SAXONVILLE SAUSAGE COMPANY Syndicate 5 Rangga Tri Raeros Joseph Enrico Ria Agustriana Agung Mahendra Karina Soedjati
SAXONVILLE‟S BACKGROUND Saxonville was a 70-years old, family business and placed 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% Revenue Percentage Contribution 5% 5% Bratwurst 20% Breakfast sausage 70% Italian sausage "Vivio" Store brand product
MARKET PRODUCT Bratwurst and Breakfast products sold throughout U.S via both national and regional brokers, distributors. Very little distribution in store in the Northeastern markets. The italian sausage was the one category showing growth across producers in the retail sausage market, showing an annual rate of 9% in 2004 and 15% in 2005. Saxonville‟s Italian brand, Vivio although matched this level of category growth, it was available in only 16% of the nation‟s large supermarkets primarily in Boston, New Jersey, New York, Maryland, and South Carolina.
BACKGROUND OF SAXOVINLLE‟S ITALIANSAUSAGE BUSINESS Vivio entered the Italian sausage market in 2002. They made up an “Italian” name because they worried that people wouldn‟t buy an Italian product from a „German heritage‟ company. 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.
ISSUES What is the ideal name for Saxonville‟s line of italian sausage? Should a national entrant continue with the Vivio brand name or have a different Italianate name? Or utilize the Saxonville name to leverage the company‟s heritage and brand equity?
RESEARCHING AND EVALUATING THE ITALIANOPPORTUNITY Ann Banks formed a multifunctional task force, “Project Score”, included 10 collegues from the R&D, packaging and graphics, marketing, and sales departments. Find the ideal name for Saxonville‟s line of Italian sausage. Four Steps to do positioning work.
STEP ONE : PLANNING NEW RESEARCH ONTHE TARGET CUSTOMER Phase I : To confirm some of the basic information presented in the Attitude and Usage data. 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 FROMTHE FOCUS GROUPS Ann and Bishop learned much about consumers behaviors from the focus group and developed a synopsis of the learning and sent it to every member of Project Score. 6 potential bases for positioning :- Family Connection- Clever Cooking- Confidence- Appreciation- Quick and Easy- Tradition
STEP THREE : BUILDING POSITIONINGCONCEPTS “Family Connection” and “Clever Cooking” received the highest total votes. The result shows that 81% of respondents would definitely or probably buys the product with a positioning focused on “Family Connection” and 72% if the company would use the “Clever Cooking” concept. On the other hand 41% would definitely buys the product with “Clever Cooking” concept and just 23% with “Family Connection” 4% would definitely not buys in case of the “Family Connection” position model, and only 2% in the case of “Clever Cooking” concept The group embed their ideas to a manageable list of R&D, graphics and sales tactics.
STEP FOUR : ADDITIONAL RESEARCHDELIVERS A VERDICT – OR TWO “Family Connection” had scored better and receiving the most first-place votes. Discuss how advertising look and feel, packaging, product attribute, name, considering sub-branding. Picked the winner from the two final concepts.
POSSIBLE SEGMENTING DIMENSION 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
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
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
POSITIONING Family Connection • Discover a crowd-pleasing favorite that brings the family together • Vivio - It welcomes you in • The perfect blend of fresh herbs and spices, with irresistible aroma and taste will draw people together over a great and enjoyable meal 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
CURRENT MARKET CONSIDERATIONSBehavior Considerations Vivio loyalist Competitive brand Degree of price sensitivity Frequency of every day dinner preparation Use of other product within companyGeographic 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
REVENUE CALCULATIONVivio was only available in just 16% of supermarkets, our target is to reach 100%supermarkets Vivio 2005 sales performance (from exhibit 2) $ Vol of 16% market $ Vol of 100% market Vivio Italian Sweet Sausage Link 24.41 oz $ 3,714,499.00 $ 23,215,618.75 Vivio Italian Hot Sausage Link 24.41 oz $ 18,858,587.00 $ 117,866,168.75 Vivio Italian Mild Sausage Link 24.41 oz $ 42,414,884.00 $ 265,093,025.00 Vivio Italian Mild Sausage Link 55 oz $ 2,829,047.00 $ 17,681,543.75 Vivio Italian Sweet Sausage Ground 14 oz $ 2,019,310.00 $ 12,620,687.50 Vivio Italian Hot Sausage Ground 14 oz $ 34,685.00 $ 216,781.25 Vivio Italian Mild Sausage Ground 14 oz $ 1,351,313.00 $ 8,445,706.25 Vivio Italian Cheese Sausage Link 14.7 oz $ 870,081.00 $ 5,438,006.25 Vivio Italian Pepper Sausage Link 14.9 oz $ 160,232.00 $ 1,001,450.00 Vivio Italian Garlic Sausage Link 14.7 oz $ 833,067.00 $ 5,206,668.75 Vivio Italian Mix Sausage Link 55 oz $ 1,235,193.00 $ 7,719,956.25 Total $ 74,320,898.00 $ 464,505,612.50
SWOT ANALYSISStrengths National Distribution Network Strong brand recognitionWeakness Potential confusion of Italian named sausage, vivio, from German named company, Saxonville No Comprehensive advertising campaign Possible cannibalism of similar products with portofolio
SWOT ANALYSISOpportunities No national competitors of fresh Italian sausage Category shows growth across all product within portfolioThread 29 regional brans with large percentage of market share according to geographic region Frozen product is currently distribute nationwide by a number of other companies
4P‟S ANALYSISProduct Saxonville‟s Italian sausage is consumer class product Homogeneous products, price will be the main factorPackaging Large windows so that fresh ingredients are highly visible Strong Italian color/image to promote heritage Included recipes for quick meals ideas
4P‟S ANALYSISPlace Distribution channels already in existence from national distribution of other portfolio products 100% available in nation‟s supermarkets.Promotion Advertising Personal selling Sales promotion Publicity Interactive media
4P‟S ANALYSISPrice Pricing in medium level Discount for the early stages of the national product launch Currently Vivio Italian sausage priced at 20% higher from store brand‟s price
CONCLUTION Positioning as a “Clever Cooking” concept couldgain more benefits instead of “Family Connection”since the tendency to buy is higher, thatconsumers is definitely would buy with “CleverCooking”.To the family who like to cook something specialand creative for their families, each variety of Viviocomes with “family approved” one-dish recipes fora wholesome real meal in minutes. With Vivio, younever run out of ideas for dishes your whole familywill love.
CONCLUTION Ann Banks should stick with Vivio name. While Vivio hasn’t been a huge success to sausage market, 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.
CONCLUTION 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