SYNDICATE 1 Brian, Peter, Ashford, Rita, Anne, Mary, Stanley, Nicholas STRATHMORE BUSINESS SCHOOL MBA 8202 : MARKETING & CUSTOMER SERVICE Saxonville Sausage.

SYNDICATE 1

Brian, Peter, Ashford, Rita, Anne, Mary, Stanley, Nicholas

Saxonville Sausage Company: Case Questions

February 11th 2014

QUESTION 1: Product Characteristics

BRATWURST

• 70% of Saxonville revenues. A basic staple in the Midwest• Sold throughout the United States via both national and regional brokers and

distributors; Limited distribution in the Northeast.• Mainly prepared at outdoor barbeques. Cooked on the outdoor grill usually by males• Adult male target through the FHH (female head of household) who buys what the

“chef” wants. • A 15% higher SRP (suggested retail price) than competitors’ brands, 20% higher price

than store brands• Trade support - three deals annually versus competitive four annual price reductions• Considered fancy, eaten by adults and good for outdoor occasions

BREAKFAST

• 20% of Saxonville revenues• Underperformance incurred for Saxonville’s breakfast sausage resulting in a double-

digit revenue decline• Cooked by females, 75% by males, 25% morning meals, 99%• Peak volume season – November to March (69% of volume)• FHH (female head of household) target• Supported by small print campaign with limited reach three years ago• Trade support – two deals annually at parity with competition• 3 national players, 9 local/regional brands

The Establishment of the Vivio Brand and Ann Bank’s concerns

• Main objective was to take advantage of the “Italian Opportunity”.Initially no clear positioning/identity. Not much had been done to create a distinctive identity for Vivio that would stand out amid competition.

• Was treated as a low priced brand that went on deal “every other month” The product was basically lobbed out into the market

• Placed in the market in a reactive manner- did not adequately respond to the competitive threats of other brands in the market.

• Anne Banks was concerned that the lack of understanding by the team on Vivio’s intended positioning would result in cannibalization of other products.

• The company seemed to have missed the opportunity for a “national italian sausage”. It is this positioning that Anne Banks sought to respond to.

Evidence that Ann Banks believes in Brand Vitality

• Brand vitality is all about the maintenance of the driving energy behind the brand and revitalization is the business of injecting energy and life into dusty brands that have dropped off the pace. It is brand live with a sense of purpose, with a vital force or principle and the power to grow.

• Anne believed that a brand must find a way to link its product with the core values of their target consumers

• Anne briefed everyone on the values, emotions, social and familial roles, and self perceptions of Italian-sausage consumers

• In positioning the italian sausage, Anne Bank sought first to establish what is the value held dear by target customers, and with the team, proceeded to make a list of the same.

Use of behavioral research by use of Focus Groups : Banks used four interactive mini pilot groups made up of four to six users of Italian sausages users with aim to confirm the basis attitude and usage data she had been presented with. She also sought to understand their behaviors and needs by lively discussions, stimulus materials and a guide to the session. The purpose was to understand current behaviors, triggers to purchase and unmet needs, get a clear understanding of product benefits, attributes and ideas. This enabled them develop an idea of the language consumers used to discuss the benefits Italian sausage delivered.

Engaged marketing professionals from a marketing research company for further studies on selected respondents: This involved recruiting, screening and selecting the customers for focus groups to be conducted in select locations

Use of experimental research by Use of Positioning concepts i.e. consumers were subjected to four mock concepts and asked to choose their 3 top favorites. Use of quantitative testing agency to interview 250 target consumers for the family connection concept and 256 target consumers for the clever cooking concepts via a series of questions and concepts including their likelihood of purchase

Researchers used slice of life photographs and magazines for the respondents’ who created mini-collages and collections of mocked-up product packages and 5” X 7” cards

Analysis of Vivio’s 2005 sales performance that showed the brands available line items by form and flavor

Analysis of the results from the various focus groups. This enable them to tally up and make conclusions from the consumer trends ( Exhibit 4)Construction of a perpetual map that showed key stressors from respondents stories

FAMILY CONNECTION

The perfect blend of fresh herbs and spices, with irresistible aroma and taste will draw people together over a great and enjoyable meal

1.Enjoyed by the whole family, offering more than just a sausage but also a unique taste for the whole family. 2.It fulfils the emotional value sought by the customers3.It will strengthen Saxoville perception as a family brand

1.No unique positioning2.Easily replicated3.High chances of cannibalization

CLEVER COOKING

Vivio – Creative meals in minutes! Comes with recipes everyone is sure to love, unleash you creativity to create a wholesome real meal in minutes

1.Wider customer base; tendency to buy is higher due to many uses2.First choice in buying intention3.Possibilities for extension are many.4.‘clever cooking’ has not been widely used within this market, which would make it a unique positioning

1.Could alienate target base2.Difficult to integrate with family values

Positioning

PROS

CONS