Transcript
• A 70-years old private family business headquartered in Saxonville, Ohio.• Produces a variety of fresh pork sausage products • In 2005, the revenue was approximately $ 1.5 billion• Branded product line of Saxonville: 1. Bratwurst 2. Breakfast Sausage 3. Italian Sausage(Vivio) 4. Additional Stored-products
About The Company
COMPANY’S PRODUCTSProduct Market Revenue
Bratwurst No growth 70%
Breakfast Sausage Decline 20%
Italian Sausage Vivio Growth 5%
Revenue Distribution
Demographic DistributionVivio is available in just 16% of the nation’s large supermarkets
Bratwurst and breakfast products are sold throughout the United States although the products have very little distribution in the Northeastern markets
Saxonville first entered the Italian sausage market in 2002 in the Northeast.
Brand positioned as Authentic Italian Heritage
Brand supported only with base trade spending as no market research carried yet.It is growing along other Italian brands due to pulling.Comparably priced with other competitive brands
CONCLUTION
• Ann Banks should stick with Vivio name. While Vivio hasn’t been a huge success to sausage market, change their name won’t give a huge effect because many customer has aware with the Vivio name. By changing name, it will confuse or alienate the few loyal customers the brand actually has.
Ideal Brand Name? The Brand Positioning?
Tactics For Promotion?
Research and Evaluation Work on VivioIt was a four step process :
Planning New Research on the Target Customer
Building On Learning From Focus Groups
Building Positioning Concepts
Additional Research For the Final Verdict
• Female heads-of-household are primary purchasers of Italian sausage.• Heavy users used Italian sausage use three + times a month.• Mean Italian sausage usage constituted two times every six weeks.• Heaviest usage is among consumers aged 20–50 years.
Used as meal-maker and ingredient.Serves the purpose of quick meal
A Family dinner meal and everyone enjoys passionately
On the brand name issue: Neither Vivio nor Saxonville Italian Sausage preferred -Many other Italian generic names possible -Saxonville Italian sausage as more “German-seeming”heritage.
Three types of consumers: -Heavy Users(once every weeks with seasonal variations) -Medium Users(once every two weeks) -Light Users(once every three weeks)
• Wholesome meals with fresh ingredients• Desire to please entire family with single dish• Quick meal preparation without sacrificing nutritional quality• Family dinner facilitating feelings of togetherness
Defining Proper ConceptsPositioning
Possible Brand Positioning Territories
FAMILY CONNECTION
CLEVER COOKING
CONFIDENCE
APPRECIATION
QUICK AND EASY
TRADITION
Family Connection• Discover a crowd-pleasing favorite that brings the family
together• Vivio - It welcomes you in• The perfect blend of fresh herbs and spices, with
irresistible aroma and taste will draw people together over a great and enjoyable meal
Clever Cooking• Simply add your own personal touch to create meals that
make any day a little special• Vivio – Creative meals in minutes!• Comes with recipes everyone is sure to love, unleash you
creativity to create a wholesome real meal in minutes
Voting Results In Brand Positioning Territories
Current Market Considerations
Behavior Considerations• Vivio loyalist• Competitive brand• Degree of price sensitivity• Frequency of every day dinner preparation• Use of other product within company
Geographic Considerations• Currently in strong Italian sausage markets• Strong Bratwurst markets where Saxonville well developed• Strong Saxonville markets where Italian sausage is distributed• Strong Saxonville markets where vivio is distributed
Possible Segmenting Dimension
• Working out of the home, part or full time vs working at home as a homemaker• Head of household: female vs male• Age: <10, 10-20, 20-30, 30-40, 40-50, >50• Household income level: low, middle, or high• Consumer group: heavy, medium, or light users• Loyalist vs competitive users
Target Market
• Working out of the home and working at home• Head of household: female and male• Age: 20-50• Household income level: middle and high• Consumer group: heavy, medium, and light users• Loyalist and competitive users
STRENGTH WEAKNESS
• National distribution network of other sausages within portfolio
• Strong Brand Recognition
• No comprehensive Advertising Campaign
• Vivio confined to core geography• Possible cannibalism within portfolio
OPORTUNITY THREAT• No national competitors• Category showing nation wide
growth
• Pre-existence of 29 national brands• Nation wide distribution of frozen
product
SWOT ANALYSIS
Price• Pricing in medium level• Discount for the early stages of the national product launch• Currently Vivio Italian sausage priced at 20% higher from store brand’s
price
ProductHigh quality with strong flavours
Representative of Italian Authenticity
Packaging based on grass-root marketing levels
Place-Distribution channels already in existence from national distribution of other portfolio products
-100% available in nation’s supermarkets
PromotionAdvertising Personal selling Sales promotionPublicity Interactive media
Alternative 1Keep “Vivio” nameFamily Connection Strategy
Alternative 2
ConsFailure to Change NameEasy to Replicate Strategy
Pros Brand Loyalty Established Market Core Values of Customers Quantitative and Qualitative Testing
Perfecto Italian Sausage by SaxonvilleClever Cooking” Strategy
Pros Authentic Italian Appeal Capture Brand Loyalty Product Versatility Healthy and Convenient Option
Cons Broad Target Market
Cannibalization of Other Products
Alternative 3Family Connection StrategyExpand MarketPromotional Tactics
Pros:Family Connection BenefitsNational ExpansionNew Packaging
ConsShort-Term Loss of Revenues due to ExpansionRisk of Expansion FailureProfit Projections Not Guaranteed
Recommended Brand NameMust have Italain Origin, say perfetto salsiccia
To avoid German-seeking food type thinking
Seek emotional benefits and win confidence
Italian Brand message conveyed
Retaining customer loyality
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