Neptune Case Study

3818 WordsMay 6, 201316 Pages
Contents Introduction 2 PART A: 3 Neptune Gourmet business model 3 Strengths and weaknesses of the Neptune business philosophy 3 Opportunities and threats 4 Neptune vision statement 5 PART B 6 Consequences of launching a lower price brand 6 Neptune position in the next two years with only a single premium brand 7 Part C: 9 Radical change from premium products to value priced products 9 Brand extension strategies 10 Recommendations 10 References 12 Introduction Neptune Gourmet Seafood, North America's third-largest seafood producer. It has the intention of maintaining its premium image and is obsessed in investing in new technology in an effort to surpass its competitors from Peru, China and Japan. For that reason, the company has invested in a multi-millions state-of-the-art fishing boats equipped with modern technology of harvesting fish in an environmental friendly way and capable of preserving the catch for days before selling to the consumers. This has increased their market advantage and the company has been able to maintain its premium image. Unfortunately, the technology has resulted to an unpredicted increase in supply of the seafood and consequently their inventory of finished goods has shot up to sixty days supply which is twice the normal levels and close to three times a year ago. Jim Hargrove, the marketing director is deeply troubled by the increase in inventory in their warehouses but sticks to the opinion that the company should strive to maintain its premium class by supplying the market with high quality products as opposed to disposing their surplus at lower prices thus standing at a chance of selling higher volumes of the finished products. One of his colleagues, Rita Sanchez invents a controversial idea of slashing the prices for the products to attract

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