Class or Mass Essay

Neptune gourmet Seafood is faced with the issue of augmentd tot in its mart. The response movement is very time sensitive as a failure to react may cause severe dismissal in brand intuition. Though they prepare accessiond investments as of former(a) to produce more than and besides maintain high quality products finished their halt technology, they still need to find a way to man long- depot show issues. They should non threaten their high brand witness through with(predicate) low cost maneuvers, as this is the key driver of their agonistic advantage. The recommendation I propose is to coadjutor with very come up cognize supplement retailer GNC to develop exclusive intersection of look for oil.On top of that, Neptune should recommend to GNC in the league that they expand to the young and approaching market of nippy rosy-cheeked repast delivery. GNC can partner with a smaller company that has already established their brawny meal plans, much(prenominal) as MagicKitchen.com. Utilizing GNCs diffusion and marketing prowess, both Neptune and GNC result be able to persist going warring advantages through high brand fair-mindedness and first mover advantages in a small, yet poised to rick market. As the world starts to be go far more health sensible, it volition be a huge combative advantage to have already chasten up the correct infrastructure to tack this market. Indus essay DynamicsNeptune Gourmet Seafood is North Americas third largest seafood producer playing in a market where seafood is considered high-end. They have generated nearly a third of its tax income from selling frigid and processed weight through US market place chains and organic food retailers. An even largeger market is through the many restaurants within 250 miles of Fort Lauderdale that they sell to on with many big cruise lines. The final third of their market was through self-coloredsalers who then ex smorgasbord the look for to restaurants ac ross the country. Neptune was considered top quality, and therefore filled a 30% allowance over the majority of its competitors. They demanded this premium due to their investments in pertly ships and freezing technologies that allowed them to find the biggest and best catches along with administering their top nonch freezing agents to affirm fish saucilyfangled. Some customers even preferred their frozen fish to fresh fish. Situationdepth psychologyNeptune Gourmet Seafood is in a tough place where they continue to have surplus stock-taking although demand for their product is increasing. They have recently become more productive through both investments in new freezing technologies as well as new governing body regulation forcing them to deeper waters where they are having more successful catches. aft(prenominal) analyzing their on-going market situation, some possible opportunities have been unveiled (Appendix A) that could possibly salve their current predicament. T hese opportunities are coordinated with the company objectives, but it is clear that not all get out be optimal due to offsetting industry conditions. The managers and stopping point makers at Neptune Gourmet Seafood have each begun to disagree about the strait-laced course of action to best sustain a competitive advantage. (Appendix D) These issues come down to three main areas Inventory Levels Is this a short-term line of work that will pass with time or is it a strategic occupation that must be addressed now to avoid long-term damage. determine Scheme Will a 50% discount help to unloose of excess inventory or will it simply reduce sugar? Will profits be hurt in the long term? firebrand Awareness Should the brand equity of Neptune Gold be jeopardized with the mankind of a secondary Neptune Silver brand? What other opportunities could be explored to increase the brand awareness and brand equity of Neptune as a whole.After performing a SWOT analysis (Appendix C) it became c lear that the creation of a secondary discount brand would not only hurt the news report of Neptune but also weakened into its own sales. Moreover, the increasing supply of fish due to new regulation makes it clear that this problem is not something that will just go away by shedding a bit of inventory. It is an issue that needs a long-term final result in high society to sustain a competitive advantage, whether that is in another market with a different product, or some other long-term strategy. (Appendix B). For that reason, the idea of expansion to the fish oil market with a partnership with GNC has emerged. This will be able to rid of excess inventory as supply increases epoch also tapping into a budding demand market. (Appendix E2). Further, they should use their frozen fish to provide the seafood for GNC expansion to the frozen meal delivery market. GNC can partner with MagicKitchen.com to utilize there already in place menu(Appendix E4) opus using the distribution, adv ertising, and target market that GNC already obtains. Importance of DecisionThe whole seafood action market is facing a difficult problem of how to traverse with increased supply. The response that Neptune takes is vital to its long-term solvency as a trip-up may set them back compared to their competitors. Due to its historical success along with a recognizable and trusted brand, Neptunes customers expect no change in the status quo. Any negative spillover onto their current product or product aggregate may induce a negative customer response. Furthermore, a move to a low cost brand may hurt their brand image beyond repair. Evaluation CriteriaSpeed how prodigal will the choice address and remedy the surplus issue? harvest-tide will the alternative continue growth in current/new markets? Resource Usage will the alternative use current resources or require new investments? Quality will the quality of product be reduced through the alternative? Competitor repartee will the alte rnative start a price war? Customer Response will the alternative affect customer perception of high quality? ply Inventory will the alternative address the increase in supply in short and long-term? AlternativesNeptune is at a point in which action is required. A do nothing strategy would almost for certain put them in a hole that would not allow them to deal long term in this industry. The alternative of a price cut does not align with their core values, and therefore the following three options were considered 1). clear a Neptune branded chain of high-end Seafood restaurants located along the Florida Coast. ProsGets rid of excess supplyMaintains high quality brand perceptionIncreases revenue while creating a testing ground for new products Cons extensive investment buildings and gaining restaurant experience Directly competing with a large portion of customer base2). Form a partnership with GNC and begin production of fish oil tablets and recommend expansion into preplanned frozen meal market where Neptune wouldbe exclusive supplier of fish. (Further partner with MagicKitchen.com). ProsLong term solution for increase in fish supplyExtends brand to another market, non-seafood eatersGNC already understands processes to create/has distribution GNC has distribution system in place for frozen sector, already has target market as well ConsGNC features many brands of fish oils alreadyPossible cannibalization with GNC advised frozen meal plans3). Create a mass-market brand called Neptune Silver that sells at lower cost through the very(prenominal) distribution channels. ProsAddresses supply problem now and in the futureAttracts new lower end customer baseConsDecreased revenueBrand perception is lowered, may lose high-end customer base as well Possible lost ability to charge a premium in the high-end market Alternatives Evaluation MatrixRecommendationsShort-term Tactical With the surplus of inventory increasing every day, Neptune must prepare its expectation services to begin regular deliveries to GNCs manufacturing site. Long-term Strategic Neptune must take action in a few different areas if they are to be successful. establish on the alternatives matrix, the joint venture with GNC gives them the biggest opportunity to retain a competitive advantage. The current growth of the fish oil industry shows the trend that more and more consumers are starting to care about their longevity in health. Furthermore, the meal plan expansion recommendation to GNC helps to gain another competitive advantage in the pre-planned healthy meal industry. They must prepare an can to GNC outlining the opportunities for GNC and the possible market penetration that they can achieve through this partnership. They will also recommend partnering with already in place frozen healthy meal delivery services such as MagicKitchen.com. The healthy frozen meals industry is growing and doesnt have a lot of players. premier mover advantages will be acquired andflouris hed with the scale and distribution GNC already has in place. Key Implementation Actions1). Begin weekly or monthly transport of specified amount of surplus fish to be used for fish oil at first until partnership with frozen meal team up is acquired. 2). lean oil production will begin at GNC production site, begin marketing and advertising campaigns. 3). Once GNC has partnered with a frozen meal provider, they must begin the marketing and advertising to help bring the health conscious customers of GNC together with the convenience of frozen meals. 4). MagicKitchen.com can utilize GNC distribution systems to deliver low transaction cost Impact to Resources and Capabilities on rivalrous Advantages The impact of this partnership is an enhancement to both companies competitive advantages. Neptune is able to not only maintain its high quality perception but also penetrate a growing market of fish oil and pre-planned healthy frozen meals.GNC will be able to expand its product mix by pe netrating the busy yet health conscious individuals. This is a market that is sustainable and growing due to the increase of information lendable about healthy eating habits and the importance of food to longevity. The groups of health conscious people are also great brand ambassadors, and are hotheaded marketing efforts and demand for products through their use of social media (Appendix E5). Furthermore, through the partnership GNC will save on transportation costs and other costs by utilizing Neptune as its sole fish supplier. Expected Competitor ResponseDue to the common issue of increased supply throughout the market, it is likely that other competitors will be trying to find other outlets to sustain a competitive advantage. However, due to the lack of premium brand light it will be difficult for them to make such large partnerships. Neptunes increasing margins over the past few years are plentiful it ample cash to make these big deals. The competitors will likely try to ri d excess inventory through price cuts or kind giving. AppendixA). marketplace Expansion GridB). Porters volt ForcesC). SWOT AnalysisD). Stakeholders AnalysisE). Exterior ResearchA) Market Expansion GridB) Porters Five ForcesC). SWOT AnalysisD) Stakeholders AnalysisE). Exterior ResearchE1. Finding New Uses Fish Byproducts written report http//www.ars.usda.gov/is/ar/archive/apr07/fish0407.pdfGlobal demand for fish protein will go through supply by 2016 Fish oil and protein supplements for humans can be made from high-fat livers. And low-fat livers, such as salmon, can be used as supplements for pets and livestock as well as humans. E2). Grandview Research Industry narration Fish Oil MarketGlobal fish oil demand nearing $2 billion and expected to grow at 9% surrounded by now and 2014 The major driver of this growth is the increase in pick out human consumption based on increased health well-being awareness and concern of general population. Not enough production to keep up wit h the increasing demand. E3). Global Frozen Food Market Reporthttp//www.foodproductdesign.com/news/2013/09/global-frozen-food-market-to-reach-294-billion-by.aspxManufacturers finding more and more demand from organic and inhering frozen market Overall market expecting nearly 15% increase by 2019E4). Possible Partners for Frozen Meals for FNChttp//www.magickitchen.com/press_releases/Local-Partner-Program.htmlDelivery of frozen healthy meals to individual doors Could do bulk deliveries to GNC for mass pickup and low costs E5). Health cognizant Shoppers building brandshttp//socialtimes.com/health-conscious-shoppers-become-powerful-brand-advocates-infographic_b149137More healthy people, more brand recognition and drivingdemand. Infographics