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Saxonville sausage company- A Case Study
Saxonville Sausage Company, a 70-year-old family business, aims to establish its Italian sausage as a national leader amidst a flat market for other sausage lines. The company has conducted extensive market research, identifying key target demographics and testing brand concepts that resonate with family connections and clever cooking. Despite competitive pressures from local brands, Saxonville plans to leverage its heritage and customer insights to position its products effectively in the marketplace.
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Saxonville sausage company- A Case Study
- 1. Saxonville Sausage Company HARVARD BUSINESSSCHOOL | BRIEFCASES
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- 3. 70 year oldprivately held family business HQ in Saxonville,Ohio 2005 revenues approximately $1.5 Billion
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- 5. Sausage’s Market Situation: • Both bratwurst and breakfast categories had been flat nationwide since 2004. • Saxonville’s breakfast sausage had underperformed the market
- 6. Sausage’s Market Situation: • Italian sausage showing growth across producers in retail market.9% growth in 2004 and 15% growth in 2005. • Vivio had matched level of growth. However, Vivio was available in just 16% of Nation’s Large supermarkets.
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- 8. Well-thought-out Brand positioning planto move Saxonville’s Italian Sausage to National Category leader and make it the one that every grocery account in the U.S will want to carry.
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- 10. Ann Banks NewProduct Marketing Director at Saxonville Sausage Company Steve Sears Vice President of Marketing, Saxonville Sausage Company Laura Bishop Director of Market Research Liz Keller Top brand consultant and a professional from a market research company
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- 12. • Entered themarket in 2002 in the Northeast • Worried that people wouldn’t buy an Italian Product from a ‘German Heritage Company’ • Price comparable to other regional Italian Sausages • For 1st Six Months went on Deal every other Month + In store sampling Brand Familiarity Saxonville
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- 14. Regional Competitive Brands Authentic Italian heritage Freshly and locally made Italianname with locally grown angle
- 15. Supported brand with basetrade spending Major supermarkets request Vivio to stay competitive Vivio growing along with Italian sausage category Brand has faced multiple facings
- 16. 10 Years ofmarket research results Annual business plans Year-end reports Project Score Pre Market Research
- 17. Target Customers: FemaleHead of Household Exhibit 1 Pre Market Research Competitive Analysis: No national players,29 local/regional brands Purchase trends: Dinner time eating occasion, peak volume Oct to Feb
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- 19. Local Brands playingtheir ‘Home Grown’ heritage Challenges Distributing outside the Core geography
- 20. Competitors are frozenproducers, not fresh Opportunities
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- 22. Understanding behaviors and needs of target customers Building on Learning fromthe focus groups Developing into actual concepts and customer prioritization Monadic testing Qualitative Quantitative
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- 24. Female heads-of-heads aretarget customers Heavy users used Italian sausage three + times a month Mean Italian sausage usage two times every six weeks Heaviest usage among consumers aged 20-50 years Evidence: Exhibit 3
- 25. Understanding behaviors and needs of target customers Respondents 103Female Heads of household screened based on demographic, behavior and geographic considerations Outcome Perceptual Maps
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- 29. Building on Learning from the focus groups Respondents 103Female Heads of household screened based on demographic, behavior and geographic considerations Outcome Potential territories for positioning the brand
- 30. Family Connection Good food,sharing and enjoying themselves Magnet that pulls everyone in Evidence: Exhibit 6
- 31. Clever Cooking Making arecipe her own way Adds a little zest to the dishes Evidence: Exhibit 6
- 32. Confidence Whatever she makeswill taste good Sure-fire thing that enables her to “pull it off” Evidence: Exhibit 6
- 33. Appreciation “What’s for dinner? Evidence: Exhibit 6
- 34. Quick and Easy Deliciousand wholesome meal in less than 30 minutes Quick homemade meal Evidence: Exhibit 6
- 35. Tradition To bring backthose old good memories Main ingredient in a number of her mother’s recipes Evidence: Exhibit 6
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- 37. VALUE EMOTIONAL BENIFIT FUNCTIONAL BENEFIT ATTRIBUTES Job well done Varyingwith theme Quick and Easy Above average of solids to fats Great Taste Good color and
- 38. Customer prioritizatio n Respondents Consumers were exposed tofour mock concepts and asked to selectively prioritize their three favorites Outcome “Clever cooking” received highest total votes, with “Family connection” receiving the most first- place votes
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- 41. Present Constraints Tactic should berealizable by the slated date for the Brand’s early launch Management isn’t willing to discount the product’s price
- 42. Quantitative testing – Monadic testing Respondents Tested the“Family Connection” concept with 250 target customers and “Clever Cooking” with 256 target customers answered a series of questions about the concepts, including their likelihood to purchase. Outcome Both concepts were viable !
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- 45. Family Connection Advantage s • Closestto target customer’s core values • Goes with the brand “Italian” implies “family” • Received the most first place votes • Saxonville perceived as a family brand Disadvantages • Fear of Cannibalization of other brands • More common and less durable
- 46. Clever Cooking Advantage s • Distinctiveand Durable • Easier to provide tactical support • No fear of cannibalization of other brands • 1st place in purchase intention Disadvantages • Distracts away from the main target market • Puts the company’s name on leverage
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- 48. Clever Cooking Inferences • Eventhough Definitely/Probably would buy % is more for “Family connection”, Definitely would buy % is more for “Clever cooking” • Since providing tactical support is easier for “Clever Cooking” the constraint of realization of tactics before the slated date can be avoided. • To satisfy the Probably buy segment, Family approves recipes can be included in the package Evidence: Exhibit 11 & 8
- 49. Name: Vivio ItalianSausage Inferences Even though “Saxonville Italian Sausage” did receive a lot of votes, the company can go with the same name as Vivio • Was on deal every month during it’s sales • Consumers already recognize Saxonville by its moniker • The sales in demographic where Saxoville Bratwurst was distributed won’t be affected Evidence: Exhibit 4
- 50. Introducin g VIVIO Simply Add yourown personal touch to create meals that make any day a little special Each variety of Vivio comes with “Family approved” one dish recipes for a wholesome real meal in minutes!!
- 51. VIVIO Product • Flavors –Sweet “Oriental” style, gourmet cheese and smoked flavors,macorni & cheese falvor • Different forms: Uncooked pre- sliced “disks”,mini-patties,mini- links, and precooked “meatballs”,”salami” slices and “disks” • Maximize the product visibility window Evidence: Exhibit 2 Increases Creativity Value In-case differentiatio n
- 52. VIVIO Sales and Promotion •Price comparable with other Italian Sausage brands • In-store sampling • Running more frequent BOGO’s Existing product positioning Increases % of Probably/Mig ht buy it segment respondents
- 53. Slides Created by Rahul Nk 3rdYr MME NIT Trichy As a part of Internship done under the guidance of Prof.Sammer Mathur (www.iiminternship.com ) (www.Buddingmarkets.co m)