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Saxonville sausage company

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Saxonville sausage company

  1. 1. SAXONVILLE SAUSAGE COMPANY Syndicate 5 Rangga Tri Raeros Joseph Enrico Ria Agustriana Agung Mahendra Karina Soedjati
  2. 2. 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
  3. 3. 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
  4. 4. 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.
  5. 5. 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.
  6. 6. 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?
  7. 7. Researchthe Italian Opportunity
  8. 8. 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.
  9. 9. 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
  10. 10. 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
  11. 11. 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.
  12. 12. 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.
  13. 13. Customer Analysis
  14. 14. 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
  15. 15. 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
  16. 16. 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
  17. 17. 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
  18. 18. 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
  19. 19. 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
  20. 20. SWOT ANALYSIS
  21. 21. 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
  22. 22. 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
  23. 23. 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
  24. 24. 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
  25. 25. 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
  26. 26. 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.
  27. 27. CONCLUTION
  28. 28. 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.
  29. 29. 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

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