Class or Mass- Mini Casestudy Analysis

Class or Mass - Mini Case Study analysis.

Based on the case study, to analyze the situation of Neptune Gourmet SeaFoods we have incurred a few short term and long term solutions of clearing the excess inventory and at the same time not sabotaging the reputation of the company. The situation noted here where in production is more than the demand. Our analysis is in contrast to the idea of launching a mass-market brand, to focus on the reduction of excess inventory alongside making sure we do not indulge in cannibalization. Following are the strategies implied. Firstly, by offering discount on the products, this will help the company to clear its excess inventory. Secondly, to sell franchises outside Fort Lauderdale. Thirdly, supply of excess stock to the other parts of the country, in partnership with the private players.

The first solution where we have analysed is short run solution to clear the excess inventory. We have decided to give a nominal discount of 25%-30% to the customers for a limited period of time. Here we focus mainly on clearing out the surplus inventory, without staking the customer loyalty. The positives in this analogy are as the price is decreased, according to law of demand the demand increases. As the price of the rivals is 30% less than the price, by dropping the prices we can attract most of their customers as we are providing high class food at same price, taking over a larger market share. In this case even if the rivals reduce their prices, the customers who used to pay same price for second grade food will try the top grade food at same cost rather than continuing with the same product as we were the only producers with APSD’s gold label. This strategy of slashing the price is temporary and does not affect the companies’ brand image. The drawbacks of this strategy could be that we are concentrating only on the inventory reduction for the short period of time. As of now demand is less than production, the ‘limited period discount’...