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
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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
By upgrading their brand, it will help to identify the qualities of the products that set it apart from the competition. They have to make the
The purpose of this study is to explore three companies by focusing on how the brands have been performing as well as what the customers and other stakeholders are saying about the different brands. This study will also summarize the strategic issues that the companies and those they are likely to experience in future.
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Professors Felda Hardymon and Josh Lerner and Senior Research Associate Ann Leamon prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Some names and numbers have been disguised. Copyright © 2002 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
We put a lot of effort into the Private Label market. Undoubtedly we did very well in that market, but that unfortunately diverted us from the
Two potential solutions were proposed at the Marketing and Operations Council meeting. Rita Sanchez, the sales lead, suggests a reduction in the price of current products by 40-50% or introducing a new lower-market brand reaching value consumers in order to quickly sell the excess inventory. Jim Hargrove, the Marketing Directory, strongly disagreed with either scenario arguing they would permanently tarnish the brand’s premium quality image. A fourth alternative could be to introduce a new premium line while dropping the price of the Gold line to maintain brand image.
In addition, there are concerns about how competitors and the U.S. Association of Seafood Processors and
If Neptune were to decide to provide retailers with a private brand, this could interrupt the current market. Most of the stores that Neptune supplies fish products to are a high end that would either already have a private brand from a source or may not want a private brand. If they were able to market a private brand, there would most certainly be actions taken by their competitors that were supplying the private brand. If Neptune were to start a mass brand such as Neptune Silver, they may find that it doesn’t do well with the ASPD. They could reasonably expect that it would not receive the gold seal (Kesner & Walters, 2005, para. 29). If Neptune chooses to enter markets inland, they could expect that competitors will try and limit their access.
This gain value and addresses a key decisive achievement factor in the industry (Grant,2010). As position is important to offer convenience and a deep assortment, An extra unique intangible resource would be their brand representation and customer loyalty, this is vital since it can attract or attract consumers and it could be necessary to build the brand image .
Marketing executives at Cadbury Beverages, Inc. want to re-launch the following brands: Crush, Hires, and Sun-Drop soft drinks. However, Cadbury has seen several challenges arise in the eve of their next attempt to lead the market. Senior marketing executives decided to focus generally on the Crush brand of fruit flavored carbonated beverages. The key issues that were foreseen by Cadbury executives were the rejuvenation of the bottling network, figuring out brand equity, and develop new positioning. Lastly, there are numerous opportunities available for Crush to take advantage of that which
The company was recently presented an opportunity by its largest retail customer to significantly increase its share in their private label manufacturing. The prospect of growth was risky, since it
However, marketers should not become complacent and they may seek to inject new life into the brand to prolong the growth stage and put off the onset of maturity. A mature product may need a facelift, and marketers must decide whether to support a declining brand or let it die a natural death.
Propose a new brand positioning strategy for Omega. How does this new strategy take into account the brand’s current PODs & POPs and existing customer brand knowledge? (25 points).
quality, and recognized by the consumer as such. The brand is seen as expensive, but
However, this strategy also has some disadvantages that may hurt the company’s development: The first is the fierce competition between these brands. And it is important to note that using this strategy means facing higher risks. Cost control is another big problem. Obviously, the more brands there are to manage, the higher the costs. For this reason, many prudent companies prefer brand extension over multi-brand management.