With the history of 70 years, Saxonville, the privately held family business is one company of revenues of approximately $1.5 billions in 2005, the main products are the variety of predominately fresh pork sausage consisted of branded products: bratwurst, breakfast sausage and an Italian sausage named Vivio, which occupied 70%, 20%, 5% of Saxonville’s revenues respectively. Store brand products accounted for the rest of 5% revenue. This marketing plan has been explicitly designed to launch a national Italian sausage brand that Saxonville needed to bring to market in order to achieve it profit objectives for the next fiscal year. 2.Market Overview
The heart of Saxonville’s business, bratwurst and breakfast products were sold throughout the United States via both national and regional brokers and distributors, the products had very little distribution in stores in the Northeastern markets. Meanwhile, both the bratwurst and breakfast categories across all sausage producers has been flat (0% volume increase) nationwide since 2004, and with little or no growth expected in the short term. 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.
Some specific indexes and parameters of Saxonville are described as below: Stagnant growth rates for Saxonville’s bratwurst.
Underperformance incurred for Saxonville’s breakfast sausage and resulted in a double-digit revenue decline. Ranked sixth out of eight national breakfast sausage market. Vivio brand had matched that level of category growth, however, Vivio was available in only 16% of the nation’s large supermarkets.
Saxonville needs a well-thought-out positioning marketing plan to move from also-ran position in Italian sausage 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. 2.1.Product information
In the breakfast category, Saxonvill did not spend enough to compete with the big players. Besides, fewer people are serving sausage for breakfast, which is eaten more at special occasions, typically on weekends.
The potential of bratwurst product had big concerns—they are mainly prepared at outdoor barbeques, and there’s only so much outdoor grilling. In contrast, people eat inside more often.
About Vivio, the product was great and was priced comparably to other regional Italian sausage, and was penetrated to market with required trade support such as offering some in-store sampling. Saxonville company was known through thus trade activities and had established relationships to allow the introduction of bratwurst to the eastern United States. 2.2.Consumer Information
Typically, it will follow a four-step process to position consumer segmentation. First is a round of qualitative research with target consumers to understand their behaviors and needs. The second step is a sequential round of consumer sessions, where we’ll use the language we have heard to develop and then gain reactions to different positioning ideas. The third round is to refine all the new learning into actual concepts and have consumers prioritize and improve them. The fourth step is to put concepts through monadic testing and look at the purchase intent scores the testing generates.
Female heads-of-household aged 20-50 years
Current consumers who view Italian sausage as a “meal-maker”, an ‘ingredient’ food in sauces, soups, and casseroles Heavy users used Italian sausage more than three time a month Values creating wholesome meals with fresh ingredients
Desires to please entire family with single dish
Hopes for quick meal preparation without sacrificing nutritional quality Envisions family dinner facilitating feelings of togetherness