Philips Food: Introducing King Crab to the Trade

Group 2

Case Analysis

Strengths: Weaknesses:

The firm had a competitive advantage due to its Currently not serving the larger market share
recognized pasteurized method, which was (54%) of the fresh seafood market and foregoing
considered to be the best in the industry. potential increase in revenues.

Company owns and operates all of its plants,
ensuring greater food safety and quality.
Large range of value-added products enables the
firm to secure higher margins than commodity
products.
Insufficient advertising budget limits the
company’s new product launch via several
different strategies. Instead, it fosters the use of a
single strategy instead of a multi-strategy action
plan, at all phases of the product launch.

Strong brand reputation associated with the

company’s products.

New and innovative pasteurized King crab product

with unique fresh-like quality.

Opportunities: Threats:

Annual growth of the seafood retail market by 5% Retailer resistance to adopt new products due to
to 6%, over the next 6 years. space constriction and risk minimization
strategies.
Increasing share of seafood sold through
warehouse clubs and mass merchandisers. Phillip’s pasteurization and canning process could
be reproduced by competitors if enough financial
Revenue generation through value-added resources, research and development and time
products. are allocated.

Growing trend of selling seafood products through Low consumption of crab products in all forms
self-service. (approx. 8% of US households), external influences
due to negative publicity or environmental
High potential margins (35% to 45%) for its King contamination could further reduce this number.
Crab products in addition to an 18-month shelf
life.

Bikramjit Kundu | Debali Mukherjee | Gagandeep Kaur | Kalyani Kakaraparthi |

Samyak Jain | Avinash Shashni | Sahil
 Philips Food: Introducing King Crab to the Trade
Group 2

Case Recommendations
1. The firm should participate in the IBSS exhibit. By participating in such an even, the firm
would be able to showcase its product line, with a emphasis on its new product launch,
the pasteurized King crab.

2. The best location for the firm’s booth would be the peninsula type booth. It’ll have access
to major traffic aisle and three open sides making it an ideal location to attract new
potential customers.

3. There are several advantages for the firm in using the exhibition participation strategy.
The fundamental advantage is the face to face contact with the prospective clients. This
allows the company to establish contact with potential buyers and explain the product
line, product features and information regarding the company.

4. Participating in the IBSS exhibition will allow the firm’s booth King crab centerpiece
product to be exposed to a large number of potential prospects and will generate lots of
buzz due to the free samples offered.

5. The firm can provide its top customer accounts with a VIP party in order to thank them
for their continued business, loyalty while strengthening their business relationship. This
event really shows the customers that the company is committed to enhancing the
relationship between both firms and makes an extra effort for the customer to feel it. This
can be very rewarding for the firm organizing the party due to the after effect of such an
event.

6. I would recommend the firm to proceed with the trade show strategy. The first reason for
promoting this strategy is that it would be redundant to implement a trade advertising
strategy in phase 2 of the new product launch. As Ron has already promoted the product
via trade advertisements in phase 1 leading to positive reception and sales generation
amongst the target audience, it wouldn’t be as effective as the first time.

7. The new product needs to be visible to prospective customers, they should be able to see
the product, communicate face to face with the firm’s sales staff and be able to receive
answers directly from the staff, these are elements that the trade show will allow the firm
to do, as opposed to trade publications.

8. Phillips Foods Inc’s target audience will be present at the exhibition in fairly large
numbers, while focusing on distributors, wholesalers, retailers, it’s foodservice segment
will also be present at the trade show representing a total combined number of 33% of
attendees. Therefore, combining the face to face interaction with a potentially large
number of target audience members can only benefit the firm, generate buzz and word of
mouth amongst potential customers.

Bikramjit Kundu | Debali Mukherjee | Gagandeep Kaur | Kalyani Kakaraparthi |

Samyak Jain | Avinash Shashni | Sahil