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Marketing Strategy and Plan for Viviamo by Saxonville sausages


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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.

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Marketing Strategy and Plan for Viviamo by Saxonville sausages

  1. 1. 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
  2. 2. 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
  3. 3. Saxonville Company Convenience CommunicationA national Products are  SAXONVILLE: producer of fresh available print media pork sausages. nationwide in campaign, televisiRevenues of 1.5 large on campaign billion in 2005. supermarkets and “harry the brat” asIt 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.
  4. 4. 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
  5. 5. 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”
  6. 6. 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
  7. 7. 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
  8. 8. 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 creativeSaxonville is more likely Wider with family valuesperceived as customer basefamily brand First choice in buying intention
  9. 9. 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
  10. 10. 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.
  11. 11. 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
  12. 12. 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
  13. 13. 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
  14. 14. 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
  15. 15. 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
  16. 16. 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$
  17. 17. 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$
  18. 18. 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 $75,000,000 2 Scenarios: low and high
  19. 19. Financial Scenarios2 Scenarios for the revenues Expected growth in sales over the period:74 116mio$ Expected growth in revenues: 1528 mio$ Revenues- for succesful demarket of Vivio Revenues- for unsuccesful demarket of Vivio In both Scenarios “Viviamo” is a financially sound project
  20. 20. 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
  21. 21. Thank you!!!And remember – “If you want to impress yourwife, drop the flowers and try the sausage!”