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Class or Mass

Decent Essays

Should Neptune launch a mass-market brand?

Excerpted from HBR Case Studies: Class — or Mass?, by Idalene F. Kesner & Rockney Walters. Reprinted with permission from Harvard Business Press. All Rights Reserved.

Should Neptune launch a mass market brand?

Here's the case of an organization reassessing its strategic priorities when faced with working capital pressures due to capacity being higher than demand, and this has led to a reassessment of its growth strategy . Neptune is under serious threat of facing a stall point because of a situation of price premium captivity . We therefore believe Neptune should launch a mass market brand, for unlocking new growth opportunities beyond its current franchise, and not just for …show more content…

Growing consumer sales will enhance brand equity because these consumers will choose Neptune as a brand (as opposed to choosing a restaurant to eat in) and will credit the quality of the seafood to the brand (unlike the restaurant goers who will credit the quality of the seafood to the restaurant). A mass market brand can help increase the consumer franchise and with the least cannibalization if done in conjunction with the category growth strategy. In order for Neptune's mass market strategy to be sustainable and profitable, 2 key issues will need to be addressed:

Brand Endorsement :

While it is essential to give the new brand the equity support of Neptune, there should be some distance maintained between the two to mitigate cannibalization and equity dilution risk. Hence, an endorsee brand approach (Healthy Eats from Neptune) could work better than a straight varianting approach like Neptune Silver.

Cost Structure :

Reducing cost structure while maintaining acceptable quality would be key to sustainability of brand investments and profitability , especially in light of the margin pressures which exist even in the premium

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