...From: A Person Re: Assessing the Italian Sausage Brand Opportunity in United States 1) Facts of the Case Key Market Facts: 1) Little to no growth in retail sausage market for bratwursts and breakfast sausages across all sausage producers nationwide. 2) No national players in fresh Italian sausage, but there are 29 local/regional brands. 3) Italian sausage annual growth rate was 9% in 2004 and 15% in 2005 across all sausage producer nationwide. 4) Local/regional brands position themselves as either “authentic Italian heritage” or “freshly & locally made”. 5) National brands are not in the same category because their sausage products are predominantly frozen. Takeaways: The current situation Ann Banks faces is successfully launching a national brand of fresh Italian sausage could provide the needed profit to meet company objectives. Market Research: Target Market: Themes (emerged from focus groups): 1. Family connection 2. Clever cooking 3. Confidence 4. Appreciation 5. Quick & easy 6. Tradition Concepts (developed based on themes and consumer values) * “Family Connection” * “Clever Cooking” * “Balancing Act” * “Labor of Love” Italian Sausage “Brand Ladder”: Takeaways: Market research tells us who to target for market positioning, but it does not tell us any quantitative numbers to determine any sort of profitability numbers, such as costs and Saxonville/competitor average pricing. 2) Key...
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...current situation of Saxonville, I conducted a SWOT analysis: StrengthsHas a national distribution network.Is already recognized as a national brand.They offer a variety of quality products. | WeaknessesSelling Italian sausage from a German company.There is no product differentiation.No positioning in the market.Vivio is not a popular Italian name. | OpportunitiesNo national Italian sausage brand.Can sell easier because Saxonville is recognized nationally.The Italian sausage market is growing. | ThreatsCan cannibalize sales of their brats. Face the competition of 29 locally established brands. | 2. How was the research methodology determined?(pay attention to exhibit 3, exhibit 9 and 11) The research methodology was determined by Bank’s four step process. The first step is conducting qualitative research to understand behaviors and needs of the target consumers. The second step is a consumer sessions where they use what they have “heard to develop and then gain reactions to different positioning ideas.” The third step they refine what they have learned into concepts and have consumers prioritize and improve them. The fourth step, concepts are put into monadic testing, which puts out a test score that is then used to decide whether or not the idea is profitable (If people are willing to buy it or not). 3. What were the research results? (hint: exhibit 4, 6, 9,11) Research showed that that women are the primary people that purchase the Italian sausage, and they wanted...
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...The Saxonville Sausage case is related to a positioning problem this company is facing regarding one of their products. Before we develop this topic, we need to understand what is the current situation of this firm. Saxonville is a company specialized in the production of sausages. They have branded products (which account for 95% of their revenues) and store-branded products. Within the branded products category, they have three types of products: bratwurst, breakfast sausage and Vivio sausage. In recent years, Saxonville has seen two of their three main products face growth problems (people were starting to eat sausages on more special occasions, which damaged the breakfast sausage growth, and were also eating more often inside the house, which damaged the brats growth). However, Vivio was growing quite fast and Saxonville saw an opportunity to make their company more profitable. Still, there were a couple of problems regarding this product: it was only available in 16% of the nation’s large supermarkets and it had no positioning strategy. This lack of positioning was mainly due to the fact that the brand emerged from looking at what the competitors were doing, while also trying to spend the least amount of money possible. Moreover, senior management did not feel the need to conduct market research since the brand was growing quite well, without much effort from the company. As I mentioned earlier, Vivio was growing and senior management felt it was time that this...
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...Saxonville Sausage Company | Marketing Management II | Executive Summary Saxonville Sausage Company located in Saxonville, Ohio has been a family owned business for 70 years. They strive on their quality and ability to produce always fresh never frozen bratwurst, breakfast sausage and patties as well as their recently launched Vivio Italian brand of sausage. The Vivio brand never received the attention that it required however now with the Italian sausage market growing annually at a rapid pace they have hired Ann Banks to create a marketing plan and launch the Italian sausage product properly. Ann decided to keep the name Vivio Italian Sausage but add that it was from Saxonville because everyone knew their reputation of quality, healthfulness and freshness in their pork product. In addition to the name of the brand Ann added “ A family tradition for 70 years” to the label giving the product an emotional feel for the potential consumer. The target market that was chosen was the “Home Maker Mom” due to the research provided by the Director of Market research Laura Bishops. The Home Maker Mom was 93% of user and the family member most frequently preparing dinner. Furthermore because of the family background and Italian symbolising family Ann decided it was best to promote the “Family Connection” as oppose to “Creative Cooking.” Ann will price the product a little higher than their competitors to remain complementary to the high quality they offered. The product...
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...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...
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...Saxonville Sausage Case Study Analysis Saxonville Sausage is a private family owned company in Saxonville, Ohio, with 2005 revenues of approximately $1.5 billion. Their main focus is on pork sausage products that are always fresh. Saxonville’s main product is their bratwurst line, which makes up 70% of the company’s revenues, breakfast sausage that consists of 12% of their revenues and their small Italian sausage line which is called Vivio that only makes up 5%. Saxonville's sales in bratwursts have been flat and their breakfast sausage line has been steadily underperforming in the market resulting in a double-digit decline in revenue. However, the Italian sausage was the one category showing growth across producers in the retail sausage market, having an annual increasing rate of 9% in 2004 and 15% in 2005. Saxonville hired a new marketing director in Ann Banks to "make her mark" and launch a national Italian sausage brand that Saxonville needed to bring to market in order to achieve profit objectives for the next fiscal year. Company ‘s Goals Goal 1: Choose the best positioning strategy • Create a connection between the brand and the customer’s core values • Choose the best positioning strategy such as Family Connection, Clever Cooking, Appreciation, Quick and Easy, Tradition Goal 2: Freshness • By branching out nationally, freshness levels may be compromised because of the time length of delivery to west coast supermarkets. Goal 3: Cannibalization • Careful...
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...Case Study for Saxonville Sausage Company 1. What is the current situation? The primary situation in the Saxonville Sausage Company case was their need to increase the awareness, customer base, and sales with their Italian Sausage products. The flat sales they were experiencing in their breakfast sausage and bratwurst sales influenced the company to try and expand the market they were offering their Italian Sausage products to. The company was unsure of the way they were positioning their product and before launching a new marketing strategy to a possibly new market they needed to do some very essential research and analysis of consumers. The name of the Italian Sausage, the packaging on the product, the way they would advertise the sausage as well as the people they needed to target the sausage to were just a few of the objectives the company planned to focus on while conducting their marketing research. 2. How was the research methodology determined? The research methodology was determined by Ann Banks based upon her previous work experience. Saxxonville Sausage did not know who their target consumer was and the research methodology was chosen to learn this. In addition to gaining a better understanding of who the Saxxonville Sausage customer was Banks needed to find a way to link the Italian Sausage product with the "core values" of their target consumer. To accomplish this she chose a method that combined both quantitative and qualitative research. The qualitative...
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...interoffice memorandum to: Steve spears, vice president of marketing from: ann banks, product marketing director subject: marketing recommendations for vivio italian sausage date: [ 3/3/2012 ] I propose a national launch to the market segment of women 20 – 50 years old. I recommend a simple packaging design and a brand position targeting “The Family Connection” and “Tradition”. I would keep the Vivio name. My recommendation for the name is Vivio Italian Sausage from Saxonville. Currently ranked in 7th place, a good marketing plan could change the name ranking. Vivio’s price, currently set above top competitors should remain unchanged. Because the product is “fresh – never frozen” and “locally made”, Vivio should have no problem commanding a slightly higher price. However, to grow the market segment, advertising is required. I recommend about $3.7M for the new launch. (See Note 1) Based on industry averages, this would increase Revenue by $29M, a 28% increase and add a 7.4% market share increase of stores. Each step in the process is explained as follows: Launch Concept – I believe a national launch is the correct approach. There is currently no national Italian sausage brand, so this is an excellent opportunity for Saxonville. We are well established in the sausage market, already known as the “Family Company”. The products I recommend for Stage 1 are Hot and Mild Links and Sweet and Mild Ground; Stage 2 would be Link Sweet and Mild larger packages with flavored links...
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...Vivio Italian by Saxonville Saxonville’s Vivio Italian The Italian Opportunity Strategic Marke6ng – Brian Broadway Sindhuri Rajkumar – 039 353 149 Ushna Siddiqui – 105 428 155 Vivio Italian by Saxonville Saxonville’s Vivio Italian Sausage should strengthen its national position to achieve their profit objectives for the next fiscal year. • Saxonville’s core products ‘Bratwurst” and “Breakfast sausage” sales have been flat and is estimated to have little or no growth in the short term. • The Italian sausage Vivio, was launched into the market without a positioning strategy and market research, yet the annual growth rate increased from 9% in 2004 to 15% in 2005. • Vivio was only available at 16% of the nation’s large supermarkets, in the North Eastern part of the nation unlike Bratwurst and Breakfast sausages which are available throughout. Vivio 5% Store brands 5% Breakfast sausage 20% Revenue Bratwurst 70% Vivio Italian by Saxonville Saxonville’s current strategy should be modified to launch Vivio in the national market. Function Saxonville’s Current Strategy Name Saxonville’s Future Strategy Vivio Saxonville’s Vivio Italian Sausage Problem: Benefit: The name was made up - Utilizes the ‘Saxonville’ name to leverage by the management and the company’s brand equity. had no symbolic meaning - Versatile: The suggested name is simple and in Italian. ...
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...Case Questions In answering the questions for any case, DO NOT do any research on the company and its progress since the case was written. You must only use the information presented in the case. Adding outside information beyond what is in the case will reduce your grade! Pedigree Dog Food The Pedigree dog food brand is in a slump. Julie Smith, the marketing manager, is faced with preparing the 2005 marketing plan for the market share leading brand. What can she do to reverse the trends of the last two years? Please answer all questions 1. Is dog food an attractive category? In answering this question, please consider category size and growth rates, competitive intensity, competitive shares, advertising spending, and any trends you see. 2. The dog food category can be segmented in several ways. Please identify at least three ways the dog food category can be segmented and the implications for brand marketing. 3. a) Who are the influencers on brand purchasing and how has this changed? b) Is there high or low levels of brand loyalty and why? c) What is the implication of this for Pedigree? 4. In reviewing the Pedigree financial statements, how has the company been managing this brand? 5. a)What is the current positioning of Pedigree? b)What, if any, are there issues with this positioning? 6. a) What options does Pedigree see moving forward? b) What are pros and cons of each? c) What do you recommend and why? London...
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...Case Study for Saxonville Sausage Company 1. What is the current situation? The current situation in the Saxonville Sausage Company case was their need to increase the awareness, customer base, and sales with their Italian Sausage products. The flat sales they were experiencing in their breakfast sausage and bratwurst sales influenced the company to try and expand the market they were offering their Italian Sausage products to. The company was unsure of the way they were positioning their product and before launching a new marketing strategy to a new market they needed to do some very essential research and analysis of consumers. The name of the Italian Sausage, the packaging on the product, the way they would advertise the sausage as well as the people they needed to target the sausage to were just a few of the objectives the company planned to focus on while conducting their marketing research. 2)How was the research methodology determined? The research methodology was determined by Ann Banks based upon her previous work experience. Saxxonville Sausage did not know who their target consumer was and the research methodology was chosen to learn this. In addition to gaining a better understanding of who the Saxxonville Sausage customer was Banks needed to find a way to link the Italian Sausage product with the "core values" of their target consumer. To accomplish this she chose a method that combined both quantitative and qualitative research. The qualitative steps would...
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...Saxonville Sausage Case Study Analysis Group 6 Robert Graham Arnold Jon Hardwick Rebecca Godwin Landon White Grant Guidroz Chris Gremillion Jeigh Hymel Michael Floyd Donald Derham Isaac Woo Christian Frierson Michael Gvoich Corey Roblin Dr. Roger Hinson Louisiana State University March 14, 2011 Table of Contents Subject Page Number * ------------------------------------------------- Background Information 3 * ------------------------------------------------- Goals 3-4 * ------------------------------------------------- Constraints 4-6 * ------------------------------------------------- Central Issue 6 * ------------------------------------------------- Alternatives 6-10 * ------------------------------------------------- Competitive Analysis 10-12 * ------------------------------------------------- Best Alternative 12 * ------------------------------------------------- Implementation Plan 13 * ------------------------------------------------- Executive Summary 13-14 * ------------------------------------------------- Bibliography 15 Saxonville Sausage Background Information Saxonville Sausage is a private family owned company in Saxonville, Ohio, with 2005 revenues of approximately $1.5 billion. Their main focus is on pork sausage products that are always fresh. Saxonville’s main product is their...
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...1.Saxonville Sausage company was launched 70 years ago with 2005 revenues of approximately $1.5 billion. However, since 2004, the main products of bratwurst and breakfast categories across all sausage producers has been flat, and the company themselves were struggling to position one of their Italian sausages in the market in order to achieve its profit objectives for the next fiscal year. Products: The company produced a variety of pork sausage products, the heart of the business consisted of branded products: bratwurst (70% of Saxonville’s revenues); breakfast sausage, both links and patties (20% of revenues); and an Italian sausage named Vivio (5% of revenues). Store-brand products accounted for the additional 5% of revenues. Sales: The flat sales they were experiencing in their breakfast sausage and bratwurst sales influenced the company by tapping and expanding the market of Italian Sausage products category. Sales promotion: The company prepares to use “Product Development” organizational growth strategy, seeking to create new product to meet their profit goal, while the company was unsure of the way they were positioning their products. And before launching a new marketing strategy to a possibly new market, they needed to do some very essential research and analysis of consumers. Competitors: There are some competitors according to market segmentation. For example, “Mama Mia”, that shares the same implied angle as Vivio, is a direct competitor offering the same products;...
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...Marketing Strategies Saxonville Sausage Case Analysis Overview Saxonville Sausage is a private family owned company in Saxonville, Ohio, with 2005 revenues of approximately $1.5 billion. Their main focus is on pork sausage products that are always fresh. Saxonville’s main product is their bratwurst line, which makes up seventy percent of their revenues, breakfast sausage that consists of twenty percent of their revenues and their small Italian sausage line, named Vivio that only makes up five percent. Unfortunately, Saxonville's sales in bratwursts have been flat and their breakfast sausage line has been steadily underperforming in the market resulting in a double-digit decline in revenue. However, the Italian sausage was the one category showing growth across producers in the retail sausage market, having an annual increasing rate of 9% in 2004 and 15% in 2005. The one area where they have been consistently increasing is their Vivio Italian sausage line, primarily in the New England area. Saxonville hired a new marketing director in Ann Banks to "make her mark" and launch a national Italian sausage brand that Saxonville needed to bring to market in order to achieve profit objectives for the next fiscal year. Problem Saxonville Sausage needs a well-thought-out positioning marketing plan to move their Italian sausage brand to national category leader and match up core values in the “hearts and minds,” of consumers with the attributes of a product portfolios to meet their...
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...Saxonville Sausage Company On a sunny March day in 2006, Ann Banks, new product marketing director at Saxonville Sausage Company, stood waiting outside the executive conference room. The owner, president, chief financial officer, and three functional vice presidents—including her manager, Vice President of Marketing Steve Sears—would soon hear her plan for launching a national Italian sausage brand that Saxonville needed to bring to market in order to achieve its profit objectives for the next fiscal year. Banks reflected back over the lessons of the past six months. Saxonville’s Background Saxonville was a 70-year-old, privately held family business headquartered in Saxonville, Ohio, with 2005 revenues of approximately $1.5 billion. The company produced a variety of pork sausage products, predominantly fresh sausage as opposed to smoked or semi-dried. The heart of the business consisted of branded products: bratwurst (70% of Saxonville’s revenues); breakfast sausage, both links and patties (20% of revenues); and an Italian sausage named Vivio (5% of revenues). Storebrand products accounted for the additional 5% of revenues. While the bratwurst and breakfast products were sold throughout the United States via both national and regional brokers and distributors, the products had very little distribution in stores in the Northeastern markets. Since 2004, both the bratwurst and breakfast categories across all sausage producers had been flat (0% volume increase)...
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