Phillips Food: King Crab

Phillips Foods, Inc. Introducing King Crab to the Trade administrator Summary The Phillips Foods, Inc. , case discusses purpose market for specialty sea fodder. Phillips Foods, Inc. was founded in 1914 by Augustus Phillips on Hoopers Island, Maryland. Phillips had developed a reputation for caller seafood caught and sold locally. By 2006, Phillips Foods had deuce-ace concern units that were generating profits and became one of the largest seafood businesses in the united States. The eating place percentage run shorts 8 full- work restaurants as well as fast food restaurants, mainly in airports.The food serve division services restaurants and foodservice institutions. The retail reapings division services grocers and retail food merchants. The tether division generated $160M in revenue in 2006. Brand image and intersection were tells in building the Phillips brand abduce. Phillips was renowned for its constrictive associations to Maryland. Production was also a key in reinforcing the Phillips image and brand. The company immovable early on to own and operate its own plants, this was important for preserve pure tone and safety.The Phillips brand was able to expand its ware and keep its image as a local brand. By 2006, Phillips operated 13 plants oversea and 1 plant in Balti much. summary of Problem As the case opens dickens key finality makers atomic number 18 having a dialog regarding the success of the origin var. of market and authorisation difference plans for var. two. florid Stockworth, vice-president of marketing, and Ron Birch, product addressr of a stark naked king gripe product are discussing Rons use of the remaining cipher for the king scream product declination.Ron has successfully launched phase one of king beef in foodservice trade magazines and as 2007 approached the luck of recessicipating in a tradeshow had decease available. The International Boston Seafood Show (IBSS) presented the probability for Ron to market to a market place funds and retail food merchants. IBSS was one of the largest seafood shows in the agricultural and the attendees were generally serious merchandisers and industry good weights. Phillips king skreigh louse products were revolutionary in the seafood industry and were also consistent with consumer demands.The target market was evolving from food service institutions to inclusiveness of retail establishments. Phillips had discovered and honeed a motion by which blue king backbite (large Alaskan/Russian crab) could be fished, gutted, pasteurized, and box for immediate consumption through their production facilities. The product could be stored for up to 18 months as a result of rough-and-ready pasteurization. The king crab introduction couldnt come at a more opportune time for Phillips Foods as consumers buy habits were changing to more health assured products.Consumers were averse to purchasing seafood from the market because of their softness to cook the products strongly, and the amount of time it took to disinvest and prepare the product. King crab was a healthy ready to eat product, and Rons task was to get king crab into the prime real estate of grocery store refrigerators. carmine Stockworth was convinced that the tradeshow would gain on the effects of removing king crab from the commodity seafood counters. Phillips had good success with its phase one marketing and was going to call for the probability to attend IBSS for phase two.In her unrest carmine offers to cover fractional the represent of the trade show if Ron were to agree on attending and using the balance of his marketing budget on the campaign. Ron was happy with the results of the outgrowth phase, but was not closed to the desire of attending the tradeshow. He would comport to squeeze some numbers and asses the return on investing in the tradeshow. Recommendations My recommendation for Phillips Foods is for them to incorporate the king cr ab product to the IBSS. In doing some analysis with the provided numbers in this case, I have concluded the feasibleness of the trade show to be high.Ron has dog-tired roughly $80K (half) of his budget on the first phase of marketing King crab through trade publications. Ron squeeze out easily spend phase two on the same publications or he can take up Cherry on her offer. Appendix A, shows that Ron will need some 19 people to effectively manage the tradeshow and its volume. Based on this headcount, it will represent Phillips $164,700, of which Ron will be responsible for $82,350. Ron and Cherry are both understand the brilliance of spreading the word of their brand, since they have do progress in the food service industry.The tastes of consumers and purchasing habits in grocery stores is changing it would be a big(p) opportunity to display their product. According to the case, tradeshows are an commission to display products, set up tastings, and ensure the eye of potenti al retailers and grocery store merchandisers. Appendix A further analyses the potential draw at the IBSS show and affirms that 8% capture will provide satisfying traction in acquiring the prudence of a sweet sense of hearing that actually shows interest and is looking for new products for their chain.Continuing to elevate in trade publications seems to have been effective in only two of the three circulatements that Ron has chosen thus far. The problem that seems to be existent in this strategy is that it limits the audience that Phillips is going to be able to attract. Unless the foodservice institutions began to advertise Phillips Foods direct to consumers it doesnt seem arguable that consumers can be targeted through this avenue. The restaurant division is not going to be a good source of advert to new consumers either. Restaurants are a great way to maintain the brand name and maintain the high quality food standards.Conclusion According to my calculations in Appendix A , the tradeshow is a great value with the offer from Cherry on the board to cover half the cost. Management support seems to be in the tradeshow as well, and this will be part of Rons decision as he must please the organization. At this loony toons Ron needs to make a decision that will have an immediate feign on the king crab product line. He stands to lose a accord more if he misses out on the tradeshow and places advertisements with only a decent response. In addition, Ron is looking to reach a new audience and doesnt seem to have a plan set for gain the retail and grocery customers.The tradeshow provides visibility in both target markets and is in line with the changing customer preferences. Phillips Foods, Inc. has placed itself in a position to succeed with its pasteurization process and its branding strategy. The king crab product line is a perfect complement to the Phillips Foods product portfolio by way of high quality and high margin. go a commodity into retail ready- to-eat dummy has created a value added product and the potential to help seafood consumers find quick, safe, and healthy preparedness solutions at the seafood counter. Appendix A