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Saxonville SausagesCase Study Presentation byGroup E:ASHWIN MATHEW PHILIPOSE (009)HARSHA DEEPAK RVS (022) NISHANT PRAKASH (038)SWATI PAMNANI (054)

Agenda2 Current Situation Research Methodology Research Results Alternatives & RecommendationsTactics to accompany the product launchSaxonville Sausages2

Question #1What is the current situation?INTRODUCTION TO SAXONVILLESaxonville is a 70 year old, privately held family business headquartered in Saxonville, Ohio with revenues of $ 1.5 billion in 2005 The company produced pork sausage products, mostly fresh as opposed to smoked or semi-driedThe bulk of the business was constituted by bratwurst (70% of revenues), breakfast sausages (20% of revenues) and an Italian sausage named Vivio (5% of revenue)Store branded products accounted for the remaining 5% of revenue

Saxonville Sausages4ISSUES IN THE CASEThe company is facing a stagnation in the sale of its main product, bratwurstThe company is also facing a double digit reduction in revenue of its second best selling product, breakfast sausagesThe company had a limited presence in the Northeastern markets because of limited distributionThe Italian sausage was the one category that showed growth across producers in the retail sausage marketSaxonvilles brand of Italian sausages Vivio was available in only 16% of the nations large supermarketsThe company did not have a positioning strategy for Vivio

Saxonville Sausages5SAXONVILLES ITALIAN SAUSAGE BUSINESSSaxonville entered the Italian sausage business in 2002 in the NortheastIn the northeast, bratwursts were not a basic staple like in other regionsThe products were priced at a comparable level to other regional Italian sausagesFor the first six months, the Italian sausages went on deal often and Saxonville also offered in-store samplingThe company came up with an Italian name so as to get rid of any German heritage associations and even placed an Italian flag on one corner of the packageAnn Banks, the new product marketing director of the company, was given the mandate of launching a new national Italian sausage brandSaxonville Sausages6ANN BANKS MANDATEAnn Banks was responsible for thoroughly evaluating the Italian opportunityThe national Italian sausage brand would be launched either under the Vivio label or under a new oneThe company had no idea about their target customer for Italian sausages and Ann had to undertake research and analysis of consumer needs, preferences and valuesThe learnings would be used to develop a motivation centered characterization of the target consumerThe main aim was to increase the profit contribution of Italian sausages as it was the only growing segment

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Question #2How was the research methodology determined?How was the research methodology determined?Right customers are to be researchedMethodology is decided based upon the research design variables

Saxonville Sausages9How was the research methodology determined?1020-30 years: Potential buyers of future30-40 years: Current users and demand what they want40-50 years: Current Users, Vast experience with our products These can give a proper feedback What should be there and what not?Respondents live in various locations and should be researched across product specific geographies Saxonville Bratwurst: Ohio, Colorado, Dallas, Arizona, South Carolina) Vivio Italian: Boston, New Jersey, New, Maryland and South Carolina * Consumer perception of competitors (New Yorks Mama Mia brand, Bostons Paglia Brothers brand, Pennsylvanias Hertfordshire brand).Respondents home part- or full-timeDo consumers in various lifestyles behave similarly or differently? If different how and what behaviors ?REASEARCH VARIABLESSaxonville SausagesAGEGEOGRAPHIESLIFE STYLE2nd and 3rd Qualitative roundsAll respondents were femalesPrimarily for meal preparationPurchased Italian sausage at least 2+ times in the past four weeks Loyalists had 6 of their last 10 Italian sausage purchases from SaxonvilleAt least two Italian sausage-eating children at home

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Question #3Research Results?Research ResultsSaxonville Sausages12ResultsOthersKnowledge of emotional and functional attributesIdeals of Family LifeSix different positioning territoriesTheir characteristics and needsLaddering TechniquesUse Laddering Technique choose two top positioning territoriesKey factorsAppreciationQuick & easyTraditionFamily connectionsClever CookingConfidencePositioning Territories as Research results

Question #4What alternative do you recommend and why?The two Finalist Concepts#1: The Family Connection Concept14Getting everyone together on the dinner table promotes a sense of unityEnabled conversations and communication cemented their relationshipsSeeing everyone at the dinner table reinforces the belief in the homemaker confirms that she is doing a good jobLiving in the same house is just an aspect/attribute of family life; moments like these truly define a familyGiven the irresistible aroma associated with Italian Sausages, the product would draw the entire family to the tableSupporting Tactic: Make seasoning more visible through casing and the package talk about special blend with fresh herbs & spices on coverFamily ConnectionSaxonville Sausages

Other Concepts: Balancing Act and Labor of Love14The two Finalist Concepts#2: The Clever Cooking Concept15Respondents struggled constantly on what to make for dinner whether to cook, buy pre-made or take-in for dinnerMost respondents didnt necessarily feel that they were great cooksChildren: Aversion to anything newHusbands: Distaste for Kid FoodTime: < 30 minutesClever cooking allowed them to create meals everyone would love; also, use of different ingredients led to different meals with same productCooking Italian Sausages made the homemaker feel good about herself as she was making home-cooked meals she valued and everyone lovedSupporting Tactic: Product to be offered in a variety of flavors & forms with In-pack recipes having clear instructions on cooking a mealClever CookingSaxonville Sausages

15The two Finalist ConceptsPositioning-to-brand LinksSaxonville Sausages16Family Connection

Clever Cooking

ValuesEmotional BenefitFunctional BenefitAttributesJob Well Done: bringing everyone togetherTogethernessLoved by everyonePerfect blend of seasoning & spicesJob Well Done: home made food + varietyCreating a mealVariety of meals with proper instructionsNumber of flavour combinations to try outThe two Finalist ConceptsWhich one to go for?Saxonville Sausages17Family Connection

Clever Cooking

Effective In-store Merchandizing VehicleOn-pack additionsFinal CallGraphic displays showing a Family eating togetherSimple: How to CookEasy to own (customers) +Possibility for an Italian Family conceptGraphic displays which offers something for everyone+Tear-off recipesOn-pack recipes to further promoteEasy to own (customers) + Easy to execute (Brand)First Choice Votes (out of 4 concepts)54% Respondents20% RespondentsQuant. Research: Will Definitely Buy23% Respondents41% Respondents

The two Finalist ConceptsFinal Positioning StatementsSaxonville Sausages18Family Connection

Clever Cooking

Discover a crowd-pleasing favourite: A unique blend of fresh herbs and spices and an irresistible aroma that brings the whole family togetherDelicious flavors to satisfy a range of tastes: Add your own personal touch with our suggested recipes to create meals that make any day a little specialBrand naming pros & consSaxonville Sausages19SAXSONVILLE BRAND ITALIAN SAUSAGE

Name carries with it a product quality heritage Name has 70 year old success history

Name heavily associated with bratwurstNot well known by Italian sausage eating consumersDoes not have a natural Italian affiliation VIVIO BRAND ITALIAN SAUSAGEEstablished, though small brandGood brand equity among Italian sausage-using consumers, both loyalists and occasional usersOTHER CONSIDERATIONSAny brand name, Vivio or Perfecto brand from Saxonville Sausage Company Licensed name, either Ragu or Prego brand of Italian Sausage or Pregos Perfecto brand of Italian sausage People who dont like Vivio sausages would resist trying the same

Question #5What tactics should accompany the launch?#1: The Family Connection Concept21Increasing seasoning visibility through the sausage casing and communicate the presence of herbs and spicesIncluding package copy that talks to the products special blend using terms like fresh herbs and natural spices

Increasing sausage visibility in the package by reducing the label size A package label that uses a photograph depicting a family gathered around a table as backgroundPackage label depicting some go with ingredients that can be used to make a meal, like, fresh peppers, onion, pasta etc. Change the package label from rectangular shape to an oval shape, depicting a serving plate, which makes the label appear to be a regular dinnerFamily ConnectionSaxonville Sausages

21#2: The Clever Cooking Concept22Developing a variety of different flavorsfor example, smoked, cheese, etc Developing a variety of forms beyond traditional linksfor example, pre-sliced, ground, patties, mini-links, etcA package label depicting a picture showing a working woman balancing her busy life with quick & easy to cook sausagesInserting under the package label a fold-out paper, ideally recipe box size, that is a branded recipe for an easy-to-make 30-minute mealMark the front of the package with a sticker recipe underneath and identify the ingredients required, so the consumer see what shell needRunning a cross-merchandizing promotion with grocery stores wherein we can offer them a temporary merchandize unitClever CookingSaxonville Sausages

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Thank You !23