Class or Mass

In: Business and Management

Submitted By alexandrjackson
Words 475
Pages 2
Sasha Dinh (SID 1161552)
MGMT 430 - Professor Jeffrey Barden
Class or Mass?

I. Brief Overview Neptune Gourmet Seafood is the third-largest seafood producer in the North America that is positioned as a premium high quality brand. Their products have reputation for being fresh and one of the best on the market. By applying new technologies into fishing process, Neptune was able to increase the efficiency and catch more matured fishes while leaving the immature fishes untouched. Furthermore, the new equipments allowed them to superfreeze the fish to -70 degrees F in just four hours, retaining the freshness and original flavor of the fish. As the capacity increased, Neptune's inventory soon got stocked up, alarming the company of overproducing. Thus, Neptune is facing decision whether to create a new brand to market the fish at a lower price to solve the inventory problem. However, this move can affect the company's brand image of being a premium producer.
II. Competitive Advantage Neptune has applied new technologies that allow them to be ahead of the competition in terms of quality and quantity. Because of its reputation and its brand image, Neptune was able to price its products from 25% to 30% higher than then market average price. One third of Neptune's sales comes from restaurants all over the nation. Especially the sushi bars in New York to Los Angeles even preferred buying frozen fish from Neptune than feezing it themselves, and this once again proved the quality of Neptune's products. Neptune has many distributive channels that allowed them to distribute products effectively to the customers.
III. Problem Solution As the brand image that Neptune has built overtime is an extremely important factor that allowed them to charge their customers a premium. Thus, diluting their image by slashing the prices is a very risky move which obviously will…...

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