Reference no: EM133294093
For the consumer, the product had to be taken home usually in a bag filled with water, to be cooked. It was important to cook it as soon as possible after purchase.
The Right Market
A key concern of the Atlantic Fisheries Marketing Board was the best place to market the lobster. World lobster production is only about 250,000 metric tonnes, so they had to choose their markets wisely. They identified several types of outlets where lobster could be sold:
- Large supermarkets, or hypermarches, stressing fresh product could include a lobster tank at their fish counter, adding a premium delicacy to their offerings. About 70% of seafood was consumed at home, with 30% at food service outlets.
Restaurants were always looking for new and unique offerings, and this would offer them a way to distinguish their menu. However, it would involve having a tank installed, so those with a seafood theme offered the best prospects. Also, lobster is seasonal.
Markets selling fresh produce and fish would also be appealing. These shoppers value freshness, but they tend to be lower income groups compared with supermarket shoppers, and lobster is viewed as expensive.
Beyond the type of outlet, specific countries would need to be targeted, each with their own unique attributes:
- Spain is the largest fish-consuming country in Europe and the fish market in Madrid has the greatest diversity of seafood products in the world. Almost 15% of Spanish grocery spending is on seafood, making this a tempting market.
France imports live lobster from the US, but the Canadian product will get a huge advantage in 2021 when French labeling requirements must outline the product's carbon footprint. Air freight has a much larger carbon footprint than does ocean shipping. Many markets and restaurants presented opportunities here.
The United Kingdom is famous for its 10,000 fish and chip shops, which serve mainly cod and haddock. Lobster would fit a small niche here, such as restaurants in London where diners were more sophisticated. Growing numbers of large supermarkets focusing on fresh product also presented opportunities.
Italy is the fifth largest seafood importer in the world and seafood consumption has risen by more than 50% over the past decade. Italians treasure freshness above all when they eat. However, lobster is not a traditional dish here and transport issues would come into play.
Other market factors had to be considered as well. One was the love of animals in many parts of Europe, especially the UK, and animal rights activists, who claimed you could hear the lobster scream when they were dropped in the hot water, could protest where lobster are sold.
For the Atlantic Fisheries Marketing Board, the decision about where and how to enter the European market for fresh lobster was clearly a tough one.
1. What is the problem in this case
2. What is the final recommendation in this case