phillips food: king crab
Post on 17-Aug-2015
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PHILLIPS FOODS, INC.KING CRABK A T H E R I N E D O R A T Y
DISCUSSION
1.Key Facts2.Situation Analysis3.Case Problem4.Define Solutions5.Recommendations
KEY FACTS
• Phillips Foods were the first to introduce pasteurized crab to the market that remained fresh
• 160 million in sales One of the largest seafood businesses
• Specializes in chain restaurants, food service and grocery presence
• Relied on both direct-to-retailers sales force and a network of food brokers, distributors and wholesalers
• Latest innovation? King crab• First to have pasteurized king crab• Two packages: one for institutional foodservice & one for retail
consumers
KEY FACTS
Seafood Consumption Patterns
US Population: 110 million households
90% eat seafood43% of those eat only when dining out
27% of households reported buying frozen seafood18.5% of households buying fresh seafood
8% of households buying frozen crab
SITUATION ANALYSIS
The seafood market was expected to grow because:
• Consumers were expected to purchase a greater share of their weekly food basket in warehouse clubs and large mass merchandisers (Costco, Sam’s Club, BJs)
• Trend towards self service selling for seafood
This leaves for a good opportunity for a new product like king crab
Phase I is completed using trade publication and targeting foodservice channels
Phase II will need to be implemented targeting retail consumers
MARKETING FRAMEWORK
5 C’sContent
Company
Collaborators
Competition
Customers
STPSegmenting
Targeting
Positioning
4 PsPrice
Product
Promotion
Distribution
CASE PROBLEM TRADE SHOW TRADE PUBLICATIONADVANTAGES
People haven't had contact with sales person
Many have buying authority
Build on all 5 senses
DISADVANTAGES
Schedule conflicts
Crowded or unappealing booths
ADVANTAGES
Not limited to 3 days
Broader audience
Direct marketing is more controllable
DISADVANTAGES
Ads do not tell much about product
Do not call upon a sale
AUDIENCE COMPUTATION
IBSS 2007 FORECASTED ATTENDANCE 18,000
NET ATTENDANCE 12,000
TARGET AUDIENCE 3,960
INTEREST IN PHILLIPS FOODS 2,574
NUMBER OF POTENTIAL CLIENTS/LEADS 1,802
CAPACITY NEEDED FOR FACE TIME WITH POTENTIAL LEADS
AVERAGE FACE TO FACE INTERACTION 6 MINS
TOTAL FACE-TO-FACE TIME 10,811 MINS
DURATION OF SHOW 19 HOURS
AMOUNT OF FACE TIME PER SHOW 569 MINS
NUMBER OF STAFF NEEDED 10 EMPLOYEES
AVERAGE NUMBER OF PEOPLE IN EXHIBIT AREA
PHILLIPS STAFF 10
VISITORS IN EXHIBIT AREA 10
EXTRA STAFF NEEDED 4
AVERAGE TOTAL NUMBER OF PEOPLE IN AREA 24
SQUARE FOOTAGE NEEDED FOR EXHIBIT
DENSITY TARGET 4
OPEN AREA NEEDED FOR INTERACTIONS 600
SPACE FOR KITCHEN 350
SPACE FOR EXHIBIT ELEMENTS 250
BOOTH SIZE NEEDED 1,200
BOOTH CHOICE # 333
PRICE OF BOOTH SPACE
PRICE PER SQ.FT. $30
COST FOR FOOTAGE $36,000
PRICE PER CORNER $500
COST FOR 4 CORNERS $2,000
TOTAL COST FOR 4 CORNERS $38,000
TOTAL STAFF NEEDED
BASED ON VISITORS FLOW 10
KITCHEN STAFF 3
EXTRA STAFF 4
TOTAL STAFF NEEDED 17
TOTAL TRADE SHOW BUDGET
SPACE RENTAL $38,000
EXHIBIT DESIGN $33,000
TRANSPORTATION $18,000
SHOW SERVICES $27,000
TRACEL AND ENTERTAINMENT $48,900
ADVERTISING AND PROMOTION $4,000
TOTAL BUDGET FOR TRADE SHOW $168,900
ROI TRADE SHOWCOST PER LEAD
COST OF SHOWNUMBER OF POTENTIAL PHILLIPS LEADSPHILLIPS’ OVERALL COST PER LEAD
$168.9001,802$93.73
COST OF SHOW FOR BIRCH $84,450
% OF LEAD W/ KING CRAB INTERESTNUMBER OF ALL POTENTIAL KIND CRAB LEADSBIRCH’S COST PER KING CRAB LEAD
16%288$293.23
KING CRAB LEADS IN RETAILBIRCH’S COST PER KING CRAB IF ONLY RETAIL IS USED
201$420.15
COST TO CLOSE
COST/LEADCOST OF ONE FOLLOW-UP VISITNUMBER OF FOLLOW UP VISITS
$293.23$308.001.6
COST FOR FOLLOW-UP VISITS $492.80
TOTAL COST TO CLOSE 785.74
PUBLICATION OPTIONS
ROI TRADE ADVERTISEMENTROI MEASURES COST PER LEAD
AD COST PER ISSUECIRCULATIONOVERALL COST PER THOUSAND
$4,50015,000$300.00
PERCENT OF IN RETAILPERCENT INVOLVED IN PURCHASINGPOTENTIAL TARGETCPM FOR TARGET
58%90%7,380$574.71
RESPONSE EXPECTEDNUMBER OF LEADS PER ADCOST/LEAD
.30%23$195.65
ROI MEASURES COST TO CLOSE
COST OF ONE FOLLOW UP VISIT $308
NUMER OF FOLLOW UP VISITS 2.7
COST FOR FOLLOW UP FIELD VISITS $831.60
COST TO CLOSE $1,027.25
RECOMMENDATION
I WOULD RECOMMEND TO BIRCH TO PURSUE THE TRADE SHOW
• COST
• ROI
• ADVANTAGES OUTWEIGH PUBLICATION
LAST REMARKS
What other options could Birch request from his boss?
• Request more money
• Do both options
• Pre and post show awareness
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