Gourmet Seafood is the third-largest seafood producer in the North America that is positioned as a premium high quality brand. Their products have reputation for being fresh and one of the best on the market. By applying new technologies into fishing process, Neptune was able to increase the efficiency and catch more matured fishes while leaving the immature fishes untouched. Furthermore, the new equipments allowed them to superfreeze the fish to -70 degrees F in just four hours, retaining the freshness and original flavor of the fish. As the capacity increased, Neptune's inventory soon got stocked up, alarming the company of overproducing. Thus, Neptune is facing decision whether to create a new brand to market the fish at a lower price to solve the inventory problem. However, this move can affect the company's brand image of being a premium producer. II. Competitive Advantage Neptune has applied new technologies that allow them to be ahead of the competition in terms of quality and quantity. Because of its reputation and its brand image, Neptune was able to price its products from 25% to 30% higher than then market average price. One third of Neptune's sales comes from restaurants all over the nation. Especially the sushi bars in New York to Los Angeles even preferred buying frozen fish from Neptune than feezing it themselves, and this once again proved the quality of Neptune's products. Neptune has many distributive channels that...
Words: 475 - Pages: 2
...the company’s product line? Neptune Gourmet Seafood is North America’s third largest seafood producer. The company inventory has increased to 60 days supply which is twice the normal supply and three times what is was just a year ago (Kenser & Walters, 2005). Additionally, the company invested in new ships with features that allow for more effective and efficient methods of gathering top quality catches. What parts of Neptune’s business will be affected if Neptune introduces a new brand (“Neptune Silver”)? The introduction of Neptune Gold will affect sales. Neptune Silver will create in increase in sales and flows. One potential hazard is the cannibalization of its own brand Neptune Gold. What is Rita Sanchez’ proposal? Why is this reasonable proposal from Neptune’s head of sales? Rita Sanchez is the head of Sales for Neptune. Rita initially suggested a 50% reduction in price to get rid of Neptune’s excess inventory. As the head of sales, it seems reasonable for her because the decrease in price, in the short term, would increase sales and cash flow. Rita also suggested creating a mass-market bran d called Neptune Silver. Again, as the head of sales, it makes sense for Rita because this would expand the market and increase product sales. What are Jim Hargrove’s objections to Rita Sanchez’ proposal? Why are these reasonable objections from Neptune’s head of marketing? Jim Hargrove is the marketing director for Neptune. As the marketing director,...
Words: 682 - Pages: 3
...Neptune Gourmet Seafood has three options to deal with its excess inventory problems:- Collaboration with pharmaceutical company Sell some old ships and launch ready-to-eat, fish-based meals Launch existing product in new geographic region Donation of excess inventory Collaboration of Neptune with a pharmaceutical company proves to be an opportunistic move as it creates a win-win situation for both the companies where in Neptune would be diverting its excess inventory to the pharmaceutical company and the company will be assured of regular supply of fishes for the manufacturing of medicines and health products (cod liver oil based products). The eminence that this option carries is both companies gain mutual benefit of expanding the business as well as widening their networks. Since it is a long term strategy it contributes in strengthening the brand image and good will of both the companies. Collaboration seems to be a slow pace strategy because both the companies need to get each other’s consensus before making a decision. By selling old ships the inventory can be brought down to lower levels and there would be a sizeable immediate cash inflow. The excess inventory can be used to launch ready-to-eat fish based meals which would open up new frontiers for Neptune. By launching ready-to eat products Neptune would not lose its premium brand image and may increase the revenue. On the other hand it will cost a substantial amount to launch and promote the processed food...
Words: 637 - Pages: 3
...The Commerce Tavern Executive Summary The Commerce Tavern was a popular restaurant located in Merchants Square, Colonial Williamsburg. H. Franklin Nilson established The Commerce in 1982, and he has been operating this restaurant very well. Recently, Nilson had a conversation with Anne Hamlet from The Virginia Merchants Bank about the acceptance of credit card consumption at The Commerce Tavern. VMB was willing to give The Commerce authorization of the use of MasterCard and Visa cards at the tavern. However, the general payment method of The Commerce was cash-only, Nilson was not sure if this traditional method could always working well for his business in a long term, and if he should make some changes on the cash-only policy. In addition, if Nilson adopted the credit policy at the tavern, there would be related fees levied by VMB along with the increased business of The Commerce. Thus, Nilson must collect useful information and make a deep analysis before making the final decision. Decision Problems In this case of The Commerce Tavern, the major decision problem was that whether or not Nilson should accept credit cards as a kind of payment method at his Tavern. Under this decision problem, Nilson should think about if the cash-only payment method was too simplex to maintain or improve his business in the future; in addition, he had to consider the problem of the levied fees of credit cards. Background of The Commerce Tavern Nilson established the commerce Tavern in...
Words: 2072 - Pages: 9
...500 extraordinary islands G R E E N L A N D Beaufort Sea Baffin Bay vi Da i tra sS t a nm De it Stra rk Hudson Bay Gulf of Alaska Vancouver Portland C A N A D A Calgary Winnipeg Newfoundland Quebec Minneapolis UNITED STATES San Francisco Los Angeles San Diego Phoenix Dallas Ottawa Montreal ChicagoDetroitToronto Boston New York OF AMERICA Philadelphia Washington DC St. Louis Atlanta New Orleans Houston Monterrey NORTH AT L A N T I C OCEAN MEXICO Guadalajara Mexico City Gulf of Mexico Miami Havana CUBA GUATEMALA HONDURAS b e a n Sea EL SALVADOR NICARAGUA Managua BAHAMAS DOMINICAN REPUBLIC JAMAICA San Juan HAITI BELIZE C a r PUERTO RICO ib TRINIDAD & Caracas N TOBAGO A COSTA RICA IA M PANAMA VENEZUELA UYANRINA H GU C U G Medellín A PAC I F I C OCEAN Galapagos Islands COLOMBIA ECUADOR Bogotá Cali S FR EN Belém Recife Lima BR A Z I L PERU La Paz Brasélia Salvador Belo Horizonte Rio de Janeiro ~ Sao Paulo BOLIVIA PARAGUAY CHILE Cordoba Santiago Pôrto Alegre URUGUAY Montevideo Buenos Aires ARGENTINA FALKLAND/MALVINAS ISLANDS South Georgia extraordinary islands 1st Edition 500 By Julie Duchaine, Holly Hughes, Alexis Lipsitz Flippin, and Sylvie Murphy Contents Chapter 1 Beachcomber Islands . . . . . . . . . . . . . . . 1 Aquatic Playgrounds 2 Island Hopping the Turks & Caicos: Barefoot Luxury 12 Life’s a Beach 14 Unvarnished & Unspoiled 21 Sailing...
Words: 249855 - Pages: 1000
...Dictionary of Travel, Tourism and Hospitality By the same author Britain – Workshop or Service Centre to the World? The British Hotel and Catering Industry The Business of Hotels (with H. Ingram) Europeans on Holiday Higher Education and Research in Tourism in Western Europe Historical Development of Tourism (with A.J. Burkart) Holiday Surveys Examined The Management of Tourism (with A.J. Burkart eds) Managing Tourism (ed.) A Manual of Hotel Reception (with J.R.S. Beavis) Paying Guests Profile of the Hotel and Catering Industry (with D.W. Airey) Tourism and Hospitality in the 21st Century (with A. Lockwood eds) Tourism and Productivity Tourism Council of the South Pacific Corporate Plan Tourism Employment in Wales Tourism: Past, Present and Future (with A.J. Burkart) Trends in Tourism: World Experience and England’s Prospects Trends in World Tourism Understanding Tourism Your Manpower (with J. Denton) Dictionary of Travel, Tourism and Hospitality S. Medlik Third edition OXFORD AMSTERDAM BOSTON LONDON NEW YORK PARIS SAN DIEGO SAN FRANCISCO SINGAPORE SYDNEY TOKYO Butterworth-Heinemann An imprint of Elsevier Science Linacre House, Jordan Hill, Oxford OX2 8DP 200 Wheeler Road, Burlington MA 01803 First published 1993 Reprinted (with amendments) 1994 Second edition 1996 Third edition 2003 Copyright © 1993, 1996, 2003, S. Medlik. All rights reserved The right of S. Medlik to be identified as the author of this work has been asserted...
Words: 133754 - Pages: 536
...fourth EDItION Critical Thinking A student ' s Introduction Ba ssha m I I rwi n I N ardon e I Wal l ac e CRITICAL THINKING A STUDENT’S INTRODUCTION FOURTH EDITION Gregory Bassham William Irwin Henry Nardone James M. Wallace King’s College TM TM Published by McGraw-Hill, an imprint of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2011, 2008, 2005, 2002. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited to, in any network or other electronic storage or transmission, or broadcast for distance learning. This book is printed on acid-free paper. 1 2 3 4 5 6 7 8 9 0 DOC/DOC 0 ISBN: 978-0-07-340743-2 MHID: 0-07-340743-7 Vice President, Editorial: Michael Ryan Director, Editorial: Beth Mejia Sponsoring Editor: Mark Georgiev Marketing Manager: Pam Cooper Managing Editor: Nicole Bridge Developmental Editor: Phil Butcher Project Manager: Lindsay Burt Manuscript Editor: Maura P. Brown Design Manager: Margarite Reynolds Cover Designer: Laurie Entringer Production Supervisor: Louis Swaim Composition: 11/12.5 Bembo by MPS Limited, A Macmillan Company Printing: 45# New Era Matte, R. R. Donnelley & Sons Cover Image: © Brand X/JupiterImages Credits: The credits section for this book begins on page C-1 and is considered...
Words: 240232 - Pages: 961
