Download - Saxonville case Analysis
CURRENT SITUATION
Well established German brand in the US
70 years old company
1.5 $ billion sales in 2005
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
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
POSITIONING CHOICES
Emotional bound
Consistent with Saxonville moniker: “The Family
Company”
Aspiration
al value
Pros
Connect Families
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
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.
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
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>