Class or Mass
Executive Summary
Neptune Gourmet Seafood is faced with the issue of increased supply in its market. The response action is very time sensitive as a failure to react may cause severe loss in brand perception. Though they have increased investments as of late to produce more and also maintain high quality products through their freezing technology, they still need to find a way to combat long-term supply issues. They should not threaten their high brand image through low cost maneuvers, as this is the key driver of their competitive advantage. The recommendation I propose is to partner with very well known supplement retailer GNC to begin exclusive production of fish oil. On top of that, Neptune should recommend to GNC in the partnership that they expand to the young and upcoming market of frozen healthy meal delivery. GNC can partner with a smaller company that has already established their healthy meal plans, such as MagicKitchen.com. Utilizing GNC’s distribution and marketing prowess, both Neptune and GNC will be able to sustain competitive advantages through high brand equity and first mover advantages in a small, yet poised to grow market. As the world starts to become more health conscious, it will be a huge competitive advantage to have already set up the correct infrastructure to tack this market.
Industry Dynamics
Neptune Gourmet Seafood is North America’s third largest seafood producer playing in a market where seafood is considered high-end. They have generated nearly a third of its revenue from selling frozen and processed fish through US grocery chains and organic food retailers. An even bigger market is through the many restaurants within 250 miles of Fort Lauderdale that they sell to; along with many big cruise lines. The final third of their market was through wholesalers who then sold the fish to restaurants across the country. Neptune was considered top quality, and therefore demanded a 30% premium over the majority of its competitors. They
Neptune Gourmet Seafood is faced with the issue of increased supply in its market. The response action is very time sensitive as a failure to react may cause severe loss in brand perception. Though they have increased investments as of late to produce more and also maintain high quality products through their freezing technology, they still need to find a way to combat long-term supply issues. They should not threaten their high brand image through low cost maneuvers, as this is the key driver of their competitive advantage. The recommendation I propose is to partner with very well known supplement retailer GNC to begin exclusive production of fish oil. On top of that, Neptune should recommend to GNC in the partnership that they expand to the young and upcoming market of frozen healthy meal delivery. GNC can partner with a smaller company that has already established their healthy meal plans, such as MagicKitchen.com. Utilizing GNC’s distribution and marketing prowess, both Neptune and GNC will be able to sustain competitive advantages through high brand equity and first mover advantages in a small, yet poised to grow market. As the world starts to become more health conscious, it will be a huge competitive advantage to have already set up the correct infrastructure to tack this market.
Industry Dynamics
Neptune Gourmet Seafood is North America’s third largest seafood producer playing in a market where seafood is considered high-end. They have generated nearly a third of its revenue from selling frozen and processed fish through US grocery chains and organic food retailers. An even bigger market is through the many restaurants within 250 miles of Fort Lauderdale that they sell to; along with many big cruise lines. The final third of their market was through wholesalers who then sold the fish to restaurants across the country. Neptune was considered top quality, and therefore demanded a 30% premium over the majority of its competitors. They