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Class or Mass Case - Should Neptune Introduce a Mass-Market Product Line?

Essay by   •  January 19, 2017  •  Case Study  •  611 Words (3 Pages)  •  2,161 Views

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Case Study: Class or Mass Case

Should Neptune introduce a mass-market product line?

I think Neptune should not introduce a mass-market product line, and they should keep their class line. The firm has a big problem which are short term excess inventory and long-term overcapacity. Because of the new technology and fish law, the firm can get much more fish fore before. Faced with this dilemma, the company should find a solution. However, introducing a mass-market product line is not a right decision for the company.  I will analyze the reasons from different aspects.

First, I will analyze possible customers’ reactions. The only possible advantage to introduce a mass-market product is that it might increase the number of new consumers from lower-wage class. Seafood as a high-end and most lower-wage families cannot afford it frequently. The cutting price will attract to buy our low-price products. However, it would have more disadvantages. The first is that common consumers would think our products’ quality decrease, and they even would doubt that our products would have security problems. Consequently, common consumers will choose our competitors’ products. Besides, if consumers found that there is no difference between the high- priced products and low-price products, they would migrate to the lower-price products from high-priced products. This possible result would bring a huge of loss to the firm. Now, the demand for seafood is increasing, the firm totally can earn more money from high-priced products because people need seafood. Although Pat used the example of the wine industry, there is not same between wine industry and seafood industry. For wine industry, many brands have high-priced products and low-price products. The seafood industry is not like that, and consumers would have a high possibility to doubt the new products. Therefore, the disadvantages surpass the advantage from the aspect of customers.

Neptune also is a big supplier to some best restaurants. For best restaurants, they always need the best food and beverages to provide their customers, and they would like to choose the best brands which fewer people can afford. If Neptune introduces a mass-market product line, these customers would doubt whether the firm’s value is consistent with theirs anymore.

In addition, the firm is faced with high competitors from other contries. Besides, it also has to undertake the pressure from fishing laws. Under the intense competitors, if Neptune introduces a mass-market product line by pretty low price, and that would cause competitors’ dissatisfaction. As a result, the market would be trapped in an uncontrolled condition. For example, competitors will retaliate by the lower price which will cause vicious competition, and it will hurt all industry.  ASPD will punish the firm due to the disordered market.

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