Saxonville Sausage Company
Company’s Background
● A 70 year old company privately held family
business headquartered in Saxonville.
● Well established German brand in the US.
● Revenue in 2005 was $1.5 billion.
● Products-
○ Variety of pork sausages
Main Brands
1. Bratwurst
70% of the company’s revenue.
2. Breakfast sausage
20% of the company’s revenues
3. Italian sausage - Vivio (Regional distribution:Eastern US )
5% revenues
Saxonville’s Products
Bratwurst Breakfast
Sausage
Links
and
patties
VIVIO current marketing
strategy
★ Product
■ Undifferentiated product
■ No clear positioning
■ Italian name to create consistency
★ Price
■ In line with competition
■ Inconsistent with Saxonville pricing strategy
★ Place
■ National supermarkets - 16%
■ Eastern part of US
★ Promotion
■ Discounted price during the launching period
Further assessment on VIVIO
❖ Strengths
■ Vivio’s success in the existing market
■ Saxonville’s strong national distribution network
❖ Opportunities
■ Growing market for Italian sausages
■ No national competitors for fresh sausages
❖ Weaknesses
■ Vivio’s lack of clear positioning
■ No product differentiation
❖ Threats
■ Competition from other 29 locally established brands
■ Some competiton from nationl.
Segmentation and Target
Market
★ Demographic
★ Physiographic
★ Behavioral
Target-
● Primary and secondary demographics
○ Female head-of-households
○ Children, education status, working status
● Behavior considerations
○ Vivio loyalists
○ competitive-brand loyalists
● Geographic considerations
○ Currently in strong italian sausage markets
Values
● Good, nutritious meal
● Satisfy everyone’s needs
● Time spent with family
● Creativity
❏ Family connection
❏ Clever cooking
❏ Confidence
❏ Appreciation
❏ Quick and easy
❏ Tradition
Initial Positioning Territories
Brand Laddering for Gourmet
cooking oil
VALUE: Discerning good taste
_____________________________________
EMOTIONAL BENEFIT: Makes me feel like a gourmet cook
_____________________________________
FUNCTIONAL BENEFIT: Flavor enhancement that makes even the best recipes taste
unbelievably better
_____________________________________
ATTRIBUTES: Smooth and light texture, pale green natural coloring, higher melt
temperature, emulsifies instantly, sophisticated taste
Potential positioning
concepts
● Family connection concept
■ Brand- It welcomes you in
● Love concept
■ Brand- For all you do
● Balance concept
■ Brand- The taste of home
● Creative cooking concept
■ Brand- Creative meals in minutes
Product Benefits
● Emotional benefits
● Consumer benefits
● Functional benefits
● Product attributes
Research and evaluating the
Italian opportunity
1. Planning new research on the target customer.
2. Building on learning from the focus group.
3. Building positioning concept.
Brand ladder.
4. Additional research deliver a verdict-or two.
Recommended brand name
1. Why vivio?
a. Well established in atlantic areas
b. Italian name
2. Why by saxonville?
a. Nationwide recognition and popularity
b. Signifies quality/credibility for an
unknown brand
Italian sausage-using consumer
positioning concept voting
Supporting tactics offered
by other functional groups
1. R&D-
• Kid-friendly-shaped pre-cut sausage pieces; dinosaurs,
goldfish.
• Different flavor varieties.
• Insert fresh herbs that would be visible through the
sausage.
casing but not impact the taste of the sausage.
• Frozen sausage pellets, both raw and pre-cooked.
• Different forms: uncooked slices, pre cooked slices.
2. Graphics
• Label size and shape changes to maximize the product
visibility window and provide in-case differentiation
• Alternate label graphics using background photographs, fresh
ingredients depictions, the Italian flag
• Faux labels used as tip-ins in magazines to reinforce the
brand
• Labels with “back-placed” recipes
• Different label-copy stickers that “pop”
3. Sales
• Larger package size with dinner-plate shaped trays
• Running more frequent BOGO’s (buy-one get-one
promotions)
• Famous potential spokespeople like Rachael Ray
• Refrigerated display units placed in the produce and dry
grocery sections
• Celebrity recipes
Italian sausage concept
assessment
Declaration
Created by
Akhila Polishetty, during an internship under
Prof. Sameer Mathur, IIM
Lucknow.
www.IIMinternship.com
Thank you

Assignment3 ppt1

  • 1.
  • 2.
    Company’s Background ● A70 year old company privately held family business headquartered in Saxonville. ● Well established German brand in the US. ● Revenue in 2005 was $1.5 billion. ● Products- ○ Variety of pork sausages
  • 3.
    Main Brands 1. Bratwurst 70%of the company’s revenue. 2. Breakfast sausage 20% of the company’s revenues 3. Italian sausage - Vivio (Regional distribution:Eastern US ) 5% revenues
  • 4.
  • 5.
    VIVIO current marketing strategy ★Product ■ Undifferentiated product ■ No clear positioning ■ Italian name to create consistency ★ Price ■ In line with competition ■ Inconsistent with Saxonville pricing strategy ★ Place ■ National supermarkets - 16% ■ Eastern part of US ★ Promotion ■ Discounted price during the launching period
  • 6.
    Further assessment onVIVIO ❖ Strengths ■ Vivio’s success in the existing market ■ Saxonville’s strong national distribution network ❖ Opportunities ■ Growing market for Italian sausages ■ No national competitors for fresh sausages ❖ Weaknesses ■ Vivio’s lack of clear positioning ■ No product differentiation ❖ Threats ■ Competition from other 29 locally established brands ■ Some competiton from nationl.
  • 7.
    Segmentation and Target Market ★Demographic ★ Physiographic ★ Behavioral
  • 8.
    Target- ● Primary andsecondary demographics ○ Female head-of-households ○ Children, education status, working status ● Behavior considerations ○ Vivio loyalists ○ competitive-brand loyalists ● Geographic considerations ○ Currently in strong italian sausage markets
  • 9.
    Values ● Good, nutritiousmeal ● Satisfy everyone’s needs ● Time spent with family ● Creativity
  • 10.
    ❏ Family connection ❏Clever cooking ❏ Confidence ❏ Appreciation ❏ Quick and easy ❏ Tradition Initial Positioning Territories
  • 11.
    Brand Laddering forGourmet cooking oil VALUE: Discerning good taste _____________________________________ EMOTIONAL BENEFIT: Makes me feel like a gourmet cook _____________________________________ FUNCTIONAL BENEFIT: Flavor enhancement that makes even the best recipes taste unbelievably better _____________________________________ ATTRIBUTES: Smooth and light texture, pale green natural coloring, higher melt temperature, emulsifies instantly, sophisticated taste
  • 12.
    Potential positioning concepts ● Familyconnection concept ■ Brand- It welcomes you in ● Love concept ■ Brand- For all you do ● Balance concept ■ Brand- The taste of home ● Creative cooking concept ■ Brand- Creative meals in minutes
  • 13.
    Product Benefits ● Emotionalbenefits ● Consumer benefits ● Functional benefits ● Product attributes
  • 14.
    Research and evaluatingthe Italian opportunity 1. Planning new research on the target customer. 2. Building on learning from the focus group. 3. Building positioning concept. Brand ladder. 4. Additional research deliver a verdict-or two.
  • 15.
    Recommended brand name 1.Why vivio? a. Well established in atlantic areas b. Italian name 2. Why by saxonville? a. Nationwide recognition and popularity b. Signifies quality/credibility for an unknown brand
  • 16.
  • 17.
    Supporting tactics offered byother functional groups 1. R&D- • Kid-friendly-shaped pre-cut sausage pieces; dinosaurs, goldfish. • Different flavor varieties. • Insert fresh herbs that would be visible through the sausage. casing but not impact the taste of the sausage. • Frozen sausage pellets, both raw and pre-cooked. • Different forms: uncooked slices, pre cooked slices.
  • 18.
    2. Graphics • Labelsize and shape changes to maximize the product visibility window and provide in-case differentiation • Alternate label graphics using background photographs, fresh ingredients depictions, the Italian flag • Faux labels used as tip-ins in magazines to reinforce the brand • Labels with “back-placed” recipes • Different label-copy stickers that “pop”
  • 19.
    3. Sales • Largerpackage size with dinner-plate shaped trays • Running more frequent BOGO’s (buy-one get-one promotions) • Famous potential spokespeople like Rachael Ray • Refrigerated display units placed in the produce and dry grocery sections • Celebrity recipes
  • 20.
  • 21.
    Declaration Created by Akhila Polishetty,during an internship under Prof. Sameer Mathur, IIM Lucknow. www.IIMinternship.com
  • 22.