The SWOT Analysis and Strategy Implementation in Neptune Seafood

Current Situation and Recommendation

Neptune Seafood as mentioned in the article is the third largest seafood producer. It sells high product at premium prices. Customers trust Neptune’s products and thus they don’t mind paying extra bucks for quality seafood. However, Neptune is in a great dilemma now; the company is facing a problem of excess inventory and struggling to reach a solution that would help solve this issue without tarnishing their company’s reputation. As per the article, the company’s executives suggested few solutions to overcome this issue, one being introducing a new low-priced brand in the market called “Neptune’s Silver”. Although this solution sounds great to get rid of the excess inventory but on the other hand it also brings down Neptune’s brand and additionally this solution might attract all the consumers that now pay premium prices to pay the lower prices to attain the same quality seafood product. Another solution that was suggested by the marketing director was to offer 10% discount on the products to get rid of the excess inventory.

I believe Neptune should not create another brand because this will affect company’s reputation and the brand, they have endorsed for 10 years. Neptune is known for its quality and value and by introducing Neptune’s Silver in the market would cause their customers to question the quality of their products. Additionally, once Neptune decides to lower their product’s price, the other companies will also try to compete which will make it difficult for the company to make any sales and furthermore, it will be hard for consumers to decide as well. In my opinion the company should offer 10 to 20% discount on their products in order to get rid of the inventory because it is evident that excess inventory is a temporary problem and can be solved by providing good discount to their customers. As I said earlier, Neptune is known for its quality products and by giving discount on their products will attract more people to buy in bulk which means that the company can still make profit even after offering the discounts. Additionally, Neptune has an advantage over other companies as they have an innovative fishing technology which allows the company to catch more fishes in less time and have freezing accommodations that enhances the quality of their fish making it look and taste fresh. Not every company has this technology which means that it will be difficult for other companies to imitate due to an expensive investment.

Analysis Using VRIS and SWOT Analysis

VRIS Framework

To support my claims and recommendations, I conducted VRIS and SWOT analysis to analyze all the possible advantages and drawbacks of Neptune brand. The first advantage that the company has is the brand equity and customer’s loyalty towards the product. It gets difficult for the companies to keep the customers coming to them to buy their products specially when there is so much competition going around in the market. Neptune is in good standing and have been selling the products for 10 years at premium prices and their customers are buying these products without any complains only because of the quality. However, customer’s loyalty and brand equity are not rare as there is fierce competition, especially from China, Japan, etc. In short, Brand equity and customer loyalty is substitutable but is giving Neptune a temporary competitive advantage.

Secondly, Neptune has an innovative fishing technology which allows them to catch fishes quickly and lets them store in freezers which allows their product to be fresh for longer span. Such technology is costly to imitate and not easy to substitute but again we cannot ignore the fact that fish markets can be used as an alternative here. Nevertheless, this gives a competitive advantage to Neptune in the industry.

SWOT Analysis

Some of the strengths that Neptune company has is brand image which has been maintained and consistent from part 10 years. Another advantage that the company has is that Neptune is the 3rd largest seafood producer and has an endorsement from ASPD. Additionally, they have managed to keep the customers coming to them even after selling their products at premium rates which is a huge achievement for the company. As we know, regardless of how successful a company is they all have some weaknesses. Some of Neptune’s weaknesses is that their products are sold only in North America which limits their target market and sales. Additionally, their best fishing technology has become their biggest weakness as they have an excessive inventory problem which is costly to get rid of. Company’s profit margin will decrease by 10 to 20% in order to get rid of excess inventory. Regardless of these weaknesses, Neptune has many opportunities to rise and be the best in the market. First opportunity that the company has is that Seafood is in high demand and company will be able to sell much more product. Additionally, company can reach their customer’s needs quicker because of their new fishing equipment and their ability to catch more fishes in much less time. The threats that a company could face is that Neptune has tremendous number of competitors in the market. All the competitors offer much lower price that Neptune which could possibly make the customers to switch their choices and buy the cheaper product instead. Additionally, If Neptune decided to introduce Neptune Silver than ASPD might take away the Golden seal for its new product line.

Implementation and Risk Mitigation

As per the VRIS Framework and Swot Analysis, it would be good for Neptune to not introduce Neptune Silver because this will not only lower their brand image but also take away ASPD endorsement. In addition, customers will question the quality, and this will give other companies an opportunity to steal some of Neptune’s customers which will be bad for the company for long run. In my opinion, Neptune should offer discounts to their customer’s in order to get rid of the excess inventory. Additionally, Neptune’s marketing and Sales department can work together in contacting their regular customers, supermarkets, and restaurants to inform about the offers that they are offering in order to sell more products in less time. For future, Neptune should have their production team to manage the inventory according to the market conditions and as per the demands of the customers.