This document summarizes a case study about Neptune Gourmet Seafood, the 3rd largest seafood producer in North America. It provides details about the company's operations, financials, competitors, strengths, weaknesses, and current problem of having excess inventory. Potential short-term solutions discussed are offering price cuts or bonus amounts to increase sales and get rid of excess inventory. Long-term alternatives proposed include penetrating new geographic markets, launching a new low-end brand, or creating their own restaurant business. However, each option comes with costs and downsides to consider.

1. Class or Mass?
By: Idalene F. Kesner and Rockney Walters
Kelompok:
Novelia Asita Mranani (041414153010)
I Putu Septian Adi Prayuda (041414153018

2. Class and Mass?
• Mass marketing: Marketing coverage strategy
in which a firm decides to ignore market
segment differences and go after the whole
market with one product
• Class marketing: Process of dividing market
into various segments and selling the product
according to the need of customer.

3. Neptune Gourmet Seafood
(north america, 3rd largest seafood producer)
Stands as the most upmarket in the high-end
seafood industry
With a recent investment of $9 million in six freezer
trawlers, Neptune was able to further increase the
quality
During the past 40 years, the company had earned a
reputation for producing the best seafood

4. Clients
• U.S. grocery chains (like Shaw’s Supermarkets)
• Organic food retailers (like Whole Foods
Market)
• All along the eastern seaboard and in parts of
the Midwest.
• Restaurants Within 250 miles radius

5. Competitors & Manufacturing Plants
• Major Competitors:
– China
– Peru
– Chile
– Japan
• The Neptune's Gold line of seafood – 25 to 30%
premium over rivals
• Manufacturing Plants:
– Cedar Key - Florida
– Norfolk - Virginia

6. Revenue Break Up
30%
33%
33%
4% Selling frozen and processed
fish products
Supply to restaurants
Wholesalers
Fish market outside Fort
Lauderdale

7. The Problem
• The company has excess inventory
• Full warehouses, not enough space to keep
the excess inventory
• Can't afford to dispense the excess inventory
• Their new technologies are going against their
interest
• The company has a very important image that
they need to maintain

8. Strength
• The company is very well known for offering
good quality products
• The company has more than one source of
income.
Restaurants, Grocery stores, etc.
• ASPD Gold Seal of Approval
• They have access to new and efficient
technological equipments.
• Owns more than one manufacture.

9. Weakness
• Finished goods Inventory for 60 days
• Excess Inventory
• Their technologies brought them to produce
more than expected.
• Their prices are 30% higher, and this might
make consumers go toward other brands.
• They have a limited target market,
concentrated only on North America

10. Oppotunities
• Market trend of eating seafood
• Growth potential of seafood market
Threats
• Emerging and existing local and foreign competition
• Overcapacity within the industry
• Strict fishing law
• Price sensitive to changing markets
• Pricing policies from ASPD

11. Porter 5 Forces Analysis
• THREATS OF NEW ENTRANTS
Possibility is high, due to high rising demand
for fish and other seafood products
• THREAT OF SUPPLIER'S BARGAINING POWER
Threat is minimal due to Neptune's ability to control its fishing
and processing of produce.
• THREAT OF INTENSE SEGMENT RIVALRY
Threat is high, competition has the capacity to retaliate issuing price war
• THREAT OF SUBSTITUTE PRODUCTS
Threat is high, even with people eating healthier things, demand for beef and chicken
remains high
• THREAT OF BUYER'S BARGAINING POWER
Threat is high due to excess in inventory and the nature of the prod

12. Solution Approach

13. Re-Positioning?
• Neptune’s tagline: The Best Seafood on The Water
Planet
• Re-positioning is not always easy, especially for
business lines that require more differentiated
content.
• Changing positioning, changing perceptions
• Changing the perception requires more than just a
communication campaign
• What should be done not only creates a condition
that is "just different", but also "better".

14. Price Cut vs Bonus Amount
• Price Cut
– Pros:
– Cons
They can get rid of their excess
inventory
More sells
Temporary solution for a temporary
problem
Lose of the ASPD Gold Seal Approval
Cheap product in the eyes of the
consumers
Product will be perceived as BAD
QUALITY
The company will make less profit
They will lose costumers
• Bonus Amount
– Pros:
– Cons
More product consumption
More sells
Gain new customers
Temporary solution for a temporary
problem
More demand for the bonus product
Lose income
Price of productivity will go up
Consumers will lose interest in "not
bonused" products

15. Bonus Amount (Short Term Solution)
Consumer's satisfaction:
• Still the same quality of product
• The costumers pay for what they want, but get
a bit more
• Their offer is limited - more consummation
• Not dispensing their excess inventory
• Making money from their excess inventory

16. Donate (Short Term Solution)
• Pros
• Cons
This will act as free advertising
Good public relations and CSR tool for the company to build brand equity
Helping public image and improving corporate culture
Promote product to targeted audience
Guaranteed to get rid of surplus product
Not receiving profit (money)  Risky

17. Long Time Alternative
• Penetrate other geographic market (“…this isn’t
about reducing inventory. It’s about introducing our
products to a bigger market.” ~ Pat Gilman)
– Cons: The set up cost, logistics costs, and the cost
of doing business in new location
• Launch a low-end brand, as A TOTALLY NEW BRAND
(in new geographies), not as a sub-brand of Neptune
– Cons: The cost for the ad campaign of this new
brand would even be greater than if the company
would simply utilize its Neptune brand

18. Long Time Alternative (Cont.)
• Create their own restaurant fish and chips
– Cons: Epensive, Longer process