saxon

7
Company’s Background 70-year-old Company Family business Headquartered in Saxonville, Ohio $1.5 billion revenues in 2005 Produced a variety of pork sausage products: fresh sausage as opposed to smoked or semi-dried The branded products in Saxonville: – Bratwurst (70% company’s revenue) – Breakfast sausage (20% of revenues) – Italian sausage “Vivio” (5% revenues) Saxonville’s Product Bratwurst Breakfast sausage Links and patties Italian Sausage named Vivio Possible Segmenting Dimension Customer Attributes: Feeding her family good food Having time to do fun things with her children Getting everything done Using her creativity to come up with interesting meals. Helping her children have happy memories. Target Market Primary demographic Female head-of-household Sixty percent of users are described as a “loyalist” Secondary demographic Work status Full-time Part-time Work from home Homemaker Behavior consideration Vivio Loyalist Competitive-brand loyalists Geographic consideration Currently in strong Italian sausage markets Positioning a. Qualitative research b. Sequential round of customer session

Upload: ravichauhan18

Post on 14-Apr-2015

66 views

Category:

Documents


3 download

DESCRIPTION

Case

TRANSCRIPT

Page 1: Saxon

Company’s Background70-year-old Company Family business Headquartered in Saxonville, Ohio $1.5 billion revenues in 2005 Produced a variety of pork sausage products: fresh sausage as opposed to smoked or semi-driedThe branded products in Saxonville: – Bratwurst (70% company’s revenue) – Breakfast sausage (20% of revenues) – Italian sausage “Vivio” (5% revenues)

Saxonville’s ProductBratwurstBreakfast sausageLinks and pattiesItalian Sausage named Vivio

Possible Segmenting Dimension Customer Attributes:Feeding her family good foodHaving time to do fun things with her childrenGetting everything doneUsing her creativity to come up with interesting meals.Helping her children have happy memories.

Target MarketPrimary demographic

Female head-of-householdSixty percent of users are described as a “loyalist”

Secondary demographicWork status

Full-timePart-timeWork from homeHomemaker

Behavior considerationVivio LoyalistCompetitive-brand loyalists

Geographic considerationCurrently in strong Italian sausage markets

Positioninga. Qualitative researchb. Sequential round of customer sessionc. Refining the new learningd. Monadic testing

Research to determined the name of productStep one :

Planning new research on the target customerStep two :

Building on learning from the focus group

Page 2: Saxon

Distinct themes resonated with brand positioning :1. Family connection2. Clever cooking3. Confidence4. Appreciation5. Quick and easy6. Tradition

Step three :Building positioning conceptBrand ladder

Step four :Additional research deliver a verdict – or two

Issuesa. Determined brand name

Vivio orNew name

b. Determined brand positioningFamily connectionClever cooking

c. Determined Tactic for Promotion

RecommendedBrand NameVivio Delicious Italian SausageWhy ??

Vivio Brand awarenessPut company’s brand ( Saxonville ) to leverage the product’s brandTo retain customer loyaltyAttract new customer

Recommended Brand PositioningClever cookingWhy ??

Create difference among competitorCreate new brand experienceTendency to buy is higher than another positioning ( exhibit 11 )Match to market segment ( exhibit 5 )Fulfill all elements of brand laddering ( exhibit 7 )

Italian Sausage Concept Assessment Purchase Intent Concept

Family Connection Clever Cooking (A) (B)

Base Total Respondents 250 256 % Definitely/Probably Would Buy 81 72 Definitely would buy it 23 41 (A) Probably would buy it 58 (B) 31 Might or might not buy it 15 26 Probably/Definitely Would Not Buy 4 2

Page 3: Saxon

Probably would not buy it 1 1 Definitely would not buy it 1 1

What is the current situation of Saxonville Sausage?One of the their products ( Bratwurst ) sales was decrease and the other product Vivio

was stagnantImprovement marketing research program when launched the product to minimize

risk for sales programRepositioning Italian Sausage product or launch with the new brand

What is mandat given to Ann Banks?As a new product marketing director at SaxonvilleSausage Company, she has

responsibility to make aplans for launching national Italian sausage brandthat needed to bring in order to achieve objectivefor the next fiscal year. To pursue this objectives,she did several steps such as :

Market researchMarketing Develpment Program (Positioning/rebranding)

How to position a brand?5 main factors that go into defining a brand position. – Brand Attributes : What the brand delivers through features and benefits to

consumers. – Consumer Expectations : What consumers expect to receive from the brand. – Competitor attributes : What the other brands in the market offer through features

and benefits to consumers. – Price : An easily quantifiable factor – Your prices vs. your competitors’ prices. – Consumer perceptions : The perceived quality and value of your brand in

consumer’s minds (i.e., does your brand offer the cheap solution, the good value for the money solution, the high- end, high-price tag solution, etc.).

What is inherent in any good research design?Identify the problem clearly and justify its selection.Review previously published literature dealing with the problem area. Clearly and

explicitly specify hypotheses central to the problem selected.Clearly describe the data which will be necessary for an adequate test of the

hypotheses and explain how such data will be obtained.Describe the methods of analysis which will be applied to the data in determining

whether or not the hypotheses are false.Pointed out the crucial areas that must be considered in determining the kind of

information required when developing the research design

Pointed out the crucial areas that must be considered in determining the kind of information required when developing the research design

• Possible segmenting dimension• Identification of target market• Current market consideration• Types of buying situation• Nature of relationship with customer

Page 4: Saxon

How the data presented in Exhibit 3 must be weighted to determine which types of consumers need to be surveyed to inform the positioning ? Why

We assume that the company didn’t have any information related customer characteristic. In order to accepted by lots of customer, surely they must fulfill this kind of information. Besides, to get clear understanding of product benefits, attributes & ideal and to develop a solid feel for core values and the role this product played. That’s why we thought that preliminary they must sought information about :

• Customer current behavior• Their unmet need• Factor that trigger customer to making decision purchase

Why : To get clear understanding of product benefits, attributes & ideal and to develop a solid feel for core values and the role this product played

How was the research methodology undertaken by a brand or marketing manager who is building a plan to increase brand revenues?

• There were several steps to convince management that plan of the marketing product would increase brand revenues :

• Planning new research on the target customer• Determine research design variable• Developing focus group• Build the perceptual map

What were the research results?• Exhibit 3

As we can see in the explanation that explain attitude and Usage data which has characteristics :Men and women aged 25-50

Research identifies primary and secondary considerationsBesides from research, we derive information about relevant data from latest

A&U study, potential demographic, potential behavior and geographic consideration

• Exhibit 4From the exhibit, we derived information about :

Consumer behaviorResearch identifies habits of typical Italian sausage users

• Exhibit 5From perceptual map, we can get information about product positioning map

such as :Research gives clear picture of consumer’s perceived trade-offs

between ease of meal preparation and which family members will most likely enjoy it. Meals that require minimal preparation are most enjoyed by children, while the adults desire meals that involve much greater skill and time.

The perceptual maps show an incredible opportunity for a product to fill both the need of easypreparation and the need to please the entire family

Explain why Banks and her colleagues never even tested the“quick and easy”. How the group moved from the positiong territory ideas (exhibit 6) through different positioning ladders(exhibit 7) to get to the actual concepts (exhibit 8)

Emotional /Brainstorming Pruning Core Values Functional Final(Focus Group (Theme) (Exhibit 7) (Brand Positioning Discussion) Exhibit 6 Laderring)

Page 5: Saxon

Select 2 different positioning territories identified in Exhibit 6 and trace back through Exhibit 4 and other embedded info to rationalize the development of the idea

Initial Positioning Territories for Italian Sausage, our syndicate choose Family Connection & Clever Cooking based on the facts from Focus Group Discussion on exhibit 4 :

• Heavy, Medium and Light Users alike reported that Italian sausage made their lives easier because it was a meal that their husbands and children enjoyed.

• Italian sausage was considered a great meal maker.From the perceptual map most women’s evening meal preparation trade-off, they prefer dishes that is easy to fix and family pleasing.

What might a positioning ladder look like for each of the two finalist italian sausage positioning?.Make a positioning statement for the finalist italian sausage positionings use this formula• FormulaFamily ConnectionTo (Female-head-of household) our (vivio) is (family pleasing) that (family connection)Creative CookingTo (Female heads-of-household) our (vivio) is (Family pleasing) that (creative cooking)24. What positioning should Banks recommend adopting? Why?Ann Banks should recommend Clever Cooking.The reason is :• Create difference among competitor• 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 )25. What tactics should accompany the launch?Name of Product VivioPositioning statement Clever CookingCommunication strategy CS:Advertising, Personal Selling, SalesKey functional benefit Promotion and Publicity.Key emotional benefit KFB: flavor enhancement that makes even the best recipes tastes unbelievably better. KEB: makes me feel like a gourmet cookProduct-variation /line item Vivio Delicious Italian SausageFlavorFormOthers varieties26. Packaging Large windows so that fresh ingredients are highly visible Strong Italian colors/images to promote heritage Included recipes for quick meal ideas “Tips and Tricks” to teach clever cooking techniquesIn store Tactics Partnering with famous potentialMerchandising spokesperson like Rachael RayPOP27. Recommended Tactics for Vivio• Insert fresh herbs that would be visible through the sausage casing but not impact the taste of the sausage.• Different flavor varieties (hot, spicy, beef, bacon,etc)• Alternate label graphics using background photographs, fresh ingredients depictions, the Italian flag.• Famous potential spokespeople like Rachel ray• Celebrity recipes