Prepared by the students of marketing strategy at the MBA program of IE Business School, this presentation proposes a marketing strategy for launching a new brand of Italian sausages in the United States.
Who are the customers, what do they valueCannibalization
Strenghs: main competitors are either locally based or focused on frozen Weakness:italian heritage difficult to defend, perceived as a german brand, not local, no clear market for viviooutsienotheast, no info to support it, consumption only for special occasionsOpportunities: no clear positioning for vivio, only in the northeast, take off untapped markets, product category is growing.Threats: cannibalization
Product range: initially 10 SKUs, 5 different flavours and single and double packages.Size: 24 ounces. Packaging: in vacuum and in a carton box (slightly smaller?). On the bottom (Fresh, natural and easy to prepare, see the back). Recipe with time, other ingredients, quantities. all under 30 min) On the back iconographic: section with recipe calories, fat(with pictures) section about packaging and sustainability, section with ingredients. Image “Con” is in a heart which becomes the logo. alessiotixi:Create a logo, a graphical design
Campaign theme. Receipes for love. Convivio is not only a sausage, it supports you deliver love through cooking. All you can do with ConVivio and a heart. Love is essential when cooking. Convivio is the only Italian sausage that guarantees you the taste, the quality and the reliability that guarantee you can express Media mix: TV, print, Internet, Launch a movement “Cook with the heart”- allign with high quality suppliers of local foods.- as a guarantee of reliability because of the quality and as a way to increase consumption of other mixPress advertisement: Copy-A perfect dinner requires only the best ingredients. You and your loved ones. Art- A picture, a bit out of focus, with a family sitting slightly formally at a table and eating from a big central plate that is heart shaped.TV advertisement: Content: “Intro voice: A dinner is a good moment to show your love. Life is fast. tracks hardly ever cross.. “ An empty table, the clock clicking, people coming back home, [fast forward] people moving through the house, mother comes in, cooks, people come more and more close as they smell the food, automatically a kid takes 1 plate, then thinks again and takes 5. [...] food is ready. everybody smiles and talks. Convivio in super impression. Tone: Music getting from fast to slower, modern music played with old instruments. Not sophisticated but niche) House with kitchen in wood, large table, suggesting a middle class home in the suburbs. Colours to reflect the presence of Convivio in the house (if the line is blu, all blues will be bright. If red, all reds will be bright including the eyes, hair trousers of the kids)Other possibilities (one for each secondary target segment we chose)Friends 30-40 hanging out at home. Do Americans do dinners at home?Parents (70-80) get at home for dinner. ???Single cooking dinner (men) - (more independent, modern, than woman. + joke...Convivio the italian sausage with the heart)In store promotion:Old convivio bundled with a product of the new line. 7 receipees for 7 days), tv shows. Web: create an online list where people can upload pictures of their dinners. (You select a product line, the software modifies the colour to reflect the line distinctive colour) and play with their pictures.Offer cooking classes and allow people to upload their receipes. Connect to a wider Convivio platform to other companies with websites related to the ingredients you suggest (making sure they support you first!). Create a health conscious approach that lobbies in favour of Convivio. You can save recipes on your page and ask the platform to send you a text or email at a certain time to remind you.
Marketing Strategy and Plan for Viviamo by Saxonville sausages
Viviamo by Saxonville -Living the Italian Inspiration- Group G Marketing Strategy and PlanAnurag Jaiswal -Geoff Gibson -Alessio Tixi -Eliza Ng -Leidy Suarez -Patrick Oliveira -Matthias Wetzel
Executive Summary1 Saxonville, a national producer 2 The marketing objectives include an increased market of fresh sausages, has in its share by 25%, increased portfolio Vivio, an Italian profitability and a cash flow Sausage with the potential to positive investment within 3 become a national category years leader3 The weak positioning and a 4 limited distribution of the current Through a phased product suggest that one viable implementation plan and a strategy would be to demarket careful monitoring process we the current product while expect to raise sales by 42 launching a new one better mio$ and profits by 18mio$ suited for the expansion at within a time frame of 3 years national level
Saxonville Company Convenience CommunicationA national Products are SAXONVILLE: producer of fresh available print media pork sausages. nationwide in campaign, televisiRevenues of 1.5 large on campaign billion in 2005. supermarkets and “harry the brat” asIt is a 70 year old through the market is family business, distributors. declining, compan known for the There is a y is spending little quality of its difference in the money in products and distribution marketing for the associated with patterns of the breakfast category. strong family different product values. categories.
Current Product Portfolio Portfolio includes 3 product categoriesBCG Relative Market ShareMatrix Vivio Product:Relative Star: Italian ?: Breakfast Undifferentiated, paMarket Sausages ckaging conveys aGrowth basic message, unclear position. Price: 20% Higher 20% Sales SRP than store 5% Sales brands. Cash Cow: Brats Dog: Other Promotion: No advertising. Place: Available only at 16% of large retailers nationwide. 70% Sales
Current Customers Purchasers: Medium • Female Heads of Households Users Heavy Light Users Users Uses: Frequenc • Italian Sausages = dinner y of use • Brats = BBQ • Breakfast Sausage Attributes: Authentic Italian Vivio Locally made, fresh Brats & Breakfast Reliability Sausage Family atmosphere “Job well done”
SWOT Analysis Strengths Weaknesses Exceptional product quality Italian heritage difficult to Meal-maker, versatile defend Appeals to adults and No information about the children market outside of Quick and Convenient Northeast Main competitors are Vivio name is weak locally based or focused on Consumption only on frozen special occasions Opportunities Threats No clear positioning for 29 local competitors Vivio Cannibalization Only distributed in Northeast Leverage on existing distribution system Product category is growing
Marketing Objectives:The Italian Sausage CategoryPrimary: Become the first national fresh Italian Sausage brand Increase profitability Increase market shareSecondary: Increase availability of Italian sausages in supermarkets nationwide. Grow more than the current market rate Minimize Cannibalization
Choosing The ConceptFamily Connection Creative Cooking Fulfills the No unique Possibility to Might alienate theemotional value positioning broaden the target segmentsought by target Easily replicated perception of Difficult tocustomer Cannibalization is product use integrate creativeSaxonville is more likely Wider with family valuesperceived as customer basefamily brand First choice in buying intention
Positioning Statement For homemakers and aspiring chefs who want to impress their loved ones with creative meals, Viviamo Italian sausage is a fresh, high quality meal-maker that inspires new recipes and provides exceptional taste thanks to its authentic Italian flavor. Viviamo by Saxonville
Value Proposition andTarget Customers forViviamo VALUE: Makes every dinner special.Interest: Making unique dinnersBehavior: Cooks several days a EMOTIONAL BENEFIT: Gets you praised for cooking, provides a senseweek of satisfaction for a job well donePrimary target customers FUNCTIONAL BENEFIT: Meal-maker•Homemakers for a multitude of dishes.Secondary target customers Fast, easy, and reliable.•Aspiring chefs. ATTRIBUTES: High quality, good color, above average ratio of solids to fat, great taste and texture.
Product •Change in name necessary to implement a premium positioning Viviamo •Saxonville stands for quality and Name by Saxonville credibility •To create a bridge for existing customers of ¨Vivio¨ 3 best selling SKUs: • Sweet Sausage Link •SKUs with proven success record •To build brand recognition andProduct mix • Hot Sausage Link achieve volume • Mild Sausage Link •Reduces marketing costs Important to research new markets to assess the viability of other flavors
Packaging Size 24 Oz. Handy to purchase • Cardboard box • Vacuum sealed individual • To portray premium positioning packs • Easy to consume and store - will Packaging • See-through window in the promote increased usage box • Preserves the freshness of the • Recipes and nutritional product information on the back
Price Priced at 10% premium over competitors and 25% premium over in-store brands. Conveys the premium positioning Will help to support the promotion costsPlace Leverage on existing nationwide distribution channels SKU positioning is very important: eye-level, next to the regional market
Promotion % of Budget • Product sampling50% In- • Recipe book giveaway Store • Cooking contests • Ads in women’s magazines and30% Print cooking magazines • Recipe-a-day campaign20% Internet • Website for sharing creative recipes and blogs, videos of recipes
Launch Strategy Phase 1 Phase 2 Phase 3 Phase 4 Prelaunch Launch of Geographic Refinement of • Additional Viviamo in Expansion the positioning market research selected areas • Increase in • Launch of • Internal • NE: Launch in market additional SKUs preparation parallel with penetration • Complete (R&D), operatio Vivio • Phase out of Demarket of ns • Nat: launch in Vivios Vivio Key areas & secondary distribution SKUs channels Marketing of Viviamo while Demarketing Vivio Additional and continuous market research to validate Viviamo’s USP value to target customers Leverage on our National presence to have a comprehensive understanding of the category trends
Implementation Plan Phase 1 Phase 2 2006 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 2007 • Market research • Heavy In store promotionActivities & to establish cluster areas Launch of the above the lineMilesones • • where to launch the product marketing campaign • on other focus groups to • Monitor sales in key areas & identify possible secondary cannibalization of Vivio in the NE target customers • Continue market research to pinpoint • Develop packaging, arrange new gaps in the market and geographic production lines differences • Build the Microsite • Identify exact price point 1. Obtain a national picture of 1. Market penetration: 32% category spending 2. Market share: 18% KPIs 2. Develop a competitors mapping 3. Cannibalization of Vivio: 20-30% for different areas 4. Cannibalization of other products: 5% max Budget Budget: 1 mio$ Budget: 20 mio$
Implementation Plan Phase 3 Phase 4 2007 Mar May Jul Sep Nov Jan Mar May Jul Sep 2008 • Geographic expansion to all existing • Launch of additional SKUs to createActivities &Milestones distribution Channels available to a more comprehensive market Saxonville offering and increase sales • Assess success of first marketing • Leverage on the sales volume to campaign and refine successful justify increased advertising budget activities and raise brand awareness • Start development of new products • Complete phase out of Vivio focused at secondary target groups • Refining of the positioning according to market research results 1. Market penetration: 64% 1. Market penetration: 80% KPIs 2. Market share: 22% 2. Market share: 25% 3. Cannibalization of Vivio: 30-50% 3. Cannibalization of Vivio: 35-70% 4. Cannibalization of other products: 10% 4. Cannibalization of other products: 10% max max Budget Cost: 40 mio$ Cost: 30 mio$
Financial Projections Objectives and assumptions Revenue Drivers 2005 2006 2007 2008 Market growth Average15% 12% 12% growth for the period 12% Market penetration Based on current distribution potential 16% 32% 64% 80% Market share Targeted market share 22% 10% 18% 25% Price premium According to pricing strategy 10% 10% 10% 10% Cost Drivers Budgeted figures R&D and production $500,000 Marketing research $200,000 $100,000 Promotions $12,000,000 $28,000,000 $20,000,000 Additional SKUs $5,000,000 $10,000,000 $15,000,000 Decreasing Vivio Sales $15,000,000 $30,000,000 $75,000,000 $22,000,000 $40,000,000 $75,000,000 2 Scenarios: low and high
Financial Scenarios2 Scenarios for the revenues Expected growth in sales over the period:74 116mio$ Expected growth in revenues: 1528 mio$ Revenues- for succesful demarket of Vivio Revenues- for unsuccesful demarket of Vivio In both Scenarios “Viviamo” is a financially sound project
Risks and Mitigation Goal Strategy Risk MitigationBecome the first • Introduce a new • Lose existing • Facilitate a bridgeNational Italian brand with a clear customers between new andsausage brand positioning old brandIncrease profitability • Position Viviamo at a • Loose market share • Attentive monitoring premium to lower positioned of market and target competitors customersIncrease market share • Focus on best • Competitors enter • Strong brand selling SKUs the market developmentIncrease market • Launch nationwide • Wrong target market • Defend current sharepenetration through a phased by gradual demarket approach of VivioGrow more than the • Aggressive • Geographical • Use nationalcurrent market rate expansion differences curb the presence to overall appeal of the maximize customer market value and adjust propositionAvoid cannibalization • Create a • Positioning not in • Phased launch andof other products by differentiated, more line with customer’s constant refining of
Thank you!!!And remember – “If you want to impress yourwife, drop the flowers and try the sausage!”