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Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
Final Sax Pres
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Final Sax Pres

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A team case competition for the Alpha Kappa Psi Principled Business Leaders Institute in Reno 2010

A team case competition for the Alpha Kappa Psi Principled Business Leaders Institute in Reno 2010

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  • 1. Saxonville® Sausage: The Italian Opportunity! AXIS Consulting LTD.!
  • 2. Current Situation! 0% growth in overall sausage! 15% growth in Italian sausage! 16% Vivio® market penetration! 20% annual organics growth!
  • 3. Strengths & Weaknesses! Strengths:!     ! •      Ability to distribute fresh products nationally! •      44% adult population prefer fresh! •  Matched category growth level! •      Favorable brand image! Weaknesses: !      ! •      Not a first mover in Italian sausage market! •      In-store promotional marketing only! •  Small national presence ! •  No “true Italian” heritage!
  • 4. Opportunities & Threats! Opportunities: ! •      Growing Italian sausage market! •      Desire for tasty, easy family meals! •  Growing organic and “natural" markets! •      No national players in fresh Italian sausage !      ! Threats: ! •      Local producers! •  Higher spending by potential rivals! •      Increased frozen sausage consumption!
  • 5. GE / McKinsey Chart Analysis! Business Unit Strength! High! Medium! Low! Market Attractiveness! High! 36%! Brats   Medium! 4%! Vivio®     Low!
  • 6. Plan Objectives! •  Take Vivio® national! •  Focus on cohesive branding! •  Increase sustainability! •  Introduce Vivio® Organic line !
  • 7. Branding! Vivio® ! •  Market presence! •  Positive testing! •  Less costly ! Positioning statement: ! “Bringing families together with fresh healthful Italian sausage”! Unique Selling Propositions:! •  A national line of fresh Italian sausage! •  Makes for easy and delicious family meals ! •  The versatile ingredient no family should go without!
  • 8. Promotional Strategies! Strategies for Vivio® Natural! •  Labels with recipes! •  Recipe sharing with strategic partners! •  Coupons and discounts with strategic partner! Strategies for Organic line! •  Co-branding with local organic producers ! •  Encourage local producers to promote Vivio® ! Vivio® Natural Vivio® Organic
  • 9. Product! Vivio® Natural! •  Drop hot sausage ground! •  Drop Italian pepper sausage! Vivio® Organic! •  Recipe licensing ! •  Produced organic farms!
  • 10. Packaging! Re-sealable sustainable packaging created by Ecoproducts®! Smaller labels to showcase product! Recipes on back of label! Vivio® ! “The versatile ingredient no family should go without”
  • 11. Distribution! Existing distribution chain for Vivio® Natural! •  Fresh suppliers! •  Sold to wholesalers! •  Promoted in chain stores.! Organic line licensed in the Pacific and Northeast!
  • 12. Industrial Standard! • Revenues of $1.5 Billion! • COGS of $1.223 Million (81.54%)! • Gross Margin $276.9 million! • Promotional Expense of $11.850 (.79%)! • Net Profit of $39.6 Million!
  • 13. Spending to Compete! 2004 – 2005 breakfast sausage hemorrhaged more than $33,000,000 in revenue
 Recommendation: $12 million introductory promotional campaign! Organizational goal cannot be realized without a financially supported promotional campaign!
  • 14. Financial  Forecast! 2006! $24,400,571! 2007! $46,046,137! 2008! $54,203,610! 2009! $62,768,957! 2010! $71,762,571! $175,149,937 NPV !
  • 15. Vivio ® ! “Bringing families together with fresh healthful Italian sausage”! Questions?  
  • 16. Financial Outlook! 2006 2007 2008 2009 2010 Pessimistic (net) -$15,135,824 -$10,184,204 -$4,994,249 $455,204 $6,177,130 Inflows $520,296,286 $546,361,100 $573,676,655 $602,357,988 $632,473,387 Outflows $535,432,110 $556,545,305 $578,670,904 $601,902,784 $626,296,257 Expected (net) $31,139,287 $53,455,464 $62,009,998 $70,992,259 $80,423,633 Inflows $783,073,747 $900,527,309 $945,551,174 $992,826,233 $1,042,465,045 Outflows $751,934,460 $847,071,845 $883,541,176 $921,833,974 $962,041,411 Optimistic (net) $36,982,104 $72,639,173 $82,175,917 $92,189,499 $102,703,760 $1,054,111,23 $1,106,814,29 Inflows $816,202,719 $1,003,917,845 7 9 $1,162,152,513 $1,014,624,80 Outflows $779,270,615 $931,278,672 $971,935,320 0 $1,059,448,754 Weighted Average $24,400,571 $46,046,137 $54,203,610 $62,768,957 $71,762,571 NPV $175,149,937

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