Case study analysis
1. What is the current situation?
The current date is March 2006 and Ann Banks, the new product marketing director of the Saxonville Sausage company has to present her plan, developed after a serious research process, for launching a national Italian sausage brand, in order for the company to achieve its profit objectives for the next fiscal year. Saxonville was a 70-year-old, family business, which produced a variety of pork sausage products. The company had the following branded products: * Bratwurst: 70% of the company’s revenues
* Breakfast sausage: 20% of revenues
* Italian sausage, named Vivio: 5% of revenues
* Store brand products: 5% of revenues
The current situation was very appalling because both the bratwurst and the breakfast categories showed 0% sales volume increase, in addition the breakfast products resulted in a revenue loss. The only category which showed some growth in the retail sausage market was the Italian, showing an annual rate of 9% in 2004 and 15% in 2005. Saxonville’s Italian brand, Vivio, although matched this level of category growth, it was available in only 16% of the nation’s large supermarkets. The task of Ann Banks was to develop a national product either under the Vivio brand or as a new brand. 2. How was the research methodology determined? Develop a research design and explain what behaviors, demographics, and lifestyle components you deem important and why. The research methodology was determined by Ann Banks based upon her previous work experience. Saxonville Sausage did not know who their target consumer was and what are their needs and behaviors. So in order to link the Italian Sausage product with the „core values” of their consumers, they needed a method that combined both quantitative and qualitative research to learn everything about the target market. Banks read through the past 10 years of Saxonville’s market research results and then formed...