EAST COAST LOBSTER Note: This case is provided for instructional purposes and may not represent up-to-date or current reality. East coast fisheries in Canada were no strangers to exporting, with $2.3 billion in product, mostly lobster, going to the United States. New transportation technology was opening up an efficient way for them to reach the largest seafood market in the world, which was Europe, but the Atlantic Fisheries Marketing Board needed to decide on just where within that market they should reach. Love That Lobster Canada leads the world in production of lobster (20%) and in exports (33% of total), due to a productive fishery on the east coast and to the desirability of the lobsters caught in that area. While some lobster is harvested elsewhere in the world, Canadian lobster enjoys a special place in the hearts and on the plates of gourmet diners. While many recipes make use of lobsters or lobster parts, whole live lobsters are considered a special treat. A dull green colour in their natural environment, they turn bright red after being dropped into hot water and cooked. It is difficult to get live lobsters to many markets economically, since they must be fed and kept in clean, oxygen-rich water. Air freight has been used, but it is incredibly expensive to ship live lobster and they are put on ice yielding a less desirable product. From Ship to Shop Maersk line, the ocean shipping giant based in Denmark has joined with Aqualife AS to create a new transport system with a ship that will deliver fresh live lobster directly from Halifax, N.S., to the docks in Rotterdam, The Netherlands. Tanks on the ship have been designed to keep oxygen flowing through the water without the need for fuel-consuming pumps. This means the lobster arrive in excellent, fresh condition and the whole operation can be seen as green it is not wasting energy and has a much smaller carbon footprint than product shipped by air freight. Both companies worked with the Canadian government and fisheries representatives to ensure that the method would make sense logistically, while also being environmentally sound. In Europe, environmental issues can be larger than price in consumer decisions. Many seafood exporters have been desperate for an alternative to costly air freight and this will enable shipments of not only fresh lobster, but also snow crab, live oysters, clams and mussels. Tanks Needed Once on display for purchase in a restaurant or market, the lobster had to be kept in their own tank with plenty of oxygen flowing through it. This meant the establishment had to be committed to the concept and be assured they would get regular supplies. Fish for sale in markets were normally displayed on ice, so having a tank would be an extra expense for the fishmonger. In the case of restaurants, a tank with lots of tasty lobster in it would be an attraction, but again it would take some investment and commitment to proceed. 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 products 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

Ques- 2 SWOT Analysis

Ques-3 Problem Identification

Alternatives ( 9 marks) (You do not have to limit yourself to 3 Alternatives