phillips food: king crab

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PHILLIPS FOODS, INC. KING CRAB KATHERINE DORATY

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Page 1: Phillips Food: King Crab

PHILLIPS FOODS, INC.KING CRABK A T H E R I N E D O R A T Y

Page 2: Phillips Food: King Crab

DISCUSSION

1.Key Facts2.Situation Analysis3.Case Problem4.Define Solutions5.Recommendations

Page 3: Phillips Food: King Crab

KEY FACTS

• Phillips Foods were the first to introduce pasteurized crab to the market that remained fresh

• 160 million in sales One of the largest seafood businesses

• Specializes in chain restaurants, food service and grocery presence

• Relied on both direct-to-retailers sales force and a network of food brokers, distributors and wholesalers

• Latest innovation? King crab• First to have pasteurized king crab• Two packages: one for institutional foodservice & one for retail

consumers

Page 5: Phillips Food: King Crab

KEY FACTS

Seafood Consumption Patterns

US Population: 110 million households

90% eat seafood43% of those eat only when dining out

27% of households reported buying frozen seafood18.5% of households buying fresh seafood

8% of households buying frozen crab

Page 6: Phillips Food: King Crab

SITUATION ANALYSIS

The seafood market was expected to grow because:

• Consumers were expected to purchase a greater share of their weekly food basket in warehouse clubs and large mass merchandisers (Costco, Sam’s Club, BJs)

• Trend towards self service selling for seafood

This leaves for a good opportunity for a new product like king crab

Phase I is completed using trade publication and targeting foodservice channels

Phase II will need to be implemented targeting retail consumers

Page 7: Phillips Food: King Crab

MARKETING FRAMEWORK

5 C’sContent

Company

Collaborators

Competition

Customers

STPSegmenting

Targeting

Positioning

4 PsPrice

Product

Promotion

Distribution

Page 8: Phillips Food: King Crab

CASE PROBLEM TRADE SHOW TRADE PUBLICATIONADVANTAGES

People haven't had contact with sales person

Many have buying authority

Build on all 5 senses

DISADVANTAGES

Schedule conflicts

Crowded or unappealing booths

ADVANTAGES

Not limited to 3 days

Broader audience

Direct marketing is more controllable

DISADVANTAGES

Ads do not tell much about product

Do not call upon a sale

Page 9: Phillips Food: King Crab

AUDIENCE COMPUTATION

IBSS 2007 FORECASTED ATTENDANCE 18,000

NET ATTENDANCE 12,000

TARGET AUDIENCE 3,960

INTEREST IN PHILLIPS FOODS 2,574

NUMBER OF POTENTIAL CLIENTS/LEADS 1,802

CAPACITY NEEDED FOR FACE TIME WITH POTENTIAL LEADS

AVERAGE FACE TO FACE INTERACTION 6 MINS

TOTAL FACE-TO-FACE TIME 10,811 MINS

DURATION OF SHOW 19 HOURS

AMOUNT OF FACE TIME PER SHOW 569 MINS

NUMBER OF STAFF NEEDED 10 EMPLOYEES

AVERAGE NUMBER OF PEOPLE IN EXHIBIT AREA

PHILLIPS STAFF 10

VISITORS IN EXHIBIT AREA 10

EXTRA STAFF NEEDED 4

AVERAGE TOTAL NUMBER OF PEOPLE IN AREA 24

Page 10: Phillips Food: King Crab

SQUARE FOOTAGE NEEDED FOR EXHIBIT

DENSITY TARGET 4

OPEN AREA NEEDED FOR INTERACTIONS 600

SPACE FOR KITCHEN 350

SPACE FOR EXHIBIT ELEMENTS 250

BOOTH SIZE NEEDED 1,200

BOOTH CHOICE # 333

PRICE OF BOOTH SPACE

PRICE PER SQ.FT. $30

COST FOR FOOTAGE $36,000

PRICE PER CORNER $500

COST FOR 4 CORNERS $2,000

TOTAL COST FOR 4 CORNERS $38,000

TOTAL STAFF NEEDED

BASED ON VISITORS FLOW 10

KITCHEN STAFF 3

EXTRA STAFF 4

TOTAL STAFF NEEDED 17

Page 11: Phillips Food: King Crab
Page 12: Phillips Food: King Crab

TOTAL TRADE SHOW BUDGET

SPACE RENTAL $38,000

EXHIBIT DESIGN $33,000

TRANSPORTATION $18,000

SHOW SERVICES $27,000

TRACEL AND ENTERTAINMENT $48,900

ADVERTISING AND PROMOTION $4,000

TOTAL BUDGET FOR TRADE SHOW $168,900

Page 13: Phillips Food: King Crab

ROI TRADE SHOWCOST PER LEAD

COST OF SHOWNUMBER OF POTENTIAL PHILLIPS LEADSPHILLIPS’ OVERALL COST PER LEAD

$168.9001,802$93.73

COST OF SHOW FOR BIRCH $84,450

% OF LEAD W/ KING CRAB INTERESTNUMBER OF ALL POTENTIAL KIND CRAB LEADSBIRCH’S COST PER KING CRAB LEAD

16%288$293.23

KING CRAB LEADS IN RETAILBIRCH’S COST PER KING CRAB IF ONLY RETAIL IS USED

201$420.15

COST TO CLOSE

COST/LEADCOST OF ONE FOLLOW-UP VISITNUMBER OF FOLLOW UP VISITS

$293.23$308.001.6

COST FOR FOLLOW-UP VISITS $492.80

TOTAL COST TO CLOSE 785.74

Page 14: Phillips Food: King Crab

PUBLICATION OPTIONS

Page 15: Phillips Food: King Crab

ROI TRADE ADVERTISEMENTROI MEASURES COST PER LEAD

AD COST PER ISSUECIRCULATIONOVERALL COST PER THOUSAND

$4,50015,000$300.00

PERCENT OF IN RETAILPERCENT INVOLVED IN PURCHASINGPOTENTIAL TARGETCPM FOR TARGET

58%90%7,380$574.71

RESPONSE EXPECTEDNUMBER OF LEADS PER ADCOST/LEAD

.30%23$195.65

ROI MEASURES COST TO CLOSE

COST OF ONE FOLLOW UP VISIT $308

NUMER OF FOLLOW UP VISITS 2.7

COST FOR FOLLOW UP FIELD VISITS $831.60

COST TO CLOSE $1,027.25

Page 16: Phillips Food: King Crab

RECOMMENDATION

I WOULD RECOMMEND TO BIRCH TO PURSUE THE TRADE SHOW

• COST

• ROI

• ADVANTAGES OUTWEIGH PUBLICATION

Page 17: Phillips Food: King Crab

LAST REMARKS

What other options could Birch request from his boss?

• Request more money

• Do both options

• Pre and post show awareness