Saxonville Sausage Company is a 70-year-old family business that produces various pork sausage products. It is seeking to reposition its Italian sausage brand Vivio, which has seen growth, as its other products are declining or flat. Market research was conducted to determine the best brand name, positioning, and promotion tactics. Testing showed "Clever Cooking" was the best positioning concept and "Vivio" the best brand name. The promotion strategy will focus on Vivio allowing quick, creative meals to bring families together. Financial projections estimate increased revenue from expanding Vivio's distribution from 16% to 100% of supermarkets.
emerging nokia - should they focus on developed or emerging marketsSaurabh Arora
Should Nokia’s growth strategy be to focus on the developed markets, emerging markets or both?
Case Analysis
Handset manufacturer worldwide market share of 38% in 2009
Market leader in emerging markets like India(60%) and China(40%)
Financial performance pre-2008 was exceptional
Known for innovation
Offers products at all price points
Post-2008 started losing ground in developed markets
European market revenue declined by 15% in 2009
Exited the Japanese market after 20 years of operations
Nokia was fifth most valuable brand globally in 2000
Analysis of Emerging Market
Employed the cost leadership strategy: Purchasing power low in emerging markets hence Nokia provided cost effective products successfully.
First time purchasers: Only 20% of the emerging market were not first time purchasers
Services as the key selling point: People of emerging markets wanted value added services bundled with the phone
Analysis of Developed markets
Consumers not very price sensitive
Delivering innovative products more important
57% of the market goes for a second phone, most of the time for an upgrade
Emergence of i-phone, considered as replacement for normal handsets with users looking for upgradation
Growing competition from companies like Samsung, LG, Motorola and Sony Ericson was also making things worse for Nokia.
New Operating System – e.g. – Emergence of OSs like Google’s Android and Microsoft’s Windows mobile further bothered Nokia.
Inability to understand demand – Nokia failed to understand growing demand for touch phones
Why focus on Emerging Markets?
As Nokia has already gained the following benefits by being the first mover, it should strive hard to maintain it’s market share in developing economies. Advantages it has –
Earlier entry, early start of the learning curve. Its crucial and experience is tough to imitate.
Nokia can develop enhanced reputation by being pioneer and using its already established brand image
Absolute cost advantage can be gained by early commitments to supplies of materials and distribution channels….
Recommendations- Emerging Market
Nokia should concentrate on Improved as well as Basic phones as the market is still evolving
Tie up with Telecom players and bring dual sim phones to increase the switching cost
It should follow innovations in developed countries and adapt them to emerging markets in order to stand against competition.
One general strategy should be to outsource the services part as it is not Nokia’s competency and customers are giving more regard to services (Exhibit 6)
Instead of charging customers for Life tools, revenues should be earned from advertisers.
emerging nokia - should they focus on developed or emerging marketsSaurabh Arora
Should Nokia’s growth strategy be to focus on the developed markets, emerging markets or both?
Case Analysis
Handset manufacturer worldwide market share of 38% in 2009
Market leader in emerging markets like India(60%) and China(40%)
Financial performance pre-2008 was exceptional
Known for innovation
Offers products at all price points
Post-2008 started losing ground in developed markets
European market revenue declined by 15% in 2009
Exited the Japanese market after 20 years of operations
Nokia was fifth most valuable brand globally in 2000
Analysis of Emerging Market
Employed the cost leadership strategy: Purchasing power low in emerging markets hence Nokia provided cost effective products successfully.
First time purchasers: Only 20% of the emerging market were not first time purchasers
Services as the key selling point: People of emerging markets wanted value added services bundled with the phone
Analysis of Developed markets
Consumers not very price sensitive
Delivering innovative products more important
57% of the market goes for a second phone, most of the time for an upgrade
Emergence of i-phone, considered as replacement for normal handsets with users looking for upgradation
Growing competition from companies like Samsung, LG, Motorola and Sony Ericson was also making things worse for Nokia.
New Operating System – e.g. – Emergence of OSs like Google’s Android and Microsoft’s Windows mobile further bothered Nokia.
Inability to understand demand – Nokia failed to understand growing demand for touch phones
Why focus on Emerging Markets?
As Nokia has already gained the following benefits by being the first mover, it should strive hard to maintain it’s market share in developing economies. Advantages it has –
Earlier entry, early start of the learning curve. Its crucial and experience is tough to imitate.
Nokia can develop enhanced reputation by being pioneer and using its already established brand image
Absolute cost advantage can be gained by early commitments to supplies of materials and distribution channels….
Recommendations- Emerging Market
Nokia should concentrate on Improved as well as Basic phones as the market is still evolving
Tie up with Telecom players and bring dual sim phones to increase the switching cost
It should follow innovations in developed countries and adapt them to emerging markets in order to stand against competition.
One general strategy should be to outsource the services part as it is not Nokia’s competency and customers are giving more regard to services (Exhibit 6)
Instead of charging customers for Life tools, revenues should be earned from advertisers.
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Crafting winning strategies in a mature market - US wine marketSaurabh Arora
The Industry Landscape in 2001
US: 4th largest wine producer in the world
US: 34th in world per capita wine consumption
Top 8 firms produce more than 75% of all the wine volume
Estimated 2500 firms produce the remaining 25%
Dominance of few large players in the low price market
Greater shelf space & high marketing budget
1990s: Consolidation of retailers and distributors across US
No of distributors fell from 5000 to 250 by 2000
Only 50 to 100 left with access to widespread national distribution
Large retail consolidation in US
Top 10 supermarkets control 55% of the US market in 2000
Majority of producers are focused on low volume/high price to gain maximum return/margin
Distributors are focused on high volume/low price to maximize economies of scale
Near impossible for a new company to establish itself
Low barriers invite more players to wine market
Porter’s five forces analysis
Threat of new entrants – HIGH
Low barriers to entry for new players in wine industry
Firms spent 40% of their expenditures on marketing and distribution
Existing rivalries in industry – HIGH
Total no of wineries in US increased by more than 400%
Glut of grape supply due to low growth in demand
This put downward pressure on price and margins
Bargaining power of Buyers – HIGH
More players are entering the market
Production outstripped demand by 20%
Consolidation of retailer and distributor
Bargaining power of Suppliers – LOW
Wine producers with their own vineyards attempts to control the operations starting from production to distribution
Threat of Substitutes – LOW for Budget
Only 10% people drank wine regularly
Of the remaining 90%, 46% preferred beer or spirits
35% drank alcoholic beverages other than wine
Howard schultz : building starbucks communitySaurabh Arora
Reason for success
Having well developed values, culture and charter
Willingness to move out of comfort zone – Introduces flavours of milk
Ensuring that the organisational culture is adhered to globally
Making changes and customising according to local culture
Providing employee benefits and making them feel a part of the family – ESOPs, Training
Conclusion
Howard Schultz’s vision has ensured that Starbucks has been a market leader
He revolutionized the coffee experience – From a regular to commodity to a third place experience
Having their own culture and innovative spirit has kept them ahead of their competitors
Recommendations
Starbucks must maintain the competitive advantage by keeping to its own distinctive culture
Listening and adapting to its customers and their needs
Adapting to localised cultures and developing a culture in each location that is apt
New products should be developed – Look beyond coffee to attract the Asian market
A marketing Case Study of Natureview Farm, an organic yogurt manufacturer. This analysis was performed by E. Santhosh Kumar, IIT Madras, during an internship with Prof. Sameer Mathur, IIM Lucknow.
Crafting winning strategies in a mature market - US wine marketSaurabh Arora
The Industry Landscape in 2001
US: 4th largest wine producer in the world
US: 34th in world per capita wine consumption
Top 8 firms produce more than 75% of all the wine volume
Estimated 2500 firms produce the remaining 25%
Dominance of few large players in the low price market
Greater shelf space & high marketing budget
1990s: Consolidation of retailers and distributors across US
No of distributors fell from 5000 to 250 by 2000
Only 50 to 100 left with access to widespread national distribution
Large retail consolidation in US
Top 10 supermarkets control 55% of the US market in 2000
Majority of producers are focused on low volume/high price to gain maximum return/margin
Distributors are focused on high volume/low price to maximize economies of scale
Near impossible for a new company to establish itself
Low barriers invite more players to wine market
Porter’s five forces analysis
Threat of new entrants – HIGH
Low barriers to entry for new players in wine industry
Firms spent 40% of their expenditures on marketing and distribution
Existing rivalries in industry – HIGH
Total no of wineries in US increased by more than 400%
Glut of grape supply due to low growth in demand
This put downward pressure on price and margins
Bargaining power of Buyers – HIGH
More players are entering the market
Production outstripped demand by 20%
Consolidation of retailer and distributor
Bargaining power of Suppliers – LOW
Wine producers with their own vineyards attempts to control the operations starting from production to distribution
Threat of Substitutes – LOW for Budget
Only 10% people drank wine regularly
Of the remaining 90%, 46% preferred beer or spirits
35% drank alcoholic beverages other than wine
Howard schultz : building starbucks communitySaurabh Arora
Reason for success
Having well developed values, culture and charter
Willingness to move out of comfort zone – Introduces flavours of milk
Ensuring that the organisational culture is adhered to globally
Making changes and customising according to local culture
Providing employee benefits and making them feel a part of the family – ESOPs, Training
Conclusion
Howard Schultz’s vision has ensured that Starbucks has been a market leader
He revolutionized the coffee experience – From a regular to commodity to a third place experience
Having their own culture and innovative spirit has kept them ahead of their competitors
Recommendations
Starbucks must maintain the competitive advantage by keeping to its own distinctive culture
Listening and adapting to its customers and their needs
Adapting to localised cultures and developing a culture in each location that is apt
New products should be developed – Look beyond coffee to attract the Asian market
Marketing Strategy and Plan for Viviamo by Saxonville sausagesAnurag Jaiswal
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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There are numerous trends impacting packaging and design. From health, sustainability, seemingly handmade and bespoke offers, down to crazy new flavour combinations.
Similar to Saxonville sausage company case study (20)
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2. SAXONVILLE’S BACKGROUND
A 70-year-old Company,
Family business Headquartered 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. 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%
70%
20%
5% 5%
Revenue Percentage Contribution
Bratwurst
Breakfast sausage
Italian sausage
"Vivio"
4. BACKGROUND OF SAXONVILLE’S ITALIAN
SAUSAGE BUSINESS
Vivio entered the Italian sausage market in 2002.
“Italian” name to cover up the ‘German heritage’.
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.
5. CURRENT SITUATION OF
SAXONVILLE SAUSAGE
One of their product (Bratwurst) sales decreased
and Vivio’s sales were rising.
Improved marketing research program to
minimize risk for sales program during launching
of products.
Repositioning Italian Sausage product or launch
with new brand.
6. PRODUCT
• Undifferentiated product
• No clear positioning
• Italian name to create consistency
PRICE
• In line with competition
• Inconsistent with Saxonville pricing strategy (15 %
premium)
PLACE
• 16% of national supermarkets
• Mainly Eastern part of US
PROMOTIO
N
• Discounted price during the launching period
• No communication
VIVIO : CURRENT MARKETING
SITUATION
8. ISSUES
Determine Brand Name
Vivio or
New Name
Determine Brand Positioning
Family Connection
Clever Cooking
Determine Tactic For Promotion
10. The Key Players:
Ann Banks – Marketing Director at Saxonville
Sausage Company
Laura Bishop – The Director Of Market
Research
Liz Keller – Top Brand Consultant
11. PROJECT SCORE
Ann Banks formed a multifunctional task force,
“Project Score”, included 10 collegues from the
R&D, packaging and graphics, marketing, and
sales departments.
To Find the ideal name for Saxonville’s line of
Italian sausage.
Four Steps to do POSITIONING work.
14. STEP ONE : PLANNING NEW RESEARCH
ON THE TARGET CUSTOMER
Phase I : To confirm some of the basic
information presented in the Attitude and
Usage data.
15. STEP ONE : PLANNING NEW RESEARCH
ON THE TARGET CUSTOMER
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
16. STEP TWO : BUILDING ON LEARNING
FROM THE FOCUS GROUPS
Ann and Bishop studied consumers behaviors
from the focus group, developed a synopsis of the
learning and sent it to Project Score.
6 potential bases for positioning :
Family Connection
Clever Cooking
Confidence
Appreciation
Quick and Easy
Tradition
17.
18.
19. STEP THREE : BUILDING POSITIONING
CONCEPTS
“Family Connection” and “Clever Cooking”
received the highest total votes.
81% of respondents - “Family Connection”.
72% of respondents - “Clever Cooking”.
The group embed their ideas to a manageable list
of R&D, graphics and sales tactics.
20. STEP FOUR : ADDITIONAL RESEARCH
DELIVERS A VERDICT – OR TWO
“Family Connection” - scored better , receiving
the most first-place votes.
Discuss how advertising look and feel, packaging,
product attribute, name, considering sub-
branding.
Picking the winner from the two final concepts.
22. WHY BY SAXONVILLE?WHY VIVIO ?
Well established in Atlantic
areas
Cost of reintroduction of new
brand?
Necessity?
Italian Name
Placed 7th out of 20 choices of
Brand Names
How much value does moving
from 7th to 1st add?
Italian family message is still
conveyed
Nationwide recognition and
popularity
Signifies quality/credibility
for an unknown brand
Preferable placement with
retailers
Brand name – Vivio by Saxonville
PRODUCT
23. RECOMMENDED BRAND NAME :
VIVIO
WHY ??
Vivio brand awarness
Put Company’s Brand (Saxonville)
to leverage the product’s brand
To retain customer loyalty
Attract new customer
26. FAMILYCONNECTION
PROs:
- Recalled by the Italian brand:
opportunity to make it stronger
- Emotional bound not yet
exploited
- Consistent with Saxonville
moniker: “The Family Company
- Aspirational value
1° concept choice
CONs:
- Already implied
copiable
- Unrealistic idea
CLEVERCOOKING
PROs:
- Add more value to the general
family concept
- Easier tactical application
- 1° choice in “buying intent” test
CONs:
- Loss of focus on the original
target
- Every sausage is “easy and
fast”
- Less aspirational
POSITIONING ALTERNATIVES
28. RECOMMENDED BRAND POSITIONING :
CLEVER COOKING
Create difference among competitors
Create new brand experience
Tendency to buy is higher than another
positioning (exhibit 11)
Match to market segment (exhibit 5)
Fulfill all elements of brand laddering (exhibit 7)
WHY ??
30. CURRENT MARKET CONSIDERATIONS
Behavior Considerations
Vivio loyalist
Competitive brand
Degree of price sensitivity
Frequency of every day dinner preparation
Use of other product within company
31. CURRENT MARKET CONSIDERATIONS
Geographic 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
33. 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
34. POSSIBLE SEGMENTING DIMENSION
Customer Attributes :
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
35. 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
38. FINANCIAL PROJECTIONS
Base Year 1 Year 2 Year 3
Sweet Sausage $3,714,499.00 $9,576,442.73 $10,725,615.86 $12,012,689.77
Hot Sausage $18,858,587.00 $48,619,794.61 $54,454,169.96 $60,988,670.36
Mild Sausage $42,414,884.00 $109,350,872.81 $122,472,977.55 $137,169,734.86
Mild Sausage
(55oz)
$2,829,047.00 $7,293,636.80 $8,168,873.21 $9,149,138.00
Totals $67,817,017.00 $174,840,746.95 $195,821,636.59 $219,320,232.98
% of Revenue 5% 10% 12% 13%
39. 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
CONCLUSION
40. These Slides were prepared
By
Mausumi Mohanta
As a part of an internship
done under the guidance of
Prof. Sameer Mathur