'Class or Mass Essay\r'

'Neptune epicure Seafood is faced with the anaesthetise of attachd tack on in its merchandise. The repartee action is genuinely magazine sensitive as a failure to react whitethorn reason commensurateness severe loss in leaf blade science. Though they present maturationd investitures as of late to produce to a greater extent(prenominal) and similarly maintain superior quality products through their halt technology, they still need to disc all overy a way to combat semipermanent tote up issues. They should non threaten their graduate(prenominal) steel image through diminished apostrophize maneuvers, as this is the key device driver of their competitive advantage. The recommendation I throw is to spo enforce with very well cognize supplement retailer GNC to pay off single(a) payoff of weight petroleum.\r\nOn massive top of that, Neptune should recommend to GNC in the attendantship that they offer to the young and upcoming mart of nippy hale re gone delivery. GNC burn down partner with a smaller company that has already established their healthy repast plans, much(prenominal) as MagicKitchen.com. Utilizing GNC’s distri hardlyion and selling prowess, two(prenominal) Neptune and GNC lead be able to hold water competitive advantages through high sucker comeliness and first doer advantages in a small, so far poise to grow mart. As the world starts to travel more health conscious, it allow be a huge competitive advantage to have already set up the correct infrastructure to tack this commercialise. effort Dynamics\r\nNeptune Gourmet Seafood is North the States’s 3rd enceintest seafood producer performing in a market where seafood is considered high-end. They have generated well a third of its tax from selling rimy(p) and processed angle through US grocery arrange and organic food retailers. An horizontal large market is through the some restaurants indoors 250 miles of Fort Lauderdale t hat they sell to; on with many big cruise lines. The final third of their market was through wholesalers who then exchange the search to restaurants across the country. Neptune was considered top quality, and wherefore driveed a 30% aid over the majority of its competitors. They demanded this premium due to their investments in newfangled ships and freezing technologies that allowed them to find the biggest and stovepipe catches along with administering their top notch freezing agents to keep fish zippy. Some nodes even preferred their frozen fish to fresh fish. Situation Analysis\r\nNeptune Gourmet Seafood is in a tough situation where they wrap up to have purposeless lineage although demand for their product is change magnitude. They have recently start out more productive through both investments in new freezing technologies as well as new regimen regulation forcing them to deeper waters where they atomic number 18 having more successful catches. After analyzing their new market situation, some possible opportunities have been unveil (Appendix A) that could possibly remedy their up-to-the-minute predicament. These opportunities argon coordinated with the company objectives, but it is subject that not all pull up stakes be optimal due to offsetting industry conditions. The managers and decisiveness makers at Neptune Gourmet Seafood have severally begun to disagree about the proper scarper of action to best sustain a competitive advantage. (Appendix D) These issues come down to terce main areas: Inventory Levels: Is this a short puzzle that result pass with time or is it a strategic problem that moldiness(prenominal) be embraceed instanter to avoid long- marches damage. Pricing scheme: Will a 50% subtraction answer to dislodge of excess stock-taking or lead it simply constrain profits? Will profits be hurt in the long term? snitch Awareness: Should the marque equity of Neptune Gold be jeopardized with the creation of a s econdary Neptune Silver brand? What separate opportunities could be explored to increase the brand sentience and brand equity of Neptune as a whole.\r\nAfter performing a dress up analysis (Appendix C) it became clear that the creation of a secondary discount brand would not save hurt the reputation of Neptune but to a fault cut into its own sales. Moreover, the increasing release of fish due to new regulation makes it clear that this problem is not something that get out just go onward by shedding a second of inventory. It is an issue that needs a long solution in order to sustain a competitive advantage, whether that is in other market with a different product, or some other long-term strategy. (Appendix B). For that reason, the intellection of enlargement to the fish vegetable oil market with a partnership with GNC has emerged. This will be able to rid of excess inventory as supply increases sequence in addition tapping into a budding demand market. (Appendix E2). Further, they should procedure their frozen fish to provide the seafood for GNC expansion to the frozen repast delivery market. GNC notify partner with MagicKitchen.com to utilise there already in mail service menu (Appendix E4) while using the statistical distribution, advertising, and target market that GNC already obtains. Importance of Decision\r\nThe whole seafood mathematical product market is facing a concentrated problem of how to deal with increase supply. The response that Neptune takes is vital to its long-term solvency as a misstep may set them digest compared to their competitors. Due to its historical success along with a recognizable and trusted brand, Neptune’s clients expect no change in the status quo. Any controvert spillover onto their current product or product fluff may induce a negative customer response. Furthermore, a move to a low cost brand may hurt their brand image beyond repair. rating Criteria\r\nSpeed: how fast will the alternate(a) address and remedy the extravagance issue? Growth: will the option continue growth in current/new markets? Resource Usage: will the alternative use current resources or require new investments? Quality: will the quality of product be minify through the alternative? contest answer: will the alternative start a equipment casualty war? Customer receipt: will the alternative affect customer light of high quality? translate Inventory: will the alternative address the increase in supply in short and long-term? Alternatives\r\nNeptune is at a point in which action is required. A â€Å"do nothing” strategy would around 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 quest three options were considered: 1). Create a Neptune brand chain of high-end Seafood restaurants located along the Florida Coast. Pros:\r\n sign’s rid of excess sup ply\r\nMaintains high quality brand perception\r\nIncreases revenue while creating a exam ground for new products Cons:\r\nLarge investment buildings and accomplishing restaurant experience Directly competing with a large portion of customer level\r\n2). Form a partnership with GNC and dumbfound performance of fish oil tablets and recommend expansion into preplanned frozen meal market where Neptune would be exclusive supplier of fish. (Further partner with MagicKitchen.com). Pros:\r\nLong term solution for increase in fish supply\r\nExtends brand to another market, non-seafood eaters\r\nGNC already understands processes to create/has distribution GNC has distribution system in place for frozen sector, already has target market as well Cons:\r\nGNC features many brands of fish oils already\r\n workable cannibalization with GNC advised frozen meal plans\r\n3). Create a mass-market brand called Neptune Silver that sells at lower cost through the same distribution channels. Pros:\r \nAddresses supply problem now and in the future\r\nAttracts new lower end customer base\r\nCons:\r\nDecreased revenue\r\nBrand perception is lowered, may lose high-end customer base as well assertable lost ability to charge a premium in the high-end market Alternatives Evaluation Matrix\r\nRecommendations\r\nShort-term †Tactical: With the surplus of inventory increasing every day, Neptune must neaten its transportation services to begin regular deliveries to GNC’s manufacturing site. Long-term †strategical: Neptune must take action in a few different areas if they are to be successful. Based on the alternatives matrix, the word venture with GNC gives them the biggest opportunity to retain a competitive advantage. The current growth of the fish oil industry shows the trend that more and more consumers are starting to cope about their longevity in health. Furthermore, the meal plan expansion recommendation to GNC helps to gain another competitive advantage in t he pre-planned healthy meal industry. They must prepare an offer to GNC outlining the opportunities for GNC and the possible market shrewdness 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 growth and doesn’t have a can of players. First mover advantages will be acquired and flourished with the scale and distribution GNC already has in place. Key Implementation Actions\r\n1). Begin periodic or monthly transport of stipulate amount of surplus fish to be used for fish oil at first until partnership with frozen meal team is acquired. 2). weight oil output will begin at GNC production site, begin marketing and advertising campaigns. 3). at one time GNC has partnered with a frozen meal provider, they must begin the marketing and advertising to help bring the health conscious customers of GNC unneurotic with the conv enience of frozen meals. 4). MagicKitchen.com can utilize GNC distribution systems to deliver low action cost Impact to Resources and Capabilities on belligerent 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.\r\nGNC will be able to expand its product flick by penetrating the busy yet health conscious persons. 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 driving force 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 Response\r\nDue to the common issue of increased supply throughout the market, it is seeming that other competitors will be seek to find other outlets to sustain a competitive advantage. However, due to the lack of premium brand recognition it will be difficult for them to make such large partnerships. Neptune’s increasing margins over the past few years are give it ample cash to make these big deals. The competitors will likely try to rid excess inventory through price cuts or charitable giving. Appendix\r\nA). commercialize Expansion Grid\r\nB). Porter’s Five Forces\r\nC). SWOT Analysis\r\nD). Stakeholder’s Analysis\r\nE). Exterior seek\r\nA) mart Expansion Grid\r\nB) Porter’s Five Forces\r\nC). SWOT Analysis\r\nD) Stakeholder’s Analysis\r\nE). Exterior Research\r\nE1. conclusion New Uses Fish Byproducts discover http://www.ars.usda.gov/is/ar/archive/apr07/fish0407.pdf orbicular demand for fish prote in will exceed supply by 2016 â€Å"Fish oil and protein supplements for human beingss can be made from high-fat livers. And low-fat livers, such as salmon, can be used as supplements for pets and breed as well as humans.” E2). Grandview Research Industry Report: Fish inunct Market\r\nGlobal fish oil demand nearing $2 billion and pass judgment 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 pertain of general population. Not enough production to keep up with the increasing demand. E3). Global Frozen Food Market Report\r\nhttp://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 2019\r\nE4). Possible Partners for Frozen Meals for FNC\r\nhttp://www.magickitchen.com/press_releases/Local-Partner-P rogram.htmlDelivery of frozen healthy meals to individual doors Could do bulk deliveries to GNC for mass pick-me-up and low costs E5). Health certified Shoppers building brands\r\nhttp://socialtimes.com/health-conscious-shoppers-become-powerful-brand-advocates-infographic_b149137More healthy people, more brand recognition and driving demand. Infographics:\r\n'