Class or Mass?By: Idalene F. Kesner and Rockney Walters

Kelompok:Novelia Asita Mranani (041414153010)

I Putu Septian Adi Prayuda (041414153018

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.

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

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

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

Revenue Break Up

30%

33%

33%

4%Selling frozen and processed fish products

Supply to restaurants

Wholesalers

Fish market outside Fort Lauderdale

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

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.

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

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

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 POWERThreat is minimal due to Neptune's ability to control its fishing and processing of produce.

• THREAT OF INTENSE SEGMENT RIVALRYThreat is high, competition has the capacity to retaliate issuing price war

• THREAT OF SUBSTITUTE PRODUCTSThreat is high, even with people eating healthier things, demand for beef and chicken remains high

• THREAT OF BUYER'S BARGAINING POWERThreat is high due to excess in inventory and the nature of the prod

Solution Approach

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".

Price Cut vs Bonus Amount

• Price Cut– Pros:

– Cons

They can get rid of their excess inventoryMore sellsTemporary solution for a temporary problem

Lose of the ASPD Gold Seal ApprovalCheap product in the eyes of the consumersProduct will be perceived as BAD QUALITYThe company will make less profitThey will lose costumers

• Bonus Amount– Pros:

– Cons

More product consumptionMore sellsGain new customersTemporary solution for a temporary problem

More demand for the bonus productLose incomePrice of productivity will go upConsumers will lose interest in "not bonused" products

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

Donate (Short Term Solution)

• Pros

• Cons

This will act as free advertisingGood public relations and CSR tool for the company to build brand equityHelping public image and improving corporate culturePromote product to targeted audienceGuaranteed to get rid of surplus product

Not receiving profit (money) Risky

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

Long Time Alternative (Cont.)

• Create their own restaurant fish and chips– Cons: Epensive, Longer process