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Neptune Case

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What features of Neptune’s business position led to the discussion of whether or not to add a new, lower-priced option to the company’s product line?

Neptune Gourmet Seafood is North America’s third largest seafood producer. The company inventory has increased to 60 days supply which is twice the normal supply and three times what is was just a year ago (Kenser & Walters, 2005). Additionally, the company invested in new ships with features that allow for more effective and efficient methods of gathering top quality catches.

What parts of Neptune’s business will be affected if Neptune introduces a new brand (“Neptune Silver”)?

The introduction of Neptune Gold will affect sales. Neptune Silver will create in increase in sales and flows. One potential hazard is the cannibalization of its own brand Neptune Gold.

What is Rita Sanchez’ proposal? Why is this reasonable proposal from Neptune’s head of sales?

Rita Sanchez is the head of Sales for Neptune. Rita initially suggested a 50% reduction in price to get rid of Neptune’s excess inventory. As the head of sales, it seems reasonable for her because the decrease in price, in the short term, would increase sales and cash flow. Rita also suggested creating a mass-market bran d called Neptune Silver. Again, as the head of sales, it makes sense for Rita because this would expand the market and increase product sales.

What are Jim Hargrove’s objections to Rita Sanchez’ proposal? Why are these reasonable objections from Neptune’s head of marketing?

Jim Hargrove is the marketing director for Neptune. As the marketing director, Jim’s strong objections to Rita’s proposal are understandable. The drastic cut in prices can damage the company’s brand of providing “The Best Seafood on the Water Planet” in the long run. Jim is opposed to Neptune Silver because it could potentially cannibalize Neptune

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