2. Agenda
Class marketing vs Mass marketing
Background
Major issues
Alternatives to problems
Effects of alternatives
Probable solutions
3. Class Marketing vs Mass Marketing
• Mass marketing is a marketing coverage strategy in
which a firm decides to ignore market segment
differences and go after the whole market with one
product.
• Class marketing is a process of dividing market into
various segments and selling the product according to
the need of customer.
4. Background
Neptune Gourmet Seafood company is the third
largest seafood producer of North America.
Its having a net worth of $820 million.
One of its major products is Neptune’s Gold line of
seafood products.
Manufactured in two sophisticated plants near Cedar
Key, Florida and Norfolk, Virginia.
5. Major issues
Excess of inventory.
Selling declining.
Improper marketing strategy for selling off inventory.
Producing high quality products having 25-30% higher
price.
10% decrease in revenue due to sharp competition in
market compared to last year.
6. Alternatives to problems
Either 40-50% price reduction or 10% price reduction.
Selling off the inventory with a new brand name
at low price
to a bigger market
Should sale some old ships and start launching ready
to eat fish
Have to look for some wholesaler for selling their
excess inventory.
7. Effects of alternatives
40-50% price reduction will sink the reputation of the
company
10% reduction in price will not solve the problem of
excess inventory
Introduction of a new brand name can take the place
of previous one
With a new brand, on one hand they are trying to keep
the two brands separate and on the other hand they
were migrating customers from low end brand to a
high end brand
8. Probable solutions
First we need to check whether it is long term or short term
problem.
If long term, then
They have to come up with a new brand.
Have to expand their market in some isolated places.
Have to sell their excess inventory to wholesallers at a lower
price.
If it is short term, then
Have to identify a market which is isolated from their
product.
Have to sell their inventory to a producer with profit
without involving their brand image.
