Submitted by: Submitted by prakruthi
Views: 10
Words: 911
Pages: 4
Category: Business and Industry
Date Submitted: 09/08/2015 12:32 AM
Names – Pragathi V, Prakruthi MN, Sachin Bhandari, Vikneswaran Ramesh
Class or Mass Mini Case Study Analysis
Neptune Gourmet Seafood is stuck with excess inventory and needs to come up with a solution for selling the excess inventory without jeopardizing reputation of the company. We have come up with three solutions. They are - providing bulk deals to wholesalers, or getting into a joint venture with one of its competitors, or launching a new brand which sells at a lower price.
As per the case, 33% of Neptune’s revenues came from wholesalers that distributed the company's products to restaurants all over the United States. Neptune could make bulk deals to these wholesalers or provide a discount to them, thus clearing off the excess inventories. This would not generate revenue but majority of the revenue did come from the wholesalers and would thus solve their temporary problem and effectively. This is an easy strategy which can be implemented immediately. This scenario solves the problem of a one-time excess inventory, but does not address the problem of a permanent rise in supply. The rise in supply is permanent as there is now a new technology that generates increased production and also better quality of production with the help of the new freezer trawlers. If Neptune chose to provide bulk deals to wholesalers permanently, Neptune would start losing majority of their revenue. This does not seem like a feasible option for the long term.
As per the case, 30% of Neptune’s revenues were generated from selling frozen products to Grocery chains. Neptune could enter into a joint venture with one for its competitors by designing a supply contract with them. These contracts could prove beneficial to both Neptune and its competitor as Neptune would be able to sell off its excess inventory and the competitor will have easy access to premium quality goods. Neptune could sell the frozen products through a sales contract to its competitor and the competitor could sell...