Case Class or Mass Analysis

1330 Words6 Pages
Shuman Zheng
MGMT 430
Case Analysis: Class or Mass

Executive Summary: The North America's third - largest seafood producer Neptune
Gourmet Seafood is known for the brand reputation, premium product and quality they served in the high-end seafood industry. Recently they are facing the challenge of inventory pileup in a short period of time due to the investment in state-of-the-art freezer trawlers, along with new fishing regulations. Whether cutting the current price by around 50% to clear the inventory is the main argument among the board members. I’m not in fever of simply price cutting. My recommendation is to consider launching a new brand at a lower price to target value-minded customers. Moreover, tying up with star
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Alternatives: There are three options that mainly mentioned in the case:
1. Reduce the current prices of the premium brand by 40-50%
Pro: Will increase the quantity sold, and reduce the inventory.
Con: Will hurt the brand image. Customer will doubt about the quality of the product. Will get attention from ASPD and may cause the price war.


2. Tying up with star hotels and restaurants at the touristy areas to conduct food festivals. Pro: Reduce the inventory at the fast pace. It will keep the high quality, and the premium image in customer’s mind.
Con: May have additional cost for event planning.
3. Launch a low price brand and target the value-minded customer.
Pro: Will attract more customers and open a new channel of distributes.
Con: May causes the untrusted from the costumer. The when the existing customer find out the quality are the same, they may change to the lower price brand, which may will hurt the profit.
I would not recommend the first option since the huge reduction in the price will hurt the brand image of the company same time it will initiate a price war. It will not benefit the company in the long term.

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