Neptune Gourmet Seafood is facing a problem with oversupply for existing demand. It can either decrease supply to match demand or increase demand to match supply. I recommend the latter. I further recommend the way to increase demand is for Neptune to increase its marketing efforts in its existing markets and to penetrate other markets it currently is not in.
The Competitive Environment
Neptune is a 40-year-old, $820,000,000 company, specializing in quality shell and non-shell seafood in a $20 million industry. It is North America¡¦s third-largest seafood producer, but that designation is misleading, because its revenues account for only 4.1% of the total market. As such it is but one of many firms operating in the…show more content… Other market drivers, however, affecting the demand side, are helping to contribute to the solution.
These market drivers would include:
« Changes in customers who buys the product because of marketing and education
« The shifting or emerging of buyer preferences from meat, poultry, and pork to fish
« Changing of social concerns, attitudes and lifestyles, emphasizing healthier living and eating,
« An inelasticity of demand from shifting buyer preferences, causing an all-time high demand, and consumer habits of brand loyalty
All point toward the company to take advantage of the demand to resolve its current and projected oversupply.
Combine these demand market drivers with that of the rate of marketing innovation, to help the company to find unique ways to market its product, and the solution to the oversupply problem is at hand.
Competitive Strategy
It has been argue by others in the company that the solution to the oversupply problem is to cut prices and initiate a new low-priced product line. Cutting prices when demand is high and margins are slim will only lead to selling our product at below cost, this will send the wrong message to our customers and competition, and quite
