Class or Mass Essay

Neptune Gourmet Seafood is faced with the exit of extend provide in its mart. The response action is very time sensitive as a failure to react may cause severe loss in mark apprehension. Though they carry increased investments as of late to produce much than and also maintain high quality products finished their halt technology, they still need to find a way to combat long-runinus supply issues. They should non threaten their high provoker image through low cost maneuvers, as this is the key driver of their competitive advantage. The cheeration I propose is to partner with very head known supplement retail merchant GNC to bring forth liquid ecstasy action of seek anoint.On top of that, Neptune should recommend to GNC in the partnership that they fatten out to the young and upcoming market place of fixed wellnessy meal delivery. GNC can partner with a littler company that has already established their healthy meal plans, such as MagicKitchen.com. Utilizing GN Cs distribution and trade prowess, both Neptune and GNC bequeath be able to sustain competitive advantages through high brand legality and first suggester advantages in a small, yet poised to grow market. As the world starts to draw more health conscious, it give be a huge competitive advantage to have already set up the correct infrastructure to tack this market. Industry DynamicsNeptune Gourmet Seafood is North the Statess third largest seafood producer playing in a market where seafood is considered high-end. They have generated nearly a third of its revenue from carry oning fixed and processed fish through US grocery bonds and organic food retailers. An even bigger market is through the many restaurants within 250 miles of Fort Lauderdale that they sell to along with many big cruise lines. The final third of their market was through wholesalers who then interchange the fish to restaurants across the country. Neptune was considered top quality, and therefore withdrawed a 30% bounty over the majority of its competitors. They leaded this premium due to their investments in new-fangled ships and freezing technologies that allowed them to find the biggest and best catches along with administering their top notch freezing agents to keep fish fresh. Some clients even preferred their frozen fish to fresh fish. Situation compendNeptune Gourmet Seafood is in a tough situation where they continue to have tautologic inventory although strike for their product is increase. They have recently become more productive through both investments in new freezing technologies as well as new government regulation forcing them to deeper waters where they are having more successful catches. After analyzing their current market situation, some possible opportunities have been unveiled (Appendix A) that could possibly therapeutic their current predicament. These opportunities are coordinated with the company objectives, but it is clear that not all will be optimal due to offsetting industry conditions. The managers and decision makers at Neptune Gourmet Seafood have each begun to disagree or so the proper course of action to best sustain a competitive advantage. (Appendix D) These issues come down to three main areas Inventory Levels Is this a short-term problem that will pass with time or is it a strategic problem that must be addressed now to avoid long-term damage. Pricing contrivance Will a 50% give the axe help to rid of excess inventory or will it simply reduce profits? Will profits be hurt in the long term? Brand Awareness Should the brand equity of Neptune Gold be jeopardized with the creation of a secondary Neptune silver gray brand? What other opportunities could be explored to increase the brand awareness and brand equity of Neptune as a whole.After performing a SWOT analysis (Appendix C) it became clear that the creation of a secondary discount brand would not plainly hurt the reputation of Neptune but also cut into its ow n sales. Moreover, the increasing supply of fish due to new regulation makes it clear that this problem is not something that will respectable go away by shedding a bit of inventory. It is an issue that needs a long-term solution in order to sustain a competitive advantage, whether that is in another market with a different product, or some other long-term strategy. (Appendix B). For that reason, the idea of magnification to the fish oil market with a partnership with GNC has emerged. This will be able to rid of excess inventory as supply increases while also tapping into a budding demand market. (Appendix E2). Further, they should use their frozen fish to provide the seafood for GNC working out to the frozen meal delivery market. GNC can partner with MagicKitchen.com to utilize there already in go under menu(Appendix E4) while using the distribution, advertising, and target market that GNC already obtains. Importance of DecisionThe whole seafood business market is facing a dif ficult problem of how to deal with increased supply. The response that Neptune takes is vital to its long-term solvency as a misstep may set them back compared to their competitors. overdue to its historical success along with a recognizable and trusted brand, Neptunes customers expect no change in the status quo. all disallow spillover onto their current product or product melt may induce a negative customer response. Furthermore, a move to a low cost brand may hurt their brand image beyond repair. rating CriteriaSpeed how fast will the secondary address and remedy the surplus issue? Growth will the alternative continue growth in current/new markets? vision Usage will the alternative use current resources or require new investments? Quality will the quality of product be reduced through the alternative? Competitor Response will the alternative start a price war? Customer Response will the alternative affect customer perception of high quality? Supply Inventory will the alter native address the increase in supply in short and long-term? AlternativesNeptune is at a point in which action is required. A do nothing strategy would almost certainly put them in a hole that would not allow them to compete long term in this industry. The alternative of a price cut does not align with their core values, and therefore the following three options were considered 1). Create a Neptune branded chain of high-end Seafood restaurants locate along the Florida Coast. ProsGets rid of excess supplyMaintains high quality brand perceptionIncreases revenue while creating a testing ground for new products ConsLarge investment buildings and gaining restaurant get down Directly competing with a large portion of customer base2). Form a partnership with GNC and begin production of fish oil tablets and recommend expansion into preplanned frozen meal market where Neptune wouldbe exclusive supplier of fish. (Further partner with MagicKitchen.com). ProsLong term solution for increase i n fish supplyExtends brand to another market, non-seafood eatersGNC already understands processes to create/has distribution GNC has distribution system in place for frozen sector, already has target market as well ConsGNC features many brands of fish oils alreadyPossible cannibalization with GNC advised frozen meal plans3). Create a mass-market brand called Neptune Silver that sells at lower cost through the equal distribution channels. ProsAddresses supply problem now and in the futureAttracts new lower end customer baseConsDecreased revenueBrand perception is lowered, may lose high-end customer base as well Possible lost ability to charge a premium in the high-end market Alternatives Evaluation MatrixRecommendationsShort-term Tactical With the surplus of inventory increasing every day, Neptune must fructify its dose services to begin regular deliveries to GNCs manufacturing site. Long-term Strategic Neptune must take action in a few different areas if they are to be successf ul. Based on the alternatives matrix, the joint venture with GNC gives them the biggest luck to retain a competitive advantage. The current growth of the fish oil industry shows the trend that more and more consumers are starting to care about their longevity in health. Furthermore, the meal plan expansion recommendation to GNC helps to gain another competitive advantage in the pre-planned healthy meal industry. They must prepare an offer to GNC outlining the opportunities for GNC and the possible market penetration that they can achieve through this partnership. They will also recommend partnering with already in place frozen healthy meal delivery services such as MagicKitchen.com. The healthy frozen meals industry is increment and doesnt have a lot of players. First mover advantages will be acquired andflourished with the scale and distribution GNC already has in place. Key Implementation Actions1). Begin hebdomadally or monthly transport of specified amount of surplus fish to b e used for fish oil at first until partnership with frozen meal team is acquired. 2). Fish oil production will begin at GNC production site, begin marketing and advertising campaigns. 3). Once GNC has partnered with a frozen meal provider, they must begin the marketing and advertising to help bring the health conscious customers of GNC in concert with the convenience of frozen meals. 4). MagicKitchen.com can utilize GNC distribution systems to deliver low transaction be contact to Resources and Capabilities on Competitive Advantages The impact of this partnership is an enhancement to both companies competitive advantages. Neptune is able to not only maintain its high quality perception but also penetrate a growing market of fish oil and pre-planned healthy frozen meals.GNC will be able to expand its product mix by penetrating the busy yet health conscious individuals. This is a market that is sustainable and growing due to the increase of information available about healthy eating habits and the importance of food to longevity. The groups of health conscious people are also great brand ambassadors, and are drive marketing efforts and demand for products through their use of social media (Appendix E5). Furthermore, through the partnership GNC will save on transportation costs and other costs by utilizing Neptune as its sole fish supplier. Expected Competitor ResponseDue to the common issue of increased supply throughout the market, it is plausibly that other competitors will be seek to find other outlets to sustain a competitive advantage. However, due to the lack of premium brand science it will be difficult for them to make such large partnerships. Neptunes increasing margins over the ago few years are giving it ample cash to make these big deals. The competitors will likely try to rid excess inventory through price cuts or charitable giving. AppendixA). market place Expansion GridB). Porters Five ForcesC). SWOT AnalysisD). Stakeholders AnalysisE). e xterior ResearchA) Market Expansion GridB) Porters Five ForcesC). SWOT AnalysisD) Stakeholders AnalysisE). Exterior ResearchE1. Finding New Uses Fish Byproducts Report http//www.ars.usda.gov/is/ar/archive/apr07/fish0407.pdfGlobal demand for fish protein will exceed supply by 2016 Fish oil and protein supplements for humans can be made from high-fat livers. And low-fat livers, such as salmon, can be used as supplements for pets and livestock as well as humans. E2). Grandview Research Industry Report Fish Oil MarketGlobal fish oil demand nearing $2 billion and expected to grow at 9% between now and 2014 The major driver of this growth is the increase in direct human consumption based on increased health benefit awareness and concern of general population. Not enough production to keep up with the increasing demand. E3). Global Frozen Food Market Reporthttp//www.foodproductdesign.com/news/2013/09/global-frozen-food-market-to-reach-294-billion-by.aspxManufacturers finding more and more demand from organic and natural frozen market Overall market expecting nearly 15% increase by 2019E4). Possible Partners for Frozen Meals for FNChttp//www.magickitchen.com/press_releases/Local-Partner-Program.htmlDelivery of frozen healthy meals to individual doors Could do bulk deliveries to GNC for mass magazine and low costs E5). Health Conscious Shoppers building brandshttp//socialtimes.com/health-conscious-shoppers-become-powerful-brand-advocates-infographic_b149137More healthy people, more brand recognition and drivingdemand. Infographics