CLASS OR MASS

Neptune Gourmet Seafood

Presented By:

Harshavardhan Dabir 12312 Aayush Despande 12313

Dipti Kale 12314

Mrunmayee Kulkarni 12330 Chaitanya Parab 12339 Nishigandha Tilak 12358

Company Name :Neptune Gourmet Seafood Location : North America Turnover : $820 million Rank : 3rd largest seafood producer Existence : Since 40 years Well Known for : Quality Headquarters : Fort Lauderdale

Company Profile

I

Facts - Outside

Industry: $20 billion

Tough fishing laws have reduced access to fish near the coast and forced to go farther out to sea.

25% Premium Price over Rivals due to Superior Quality & Technology

Facts - Inside

New investment of $9 million in six high tech freezer trawlers

Due to latest technology increase in shelf life by 50%

Connoisseur's Choice had rated Neptune's products foremost in quality for the tenth year in a row.

Major Competitors: China Peru Chile Japan

Unknown if Neptune Gourmet Seafood is the only company facing overcapacity.

Competitors

Revenue Break Up

30%

33%

33%

4% Selling frozen and processed fish products

Supply to restaurants

Wholesalers

Fish market outside Fort Lauderdale

U.S. grocery chains, organic food retailers, like Whole Foods Market, all along the eastern seaboard and in parts of the Midwest.

Restaurants Within 250 miles radius

Cruise Liners

Major Clients

The Neptune's Gold line of seafood – 25 to 30% premium over rivals

Manufacturing Plants: Cedar Key - Florida Norfolk - Virginia

Product Brands

Consumer

Head

• Sandy McKain

Marketing

Head

• Jim Hargrove

Sales

Head

• Rita Sanchez

Roles and Responsible PersonCEO

• Stanley Renser

Legal Counsel

• Nelson Stowe

Business Head

• Pat Gilman

Problems

Perishable product

Finished goods inventory for 60 days

Higher Supply Than Demand

High Investment in Technology with no returns-Profit Margin

shrunk by 10%

Major Causes

Added ships to the fleet

More efficiency

New rich fishing grounds

Catches grown bigger than

average

Preservation at -70 degree Fahrenheit

SWOT Analysis

Strengths:1)Turnover of $820 million2)Since 40 years3)3rd largest Seafood Producer4)Six High Tech Freezer Trawlers5)Brand Image of Neptune Gold

Weakness:1)Finished goods Inventory for 60 days2)Obsession with Quality3)Concentrated only on North America

Opportunities:1)Entering new terrains2)Restaurants Specialising in Seafood can . be Opened3)Can go for Product Differentiation

Threats:1)US Association of Seafood Processors may cancel Gold Seal awarded to Neptune2)Fishing restricted to deep seas only3)Price-cuts From Neptune may result in deeper price cuts from Competitors4)Competitions from Japan,China & Peru

Price cut 40 -50 % : decreased quality, disruption to industry, price war

Discount up to 10% : wastage of stocked product Launching new brand for mass sale: endanger ASPD Gold

Seal of Approval given by U.S. Association of Seafood Processors and Distributors

Introduction of Neptune's Silver: cannibalizing own sales. private-label business: Huge marketing expenses

Perceived solutions & their Shortcomings

Ansoff Matrix

We can go for Market development Or Product development( value addition)

Target new markets (Geography) Lease Value add Target more restaurants Own fish outlets In form of Pickle or Sauce so life increases Start Chain of restaurants

Other solutions

3 box strategy for increasing sale

Traditional: give customers choice of buy or not to buy

Customers take yes or no decision

3 box strategy: have 3 packages(sizes) small, medium and large

Customers will have choice of buying one of 3 packs and choice of ‘NO’ diminish

Neptune’s silver in new geographies

New brand – new geography

Thank You