What features of Neptune’s business position led to the discussion of whether or not to add a new, lower-priced option to the company’s product line?
Neptune Gourmet Seafood is North America’s third largest seafood producer. The company inventory has increased to 60 days supply which is twice the normal supply and three times what is was just a year ago (Kenser & Walters, 2005). Additionally, the company invested in new ships with features that allow for more effective and efficient methods of gathering top quality catches.
What parts of Neptune’s business will be affected if Neptune introduces a new brand (“Neptune Silver”)?
The introduction of Neptune Gold will affect sales. ...view middle of the document...
What are the strengths and weaknesses of the experts’ analyses and recommendations?
There are three major recommendations made by the experts: creating a new product line, selling the trawlers, and expanding into foreign regions. Pros and Cons of each are listed below:
1) Creating a new product line:
- Long-term solution to inventory problem
- Expand business to new price conscious consumers
- Potential product cannibalism
2) Sell trawlers
- The company would have new capital to invest elsewhere
- The excessive production will cease
- Decrease in product
- Reduction in sales
3) Expand into new Region
- Expand market to reach more customers
- Reduce inventory
What additional information (not provided in the case study) would you like to have if it were your responsibility to set Neptune’s strategy?
I would like to know the organizational structure of the company. It would be beneficial to know if the company had a functional or divisional structure as well as see the organizational chart.
Can you identify other options not mentioned in the case study?
Bernard Germain, the COO of Neptune, briefly mentions...