Saxonville Sausage Company Case
1° What is the current situation ?
Saxonville Sausage Company (SSC) is a 70 tears-old company which is a high turnover of 1,5 billion $ (2005). The headquarter is in Saxonville in Ohio. It’s a domestic company well known with the name “The Family Company” It products 3 types of sausage: Saxonville Brats, Breakfast sausage and “Vivio Italian Sausage”.
Product*| Saxonville Brats (70% of the Portfolio)High seasonality| Breakfast Sausage (20%)High seasonality| Italian Sausage (5%)Weak seasonality| Price| Competitors: +15% than suggested retail price
Store Brand : +20%| Competitors: +5%Store Brand : +12%| Competitors: equalStore Brand : +20%| Place| Throughout US via national, regional brokers and distributors.| Throughout US via national, regional brokers and distributors.| In 16% of national distributors.| Publicity| TV advertising| Small print campaign| Weak expense on communication| Other Points|
Competition| 1 national + 5 local| 3 nationals + 9 locals| 29 locals| Growth| Stagnancy| Stagnancy| +9% (2004) , + 15% (2005)| *Store Brand product (5%)
Bolton Consulting Group Matrix :
Consequence : A real opportunity with on the Italian Sausage market, recently hiring Ann Bank have as mission to launch a new product on this market.
II Research Methodology
Banks decides to follow a design she already used in her past experience: the four step process. She created a team called “Score team” composed with different services : R&D, packaging and design, marketing, sales …
After she understood herself the story and challenges of the company she made a brainstorming with the team in order to be sure that everybody was aware of the situation. Then, start the 4-step process. First she made a qualitative research (more explanation below), then a sequential round of consumer sessions, a conceptualization of the consumers’ priorities and finally a monastic testing (quantitative analysis about purchase intent score).
B) Qualitative Research Design
The main idea develops by Bank and Bishop was to use alternatively an internal and external source of new ideas. First they created pilots groups of 4-6 users , men and women between 25 and 50. All this people purchase brand or store brand sausage. These groups confirmed information already known and allowed to learn more about the “consumers’ vocabulary”. Then, with two new colleagues they wanted to created focus group. By using the last Attitude and Usage Study from the company they defined criteria (age of consumers, brand use …) and chose 103 women for an interview. They scheduled some tests about the way they make choices, their needs and analysis behaviors behind a one-way mirror. Finally they started a long discussion with the consumers to understand their position and listen the new ideas’ proposition. After a brainstorming just between the two of them, Banks and Bishop started the step 2.
C) New Research Design
The good thing with this design is the mix between explore internal and external source. However in the current situation we could consider different design for this launching. - Product-centered techniques: can target the non-users of sausage (we target on the advantage of the product). - Think tank: it’s maybe useless to ask the consumer advice; in the first part they only confirmed the data already in the A&U study. For ideas we can use the diversity of the “Score team”, they are consumers as well. Moreover we already know that people like the Italian sausage in seen of the market’s growth. Finally it’s expensive to pay the time spent by employees of Score...