Saxonville, the Italian sausages marketing plan


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Marketing plan for the launch of an Italian sausage brand in US

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  • Future ConsiderationsProductAdditional SKUs: Conduct analysis as to the popularity of different sizes/flavors in different regions and proceed accordinglyPriceMaintain 5-10% above SRP of competitors. Introduction of national brand could be cause for reassessmentPlaceStress “Fresh” e.g. Whole FoodsLarger package size is a possibility in Wholesale Clubs (Sam’s Club, BJ’s, etc.)Costco’s food sales came to 31.1 billion dollars in 2006PromotionAdditional partnering with complementary food itemsConstantly develop “creative” element with introduction of new recipes, celebrity endorsements, etc.Use new flavor introductions as a way to revive product demand
  • Saxonville, the Italian sausages marketing plan

    1. 1. GROUP FCarlos Aquiles – Valeria Deserto – Eka Fitria – Thierry Abi Nader - Pedro Oliveira – Nicholas Sowell
    2. 2. SAXONVILLE THE COMPANY MAIN BRANDS VIVIO 70 years old company 1. Bratwurst Italian sausages brand 70% sales, mainly used duringWell established German brand in weekend BQ Regional distrib.: Eastern US the US Declining sales in a flat market 5% of company sales 1.5 $ billion sales in 2005 2. Breakfast sausages 20% revenues Growing segment (+15% national Mainly producing fresh pork growth in 2005) sausages 3. Store brand sausage 5% of sales
    4. 4. • Undifferentiated product • No clear positioning PRODUCT • Italian name to create consistency • In line with competition • Inconsistent with Saxonville pricing strategy (15 % premium) PRICE • 16% of national supermarkets • Mainly Eastern part of US PLACE • Discounted price during the launching period • No communicationPROMOTION
    5. 5. Strengths Weaknesses• Vivio’s success in the existing market • Vivio’s lack of clear positioning• Saxonville’s strong national distribution • No product differentiationNetwork • Italian brand, German company• Saxonville’s strong brand Recognition• Saxonville’s association with high quality productsOpportunities Threats• Growing market for Italian sausages • Competition from 29 local, already• No national competitors for fresh established brandssausages • Some competition from national • Risk of cannibalization with Brats• Capitalizing on Saxonville nationwide • Appealing to Western region?brand awareness• Exploiting Saxonville’s retail power
    6. 6. 1. Successful launch of a national Italian Sausage brand  Take advantage of high annual growth rates (2004 – 9%, 2005 – 15%)  Increase market share and contribution to total revenues2. Limit cannibalization of other market segments (Brats and Breakfast Sausage)3. Decrease problems associated with distributing outside of core geography
    7. 7. Segmentation Target ValuesDEMOGRAPHIC • Busy female head of • good, nutritious mealGender, status, number ofkids, age of household • satisfy everyone’schildren,, educationlevel, working staus • age: between 20 and needsPSYCOGRAPHIC 50 • time spent with familylyfestile: busy life, short • Geography: • get everything donetime available for familyneeds everywhere in the US • creativityBEHAVIORALfrequence: heavy, mediumand light users
    8. 8. PROs: PROs: Recalled by the Italian brand: Add more value to the general family opportunity to make it stronger conceptFAMILY CONNECTION Emotional bound Easier tactical application Not yet exploited 1° choice in “buying intent” test CLEVER COOKING Consistent with Saxonville moniker: “The Family Company” Aspirational value 1° concept choice CONs: Loss of focus on the original target CONs: Every sausage is “easy and fast” Already implied Less aspirational copiable Unrealistic idea
    9. 9. EMOTIONAL BENEFITS Family happiness CONSUMER BENEFIT More time for the mother, make meal that everybody loves FUNCTIONAL BENEFITS Creativity, ease of use, quickness PRODUCT ATTRIBUTESNutritious, short cooking time, ingredient for other meals
    10. 10. FUNCTIONAL BENEFITS: Quick, easy, creative, nutritiousEMOTIONAL BENEFITS: everybody loves it, the family is happy, themom spends less time cooking,happy memories CHOSEN POSITIONING: FAMILY CONNECTION REASONING: CLEVER COOKING already perceived by Vivio’s customers Enrich the brand with emotional content Exploit the first mover advantage and bind the customer
    11. 11. For the obsessing question “what do we have for dinner tonight?” busymothers have now the right remedy: Vivio by Saxonville.Thanks to its high nutritional value and ease of use, this brand of Italian sausages allows moms to prepare a variety of recipes that everybody loves in only a few minutes. The rest is all about sharing moments!
    12. 12. SaxonvilleItalian sausages Vivio by Saxonville • German • Italian 1. • Unknown brand 2. heritage • Italian product 3. brand • Quality recognition
    13. 13. Brand name – Vivio by Saxonville WHY VIVIO ? WHY BY SAXONVILLE? Well established in Atlantic areas  Nationwide recognition and popularity  Cost of reintroduction of new brand?  Necessity?  Signifies quality/credibility for an unknown brand Italian Name  Placed 7th out of 20 choices of Brand  Preferable placement with retailers Names  How much value does moving from 7th to 1st add?  Italian family message is still conveyed
    14. 14.  SKU choices:  4 highest performing SKUs from 2005  91% of 2005 Italian Sausage revenue  Limits product variability/eases distribution problems Vivio Size Sales % Sales Italian Sweet Sausage 24.41 oz $ 3.714.499 5% Italian Hot Sausage 24.41 oz $ 18.858.587 25% Italian Mild Sausage 24.41 oz $ 42.414.884 57% Italian Mild Sausage 55oz $ 2.829.047 4% Total Revenue of Vivo % of Revenue of Brand $ 74.320.898 Selected SKUs 91% Packaging:  Uniform/ large window to make fresh product visible  Large Vivio Brand/ Family Image  Italian colors in the brand  “Back-Placed” recipes
    15. 15.  5-10% premium above competitive brands  Brats and Breakfast sausage both priced above SRP of competing brands  Price must signal quality  5-10% on a low price product doesn’t impact that much  Consistent with overall brand image ▪ Especially if we are going to keep “by Saxonville” in the brand ▪ Especially after the emotional positioning and communication effort Must be careful not to overprice too much:  Multiple regional competitors as opposed to brats and breakfast  Regional brands will have “homegrown” differentiation and firm established customer base
    16. 16. Prominent placement in the Italian Sausage section in the store Grocery Market Revenue Share ($) National Supermarket Chains WalMart Supercenter concept Kroger Ahold Safeway Supervalu Target Other Currently stay out of Discount Warehouses despite increasing popularity
    17. 17. Influence FHH @ home Magazines/Websites• 83% of shoppers make their purchase • Older vs. Younger ( & Family decision before they leave the house Circle)• 90% of Mothers prefer brands • Family theme ads/Sponsored Recipes recommended by other mothersComplements/Coupons On-Site• Rice, Pasta, etc. • BOGOs• Online Coupons • Sampling/Events
    18. 18. Target FHH vs. MHH Seasonality Eating HabitsDifferent Peak Purchasing Special Events vs. Everyday Periods Dinner LOW Cannibalization ?
    19. 19. 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 $137,169,734.86Mild 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% ASSUMPTIONS: 55% National Supermarket Penetration 75% Relative to Current Sales
    20. 20. Pre-Launch Launch Post-Launch March 2006 - Dec 2006 January 2007 – Feb 2007 Jan 2007 – Jan 2008 2 Weeks Prior to Launch Magazine/Online Advertising Launch (Following 4 Weeks) Ambassadors/Word of Mouth Complementary ProductsIMMEDIATE Launch (First 2 Weeks) Post-LaunchDistributor Coordination On-Site Sampling/Promotion Measurement/ControlAd Campaign Buy One/Get One New Growth IdeasWebsiteSales Info
    21. 21. Product • Additional SKUs/Flavors Ideas • Differentiated PackagingMeasurement/Control Broader Geographic Focus Raw Sales DataSales Force/On-Site Feedback Promotional • Television/Radio? Ideas • New Target/Target Expansion