Consultancy Projects Essay Example | Topics and Well Written Essays - 2500 words

Consultancy Projects - Essay Example The inventory now stands at sixty days requirements as against 20 days stock they used to hold a year ago. The disposal of this stock is causing problems. If it is not sold it will have to be thrown away due to its perishable nature. Her suggestion has caused a furor in the company management and at a recent meeting of the Marketing and Operation Council (MOC) of the company everyone seemed to have a different opinion to solve this problem. The outcome however has been in favour of two different views. One opinion is that the company should reduce its price by 45% thereby increasing its sales volume and bring down excess inventory to far lower levels. The inherent disadvantage here is that this will encourage the competition to do the same and the result will remain the same. Unless market share is increased this move is more likely to create chaos. It will also result in loosing customer confidence as the premium status of the product will be lost. The fear is that there will be immigration of customers to other suppliers. It was further pointed out that this loss could be mitigated by selling the excess inventory by calling it a different brand. It was argued by those who advocated this first policy that this would spare the premium brand and would attract new customers looking for low end products. The second suggestion is to offer deep discount to its captive customers only. Neptune has around 300 restaurants who are its regular customers and it is proposed that they be offered up to 45% discount on additional off take. It was argued that this would not be considered as price cutting and would avoid a price war with competition. This would also target a closed market which had the potential to absorb more quantities if the price was right. This would help the restaurants increase their own customer bas by offering different fares and would not hurt the image of Neptune in the market. The