Saxonville

EXPLORING THE SAXONVILLE’S ITALIAN SAUSAGE OPPORTUNITY

SAXONVILLE’S BACKGROUND

• 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

BACKGROUND OFSAXONVILLE’S

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

Insights of planning of new research on the target customers

.

• 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.

Learnings from the focus groups

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)

Family Pleasing And Easy To Do

What positioning concepts were built?

• 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

FAMILY CONNECTION CLEVER COOKING

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

4P 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

Alternatives

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

Insights of additional research for the final verdict

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

These slides were created by

DEVANSH SHARMA3rd year UndergraduateIIT Kanpur

Under the guidance of

SAMEER MATHUR Prof. MarketingIIM , Lucknow (www.iiminternship.com)