Suffolk University
MBA660 - CE
9. 25. 2013

Saxonville Sausage Company |

Caroline Claps
Cho Kyung-Eun McEttrick
Jingjie Zhang
Ting Mo

1. What is the current situation? Saxonville Sausage Company is a privately owned family business based out of Saxonville, Ohio. The company’s revenue in 2005 was approximately $1.5 billion with 70% consisting of bratwurst, 20% in breakfast sausage, 5% in the Italian sausage branded Vivio, and the other 5% in store-brand products. Since 2005, sales in bratwurst and breakfast products were showing a 0% increase in volume and were not expected to grow in the short term. Saxonville found potential in its Italian sausage market after having an annual increasing rate in sales of 9% in 2004 and 15% in 2005. Vivio was only being sold in 16% of the country’s northeast supermarkets. Steve Sears, the company’s Vice President of Marketing, hired Ann Banks as the new marketing director to uncover the potential Vivio had as a national leader in the Italian sausage market by strengthening its presence across the nation’s supermarkets. Banks faced the challenge of either developing Vivio as a national product or creating a new distinctive identity of the Italian sausage by marketing it under a different name or even under the recognizable Saxonville company name. In addition, she needed to be careful in how Vivio was being positioned in the sausage industry in order avoid unintentionally cannibalizing Saxonville’s other brands. Banks was experienced in marketing brands to consumers in a way that they could connect both personally and emotionally. To better understand Vivio’s positioning with consumers, she first formed a team of colleagues from the research and development, packaging and graphics, marketing and sales departments. With the research and analysis results from Banks and her team, Saxonville hoped that they would be able to create a new marketing strategy that would relaunch the brand in early 2007 and thus meet profit goals for the next fiscal year.

2. Do you agree or disagree with what and how the Saxonville Sausage Company did in research methodology? If disagree, what would you do differently and why?
a.) At the beginning of her assignment, Banks and the Project Score team explored the input and perspective of the Italian Sausage opportunity by reviewing the summary of business and sales performances. Their research methodology consisted of a four-step process. During the first step, the team collected qualitative research to better understand the behaviors and needs of target consumers. There were four pilot groups of 4 to 6 users with each made up of men and women from ages 25 to 50. The individuals either purchased branded or store-brand Italian sausages. Through these groups, the Project Score team gained a better understanding of the language consumers used to discuss the benefits of Italian sausage. After developing stimulus material, it was concluded that females were the primary purchasers, so they administered more focus group sessions with 100+ women who passed the pre-screening. In the second step, the team evaluated the women’s reactions to the different brand positioning ideas. Four potential territories for positioning Vivio were developed: Family Connection, Clever Cooking, Confidence, Appreciation, Quick and Easy, and Tradition. During the third step, the team created positioning concepts for the new marketing strategy. They brainstormed potential tactical strategies that would support the two top-voted positioning of “Family Connection” and “Clever Cooking” and how to best optimize brand identity. The final step consisted of quantitative testing, which helped support the ideas from the first three steps and thus, validate a decision across a broader population.
b.) Reasons for disagreement
 Insufficient data sources: Researchers usually start their investigation by examining low-cost and readily available secondary data. Banks used a one-page summary of the company’s sausage business, Vivio’s 2005 sales performance, and Attitude and Usage data (A & U) for the first round of qualitative research. Each piece of data lacks quantitative figures, which makes it insufficient.
 Too small size of mini pilot groups: Total of only 16 to 24 people among the four groups was insufficient to understand the target consumers’ behaviors and needs.
 Inappropriate age range for the mini pilot groups: A & U showed that heaviest usage was among consumers aged 20-50 years, and age differentiation tended to manifest in 10 year increments. Despite this relevant data, only consumers aged 25 to 50 were chosen to be in the pilot group. 16.7 % of the potential consumer group was missing in the research.
 Hasty selection on female-only focus group: Banks chose the female heads-of-households as a focus group based on the recent database and the mini pilot group experiment. Insufficient data sources, small size and inappropriate age range for the pilot groups contributed to hasty generalization in selecting female-only focus group.
 Input biased atmosphere at the focus-group sessions: The moderator, Liz Keller, encouraged the female focus group to introduce themselves and ages of their children. Even though participants should feel relaxed and strongly motivated to be honest, this research setting may be unintentionally arranged as being solely family-oriented.
 Generalization from focus-group participants to the whole market: Because the sample size was too small and the sample was not drawn randomly, it may be difficult to generalize the results across a broader population.

c.) What our team, as in Banks’ position, would do differently * Developing research creativity: Banks determined the research methodology based upon her previous work experience as a new product marketing director. We, as of creative marketers, would not only follow the typical four-step process. * Setting up careful sampling unit: To whom we survey is the first decision that should be made when creating a sampling plan. By having accurate samples, it will produce more accurate and reliable results. In this case, we would carefully construct focus groups through more precise and quantitative data analysis. * Using multiple methods: As a useful exploratory step, focus-group research is appropriate to use. To avoid hasty generalization from this research, we would use multiple methods such as survey research (web-based questionnaires) or behavioral research (store scanning data, customer database). * Emphasize on technological use for effective research. With enhanced technology and data programs, the use of online research provides a cost effective and quicker channel through which data can be analyzed. 3. What were the research results? Trace back through the case using exhibit 4 and other embedded information to rationalize the development of these territory ideas. Based on the research results, it was evident that females dominated the market in purchasing and cooking Vivio. They were passionate about the quality and wholesome meals they prepared nightly for their families. Through the focus group results, three types of Italian sausage consumers could be categorized. The heavy users of Italian sausage purchased the product three or more times each month during the fall and winter, and once every two weeks during the spring and summer. The light consumers purchased the product about twice every six weeks. Italian sausage’s peak seasons were fall and winter, making up about 42% of total sales volume. As temperatures drop outside, consumers avoid their outdoor barbeques and primarily cook indoors with oven and stovetop dishes. Vivio was the perfect fresh, high-quality addition to any homemade meal. Based on the research results, it was evident that “Family Connection” and “Clever Cooking” rated top amongst the positions that correlate with consumers core values. Italian sausage was considered a great meal-maker because it was easy to prepare for a quick wholesome, family-pleasing dinner for on-the-go families. In addition, consumers weren’t sacrificing taste and value by cooking with Vivio because it was rated by loyalists and competitive users as having exceptional attributes in flavor, texture and aroma. What to choose as the most fitting brand name of Saxonville’s Italian sausage received mixed responses from the focus groups. The top-scoring names out of a choice of twenty selections were “Italy’s Best,” “Primo,” and “Perfecto.” The original, Vivio, only ranked seventh, making it look like a comparably poor brand name. Furthermore, the name “Saxonville Italian sausage” sounded too German against its “Italian” concept. This branding however, was considered favorable due to its recognition as “The Family Company,” which stood for the reputable family-owned business that made superior products.

4. What alternatives do you recommend and why? Overall, we recommend that senior management perform additional research on tastes and preferences followed by global trending. This effort will help to find a niche market, for example a healthy sausage market. Saxonville could launch a healthier version of the Italian pork sausage with a sausage that used chicken or turkey meat. Finding unmet needs from potential customers enables the Saxonville Sausage Company to be a frontier and market leader. In setting up the long-term company strategy, Saxonville Sausage needs to be careful to not cannibalize its others brands while launching new and steady marketing efforts of its Italian Sausage. We recommend carefully reviewing the top two positioning concepts, “Clever Cooking” and “Family Connection,” since the quantitative data shows there is not a considerable difference between the two results. Furthermore, our team recommends “Clever Cooking” positioning over “Family Connection.” Sometimes consumers unconsciously parrot back what they hear from advertisements on radio and television. Recognizing current society and cultural trends, such as the decline in nuclear families and the increase in same-sex marriages, help companies understand how to target the consumer’s core values. With cultural shifts in wives becoming the family breadwinner and husbands being the homemaker, “Clever Cooking” provides tactical support for various target layers. This positioning may be a smart choice for the tight launching schedule of Saxonville’s Italian sausage in early 2007. Along with this positioning, we recommend that the brand name of Vivio should be changed to a more distinctive and likeable alternative, as determined by the research results. The name should still resonate an Italian sound, like Vivio, but perhaps it should be a more recognizable Italian word to consumers as Exhibit 4 revealed such as “Primo” or “Perfecto.” Revising the brand name to “Famiglia” would also be a great suggestion because it not only reflected the Italian connection, but also was associated with one of the core values that the Italian sausage and the Saxonville Sausage Company as a whole represented.

5. What tactics should accompany the product launch? One of the primary tactics Saxonville needs to concentrate on during the product launch is its advertising. Since Vivio’s release into the Italian sausage market in 2002, Saxonville primarily focused on base trade spending. This may have been profitable for Vivio sales in the beginning because it reduced expenses, but it was not a way to sustain high profits and compete with other Italian sausage brands. Vivio’s increase in sales may have been directly correlated to the rise of the Italian sausage market as a whole, but it needs a distinctive identity that separates it from competitors. Saxonville should put more efforts into advertising its product through media outlets such as television, radio and internet, as well as colorful magazine spreads with example recipes. Celebrity chefs can cook with Vivio and endorse the sausage on their television programs to demonstrate the simplicity and exceptional quality that uphold the product’s reputation. In addition, a clever slogan or phrase could be created, with assistance from the previous research positioning of “Family Connection” or “Clever Cooking,” which would then strengthen Vivio as a household name and make it recognizable by people of all ages. To strengthen the advertising tactic, Saxonville should improve the product’s packaging and in-store display units. Instead of using Styrofoam trays wrapped in plastic for its packaging, the company can use recycled packaging to save money and become more environmentally friendly. The packaging should be decorated vibrantly with graphics depicting the sausage’s fresh ingredients and the Italian heritage. Creative in-store displays offering recipe ideas and coupons bring a visual portrayal of the product and help spark curiosity within those consumers unfamiliar to the brand. Along with the displays, Saxonville can create attractive promotions for consumers during the relaunch. Free samples can be distributed to attract new palates, in addition to providing promotions during the slower summer months for those who are looking to receive the high quality sausage at a discount. Saxonville could take advantage of offering free samples by having consumers try new and different flavor selections. They could expand the Vivio experience by being creative with new products, taste and market place. Saxonville could experiment with new shapes and forms of the sausage making it kid-friendly or even as a creative topping for dishes. With Saxonville being a traditional food company, entering new market places will be tactful and innovative. The tactics utilized by Saxonville will help target the best fitting consumer and thus expand the effects of the brand on current and eventually new households. The more comfortable and confident consumers feel about cooking with a delicious and easy-to-make Italian sausage, the more profitable Saxonville will become. 6. Based on product revenues, would you have eliminated any products? Based on product revenues, we would eliminate Vivio Italian Hot Sausage Ground 14 oz. and Vivio Italian Pepper Sausage Link 14.9 oz. Both of these products ranked the worst in sales performance with $34,685 and $160,343 in sales volume, respectively. As noted by Exhibit 2, the Italian Hot Sausage links performed much better than the flavor’s ground version. We assumed that in order to cut costs and ensure profitability, it would be better for Saxonville to continue making the hot sausage links as opposed to the ground option. We would also eliminate the Vivio Italian Pepper Sausage Link. By removing this sole pepper flavor, it would reduce the cost for the supply chain, as well as the ingredient and processing expenses. Saxonville would also see reductions in the production, marketing and advertising costs when eliminating these two varieties from the Vivio brand.