Write up submitted for Phillips Foods

Submitted By:

Nirlipta Panda (U113211)

Digant Bhatt (U113200)

Spandan Mishra (U113232)

Varun Pandey (U113239)

Rohit Shekhar (U113165)

Section Z: Group 7

Phillips Foods was one of the largest seafood business in the United States, and its Maryland origins allowed the brand to grow and maintain its brand image. This was quite important to make it a market leader in all seafood products based companies. The company differentiated itself based on 2 very important factors

Perfection of method to pasteurize and can crabmeat for better consumption across the shelf

Technically valid marketing and branding strategy, which portrayed crabmeat, not as a commodity but as an outreach of the Phillips brand

The king crab, from Alaska was one of the most important products sold by them since it was regarded as a delicacy with more amount of meat per crab, and when sold to retailers, gave them a 35-40% margin on the sales. Seafood in themselves accounted for about 4% of supermarket sales with packaged seafood representing a third of that amount. With the use of brokers and with retailers struggling to maintain presentation of products it was quite difficult for the brokers to earn about 3 to 5 percent commission. There were also two major trends that were expected to shape the market soon.

I. Consumers were expected to purchase a larger share of their needs in warehouse clubs and large mass merchandisers.

II. There was a greater trend of self service in these sectors.

Soon, the loose sea food counters were being phased out with expectations that less than 60% supermarkets would have a full-fledged seafood counter, to save costs and to align their operations even more.

Trade Show Marketing

Professionally, the trade shows are considered to be a unique marketing medium because of the following:

a.) Getting active prospects and customers to the exhibiting companyb.) Demos became easier and so was face to face interaction with the potential customersc.) Sensory impact was extremely high for the product and companyd.) Multiple marketing goals could be fulfilled simultaneously(immediate vs long term)

But there were certain limitations too:

a.) A small number of trade shows could never deliver to the promises made to the exhibitors and attendees.

b.) They were a lot many times, too cramped up.c.) At times the speakers are disappointing and boringd.) Trade shows are usually very difficult medium to make the presence felt because of large no of

competitors present together.e.) They can be too demanding for the staff as well being available for 12 hours a day.

But B2B Marketers have always found it to be a better medium than other marketing tactics and especially for new technology and products, reinforcing could be easily done and an impact beyond the show was possible. Efficient staff, exhibit size and accurate client information were the drivers here.

International Boston Seafood Show (IBBS) was one of the largest seafood show in the US with a net of 18k attendees, 175k sqr. feet space and 800 exhibitors promoting their products. It had a median seafood purchases of $3.4 million with 81% users claiming that they found new products and 73% visitors had planned purchases post the exhibition.

Philips trade show strategy:

a.) Main visual theme was a reminiscent of and old crab shack.b.) A lot of hi-tech gadgets and electronics were used.c.) A kitchen was placed where sample food was cooked.d.) Phillips limited the pre-show marketing expenses and used its resources for prominent locations

where proper user attention could be possible.e.) VIP parties were organized where high end networking was done by the stafff.) As an insight they knew that 6 minutes was more than enough for a staff to explain the attendee

about the product and about 65% attendees were looking for products which Phillips offered.g.) They intended to interact with 70 % of these attendees much higher than industry average of

57%

Philips Trade Advertising Strategy:

Philips has devised a strategy of advertising in Industry specific Magazines. As many managers tended to read their vertical Publications as well as Horizontal publications cut across industries but particular to job functions. Magazine’s article as well as ad was a valued source of information for readers.

Trade advertising was particularly effective in generating sales lead and reaching large audience. It also helped in brand building. It also helped in generating lot of enquiries for Philips.

Recommendations:

We believe that Birch should move ahead with the trade show option at the IBSS for Phase II launch of King Crab. Some of the supporting facts for the same are as presented below:

The Phase II launch should aim at converting more leads and boost up sales as the initial stage of brand building and awareness have already been accomplished through its Phase I launch.

As per industry facts, the face to face events like the trade shows are the most effective in generating leads and building brand image, the most essential aspect for King Crab at this stage.

Also, penetration among new prospects could be achieved through this tactic as it has been found that the number one reason that buyers attend trade shows is to see new products.

Also, the salesforce expenditure could be reduced significantly as trade shows ensure only around 4 follows up to a lead on an average, after a trade show as most of the objectives with the lead are already achieved in the trade show.

Also, as most buyers visit a trade show by word-of-mouth marketing and trade magazines, hence, King Crab could expect a huge turnout in its Phase II trade show launch after a successful trade magazine promotion achieved in the Phase I.

The fact that most buyers attend only one or two such shows in a year yet encountering the highest impact, a strategic investment in the IBSS, the annual and largest seafood show in the US can help generate and convert a greater number of sales leads from King Crab in all the channels.