Class or Mass- Neptune Seafood Company Case Study

“Class or Mass Mini Case Study Analysis”

Mehak Taj Assadi (A6) Niranjan V (A24) Suhas B.S (A33) Chaitra Reddy (A15) Salmaan Faraaz (A42)

“Neptune Gourmet Seafood” is the third largest seafood producer in North America and is known for its brand reputation, premium products and for the quality they serve. Recently this leader in the industry is in a major problem of inventory pileup that has gone up to 60 days’ supply which is twice the normal level and three times what it had been a year ago. The concept of cutting the cost by around 50% would not be a suitable option to consider. However the following options could be considered instead,

Launching a new brand in the market at a lower price

Tie up with star hotels and restaurants to conduct food festivals

Peak hour sale markets

Launching a new brand in the market at a lower price

Even though, the key decision makers of this company have been pessimistic about this approach to clear the inventory, we feel that this will work well in the favour of the company. This idea can work out in long-term strategy which could attract all classes of people. The company can come out with new packaging and labels for the lower priced brand. With two separate brands, company can create two different markets. People will have more choice in selecting what fits in their budget. This way we can have more customers than ever. Just like the car manufacturing company Toyota manufactured cars to target the middle and working class first and later introduced Lexus to the higher classes creating two markets. The other advantage in this case is that there is no need for high publicity and advertising since the ‘Neptune’ brand is already hugely trusted brand.

The limitations of this strategy will be that the pricing of this low priced product should be carefully done to avoid any kind of objection from the association regarding its cost and quality. It should also meet the ASPD’s standards as mentioned in the conversation between...