saxonville sausage
TRANSCRIPT
SAXONVILLE SAUSAGE
By : Aditya Kumar
Saxonville’s Background :
70 year old, privately held, family business.
National player in US market with revenue
of $ 1.5 billion in 2005.
Produces a variety of fresh pork based
sausages.
Headquartered in Saxonville, Ohio.
Since 2004, Saxonville Brat sales has been flat, but its breakfast sausage has underperformed the market, leading to double digit decline in revenue.
In Dec ‘05, Saxonville was ranked sixth out of eight national sausage brands.
Italian sausage is the only category that has been showing consistent growth, growing at 9% in ‘04 to 15% in ‘05. Saxonville’s Vivio brand has matched the category growth.
Product portfolio :
Product distribution (Revenue wise)
Bratwurst : 70%
Breakfast sausage :
20%Italian sausage : 5%
Store-brand:
5%
Bratwurst sausage Positioning: Casual gathering, outdoor BBQ grill, Men & Beer. Season: May to Sep ( 86% vol.) Advertisement: Annual support through television ads, popular “Harry Brat the BBQ guy” Pricing : 15% higher SRP than competition (Premium position). Distribution: National network supported through three deals.
“ …… for a cookout only in the summer ”
Breakfast sausage POSITIONING : Hot family breakfast eating, cooked primarily by female head of household. SEASON: Nov to March (69% vol) ADVERTISEMENT: Small print campaign with limited reach. PRICING: 5% higher SRP than competition, 15% higher than store brand. DISTRIBUTION: Two trade deals, parity with competition, 3 national & 9 regional players.
“ ……add a little sausage and it feels like a homemade breakfast”
Vivio Italian sausage POSITIONING : Hot delicious dinner cooked with family around. Italian heritage. SEASON: Oct to Feb ( 42% vol ) ADVERTISEMENT: None. PRICING: Competitively priced, 20% higher SRP than store-brand. DISTRIBUTION: Four annual deals, no national player, 29 regional players.
“ Everyone loves it ”
Vivio swot analysisSTRNGTHS:- Exceptional quality with good color.- Great taste and texture.- Lot of untapped market.- Versatile ‘meal maker’.
WEAKNESSES :- Lack of coherent branding.- Untested in market outside of Northeastern US.- Lack of Italian heritage.- Changing customer pattern.
OPPORTUNITY:- Consistent growth in this category.- Distributed only in northeastern US.- Proper positioning has not been performed.
THREATS:- Cannibalization of other brand products.- Poor brand name among Italian sausage users.- Competition from local producers.
OBECTIVE : “ To develop a national Italian sausage brand that is not only distinctive but matches the core value in the hearts and minds of the customers with the attributes of the product, so that customer feels like brand was designed with keeping their needs in mind. ”
Target customers
DEMOGRAPHY:- Female head of household.aged between 20-50.LIFESTYLE:- Busy lifestyle with less timedevoted to cooking.
GEOGRAPHY:- Throughout the United States.IDEALS:- Strong desire to bring family together over dinner.
Path towards positioning
Italian sausage is a “meal maker” that is useful for women who have to trade-off time and skill against the family members it would please.
Women yearned for the simplicity of their childhood, where the whole family can discuss
day’s events over dinner time.
Italian sausage is identified as a versatile ingredient that can be used to pull off a delicious wholesome meal that can give her the confidence
to ‘pull it off’.
Product’s Value proposition
VALUE: Makes dinner time enjoyable.
EMOTIONAL BENEFITS: Satisfaction and confidence of cooking a good
meal.
FUNCTIONAL BENEFITS: Improves dish taste, versatile, short cooking
time.
ATTRIBUTES: Exceptional quality, good taste, base
ingredient.
Brand positioning
Italian heritage reinforces the idea of families enjoying the meal together.
Connects with the core aspirational value of female households of creating a nurturing and caring environment.
Consistent with Saxonville moniker of “ The family company”.
“ It welcomes you in. ”
Increase the scope of customer base.
Improve variety of dishes flavors by using it as an ingredient.
Versatile, quick and convenient way to cook.
“ Fancy meals in minutes. ”
FAMILY CONNECTION CLEVER COOKING
Positioning statement
Aspiring to be a chef but too busy. Well fresh, authentic Italian sausages that takes your cooking to a whole new level is a must have. So the next time you hear ‘what’s for dinner’ , you know that you can ‘pull it off’.
VIVIO
by SAXONVILLE
VIVIO
by SAXONVILLE
VIVIO was already considered by competition and loyalists to be of exceptional quality.
It was ranked 7th among 20 brand names that best identifies with Italian sausage.
Already well established brand that makes products of good quality.
Its moniker of “The family company ” helps in reinforcing the positioning of the brand.
Product
Top 5 grossing varieties are selected:
Vivio Italian Sweet Sausage $3,714,499 Vivio Italian Hot Sausage
$18,858,587 Vivio Italian Mild Sausage $42,414,884 Vivio Italian Mild Sausage $2,829,047 Vivio Italian Sweet Sausage $2,019,310
Pricing : Priced at 10% above competitors and
25% above in-store brands. Prices put it in premium category without
diluting the band equity.
Placement : Placed at eye level of an average adult
female. Refrigerated display units in produce and
dry sections.
SALES & PROMOTION : Promotion through famous
spokespeople.( e.g. Rachel ray) Celebrity store appearance and
cookouts. Proper product placement. Sponsoring cooking shows.
THANK YOU !!
and remember – “ If you want to impress your wife Drop the flowers, and bring the sausage ”
This slide has been prepared by – “ADITYA KUMAR” of MNNIT Allahabad, as part of the internship done under the guidance of DR. SAMEER MATHUR, IIM Lucknow.