Managing Excess Inventory Issue

Class- or Mass

Written Analysis and Communication I

Submitted to:

Prof. Manaswini Acharya

From : Joseph Anton

To : Mr. Dan Wilson

Date : 20th March 1994

Subject: Managing excess inventory issue

This report includes a detailed analysis of the situation at hand and the different options available. The major criterions used for evaluation are our corporate brand and long term profitability and sales.

After much analysis my recommendation would be to slash prices in a phased and methodical manner so as to protect our image as well as solve the excessive inventory problem.

Executive Summary

Neptune Gourmet Seafood is one of the largest seafood producers in North America. It is an upmarket brand charging a premium of over 25% over its competitors. Recently they made huge investment in technology to improve catching processes which lead to an increased inventory.

They are now faced with the solution of this problem of excess inventory handling. Launching a new low price brand would cannibalize their premium brand so they should go in for a price reduction. This could be done in phases wherein they could employ an extensive marketing of their cost leadership and increased quality standards.

Word Count: 99

Table of Contents

Serial No. Contents Page No.

1 Situation Analysis 1

2 Problem Statement 1

3 Options 1

4 Criteria 2

5 Evaluations of options 2

6 Recommendations 3

7 Action Plan 3

Situational Analysis