SAXONVILLE SAUSAGE COMPANY

Syndicate 5

Rangga Tri Raeros

Joseph Enrico

Ria Agustriana

Agung Mahendra

Karina Soedjati

SAXONVILLE’S BACKGROUND

Saxonville was a 70-years old, family business and placed 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

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 sausageItalian sausage "Vivio"

Store brand product

MARKET PRODUCT

Bratwurst and Breakfast products sold throughout U.S via both national and regional brokers, distributors.

Very little distribution in store in the Northeastern markets.

The italian sausage was the one category showing growth across producers in the retail sausage market, showing an annual rate of 9% in 2004 and 15% in 2005.

Saxonville’s Italian brand, Vivio although matched this level of category growth, it was available in only 16% of the nation’s large supermarkets primarily in Boston, New Jersey, New York, Maryland, and South Carolina.

BACKGROUND OF SAXOVINLLE’S ITALIAN SAUSAGE BUSINESS

Vivio entered the Italian sausage market in 2002.

They made up an “Italian” name because they worried that people wouldn’t buy an Italian product from a ‘German heritage’ company.

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.

ISSUES

What is the ideal name for Saxonville’s line of italian sausage?

Should a national entrant continue with the Vivio brand name or have a different Italianate name?

Or utilize the Saxonville name to leverage the company’s heritage and brand equity?

Research the Italian Opportunity

RESEARCHING AND EVALUATING THE ITALIAN OPPORTUNITY

Ann Banks formed a multifunctional task force, “Project Score”, included 10 collegues from the R&D, packaging and graphics, marketing, and sales departments.

Find the ideal name for Saxonville’s line of Italian sausage.

Four Steps to do positioning work.

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.

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

STEP TWO : BUILDING ON LEARNING FROM THE FOCUS GROUPS

Ann and Bishop learned much about consumers behaviors from the focus group and developed a synopsis of the learning and sent it to every member of Project Score.

6 potential bases for positioning :- Family Connection- Clever Cooking - Confidence- Appreciation- Quick and Easy- Tradition

STEP THREE : BUILDING POSITIONING CONCEPTS “Family Connection” and “Clever Cooking” received

the highest total votes. The result shows that 81% of respondents would

definitely or probably buys the product with a positioning focused on “Family Connection” and 72% if the company would use the “Clever Cooking” concept.

On the other hand 41% would definitely buys the product with “Clever Cooking” concept and just 23% with “Family Connection” 4% would definitely not buys in case of the “Family Connection” position model, and only 2% in the case of “Clever Cooking” concept

The group embed their ideas to a manageable list of R&D, graphics and sales tactics.

STEP FOUR : ADDITIONAL RESEARCH DELIVERS A VERDICT – OR TWO

“Family Connection” had scored better and receiving the most first-place votes.

Discuss how advertising look and feel, packaging, product attribute, name, considering sub-branding.

Picked the winner from the two final concepts.

Customer Analysis

POSSIBLE SEGMENTING DIMENSION

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

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

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

POSITIONINGFamily Connection• Discover a crowd-pleasing favorite that brings

the family together• Vivio - It welcomes you in• The perfect blend of fresh herbs and spices,

with irresistible aroma and taste will draw people together over a great and enjoyable meal

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

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

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

REVENUE CALCULATION

Vivio 2005 sales performance (from exhibit 2)

$ Vol of 16% market $ Vol of 100% marketVivio Italian Sweet Sausage Link 24.41 oz

$ 3,714,499.00

$ 23,215,618.75

Vivio Italian Hot Sausage Link 24.41 oz $ 18,858,587.00

$ 117,866,168.75

Vivio Italian Mild Sausage Link 24.41 oz

$ 42,414,884.00

$ 265,093,025.00

Vivio Italian Mild Sausage Link 55 oz $ 2,829,047.00

$ 17,681,543.75

Vivio Italian Sweet Sausage Ground 14 oz

$ 2,019,310.00

$ 12,620,687.50

Vivio Italian Hot Sausage Ground 14 oz $ 34,685.00

$ 216,781.25

Vivio Italian Mild Sausage Ground 14 oz

$ 1,351,313.00

$ 8,445,706.25

Vivio Italian Cheese Sausage Link 14.7 oz

$ 870,081.00

$ 5,438,006.25

Vivio Italian Pepper Sausage Link 14.9 oz

$ 160,232.00

$ 1,001,450.00

Vivio Italian Garlic Sausage Link 14.7 oz

$ 833,067.00

$ 5,206,668.75

Vivio Italian Mix Sausage Link 55 oz $ 1,235,193.00

$ 7,719,956.25

Total $ 74,320,898.00

$ 464,505,612.50

Vivio was only available in just 16% of supermarkets, our target is to reach 100% supermarkets

SWOT ANALYSIS

SWOT ANALYSIS

Strengths National Distribution Network Strong brand recognition

Weakness Potential confusion of Italian named sausage,

vivio, from German named company, Saxonville

No Comprehensive advertising campaign Possible cannibalism of similar products with

portofolio

SWOT ANALYSIS

Opportunities No national competitors of fresh Italian

sausage Category shows growth across all product

within portfolio

Thread 29 regional brans with large percentage of

market share according to geographic region Frozen product is currently distribute

nationwide by a number of other companies

4P’S ANALYSIS

Product Saxonville’s Italian sausage is consumer

class product Homogeneous products, price will be the

main factor

Packaging Large windows so that fresh ingredients

are highly visible Strong Italian color/image to promote

heritage Included recipes for quick meals ideas

4P’S ANALYSIS

Place Distribution channels already in existence

from national distribution of other portfolio products

100% available in nation’s supermarkets.

Promotion Advertising Personal selling Sales promotion Publicity Interactive media

4P’S ANALYSIS

Price Pricing in medium level Discount for the early stages of the

national product launch Currently Vivio Italian sausage priced

at 20% higher from store brand’s price

CONCLUTION Positioning as a “Clever Cooking” concept could gain more benefits instead of “Family Connection” since the tendency to buy is higher, that consumers is definitely would buy with “Clever Cooking”.

To the family who like to cook something special and creative for their families, each variety of Vivio comes with “family approved” one-dish recipes for a wholesome real meal in minutes. With Vivio, you never run out of ideas for dishes your whole family will love.

CONCLUTION

CONCLUTION Ann Banks should stick with Vivio

name. While Vivio hasn’t been a huge success to sausage market, change their name won’t give a huge effect because many customer has aware with the Vivio name. By changing name, it will confuse or alienate the few loyal customers the brand actually has.

CONCLUTION

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

Thank you