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Saxonville Sausage Case Study Analysis

Group 1
PGP 05-07

Jaya Tahalwani
Faraz Mehdi
Gaurav Sahai
Priyanka Shukla
Akshay Narain
Sunaina Haldar

Dr. Roger Hinson
Louisiana State University
March 14, 2011

Table of Contents

SubjectPage Number
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Background Information3
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Goals3-4
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Constraints4-6
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Central Issue6
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Alternatives6-10
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Competitive Analysis10-12
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Best Alternative12
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Implementation Plan13
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Executive Summary13-14
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Bibliography15

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 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. 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 specific needs. Goals

Successfully launch a national Italian sausage product in order to meet profit objectives for the next fiscal year. * Choose the best positioning strategy
* Establish a connection between the brand and the customer’s core values * Choose the best positioning strategy: Family Connection, Clever Cooking, Confidence, Appreciation, Quick and Easy, Tradition * Exhibit 9: Positioning Concept Voting, reveals Family Connection and Clever Cooking as the top 2 * Choose a brand name that appeals to the expanded market Should Saxonville keep the Vivio name or change to a different name? Saxonville wants to alleviate concerns about Focus groups revealed that the top-scoring names were “Italy’s Best,” “Primo,” and “Perfecto.” “Vivio,” ranked seventh. Research shows that there is brand vagueness under the Saxonville flag, because the name Saxonville appears “too German,” to produce a quality Italian sausage. The current packaging with “Vivio fresh Italian sausage,” and the Italian flag in one corner creates some confusion for customers. In order to demonstrate innovation and quality within Saxonville’s product, a new brand needs to be set up to help with the company’s positioning. However, such a move will fail to make use of the existing loyalist that have become accustomed to the Vivio name.

Constraints

* Senior management’s...
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