Neptune Gourment Seafood

Currently, Neptune is facing two problems, one temporary and one permanent. On a more immediate time scale, Neptune must find a way to sell or get rid of it’s current surplus of fish without diminishing its name or undercutting the prior established industry pricing structures. In the long run, Neptune must find to incorporate the supply increase of fish in their current business model. If these challenges are handled correctly, they can present an opportunity for Neptune to expand. Fish production has permanently increased, which has potential to damage Neptune’s current business plan. Resner should therefore shift attention towards attempting to long term solutions.
It’s important to assess Neptune’s vertical integrated business model and how the supply increase will effect this. Both Neptune and competitors are damaged by the increase of supply which could lead to the price lowering of Seafood products. Neptune must try to maintain their brand image and still their products at a premium despite the increase.
First Neptune should reevaluate the investment in state of the-art-trawlers. With the increase of seafood, the tieing Neptune’s capital in physical assets is not wise. High quality fish is not tied exclusively to this type of fishing vessels. Thus, Neptune should sell a portion of its vessels. The cash can be used to increase brand awareness. Outside sources and contractors could provide the fish. However, if fish is obtained through outside sources there is a possibility that the contracted fishing boats may not enforce the same quality standards and part of Neptune’s brand equity would be lost.
Another solution would be to expand Neptune’s presence throughout the United States. Currently, Neptune’s products are only on the eastern seaboard as well as choice places in the Midwest. Expanding further into the Midwest and west coast provides Neptune with a greater part of the market. This strategy has great potential because despite only