Business Case: Phillips Foods, Inc.

812 WordsNov 30, 20114 Pages
Business Case: Phillips Foods, Inc. 1) Problem statement: Phillips Foods Inc. just launched its new product called King Crab. It is a brand new product with a key innovation: a pasteurizing process which allows the product to stay fresh. The product therefore enjoys an 18 month shelf life. Management has decided to split the launch into two phases. Phase I is done; the company targeted foodservice buyers thanks to an advertising campaign through restaurant and institutional foodservice magazines. In the second phase, the target is now food retailers and wholesale distributors. Ron Birch, product manager is now facing a critical choice regarding the approach strategy: should he keep up with the advertisement strategy or explore a…show more content…
They are more involved and it is perceived as less intrusive compared to a regular sales call. Secondly, King Crab is a new product using a brand new process of pasteurizing; attendees do not know anything about it that is why the tradeshow is very convenient: it allows for demonstrations. Tasting is possible, sales people can have face to face interaction with the prospects and answer their questions, that kind of human contact is momentous when launching an innovation and is not possible when you advertise in magazines. Phillips has here the opportunity for sensory marketing: using the five senses, create strong and memorable emotions. It has been proven that emotions play a very important role in the customer purchase behavior. For instance, in the Elaboration Likelihood model developed by Petty and Cacioppo, emotions are part of the peripheral route that determines attitude toward the product. Thirdly, the tradeshow has an international scope which is of a big advantage for Phillips Food for two main reasons. On the one hand, an international tradeshow is a great way to professionally reinforce the image of the brand image and to keep building long-term relationship with customers but it is also a very strong message sent towards their competitors: “we know we are the first on the marketplace for crab meat but we do not rest on our
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