Class or Mass

Class or Mass

Scenario

Neptune Seafood is faced with the problem of over supply of their finished canned products . Due to their ability to catch fish in greater numbers , their product supply has also risen dramatically . This would mean that Neptune have more products than it could normally sell in a given period , and the costs of manufacturing this product rises every day without any clear profit as long as the stocks remain unsold Neptune Seafood is trying to determine a course of action that would solve this problem and possibly [banner_entry_middle]

develop a strategy that would help them steer clear of this predicament in the future

Fundamental Environment

Neptune Seafood is one of the major companies that supply quality and excellent seafood to high end restaurants , organic markets , specialty shops , sushi bars , luxury liners and other establishments that cater to the elite and the rich . Through the years it has maintained its quality standard and have emerged as the prime leader in the seafood industry as such the company had enjoyed the higher price ranges targeted to their high-end market . It has consciously developed its brand name as synonymous to quality and class . The company has invested in the latest and state of the art fish trawlers and freezers that would enable them to catch the best and the biggest . At present , the company ‘s products have enjoyed a stable market and even saw a rise in demand with the awareness of the market to healthier lifestyles . But still , the company has to contend with the dilemma of how to dispose of their excess stocks . Rita Sanchez , the sales head had proposed that Neptune cover its tracks by initiating price cuts by developing a second brand that would appeal to the more budget conscious customers . This proposition had caused a number of arguments and heated discussion and has aroused a number of concerns over the consequences of Rita ‘s proposal . Jim Hargrove , the marketing director vehemently opposed the idea saying that it would destroy the premium image of Neptune Gold and would drive their competition to a price war that they could not possibly survive . Nelson Stowe , legal counsel of the company expressed his concern over the reaction of the US Association of Seafood Processors and Distributors of which Neptune Seafood is a member and the sole recipient of the association ‘s quality seal and the possible repercussions should Neptune disrupt the industry status quo

Competitive Environment

The competitive environment of Neptune Gold include a number of companies and private label products that cater to the budget conscious market , if Neptune tries to invade this market , then it would considerably face a stiff competition who do not have the same expenditures as Neptune does in the production of their goods . There are plenty of market players in the low price range and this would mean that Neptune does not have the competitive advantage it does in its high end market . Moreover , customer loyalty is low because of the many choices… [banner_entry_footer]