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.