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Essay on Phillips Food: King Crab

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Phillips Foods, Inc. – Introducing King Crab to the Trade

Executive Summary:

The Phillips Foods, Inc., case discusses target marketing for specialty seafood. Phillips Foods, Inc. was founded in 1914 by Augustus Phillips on Hoopers Island, Maryland. Phillips had developed a reputation for fresh seafood caught and sold locally. By 2006, Phillips Foods had three business units that were generating profits and became one of the largest seafood businesses in the United States. The restaurant division operates 8 full-service restaurants as well as fast food restaurants, mainly in airports. The food service division services restaurants and foodservice institutions. The retail products division services grocers and retail food …show more content…

Phillips king crab products were revolutionary in the seafood industry and were also consistent with consumer demands. The target market was evolving from food service institutions to inclusiveness of retail establishments. Phillips had discovered and perfected a process by which blue king crab (large Alaskan/Russian crab) could be fished, gutted, pasteurized, and packaged for immediate consumption through their production facilities. The product could be stored for up to 18 months as a result of effective pasteurization. The king crab introduction couldn’t come at a more opportune time for Phillips Foods as consumers purchasing habits were changing to more health conscious products. Consumers were averse to purchasing seafood from the market because of their inability to cook the products effectively, and the amount of time it took to clean and prepare the product. King crab was a healthy ready to eat product, and Ron’s task was to get king crab into the prime real estate of grocery store refrigerators.
Cherry Stockworth was convinced that the tradeshow would capitalize on the effects of removing king crab from the commodity seafood counters. Phillips had good success with its phase one marketing and was going to have the opportunity to attend IBSS for phase two. In her excitement Cherry offers to cover half the cost of the trade show if Ron were to agree on attending and using the balance of his marketing budget on the campaign. Ron was

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