Case study

Saxonville Sausage Company

A Harvard Business School Case Study

Who are the Key Players

• New Marketing Director - Ann Banks

• Vice president of Marketing - Steeve sears

• Director of Market Research - Laura Bishop

What are the Existing Brands of Saxonville

Bratwurst

Breakfast sausageLinks and Patties

Vivio

But vivio was the only brand showing growth across producers

Vivio 2005 Sales Performance

CURRENT 52 WEEKS ENDING DEC 2005

TOTAL US $2 MM + $ VolVivio Italian Sweet Sausage Link 24.41 oz $3,714,499Vivio Italian Hot Sausage Link 24.41 oz $18,858,587Vivio Italian Mild Sausage Link 24.41 oz $42,414,884Vivio Italian Mild Sausage Link 55 oz $2,829,047Vivio Italian Sweet Sausage Ground 14 oz $2,019,310Vivio Italian Hot Sausage Ground 14 oz $34,685Vivio Italian Mild Sausage Ground 14 oz $1,351,313Vivio Italian Cheese Sausage Link 14.7 oz $870,081Vivio Italian Pepper Sausage Link 14.9 oz $160,232Vivio Italian Garlic Sausage Link 14.7 oz $833,067Vivio Italian Mix Sausage Link 55 oz $1,235,193 Total $74,320,898

Researching and Evaluating the Italian

oppurtunity

Ann Banks four step model for Positioning work

Planning New Research on the Target Customer

Relevant data from latest A&Ua study

• Female heads-of-household are primary purchasers of Italian sausage.

• Six out of the last 10 purchases given to a particular brand is considered “a loyalist.”

• Heavy users used Italian sausage three + times a month.

• Mean Italian sausage usage constituted two times every six weeks.

• Heaviest usage is among consumers aged 20–50 years.

• Age differentiation tends to manifest in 10 year increments

Other potential demographic considerations:

• Working out-of-the home, part- or full-time vs. working at home as a homemaker

• The number of children in the household

• Ages of children in the household

• Education level

• Household income level

Other potential behavior considerations:• Vivio loyalists• Competitive-brand Italian sausage loyalists• Uses/does not use private label and store brands (degree of price sensitivity)• Uses/does not use Saxonville Brats• Uses/does not use Saxonville Breakfast Sausage• Frequency of every-day dinner preparation• Use of other sausage products; bratwurst, breakfast, kielbasa, etc.

Geographic considerations:• Strong Italian sausage markets where Vivio is distributed• Markets where Vivio is particularly strong• Strong Bratwurst markets where Saxonville is well developed• Strong Saxonville markets where Italian sausage is distributed• Strong Saxonville markets where Vivio is distributed

Building on Learning from the Focus Groups

What the Focus Groups Revealed

• The Vivio brand was considered to be of exceptionally high quality, with good color,and great taste and texture.

• Heavy, Medium, and Light Users alike reported that Italian sausage made their lives easier.

• Italian sausage was considered a great “meal-maker.”

• “Saxonville Italian Sausage” did receive a lot of votes among Italian sausage users

Initial Positioning Territories for Italian Sausage Use by Homemaker

FAMILY CONNECTIONCLEVER COOKING

CONFIDENCEAPPRECIATION

QUICK AND EASYTRADITION

Building Positioning Concepts

1)“Family Connection”

concept

2) “Love” concept

3) “Balance” concept

4) “Creative Cooking” concept

CONCEPTS: F

FAMILYCONNECTION

CCLEVER

COOKING

BBALANCING

ACT

LLABOR OF

LOVE

N = 69 69 69 69

1st votes 37 14 9 5

2nd votes 15 35 12 7

3rd votes 16 12 9 1

Top two votes 52 49 21 12

• 54% of first place votes went to “Family Connection”• Less than half as many went to “Clever Cooking” and “Balancing Act” respectively

Supporting Tactics Offered by Other Functional Groups• Kid-friendly-shaped pre-cut sausage pieces; dinosaurs, goldfish

• Different flavor varieties: spicy mustard, sweet “Oriental” style, gourmet cheese and smoked flavors, macaroni & cheese flavor, pepper & “stuffed” varieties

• Insert fresh herbs that would be visible through the sausage casing but not impact the taste of the sausage

• Different forms: uncooked pre-sliced “disks,” mini-patties, mini-links,and precooked “meatballs,” “salami” slices and “disks”

GRAPHICS• Label size and shape changes to maximize the

product visibility window and provide in-case differentiation

• Alternate label graphics using background photographs, fresh ingredients depictions, the Italian flag

• Faux labels used as tip-ins in magazines to reinforce the brand

• Labels with “back-placed” recipes• Different label-copy stickers that “pop”

SALES• Larger package size with dinner-plate shaped trays

• Running more frequent BOGO’s (buy-one get-one promotions)

• Refrigerated display units placed in the produce and dry grocerysections

• Celebrity recipes

• Celebrity store appearance program with on-site sampling

• Temporary Merchandising Display units that carry recipe cards, great cooking-with-sausage graphics, and can hold store merchandise, given with new account authorizations and / or increased facings

Additional Research Delivers a Verdict - or Two

1.Family Connection

2.Clever Cooking

• She would prefer to use the "Family Connection" positioning, closest to the target customer's core values

• But it would be easy to provide tactical support for the "Clever Cooking " positioning

Family connection(A)

Clever Cooking(B)

Base Total Respondents (250) (256)

Definitely/Probably Would Buy 81% 72%

Definitely would buy it 23 41 (A)Probably would buy it 58(B) 31Might or might not buy it 15 26

Probably/Definitely Would Not Buy 4 2

Probably would not buy it 1 1

Definitely would not buy it 1 1

Note: letters in parentheses denote relative statistical significance at the 95% confidence level

• Of the two "Family Connection" had scored better

• Was the "Clever Cooking" idea more distinctive and durable?????