saxonville sausage company
TRANSCRIPT
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Saxonville Sausage
Company
HARVARD BUSINESS SCHOOL
Brief Case Study
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Presentation by
YASH SHARMA
IIT BHU
(during a summer internship
under
Prof. Sameer Mathur
IIM Lucknow)
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What is
Saxonville Sausage
Company?
SAXONVILLE SAUSAGE COMPANY
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Saxonville’s Background
SAXONVILLE SAUSAGE COMPANY
A 70 year old, privately held family
business headquartered in
Saxonville, Ohio.
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Saxonville’s Background
SAXONVILLE SAUSAGE COMPANY
They produced a variety of pork
sausages, predominantly fresh as
opposed to smoked or semi-dried.
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SAXONVILLE SAUSAGE COMPANY
Some of its branded products:
„ Bratwurst (70% revenues)
„ Breakfast Sausage (20% revenues)
„ Italian Sausage
named Vivio (5% revenues)
„ Store brand (5% revenues)
Saxonville’s Background
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What is the present
situation?
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Bratwurst and breakfast sausages
are distributed throughout the
United States, except they had very
less distribution in north-east.
Present Situation
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SAXONVILLE SAUSAGE COMPANY
Sales of Bratwurst and breakfast
sausages had been flat since last two
years and little or no growth is
expected in short term.
Present Situation
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SAXONVILLE SAUSAGE COMPANY
„ Vivio, Italian sausage, the only
brand showing growth in its retail
market.
„ Available in just 16% of nation’s
large supermarkets.
Present Situation
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What is the
“Italian Opportunity”
and
Who is
“Ann Banks”?
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
The Italian Opportunity is to
develop a national product under
the name Vivio or as a new brand.
Italian Opportunity
National
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SAXONVILLE SAUSAGE COMPANY
Ann Banks is the Product Marketing
Director at Saxonville Sausage
Company.
Steve Sears, Vice President of
Marketing assigned her the “Italian
Opportunity.
Ann Banks
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SAXONVILLE SAUSAGE COMPANY
Aim is to make the Italian Sausage
of the Company a National Category
Leader, so that every major grocery
in the U.S would want to carry it.
Aim
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What is the
Background of the
Company’s
Italian Sausage
Business?
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Laura Bishop
Laura Bishop, director of the
Market Research was partner with
Ann Banks on this project.
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SAXONVILLE SAUSAGE COMPANY
Bishop provided Banks with the
Company’s
„ Attitude and Usage research(2001)
„ Constantly updated, online market
database
Sources
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SAXONVILLE SAUSAGE COMPANY
Breakfast Category
Minutes of their Meeting
not enough spending to compete
bigger counterparts
eaten occasionally
fewer serve sausage for
breakfast
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SAXONVILLE SAUSAGE COMPANY
Bratwurst
Minutes of their Meeting
fired ad-agency mid year
prepared at outdoor barbeques
need for new marketing plans
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SAXONVILLE SAUSAGE COMPANY
Vivio
Minutes of their Meeting
market in north-east
great performance
Italian name
better company relations in east
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SAXONVILLE SAUSAGE COMPANY
Positioning of Vivio
Minutes of their Meeting
no distinctive identity
competitor’s positioning
says “Vivio fresh Italian sausage”
Authentic Italian Locally grown
Freshly and locally made
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SAXONVILLE SAUSAGE COMPANY
Deficiencies in Vivio’s positioning
Minutes of their Meeting
just trade base brand support
no market research yet
no spectacle positioning
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APPROACH
Realizing the
“Italian opportunity”
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Project Score
A multifunctional Task Force
„ Team of 10 colleagues from R&D,
packaging, graphics, marketing and
sales was formed
„ They were to provide input and
perspective in the investigation
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SAXONVILLE SAUSAGE COMPANY
To-Dos of Project Score
Develop Company’s brand of
Italian Sausage Nationally
Better positioning of the brand
Ideal name for the Brand
Reduce the risk of cannibalization
of other brands
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SAXONVILLE SAUSAGE COMPANY
Documents Presented
Ann Banks presented two
documents in the team meeting
One page
Summary of the
Company’s
sausage business
Vivio’s 2005 sales
performance
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SAXONVILLE SAUSAGE COMPANY
Salient Features(doc 1)
Saxonville Sausage Brands and
Market Facts
Saxonville Brats Breakfast Sausage Vivio Italian
Casual eating occasion Breakfast time eating occasion
Dinner time eating occasion
May-September November-March October-February
Annual TV ad support Print campaign ad No ad support
Key target- Adult Male FHH target FHH target
15% high SRP/comp. 5% high SRP/comp. Comparable SRP/comp
20%higher/store pdts. 12%higher/store pdts. 20%higher/store pdts.
1 national, 5 regional 3 national, 9 regional No national,29regional
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SAXONVILLE SAUSAGE COMPANY
Salient Features(doc 2)
Vivio 2005 Sales Performance
Italian Sausage Variety % Share
Vivio Italian Mild Sausage Link (24.41 oz) 57.06
Vivio Italian Hot Sausage Link (24.41 oz) 25.37
Vivio Italian Sweet Sausage Link (24.41 oz) 4.99
Vivio Italian Mild Sausage Link(55 oz) 3.80
Vivio Italian Sweet Sausage Ground ( 14 oz) 2.71
Vivio Italian Mild Sausage Ground (14 oz) 1.81
Vivio Italian Mix Sausage Link (55 oz) 1.66
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Executing
the
Positioning Work
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Four Step Process
Qualitative Research with Target Customers
Sequential Rounds of Consumer Sessions
Refining new learning into actual concepts and improving them
Concepts are put to monadic testing(Q’s regarding a single concept)
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SAXONVILLE SAUSAGE COMPANY
Expectations
Three Qualitative
Steps
Depth and help to surface ideas
One Quantitative
Step
Validate these ideas across a
broader population
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Step One:
Planning New
Research on the
Target Customer
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Pilot Groups
Getting reviews from Italian Sausage
Users
4 to 6 users in each group
Using branded or store-brand
products
Confirmed most of the A&U data
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SAXONVILLE SAUSAGE COMPANY
Liz Keller
Liz Keller is a top brand consultant
Keller, Bishop and Banks worked
together Phase II, to organize focus
groups, at selected locations.
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SAXONVILLE SAUSAGE COMPANY
Focus Groups
Selecting consumers for focus groups
Recruiting Screening Selecting
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SAXONVILLE SAUSAGE COMPANY
Criteria
Relevant data from
latest A&U study:
„ Female heads-of-household are primary
purchasers of Italian sausage.
„ Six out of the last 10 purchases given to a
particular brand is considered “a loyalist.”
„ Heavy users used Italian sausage three +
times a month.
„ Mean Italian sausage usage constituted two
times every six weeks.
„ Heaviest usage is among consumers aged
20‟50 years.
„ Age differentiation tends to manifest in 10
year increments.
Other potential
demographic
considerations:
„ Working out-of-the home, part- or full-
time vs. working at home as a homemaker
„ The number of children in the household
„ Ages of children in the household
„ Education level
„ Household income level
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SAXONVILLE SAUSAGE COMPANY
Criteria
Other potential
behavior
considerations:
„ Vivio loyalists
„ Competitive-brand Italian sausage loyalists
„ Uses/does not use private label and store
brands (degree of price sensitivity)
„ Uses/does not use Saxonville Brats
„ Uses/does not use Saxonville Breakfast
Sausage
„ Frequency of every-day dinner preparation
„ Use of other sausage products; bratwurst,
breakfast, kielbasa, etc.
Geographic
considerations:
„ Strong Italian sausage markets where
Vivio is distributed
„ Markets where Vivio is particularly
strong
„ Strong Bratwurst markets where
Saxonville is well developed
„ Strong Saxonville markets where Italian
sausage is distributed
„ Strong Saxonville markets where Vivio is
distributed
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Step Two:
Building on Learning
from the
Focus Group
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Interpretations
Emotional attributes
Heavy
Users
Light
Users
Medium
Users
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SAXONVILLE SAUSAGE COMPANY
Interpretations
Vivio: Brand and Brand Name
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SAXONVILLE SAUSAGE COMPANY
Interpretations
Linkage with Saxonville
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SAXONVILLE SAUSAGE COMPANY
Brand Positioning
Themes that resonated
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SAXONVILLE SAUSAGE COMPANY
Brand Positioning
Family Connection
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SAXONVILLE SAUSAGE COMPANY
Brand Positioning
Clever Cooking
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SAXONVILLE SAUSAGE COMPANY
Brand Positioning
Confidence
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SAXONVILLE SAUSAGE COMPANY
Brand Positioning
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Step Three:
Building Positioning
Concepts
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Brand Ladder diagram
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SAXONVILLE SAUSAGE COMPANY
For Italian Sausage
Brand values held by target customers
1. feeding her family good food
2. having time to do fun things with her children
3. getting everything done
4. using her creativity to come up with interesting meals
5. helping her children have happy memories
6. making home-cooked food they all will love
7. not being remembered just for doing laundry and nagging
8. bringing a sense of tradition to their lives
9. knowing about easy meals she can make quickly
10.gathering people together and facilitating their family experience
11.creating the kind of home she wants her family to have
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SAXONVILLE SAUSAGE COMPANY
Ideal Positioning
Concepts
Italian Sausage Brand
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“Family Connection”
Delicious Italian Sausage
An irresistible taste and aroma draws people
together because some of life’s best times are
shared over a great meal.
The perfect blend of fresh herbs and natural
spices create a flavor that appeals to all ages.
IT WELCOMES YOU IN
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“Clever Cooking”
Delicious Italian Sausage
A delicious way to express your creativity
with original meals everyone is sure to love.
Each variety to brand comes with a “family
approved” one-dish recipes for a wholesome
real meals in minutes. You’ll know they are
eating well - - all they’ll know is, they love it.
CREATIVE MEALS IN MINUTES
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Step Four:
Additional Research
Delivers a Verdict
- or Two
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Brand Positioning
Dilemma
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SAXONVILLE SAUSAGE COMPANY
Quantitative Analysis
Testing for Brand Positioning
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SAXONVILLE SAUSAGE COMPANY
Inheriting Italian
Heritage
Family(connection)image Stereotypes
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Actions to be taken
for
Brand Positioning
SAXONVILLE SAUSAGE COMPANY
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SAXONVILLE SAUSAGE COMPANY
Tasks
Advertising
Packaging
Product Attributes
Support for Positioning
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SAXONVILLE SAUSAGE COMPANY
Advertising
Annual Television advertising
support
Laura Vitale can be a potential
Brand spokesperson
Family connection positioning, the
affection amongst the family on Dinner
Table must be felt
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SAXONVILLE SAUSAGE COMPANY
Product Attributes
Emotional Connection
(to be considered while advertising)
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SAXONVILLE SAUSAGE COMPANY
Product Innovation
Different flavor varieties: spicy
mustard, sweet “Oriental” style,
gourmet cheese and smoked, marconi &
cheese, jalapeno pepper & cheese-
infused
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SAXONVILLE SAUSAGE COMPANY
Product Innovation
Kid friendly sausage pieces
Different forms: uncooked pre-sliced
“disks”, mini-patties, mini-links and
pre-cooked “meatballs”, “salami” slices
and “disks”
Frozen sausage pellet(both raw and
pre-cooked)
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SAXONVILLE SAUSAGE COMPANY
Packaging
Maximize product visibility window
Labels with “back-packed” recipes
Larger package size, Dinner shaped
trays
“Happy times” photos, Italian flag
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SAXONVILLE SAUSAGE COMPANY
Positioning Support
(in store)
Recipe cards
Cooking with Sausage graphics
Celebrity store appearance program
with on-site sampling
Refrigerated display units
Frequent product promotions
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SAXONVILLE SAUSAGE COMPANY
Cannibalization
Cannibalization refers to a reduction in sales
volume, sales revenue, or market share of
one product as a result of the introduction of
a new product by the same producer.
This situation is very unlikely to occur, as
from the Market Research it is evident that
product clashes will rarely occur. As the
product preferred time of the day, week and
seasons are different.
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SAXONVILLE SAUSAGE COMPANY
Cannibalization
Reducing Risks
• Adult(especially male) for Brats
• FHH(product for each age) for Vivio
• Summer-Spring(May-Sept) for Brats
• Winter(Oct-Feb) for Vivio
• Outdoor Barbeque (with beer) for Brats
• Family dinner get-together for Vivio
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SAXONVILLE SAUSAGE COMPANY
Brand Name
Though its Italian theme is contrary to
German theme of the Company, but it will
be projected as an Italian Brand, delivering
the best quality(even though it is coming
from German theme company)
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SAXONVILLE SAUSAGE COMPANY
Brand Name
Company should stick to the name Vivio.
Vivio, as the Brand Name is popular in most
parts of the country.
A sub-brand name or campaign will support
the product.
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Vivio, Italy's Best
Italian Sausage from
Saxonville
“Together we have it all”
SAXONVILLE SAUSAGE COMPANY