Saxonville Sausage Company

CURRENT SITUATION

Well established German brand in the US

70 years old company

1.5 $ billion sales in 2005

MAIN PRODUCTS

Bratwurst(70% revenues)

Breakfast sausages(20%

revenues)

Vivio% of revenues)

Italian sausages brand in Eastern US is largest Growing segment (+15% national growth in 2005)

Vivio

AIM

Choose a brand name that appeals

to the expanded market

Limit cannibalization of other market

segments (Brats and Breakfast Sausage)

Successful launch of a national Italian

Sausage brand

Vivio: Current scenario

Product

Promotion

Place

Price

ProductItalian undifferentiated Product

Place

Mainly Eastern part of US-16% of national supermarkets

Price

In line with competition(15 % premium)

PromotionDiscounted Price

SWOT Analysis

Strength Weakness Opportunity Threats

Strength

Vivio’s success in the existing market And Saxonville’s strong brand Recognition

Weakness

Lack of clear positioning,No product differentiation and Italian brand of German company

Opportunity

Growing market for Italian sausages,No national competitors for fresh sausages And Capitalizing on Saxonville nationwide brand awareness

Threats

Senior management’s lack of marketing orientation, Consumer Taste and Preferences and Cannibalization

SEGMENTATION

Demographic Psychographic Behavioral

Target

Busy Female Head Age Between 20 to 50 Anywhere in US

Values

Good nutritious meal Happy family

POSITIONING CHOICES

Emotional bound

Consistent with Saxonville moniker: “The Family

Company”

Aspiration

al value

Pros

Connect Families

POSITIONING CHOICES

Can be copied Unrealistic

Connect Families

Cons

POSITIONING CHOICES

Add more

value to the

general family

concept

Easier tactical

application

Clever cooking

Pros

POSITIONING CHOICES

Loss of focus

on the original target

Less aspirati

onal

Clever cookingClever cooking

Cons

PRODUCT BENEFITS

EMOTIONAL BENEFITS

Family happiness

CONSUMER BENEFITMore time for the mother, make

meal that everybody loves

FUNCTIONAL BENEFITSCreativity, ease of use, quickness

PRODUCT ATTRIBUTESNutritious, short cooking time, ingredient for other meals

POSITIONING

Positioning as a “Clever Cooking” concept could gain more benefits instead of “Family Connection” since 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.

Choose clever cooking

Brand name - alternatives

Saxonville

Vivio

Italian sausagesBy saxonville

Italian Name

Well established in Atlantic

areas

Nationwide recognition

and popularity

Brand name – Vivio by Saxonvillechange 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.

Implementation Plan

Product

Promotion

Place

Price

PRODUCTVivio 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 Brand 74.320.898$

% of Revenue of Selected SKUs 91%

Some selected SKUs has almost 91% of revenue contribution,So Focus on these Products

PRICE

5-10% premium above competitive brands(5-10% on a low price product doesn’t impact that much )

PLACEGrocery Market Revenue Share ($)

WalMartKrogerAholdSafewaySupervaluTargetOther

Focus on Areas where Revenue can be easily generated

Promotion

Influence FHH @ home

Magazines/Websites

Coupons On-Site Products

CONCLUSION FROM 4P ANALYSIS

Additional SKUs/Flavors

Differentiated packaging

Product

Television/Radio

New target/Target expansion

Promotion

Also keep in mind Place and Price Factors

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%

55% National Supermarket Penetration

75% Relative to Current Sales

ASSUMPTIONS:

Executive Summary

• Saxonville sausage is a privately owned company with revenues of $1.5 billion. Their main lines of products are their bratwurst and breakfast patties. The goal of Saxonville sausage is to successfully establish a national Italian sausage brand in the next fiscal year. Their goals can be maintained through expansion, development of a new product image, and offer incentives for retailers and dealers to purchase their products in bulk. Keeping the brand name Vivio is the most important aspect of this alternative because they will be able to maintain their customers through this name retention..

• This best alternative demonstrates the most reasonable way to eliminate the constraints previously stated. If Saxonville sausage goes through with this alternative, then they will obtain new revenues from different areas of the country, avoiding cannibalization of their own products. By implementing this plan, Saxonville will not only retain its current customers while gaining new customers and a greater market share.

Bibliography

• KOTLER, P. & KELLER, K. 2011. Marketing Management 14th Edition,Upper Saddle River, NJ, Prentice Hall(With due thanks to the owners of Photographs)

• Moore, Kate. “Saxonville Sausage Company." Harvard Business School. Harvard Business Publishing, 15 Jan. 2007. Web. 14 Mar. 2011. <http://cb.hbsp.harvard.edu/cb/access/8290145>