Saxonville Sausage Company

About the Company

● A 70 year old company privately held family business headquartered in Saxonville. ● Well established German brand in the US. ● Revenue in 2005 was $1.5 billion● Products- ○ Variety of pork sausages

Main Brands And Saxonville Products

1. Bratwurst 70% of the company’s revenue. 2. Breakfast sausage 20% of the company’s revenues 3. Italian sausage - Vivo (Regional distribution:Eastern US ) 5% revenues.

1. Bratwurst. 70% sales, mainly used during weekend BQ. Declining sales in a flat market.2. Breakfast sausages. 20% revenues.3. Store brand sausage. 5% of sales.

VIVIO current marketing strategy1. Product

■ Undifferentiated product■ No clear positioning■ Italian name to create consistency 2. Price■ In line with competition■ Inconsistent with Saxonville pricing strategy 3. Place■ National supermarkets - 16% ■ Eastern part of US 4. Promotion ■ Discounted price during the launching period

Assessment on VIVIO Strengths ■ Vivio’s success in the existing market■ Saxonville strong national distribution network❖ Opportunities ■ Growing market for Italian sausages■ No national competitors for fresh sausages❖ Weaknesses■ Vivio’s lack of clear positioning ■ No product differentiation

❖ Threats

■ Competition from other 29 locally established brands

■ Some competition from national.

Segmentation and Target Market

1. Demographic 2. Physiographic 3. Behavioral

Target ● Primary and secondary demographics ○ Female head-of-households ○ Children, education status, working status ● Behavior considerations ○ Vivo loyalists ○ competitive-brand loyalists ● Geographic considerations ○ Currently in strong italian sausage markets

Values● Good, nutritious meal ● Satisfy everyone’s needs ● Time spent with family ● Creativity

Initial Positioning Territories1.Family connection 2.Clever cooking 3.Confidence 4.Appreciation 5.Quick and easy 6.Tradition

Brand Laddering for Gourmet cooking oil

VALUE: Discerning good taste

EMOTIONAL BENEFIT: Makes me feel like a gourmet cook FUNCTIONAL BENEFIT: Flavor enhancement that makes even the best recipes taste unbelievably better ATTRIBUTES: Smooth and light texture, pale green natural coloring, higher melt temperature, emulsifies instantly, sophisticated taste

Potential positioning concepts ● Family connection concept ■ Brand- It welcomes you in ● Love concept ■ Brand- For all you do ● Balance concept ■ Brand- The taste of home ● Creative cooking concept ■ Brand- Creative meals in minutes

Product Benefits

● Emotional benefits ● Consumer benefits● Functional benefits ● Product attributes

Research and evaluating the Italian opportunity

1. Planning new research on the target customer. 2. Building on learning from the focus group. 3. Building positioning concept. Brand ladder. 4. Additional research deliver a verdict-or two

Recommended Band Name1. Why vivio? a. Well established in atlantic areas b. Italian name 2. Why by saxonville? a. Nationwide recognition and popularity b. Signifies quality/credibility for an unknown brand

Supporting Tactics Offered By Other Functional Groups

1. R&D- • Kid-friendly-shaped pre-cut sausage pieces; dinosaurs, goldfish. • Different flavor varieties. • Insert fresh herbs that would be visible through the sausage. casing but not impact the taste of the sausage. • Frozen sausage pellets, both raw and precooked. • Different forms: uncooked slices, pre cooked slices.

Graphics

• Label size and shape changes to maximize the product visibility window and provide in-case differentiation • Alternate label graphics using background photographs, fresh ingredients depictions, the Italian flag • Faux labels used as tip-ins in magazines to reinforce the brand • Labels with “back-placed” recipes • Different label-copy stickers that “pop”

Sales• Larger package size with dinner-plate shaped trays • Running more frequent BOGO’s (buy-one get-one promotions) • Famous potential spokespeople like Rachael Ray • Refrigerated display units placed in the produce and dry grocery sections • Celebrity recipes

DeclarationCreated by VishwaPriyatham,during an internship under Prof. Sameer Mathur, IIM Lucknow. www.IIMinternship.com

Thank you