Saxonville Sausage

Company

People InvolvedAnn Banks

Product Marketing DirectorSteve Sears

Vice President of MarketingLaura Bishop

Director of Market Research

General overview of company Saxonville was a 70-year-old, privately held family

business headquartered in Saxonville, Ohio.

The company produced a variety of pork sausage products:

Growth History: Bratwurst- Flat(0% volume increase) Breakfast sausage- Decline(2-digit revenue decline) Italian sausage- Rise(9% in 2004,15% in 2005)

o Bratwursto Breakfast sausage o Italian sausage named Vivio

Background of Italian Sausage

Saxonville first entered the Italian sausage market in 2002.

The company gave it the required trade support, but chose not to go for any advertisement like the other companies in the category.

For Vivio’s first six months, it went on deal every other month, and also offered some in-store sampling.

What about positioning the Vivio brand?

Company used a Styrofoam tray covered in plastic wrap, with a label depicting coiled links of sausage next to a head of garlic and an old-fashioned sausage grinder.

It says ‘Vivio fresh Italian sausage’ and has an Italian flag in one corner.

“The product was basically lobbed out there.”

Researching and Evaluating the Italian Opportunity (Ann Banks)

“Project Score”

Which consisted of 10 colleagues that would provide input and perspective in her investigation of the Italian sausage opportunity.Note: Saxonville had not conducted market research on the Italian sausage customer before her joining.

A multifunctional task force

Their first Task:

And a 4-step process was adopted to carry out the

research.

Main Objectives: To understand customer’s behaviours and needs. Gain an idea of the language consumers used.

Introduction of Liz KellerA top brand consultant, and a professional from a marketing

research company.

They main priorities as set by Ann Banks for conducting the focus groups:

Understand current behaviours, triggers to purchase, and unmet needs

Get a clear understanding of product benefits, attributes and ideals

Develop a solid feel for core values and the role this product plays, or can play, in these people’s lives.

To make the score team easily understand the outcome of the focus group Banks and Bishop constructed a perceptual map

According to both maps Italian sausage was revealed as a “meal solution”(high rating on both X and Y axis)

From the conversations with focus groups six distinct themes were selected as potential territories (bases) for positioning the brand:

FAMILY CONNECTIONCLEVER COOKING

CONFIDENCEAPPRECIATION

QUICK AND EASYTRADITION

A Brand ladder was createdA list was made based on the values held dear by the target consumers

The discussion finally led to the establishment of 4 mock concepts. Namely:

“Family Connection” concept

“Love” concept

“Balance” concept

“Creative Cooking” concept

Consumers were exposed to these 4 mock concepts and asked to select and prioritize their three favourites.

Result

Brainstorming potential tactical strategies that would support the two top-voted positionings and optimize brand identity gave out the three lists:

Italian SausageConcept Assessment

Now, the time has come to address the tasks/objectives of

the case.

The Main Objective?

“The Italian opportunity”

Develop a national product under the Vivio name or as a new brand.

Saxonville needs a well-thought-out positioning plan.

What are the Constraints?

Limit cannabilization of other products(Bratwurst mainly)

An Italian product, but a German company.

Step by Step solution

Positioning

“Family Connection”Vs

“Clever Cooking”

“Family Connection”Pros vs Cons

Fulfils the emotional value sought by the target customers.

Saxonville is perceived as a family brand.

Aspirational value.

No unique positioning

Easily replicableCannibalization

more likely

“Clever Cooking”Pros vs Cons

Broader perception of product use.

Easier tactical application

Wider customer base.

Unique tag line/approach.

First choice in buying intention.

Catchy name/idea.

Loss of focus from original target group.

Less aspirational value.

Final ComparisonThough “Family connection” may seem better idea, it might be because of consumers’ familiarity with existing brands’ “authentic Italian heritage” positioning, it is clear that “Italian” implied “family”, so there might exist a tendency of the consumer to feel more connected with this concept.

From the Italian Sausage Concept Assessment data we see that:“Family Connection”(F) would buy:81%(23% definite+58% probably)“Clever Cooking”(C) would buy: 72%(41% definite+31% probably)

We see that in F, % of definite buyers is not even 1/3 of the total “would buy”, and due to tough competition by similar positioning(Italian name brands) many from 58% may not buy the product.

“Clever Cooking”

The Brand name

Continue with Vivio or introduce some new name?

The Vivio brand was rated at 7 among 20 in the data from focus groups, hence change in name is necessary to implement premium positioning as it is difficult to change the prospective in consumer’s mind.

Introduce a new brand name

CapucinaMade from Italian words

capace(clever) and cucina(cooking)

What about the issue of Cannibalization?

It was a superficial fear

The research conducted by Ann Banks and team clearly states that, the consumers under weekend-barbeque ‘Brat pack’ will remain unaffected by Italian sausage as the use of Italian sausage has nothing to do with what happens on the weekends.

And secondly, ‘Brat’ was used mainly in outdoor grills on weekend afternoons and evenings, whereas Italian sausage was used mainly for dinner time eating. So, they are the options for totally different sections.

How did the superficial fear exist in such reputed company?

Main reason: Due to the lack of any market research on the

Italian sausage customer.

Analyzing the four P’s

Brand Name

Capucina by Saxonville

Including Saxonville in brand name: Nationwide recognition and popularity. Signifies premium quality. Preferred placement with retailers.

SKU choices 4 highest performing SKUs from 2005 91% of the 2005 Italian sausage revenue

Packaging Large window such that the Fresh product is

clearly visible. Strong Italian colour/image along with the

Italian flag to promote heritage and it would also indirectly promote the feeling of a family.

Back placed recipes(diff recipes for diff packages) for quick meals ideas only.

Vacuum sealed to preserve freshness.

Priced at 10% higher SRP than competitive brands and 25% higher than store brands.

Conveys the premium positioning.

Will help support promotional costs.

Also consistent with the pricing of Saxonville(all other product also priced above competitive brands).

Nationwide Distribution channels already in existence via “Saxonville” name.

SKU positioning important: eye level, easy accessible in regional market areas.

All major supermarkets and grocery markets.

But currently stay out of discount warehouses.

In-Store Product Sampling Recipe book giveaways Limited stock/duration BOGO

Print Magazines(recipes/advertisement): women’s and

cooking. Puzzle games based ads in newspapers eg-reach a

packet of Capucina via maze

Internet Recipe-a-day campaign/competition. Interactive puzzle/fun games.

Thank You

If you want to make your wife happy/smile try taking home Capucina for a change.

Created by Gaurav Rampuria, IIT Guwahati, during an internship by Prof. Sameer Mathur, IIM Lucknow.

www.IIMInternship.com