Philips Foods Inc. Harvard Case Solution & Analysis

Phillips Foods, INC Introduction King Crab to the Trade

1.      BASIS OF COMPETITION

The following are some of the basis on which Phillips Foods Inc. is planning to compete with other industry incumbents:

1. Phillips Foods Inc. has a diversified range of products in the crabby category inclusive of sauces, cocktails, assorted items and cakes, along with the Asian seasoning product range.
2. It also has a diversified range of its supply sources and production with 14 manufacturing sites in number.
3. Phillips himself operated all of its plants unlike his other competitors.
4. It retains its position in the market as a first mover to perfectly pasteurize and canned crab meat without compromising on its freshness, taste and texture.
5. The shelf life Phillip Foods Inc.’s product range is 18 months.
6. Phillip Foods Inc. do not treat the crabs as a commodity rather it is treated as a brand and heavy investment is made in brand building of the crab meat produced at the company.
7. Wider availability of the products in over 10,000 retail stores with reliance on its own direct-to-retailers sales.
8. Focus on adding value for the customer, e.g. introducing the ready-to-eat products that stand higher when compared to the normal products in respect to the margins offered.
9. Phillips Foods Inc.’s current offering include King Crab that is also the value added product and in 2007 it derived most of its revenues from the value added products, which is eight times the margin offered by the sale of non-value adding products.

2.      MODE OF ACTION

Phillips Foods Inc. is planning to conduct Trade Shows for promoting the new product, despite of the fact that it has to pay fifty percent of the costs associated with the Trade Show out of which only 16% sales will be generated for Phillips Foods Inc. Although, the return on investment seems to be healthy with the Trade Show option yet it cannot risk losing audience sigh on the Trade Show. As Phillips Foods Inc. has the option to consider both the options that it will be in a better-off condition in the case it goes for the Trade Show if the tax is not high. In addition to this for the Trade Show strategy, Phillips Foods Inc. must keep in mind that the budget may exceed as it is now taking into consideration both the options to communicate about the King Crab. For the Trade Show to be a success, pre-show awareness needs to be conducted in the form of advertisements and other marketing mediums, which are subject to budget constraint and even after the Trade Show, reminders need to be made so as to endorse the new product.

In addition to this, Phillips Foods Inc. can conduct a direct response advertising campaign. The direct response advertising campaign is one in which there is no middle man or broker. This advertising is used to have the traceable responses gathered on the spot and then measuring the number of pertinent contacts established. This helps in building relationship with customers and whoever gets to see the product in the Trade Show or at any other platform. This advertisement will help in branding, which will give a forecast that is accurate in number of sales and will avoid delay-free responses as well as help to accumulate value added responses.

3.      STRATEGY EVALUATION

The evaluation of the Trade Show strategy is that it is a good option as it offers a wide range of audience for the product. People attend Trade Shows to get information on the new products and technologies developed, to build relationships with the brand, retaining the vendor and customer relationship to compare several alternative brands and to get an in-depth insight on the industry without any obligation or pressure from the sales person to make the purchase decision. Almost 55% to 90% people surveyed say that the useful sources for product information are trade advertising and exhibitions. The Trade Show experience creates a positive impact on the unconscious consumer or the audience and helps in brand recall during the purchase.

In addition to this, exhibitors asses the quality of the exhibition through both the visual and aesthetic interactions from the advertisement, the number of sales generated by the booth itself and also the cost and return associated to each lead. The downside of the Trade Show is that it depends on the mental and physical presence of the attendees and their level of commitment to the product itself.................................

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