Submitted by: Submitted by shridhar
Views: 10
Words: 977
Pages: 4
Category: Business and Industry
Date Submitted: 09/13/2016 03:12 AM
Class or Mass Mini Case Study Analysis
After a detailed analysis of Neptune Gourmet Seafood Company’s excess inventory problem
leading to increased to losses, the following measures need to be taken to take control over
the solution, namely product development, market development and price cuts.
Firstly, Neptune can develop their market further to the neighbouring countries like Mexico
and Canada. This will provide a larger market share to the company as well as more
consumers to cater to. Neptune can also increase its sales in US by increasing distribution
from 250 miles to 1000 miles from its headquarters. Market development provides a long
term solution for excess inventory as the number of markets you cater to increases. But the
company will have to bear further transportation cost and will have to set up offices in the
countries to manage operations. Costs will also be increased due to trade tariffs and
marketing the brand in a new country. This will increase the companies variable cost and
fixed cost and this may or may not be set off by the sales made in the new markets. The
company will have to do a detailed research on the buying behaviour and the tastes and habits
of the consumers so that it is able to establish quickly in the market which can be time
consuming unless the company has marketing resources to give the data required
immediately.
Secondly the company can reduce the cost of the product to get rid of the excess inventory.
An analysis can be conducted where fishes can be sorted and those that will get damaged
more quickly can be sold at higher discounts and other fishes that get damaged slower can be
sold at a lesser discounts. By using this technique the profits of the company will not fall ...