Class - or Mass?
Storyboard Text
- Rita Sanchez approaches Jim Hangrove, the marketing director of Neptune Gourmet Seafood, about a major inventory problem
- Weaknesses:
- We have excess inventory and I'm convinced we have to drop our prices by 40% to 50% SOON!
- Please tell me i'm dreaming
- Stressed out, Rita compiles a list of what needs to be done to address this problem
- Problem Statement: Neptune is facing an excess inventory issue, and needs to come up with a solution to get rid of stock, without cannibalizing the existing product line, and maintaining high quality brand image.Next Steps:- Analyze our internal and external environment- Come up with solutions- Propose a recommendation- See whether this fits decision criteria- See how to mitigate risks- Determine implementation plan
- Rita calls an informal meeting with Jim, Sandy (head of consumer business) and Pat (head of institutional business) to brainstorm and analyze the companies internal and external environment
- We are top restaurants supplier of choice! Our quality is amazing
- Neptune Urgent Meeting: Strengths of our Brand
- Our premium image amongst consumers, allows us to have a higher price point
- Our sophisticated technology allows us to freeze fish without crystals, maintaining the colour and taste. We have the best technology ever!
- Let's start off by analyzing our internal environment. What some of our strengths?
- Our finished goods inventory has shot up to 60 days supply, twice the normal level!
- We are catching wayy to many fish with our freezer trawlers, duh!
- I feel we have too much capital tied into our technology and ships, like $9m seriously?!
- Too much stock...HELP!
- Box 1
- Box 3
- Box 2
- Box 4
- Ok, what about our weaknesses?
- How would we win shelf-space in supermarkets if we introduce a new brand? Consumers also prefer Beef, Chicken or Pork!
- Opportunities- Expand Overseas or into a new area.- Enter the private-label business- Capitalize on frozen fish -Create a cheaper brand, for a different target market
- Neptune's Gourmet Seafood
- If we expand overseas, we have competition from China, Peru, Chile and Japan to be "the best seafood on the water planet"!
- We may cannibalize our sales, or ruin our brand image if we introduce a cheaper product line!
- Here are some of our opportunities! What do you think are some threats?
- Nelson Stowe, the company's legal counsel approaches Rita with another potential threat, causing her to ponder over Neptune's Status-Quo
- The price you are suggesting with the lower product line opportunity that you propose, may put us at risk of withdrawing our ASPD Gold Seal of Approval...
- Hmm... I believe we are in a good standing in terms of the Gold Seal and good quality image, however if we keep continuing with this inventory problem, we are going to lose more and more money. We must find a solution
- They all further discuss potential opportunities and threats to these suggestions, at the Marketing and Operations Council Meeting with Stanley Renser - Neptune's CEO, Bernard Germain - the COO, and other colleagues
- We could create a new product line called Nepune's Silver!
- Are you crazy?! That would cannibalize sales and ruin our amazing brand image of being of high quality
- Neptune's Gourmet Seafood
- Why don't we distribute a new product line to appeal to value - minded customers?
- What?!
- Stanley demands that they come up with a solution
- Okay, you two. Quit arguing amongst yourselves and come up with 2 creative ideas and pick one!
- Although that is a good idea, it may be too costly and time consuming to implement. These restaurants are already partnered with the best of the best! It would be hard enter the market. We would even have to compete with countries like Japan as they import from there.
- Rita and Jim spend hours brainstorming
- Let's expand to the West Coast. We can partner with West Coast chefs, host pop-up events, adapt to the region and their best sushi restaurants and create an ad campaign with a celebrity like Justin Bieber!
- Later on that night, Rita cannot decide what to eat for dinner
- I have no idea what to eat, I wish I had some sort of preplanned meals to save time and effort!
- She then has a Eureka moment regarding Neptune's strategy!
- Omg... why don't we create subscription boxes called Neptune's Ocean Delight with our excess inventory! Even I would use them. Let me come up with a plan
- IMPLEMENTATION PLAN
- The next day, Rita approaches Bernard and Jim with her recommendation
- Yes! My idea will allow us to maintain our premium-quality brand image, and appeal to a wide range of consumers, hopefully increasing brand loyalty! We won't even lose our gold seal.
- Think about whether your idea fits these decision criteria: whether our brand image will be maintained, whether we will limit cannibalizing sales and whether it will maintain our loyal customer base!
- The same evening, Sandy meets Rita for drinks after overhearing her idea. She questions the risks of this idea.
- Aren't you worried about cannibalizaing sales?
- No! Our positioning will show that our products can be used in many different ways, plus we can offer discounts to existing loyal customers on Neptune's Gold products. We are also targeting those who have less time to think of meals, in hope they will eventually become full-time Neptune's Gold customers in the future!
- Ok! What about diluting our brand image? Also, how do know people won't pick existing boxes with other meats, over seafood?
- However, Rita has several mitigations
- Well, we are still positioning our products as premium, just expanding to a new product line! We will offer high quality products and goodies within these boxes. We also aim to convey the healthy of seafood through our ad campaigns.
- At the next MOC meeting, Rita presents the implementation of her plan to the rest of her Neptune colleagues, including Stanley Renser - Neptune's CEO and John Renser - Neptune's founder.
- Use excess frozen inventory in the boxes, mixed with premium fresh products, recipes, history behind the seafood, branded merchandise (Neptune themed aprons/ utensils) to enhance brand experience.
- Subscription Plan: Create bi-weekly subscription boxes containing a curated mix of Neptune's Gold line products. Each box can have a theme ("Mediterranean Delights," "Deep Sea Treasures")
- Neptune's Ocean Delight
- Sell some of our freezer trawlers in order to gain capital for this new product line .
- Price where customers think they are getting a value deal without undercutting product pricing, still maintaining the gold seal. $50-$80 per month
- Partner with influencers to promote these boxes and create an ad campaign called #NeptuneExperience to show the unboxing experience and benefits of this new product line. Educate consumers on the health of seafood over other meat. Target university students, parents, families
- After implementation, these subscription plans become highly popular amongst students, as well as families, allowing them to cook meals with ease, excitement and a luxury feel!
- I love the convenience of these boxes! The recipes included are so convenient, and the goodies they give are so exciting! Especially when I have to study for exams and can't think of a meal
- Paella Recipe
- I agree! They are literally so convenient, and I love unboxing them. I love my new apron and I even got a voucher for Neptune's Gold products!
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