Philips Foods Inc Harvard Case Solution & Analysis



Phillips Foods Inc. is one of the number one brands in United States of America, which is popularly known for their wide range of pasteurized sea food producer. Phillips is the leading brand in the sea food market and is known for its quality driven product range. Phillips Foods Inc. was founded by, Augustus E. Phillips in 1914 and it is one of the unique niches in the food service world that produces a wide range of crab meat products which include, refrigerated crab meat, crab dip, crab cakes, frozen crab appetizers, assorted sea food (shrimp, tilapia, mahi-mahi and salmon), and also a wide variety of Asian style inspired seasoning frozen sea food line, tartar sauces and cocktails. With an already established brand image in the industry, Phillips Food Inc. is planning to launch a new product, which is the King Crab caught from the rough tides of the Northern Pacific’s coast of Alaska and Russia. Traditionally produced blue swimming crab conjured an image of family-fun and sunny days on the beaches of Maryland whereas this new product, King Crab intends to depict a raw and rugged essence of Alaska with five feet long spans full of crabby meat.

For this new product offering, Phillips Foods Inc. must adopt a strategy that is the showcasing of the new King Crab in restaurants and also in Trade shows. According to an estimate, 90% of the Americans consume sea food and out of these, 18.5% consume it through the stores. The reason behind this strategy is that the unique product is one of a differentiated version that is first produced by Phillips and Trade Shows generate a good chunk of audience, which will help the company to gain a long term sales generation via customer-relationship developed through these portals.


The reason for pursuing this strategy is that Trade Shows provide a strategic opportunity to Phillips Foods Inc. to develop new relationship with the prospective clientele through promoting the product at this arena without a pressure on the customer to purchase it right then and there. The strategic formation will help Phillips Foods Inc. to promote the new product at a platform that generates a large audience. Although it is mentioned in the case that the cost of using such platform for the promotion versus the restaurants is quite high, however, King Crab will be a value added product that will generate eight times more margin than the product that does not add value for the customer.

The Trade Show will generate a large customer base for Phillips Foods Inc. and it will make them make their first purchase within 12 months. So the opportunity that can be seized through the Trade Shows is one that leads to greater sales in the long run along with exchange of valuable information to the customer. In essence, the Trade Shows will give Phillips Foods Inc. the following strategic implications:

  1. Trade shows will provide a strategic opportunity to Phillips Foods Inc. to have a two way communication of the new product benefits and the feedback.
  2. Trade shows will also help the company in promoting and exposing the new product, King Crab to the target market.
  3. Trade Shows will provide a platform to the company to conduct strategic marketing.
  4. Trade Shows also provide customers with an opportunity to see a wide range of products at disposal as well as engage in the real time feedback and information exchange, which will give them an opportunity to choose the best out of the available options.
  5. 1.      What business or businesses Phillips Food Inc. wants to be in?


Phillips Foods Inc. is operating with strong retail relationships in the industry and therefore the new business is trying to enter the restaurant and food service business. The trend of this target business is to develop products that can live up the menu and the profitability.

  • 2.      How does the parent company add value in its current product offering?

Phillips Foods Inc. is well known for bringing innovation into its product offerings through which it adds value for the customer, which is also evident from its new product offering. The King Crab is available in two options; one option is the mature specimen (Golden King Crabs) weighed up to eight pounds and the second is the Blue King Crab, with 20 pounds weight and leg spans of five feet. In addition to this, Phillips Foods Inc. is the first to have pasteurization in the industry for the frozen food.

  • 3.      How should the company compete in the market place?

The King Crab should be promoted such that it creates a buzz in the market. Phillips’s attendees in the trade shows must be able to promote the product’s over all easy to use convenience, the long shelf life, the crabbier material under the long legs without compromising on taste and with no mess of cracking and removing of shell. The price per eight ounce is also kept competitive such that it is $16.99 per ..............................

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