Business Case: Phillips Foods, Inc.
1) Problem statement:
Phillips Foods Inc. just launched its new product called King Crab. It is a brand new product with a key innovation: a pasteurizing process which allows the product to stay fresh. The product therefore enjoys an 18 month shelf life. Management has decided to split the launch into two phases. Phase I is done; the company targeted foodservice buyers thanks to an advertising campaign through restaurant and institutional foodservice magazines. In the second phase, the target is now food retailers and wholesale distributors. Ron Birch, product manager is now facing a critical choice regarding the approach strategy: should he keep up with the advertisement strategy or explore a new opportunity with the International Boston Seafood Show? If the tradeshow is chosen then: How many sales people should attend in order to appropriately cover the event? How big should be the booth? It should be big enough to set up the kitchen and have free space to talk with customers. Where should the booth be located? These are important decisions that the company has to make.
We would recommend attending the International Boston Seafood Show for the second phase of launching the King Crab product.
There are several reasons why the tradeshow appear to us as the best option for Birch in the launch of phase 2.
Firstly, the tradeshow is consistent with Phillips Food strategy of product development. 85% of visitors have a direct influence on the buying decision and are expecting new products; therefore it is a great opportunity for the company to promote its new pasteurizing process and address qualified leads. Opponents may say that advertising in professional magazines would be better, because it reaches more people and their level of attention is higher than in a tradeshow, but actually sales people are more efficient in closing a deal after an initial sales meeting in...
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