Saxonville sausage company case study
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Transcript of Saxonville sausage company case study
SAXONVILLE SAUSAGE
COMPANY By Mausumi Mohanta
SAXONVILLE’S BACKGROUND
A 70-year-old Company,
Family business Headquartered in Saxonville, Ohio.
In 2005, the revenue approximately $ 1.5 billion.
Produced a variety of pork sausage products: fresh
sausage as opposed to smoked or semi-dried
COMPANY PRODUCT
The business consisted of branded products:
Product Market Revenues
Bratwurst Flat – No Growth 70%
Breakfast Sausage Decline revenues 20%
Italian Sausage
“Vivio”
Growth 5%
Store brand products - 5%
70%
20%
5% 5%
Revenue Percentage Contribution
Bratwurst
Breakfast sausage
Italian sausage
"Vivio"
BACKGROUND OF SAXONVILLE’S ITALIAN
SAUSAGE BUSINESS
Vivio entered the Italian sausage market in 2002.
“Italian” name to cover up the ‘German heritage’.
Vivio was priced comparably to other regional
Italian sausages.
Current positioning of Vivio is “Vivio fresh
Italian sausage” and has an Italian flag in one
corner.
CURRENT SITUATION OF
SAXONVILLE SAUSAGE
One of their product (Bratwurst) sales decreased
and Vivio’s sales were rising.
Improved marketing research program to
minimize risk for sales program during launching
of products.
Repositioning Italian Sausage product or launch
with new brand.
PRODUCT
• Undifferentiated product
• No clear positioning
• Italian name to create consistency
PRICE
• In line with competition
• Inconsistent with Saxonville pricing strategy (15 % premium)
PLACE
• 16% of national supermarkets
• Mainly Eastern part of US
PROMOTION
• Discounted price during the launching period
• No communication
VIVIO : CURRENT MARKETING
SITUATION
ISSUES !!
ISSUES
Determine Brand Name
Vivio or
New Name
Determine Brand Positioning
Family Connection
Clever Cooking
Determine Tactic For Promotion
Research
the Italian Opportunity
The Key Players:
Ann Banks – Marketing Director at Saxonville
Sausage Company
Laura Bishop – The Director Of Market
Research
Liz Keller – Top Brand Consultant
PROJECT SCORE
Ann Banks formed a multifunctional task force,
“Project Score”, included 10 collegues from the
R&D, packaging and graphics, marketing, and
sales departments.
To Find the ideal name for Saxonville’s line of
Italian sausage.
Four Steps to do POSITIONING work.
POSITIONING
Qualitative Research
Sequential round of Customer Session
Refining the new learning
Monadic testing
Research to determine
the Product name and
Brand Positioning
STEP ONE : PLANNING NEW RESEARCH
ON THE TARGET CUSTOMER
Phase I : To confirm some of the basic
information presented in the Attitude and
Usage data.
STEP ONE : PLANNING NEW RESEARCH
ON THE TARGET CUSTOMER
Phase II :
To understand current behaviors
Triggers to purchase, and unmet needs
To get a clear understanding of product
benefit
Attributes and ideals
To develope a solid feel for core value and
role
STEP TWO : BUILDING ON LEARNING
FROM THE FOCUS GROUPS
Ann and Bishop studied consumers behaviors
from the focus group, developed a synopsis of the
learning and sent it to Project Score.
6 potential bases for positioning :
Family Connection
Clever Cooking
Confidence
Appreciation
Quick and Easy
Tradition
STEP THREE : BUILDING POSITIONING
CONCEPTS
“Family Connection” and “Clever Cooking”
received the highest total votes.
81% of respondents - “Family Connection”.
72% of respondents - “Clever Cooking”.
The group embed their ideas to a manageable list
of R&D, graphics and sales tactics.
STEP FOUR : ADDITIONAL RESEARCH
DELIVERS A VERDICT – OR TWO
“Family Connection” - scored better , receiving
the most first-place votes.
Discuss how advertising look and feel, packaging,
product attribute, name, considering sub-
branding.
Picking the winner from the two final concepts.
Determine
Brand Name
WHY BY SAXONVILLE? WHY VIVIO ?
Well established in Atlantic areas
Cost of reintroduction of new brand?
Necessity?
Italian Name
Placed 7th out of 20 choices of Brand Names
How much value does moving from 7th to 1st add?
Italian family message is still conveyed
Nationwide recognition and
popularity
Signifies quality/credibility
for an unknown brand
Preferable placement with
retailers
Brand name – Vivio by Saxonville
PRODUCT
RECOMMENDED BRAND NAME :
VIVIO
WHY ??
Vivio brand awarness
Put Company’s Brand (Saxonville)
to leverage the product’s brand
To retain customer loyalty
Attract new customer
Determine
Brand Positioning
EMOTIONAL
BENEFITS
Family happiness
CONSUMER BENEFIT
More time for the mother,
make meal that everybody loves
FUNCTIONAL BENEFITS
Creativity, ease of use, quickness
PRODUCT ATTRIBUTES
Nutritious, short cooking time, ingredient for other meals
PRODUCT BENEFITS
FA
MIL
Y C
ON
NE
CT
ION
PROs:
- Recalled by the Italian brand: opportunity to make it stronger
- Emotional bound not yet exploited
- Consistent with Saxonville moniker: “The Family Company
- Aspirational value
1° concept choice
CONs:
- Already implied
copiable
- Unrealistic idea
CL
EV
ER
CO
OK
ING
PROs:
- Add more value to the general family concept
- Easier tactical application
- 1° choice in “buying intent” test
CONs:
- Loss of focus on the original target
- Every sausage is “easy and fast”
- Less aspirational
POSITIONING ALTERNATIVES
PEOPLE’S CHOICE
RECOMMENDED BRAND POSITIONING :
CLEVER COOKING
Create difference among competitors
Create new brand experience
Tendency to buy is higher than another
positioning (exhibit 11)
Match to market segment (exhibit 5)
Fulfill all elements of brand laddering (exhibit 7)
WHY ??
Determine
Tactic For Promotion
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
CURRENT MARKET CONSIDERATIONS
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
Customer Analysis
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
POSSIBLE SEGMENTING DIMENSION
Customer Attributes :
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
POSITIONING
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
REVENUE CALCULATION
Vivio was only available in just 16% of supermarkets,
our target is to reach 100% supermarkets
FINANCIAL PROJECTIONS
Base Year 1 Year 2 Year 3
Sweet Sausage $3,714,499.00 $9,576,442.73 $10,725,615.86 $12,012,689.77
Hot Sausage $18,858,587.00 $48,619,794.61 $54,454,169.96 $60,988,670.36
Mild Sausage $42,414,884.00 $109,350,872.81 $122,472,977.55 $137,169,734.86
Mild Sausage
(55oz) $2,829,047.00 $7,293,636.80 $8,168,873.21 $9,149,138.00
Totals $67,817,017.00 $174,840,746.95 $195,821,636.59 $219,320,232.98
% of Revenue 5% 10% 12% 13%
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
CONCLUSION
These Slides were prepared
By
Mausumi Mohanta
As a part of an internship
done under the guidance of
Prof. Sameer Mathur