Agenda Class marketing vs Mass marketing Background Major issues Alternatives to problems Effects of alternatives Probable solutions
Class Marketing vs Mass Marketing• Mass marketing is a marketing coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one product.• Class marketing is a process of dividing market into various segments and selling the product according to the need of customer.
Background Neptune Gourmet Seafood company is the third largest seafood producer of North America. Its having a net worth of $820 million. One of its major products is Neptune’s Gold line of seafood products. Manufactured in two sophisticated plants near Cedar Key, Florida and Norfolk, Virginia.
Major issues Excess of inventory. Selling declining. Improper marketing strategy for selling off inventory. Producing high quality products having 25-30% higher price. 10% decrease in revenue due to sharp competition in market compared to last year.
Alternatives to problems Either 40-50% price reduction or 10% price reduction. Selling off the inventory with a new brand name at low price to a bigger market Should sale some old ships and start launching ready to eat fish Have to look for some wholesaler for selling their excess inventory.
Effects of alternatives 40-50% price reduction will sink the reputation of the company 10% reduction in price will not solve the problem of excess inventory Introduction of a new brand name can take the place of previous one With a new brand, on one hand they are trying to keep the two brands separate and on the other hand they were migrating customers from low end brand to a high end brand
Probable solutions First we need to check whether it is long term or short term problem. If long term, then They have to come up with a new brand. Have to expand their market in some isolated places. Have to sell their excess inventory to wholesallers at a lower price. If it is short term, then Have to identify a market which is isolated from their product. Have to sell their inventory to a producer with profit without involving their brand image.