‘Neptune Gourmet Seafood’ is deserving $ 820 million. is the third-largest North American seafood manufacturer and is believed to be the most up market participant in the $ 20 Billion seafood industry. Neptune has done everything in footings of their quality and engineering for improved. efficient & A ; sustainable production. Therefore. populating up to their tagline. ‘The Best Seafood on the Water Planet’ . In malice of holding the best quality green goods and significant market portion. the company is confronting stock list jobs. The company has purchased six new Freezer Trawlers. thereby increasing their original degree of production in threefold. from what it had been a twelvemonth ago. The company’s gross revenues executive Rita Sanchez suggests that the company must cut down their monetary values by 40 % to 50 % and sell the lower priced goods as a new trade name. thereby cut downing the extra degrees of stock list. Neptune’s marketing manager Jim Hargrove was unhappy with the thought of cut downing their monetary values since. there were opportunities for the company to lose their bing clients and it can non afford to hold a autumn in their gross degrees. as sunk costs have gone up and there is an addition in competition.

Alternatively. Jim suggests that there be a 10 % price reduction given on the finished goods as the price reduction rate sounds more realistic and there would be no deceit to the bing consumers about the sudden autumn in Neptune’s finished goods. Neptune’s COO Bernard Germain admirations whether Neptune should aim a new geographical market viz. South and Central America. On farther analysis and survey of the instance. the three most realistic options that Neptune should implement are enumerated as follows. First. the company can cut down their monetary values by 40 % to 50 % ; secondly. Neptune can establish a low priced seafood trade name through private labeling ; and eventually. the company should aim new geographical markets. With respects to the first option. the company should cut down their monetary values by 40 % to 50 % on their finished goods. The advantages of this attack are viz. . that the consumers will understand that Neptune is selling a perishable merchandise and its supply varies on a day-to-day footing ; merely like those of other spoilables like veggies. fruits and flowers.

Hence. the monetary values of these spoilables are expected to change on a regular footing. This will in bend normalize the stock list degrees. On the other manus. the disadvantages of this attack are enumerated as follows. First. the company’s borders have already shrunk by 10 % because of addition in the fabrication costs on a figure of its merchandises. and turning competition. Second. the sudden bead in monetary values might do revenge among rivals which will do some of the smaller companies to incur losingss they can non afford and in turn lead to monetary value wars that none of them in the industry can afford. And eventually. it might belie the company’s merchandises to the clients. The clients might inquire. as to why there is a sudden bead in monetary values when the company was selling their goods at premium monetary value degrees. taking them to oppugn the quality of the merchandise that is being sold at discounted monetary values.

The most feasible ground for the execution of this attack is that the loss incurred in cut downing monetary values is much less when compared to fring big sums of stock list. being a perishable good. With respects to the 2nd attack. the company can present a low-cost seafood trade name providing the value -minded clients and administer them via bing channels. thereby drastically cut downing costs. The extra stock list can be distributed through bing providers & A ; retail merchants. The costs we will incur to market and box those goods will be reduced when compared to the costs incurred in making a mass market trade name. The chief advantage of this attack is that. since jobbers and retail merchants ( like Shaw’s Supermarkets and Whole Foods Market ) already know about Neptune’s Seafood merchandises ; they know the degree of quality goods and that Neptune is the lone company to hold the ‘Gold Seal of Approval’ which is given by the powerful ‘U. S. Association of Seafood Processors and Distributors’ . on every merchandise Neptune sells.

Hence. the private labelers can do net incomes in selling Neptune’s frozen seafood but with their ain trade name. Through this the company will non lose their bing clients and monetary value wars can be avoided. However. the disadvantages to this attack is that. through private labeling the new trade name might stop up as a rival to the bing Neptune Gold merchandises as they have the same quality and cannibalise Neptune’s bing gross revenues. Since. there are already a figure of rivals in the industry the company must non pave manner for. or make a new one to come in the market over a period of clip.

Consumers might desire to seek out the new trade name as it is priced somewhat lower than Neptune’s bing merchandises. Hence. the opportunity of losing loyal and valuable clients. This attack gives the opportunity for the company to aim those consumers who are in the center and lower income degrees. Thereby. capturing a larger market portion and besides helps to cover with extra stock list degrees in the long tally. And eventually. lucubrating on the 3rd attack Neptune can aim new geographical markets outside the state viz. . South America and Central America. If Neptune targets a new foreign market the company can turn on a planetary footing. therefore increasing their grosss instead than incurring a loss with their inordinate stock list degrees.

With somewhat lower monetary values Neptune can catch the attending of new consumers and therefore gaining control all together a new market section abroad. The disadvantages to this attack are that. there are opportunities that the merchandise might non be received good because of market leaders in their ain state or market. The company will hold to incur big sums of costs to establish the merchandise in a new market. The procedure of aiming a new geographic market is clip devouring as the company will hold to analyze the foreign market as in. the clients and their penchants. Neptune can non afford to wait as stock list will get down to botch and the Company might lose its premium image. However. Neptune can handle this as a growing scheme and take the chance of turning globally.

If Neptune had information pertaining to. whether the extra stock list job is being faced by other rivals besides or if it was merely for the company ; so they can analyze as to whether the monetary values should truly be slashed. The company can acquire entree to this information by keeping a meeting with the U. S. ASPD. But on the other manus. had the company have entree to this information and summed up that there are other companies with the same issues with extra stock list ; so it would be wise to cut down their rates as it is an industry broad phenomenon.

From the three attacks mentioned above. the company should see and implement the 3rd option. where in. Neptune targets a new geographical part. Given that this attack is the most expensive and clip consuming. looking in the long tally this seems to be the most feasible and realistic attack. The company might hold to give future net incomes for a period of clip in order to turn globally. Since we know that the company has invested $ 9 million in new deep-freeze trawlers. the degrees of production are merely traveling to increase. These increased degrees of stock list can be marketed in a new market and the company will shortly easy earn back their investings in the signifier of grosss.