A case Analysis by Sumit Kumar Pandey

1. Saxonville Sausage Company

3. Well established
German brand in the US
70 years old company
1.5 $ billion sales in
2005

4. MAIN PRODUCTS
Bratwurst(70
% revenues)
Breakfast
sausages(20%
revenues)
Vivio% of
revenues)

5. Italian sausages brand in Eastern US is largest
Growing segment (+15% national growth in 2005)
Vivio

6. Choose a brand
name that appeals
to the expanded
market
Limit cannibalization
of other market
segments (Brats and
Breakfast Sausage)
Successful launch of
a national Italian
Sausage brand

7. Vivio: Current scenario
Product
Promotion
Place
Price

8. Product
Italian
undifferentiated
Product

9. Place
Mainly Eastern part of US-16% of national supermarkets

10. Price
In line with competition(15 % premium)

11. Promotion
Discounted Price

12. SWOT Analysis
Strength Weakness Opportunity Threats

13. Strength
Vivio’s success in the existing market And Saxonville’s strong brand
Recognition

14. Weakness
Lack of clear positioning,No product differentiation and Italian brand
of German company

15. Opportunity
Growing market for Italian sausages,No national competitors for fresh
sausages And Capitalizing on Saxonville nationwide brand awareness

16. Threats
Senior management’s lack of marketing orientation,
Consumer Taste and Preferences and Cannibalization

17. Demographic Psychographic Behavioral

18. Target
Busy Female Head Age Between 20 to 50 Anywhere in US

19. Values
Good nutritious meal Happy family

20. Emotional
bound
Pros
Connect Families

21. POSITIONING CHOICES
Can be
copied Unrealistic
Connect Families
Cons

22. POSITIONING CHOICES
Add more value
to the general
family concept
Easier tactical
application
Clever cooking
Pros

23. POSITIONING CHOICES
Loss of focus
on the original
target
Less
aspirational
Clever cookingClever cooking
Cons

24. 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

25. Positioning as a “Clever Cooking” concept could gain more benefits instead
of “Family Connection” since to the family who like to cook something
special and creative for their families, each variety of Vivio comes with
“family approved” one-dish recipes for a wholesome real meal in
minutes. With Vivio, you never run out of ideas for dishes your whole family
will love.
Choose clever cooking

26. Saxonville
Vivio
Italian sausages

27. Italian Name
Well
established
in Atlantic
areas
Nationwide
recognition
and
popularity
Brand name – Vivio by Saxonville
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.

28. Implementation Plan
Product
Promotion
Place
Price

29. PRODUCT
Vivio Size Sales % Sales
ItalianSweet Sausage 24.41 oz 3.714.499$ 5%
ItalianHot Sausage 24.41 oz 18.858.587$ 25%
ItalianMildSausage 24.41 oz 42.414.884$ 57%
ItalianMildSausage 55oz 2.829.047$ 4%
Total Revenue of Vivo
Brand 74.320.898$
% of Revenue of
Selected SKUs 91%
Some selected SKUs has almost 91% of revenue
contribution,So Focus on these Products

30. 5-10% premium above competitive brands(5-10% on a low price
product doesn’t impact that much )

31. Grocery Market Revenue Share ($)
WalMart
Kroger
Ahold
Safeway
Supervalu
Target
Other
Focus on Areas where Revenue can be easily generated

32. Promotion
Influence FHH
@ home
Magazines
/Websites
Coupons On-Site Products

33. Additional
SKUs/Flavors
Differentiated
packaging
Product
Television/Radio
New
target/Target
expansion
Promotion
Also keep in mind Place and Price Factors

34. 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%
55% National
Supermarket
Penetration
75% Relative to
Current Sales
ASSUMPTIONS:

35. Executive Summary
• Saxonville sausage is a privately owned company with
revenues of $1.5 billion. Their main lines of products are their
bratwurst and breakfast patties. The goal of Saxonville
sausage is to successfully establish a national Italian sausage
brand in the next fiscal year. Their goals can be maintained
through expansion, development of a new product image,
and offer incentives for retailers and dealers to purchase their
products in bulk. Keeping the brand name Vivio is the most
important aspect of this alternative because they will be able
to maintain their customers through this name retention..
• This best alternative demonstrates the most reasonable way
to eliminate the constraints previously stated. If Saxonville
sausage goes through with this alternative, then they will
obtain new revenues from different areas of the country,
avoiding cannibalization of their own products. By
implementing this plan, Saxonville will not only retain its
current customers while gaining new customers and a greater
market share.

36. Bibliography
• KOTLER, P. & KELLER, K. 2011. Marketing
Management 14th Edition,Upper Saddle River,
NJ, Prentice Hall(With due thanks to the
owners of Photographs)
• Moore, Kate. “Saxonville Sausage Company."
Harvard Business School. Harvard Business
Publishing, 15 Jan. 2007. Web. 14 Mar. 2011.
<http://cb.hbsp.harvard.edu/cb/access/82901
45>