Class or Mass

‘Class or Mass’ - Mini Case Study Analysis

Neptune gourmet seafood is North America’s third largest seafood producer. Neptune was an upmarket player in this high-end business. It did everything to preserve the premium brand image among its customers. Neptune reached its customers through various channels out of which about 30% of revenue was generated from the US grocery chains and 33% from the wholesalers.

Neptune has made huge investments in using the best technology to stay away from their rivals but this has also led to the piling up of the inventory . In the last three months the inventory has shot up to 60 days excess supply. Neptune is now over flooded with its products and is not able to get rid of them and are finding ways to sell them rather than just throwing them away.

Three possible ways to overcome the excess inventory could be giving a price discount up to 30% to the wholesalers and US grocery chains that would in turn encourage them to sell more Neptune products, Since Neptune is already a well established brand Launching ready to eat products would help bringing down its inventory to normal levels and Finally Launching mass market would allow more customers to buy more of Neptune products at a decent price.

The first option of giving Discounts to wholesalers would encourage them to sell more of Neptune products. It is from the wholesalers that 33% of revenue is generated. Through the already existing channels of distribution different markets can also be captured and thereby the company can have a onetime sale of the excess inventory by making profits. The discounts can also be given to the retailers such as the US grocery chains from where almost 30% of its revenue is generated. Those...