Created by MBA ITB 46A

1. SAXONVILLE SAUSAGE COMPANY
Syndicate 5
Rangga Tri Raeros
Joseph Enrico
Ria Agustriana
Agung Mahendra
Karina Soedjati

2. SAXONVILLE‟S BACKGROUND
 Saxonville was a 70-years old, family business and
placed in Saxonville, Ohio.
 In 2005, the revenue approximately $ 1.5 billion.
 Produced a variety of pork sausage products: fresh
sausage as opposed to smoked or semi-dried

3. COMPANY PRODUCT
 The business consisted of branded products:
Product Market Revenues
Bratwurst Flat – No Growth 70%
Breakfast Sausage Decline revenues 20%
Italian Sausage “Vivio” Growth 5%
Store brand products - 5%
Revenue Percentage Contribution
5% 5%
Bratwurst
20% Breakfast sausage
70% Italian sausage "Vivio"
Store brand product

4. MARKET PRODUCT
 Bratwurst and Breakfast products sold throughout U.S
via both national and regional brokers, distributors.
 Very little distribution in store in the Northeastern
markets.
 The italian sausage was the one category showing
growth across producers in the retail sausage
market, 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 primarily in Boston, New
Jersey, New York, Maryland, and South Carolina.

5. BACKGROUND OF SAXOVINLLE‟S ITALIAN
SAUSAGE BUSINESS
 Vivio entered the Italian sausage market in 2002.
 They made up an “Italian” name because they
worried that people wouldn‟t buy an Italian product
from a „German heritage‟ company.
 Vivio was priced comparably to other regional
Italian sausages.
 Current positioning of Vivio is “Vivio fresh Italian
sausage” and has an Italian flag in one corner.

6. ISSUES
 What is the ideal name for Saxonville‟s line of
italian sausage?
 Should a national entrant continue with the Vivio
brand name or have a different Italianate name?
 Or utilize the Saxonville name to leverage the
company‟s heritage and brand equity?

7. Research
the Italian Opportunity

8. RESEARCHING AND EVALUATING THE ITALIAN
OPPORTUNITY
 Ann Banks formed a multifunctional task
force, “Project Score”, included 10 collegues from
the R&D, packaging and graphics, marketing, and
sales departments.
 Find the ideal name for Saxonville‟s line of Italian
sausage.
 Four Steps to do positioning work.

9. STEP ONE : PLANNING NEW RESEARCH ON
THE TARGET CUSTOMER
 Phase I : To confirm some of the basic
information presented in the Attitude and
Usage data.
 Phase II :
- To understand current behaviors
- Triggers to purchase, and unmet needs
- To get a clear understanding of product
benefit
- Attributes and ideals
- To develope a solid feel for core value and role

10. STEP TWO : BUILDING ON LEARNING FROM
THE FOCUS GROUPS
 Ann and Bishop learned much about consumers
behaviors from the focus group and developed a
synopsis of the learning and sent it to every
member of Project Score.
 6 potential bases for positioning :
- Family Connection
- Clever Cooking
- Confidence
- Appreciation
- Quick and Easy
- Tradition

11. STEP THREE : BUILDING POSITIONING
CONCEPTS
 “Family Connection” and “Clever Cooking” received the
highest total votes.
 The result shows that 81% of respondents would
definitely or probably buys the product with a positioning
focused on “Family Connection” and 72% if the
company would use the “Clever Cooking” concept.
 On the other hand 41% would definitely buys the
product with “Clever Cooking” concept and just 23%
with “Family Connection” 4% would definitely not buys in
case of the “Family Connection” position model, and
only 2% in the case of “Clever Cooking” concept
 The group embed their ideas to a manageable list of
R&D, graphics and sales tactics.

12. STEP FOUR : ADDITIONAL RESEARCH
DELIVERS A VERDICT – OR TWO
 “Family Connection” had scored better and
receiving the most first-place votes.
 Discuss how advertising look and
feel, packaging, product
attribute, name, considering sub-branding.
 Picked the winner from the two final concepts.

13. Customer Analysis

14. POSSIBLE SEGMENTING DIMENSION
 Working out of the home, part or full time vs
working at home as a homemaker
 Head of household: female vs male
 Age: <10, 10-20, 20-30, 30-40, 40-50, >50
 Household income level: low, middle, or high
 Consumer group: heavy, medium, or light users
 Loyalist vs competitive users

15. TARGET MARKET
 Working out of the home and working at home
 Head of household: female and male
 Age: 20-50
 Household income level: middle and high
 Consumer group: heavy, medium, and light users
 Loyalist and competitive users

16. POSITIONING
 Wholesome meals with fresh ingredients
 Desire to please entire family with single dish
 Quick meal preparation without sacrificing
nutritional quality
 Family dinner facilitating feelings of togetherness

19. POSITIONING
Family Connection
• Discover a crowd-pleasing favorite that brings the
family together
• Vivio - It welcomes you in
• The perfect blend of fresh herbs and spices, with
irresistible aroma and taste will draw people
together over a great and enjoyable meal
Clever Cooking
• Simply add your own personal touch to create
meals that make any day a little special
• Vivio – Creative meals in minutes!
• Comes with recipes everyone is sure to
love, unleash you creativity to create a wholesome
real meal in minutes

20. CURRENT MARKET CONSIDERATIONS
Behavior Considerations
 Vivio loyalist
 Competitive brand
 Degree of price sensitivity
 Frequency of every day dinner preparation
 Use of other product within company
Geographic Considerations
 Currently in strong Italian sausage markets
 Strong Bratwurst markets where Saxonville well
developed
 Strong Saxonville markets where Italian sausage is
distributed
 Strong Saxonville markets where vivio is distributed

21. REVENUE CALCULATION
Vivio was only available in just 16% of supermarkets, our target is to reach 100%
supermarkets
Vivio 2005 sales performance (from exhibit
2)
$ Vol of 16% market $ Vol of 100% market
Vivio Italian Sweet Sausage Link 24.41 oz $ 3,714,499.00 $ 23,215,618.75
Vivio Italian Hot Sausage Link 24.41 oz $ 18,858,587.00 $ 117,866,168.75
Vivio Italian Mild Sausage Link 24.41 oz $ 42,414,884.00 $ 265,093,025.00
Vivio Italian Mild Sausage Link 55 oz $ 2,829,047.00 $ 17,681,543.75
Vivio Italian Sweet Sausage Ground 14 oz $ 2,019,310.00 $ 12,620,687.50
Vivio Italian Hot Sausage Ground 14 oz $ 34,685.00 $ 216,781.25
Vivio Italian Mild Sausage Ground 14 oz $ 1,351,313.00 $ 8,445,706.25
Vivio Italian Cheese Sausage Link 14.7 oz $ 870,081.00 $ 5,438,006.25
Vivio Italian Pepper Sausage Link 14.9 oz $ 160,232.00 $ 1,001,450.00
Vivio Italian Garlic Sausage Link 14.7 oz $ 833,067.00 $ 5,206,668.75
Vivio Italian Mix Sausage Link 55 oz $ 1,235,193.00 $ 7,719,956.25
Total $ 74,320,898.00 $ 464,505,612.50

22. SWOT ANALYSIS

23. SWOT ANALYSIS
Strengths
 National Distribution Network
 Strong brand recognition
Weakness
 Potential confusion of Italian named
sausage, vivio, from German named
company, Saxonville
 No Comprehensive advertising campaign
 Possible cannibalism of similar products with
portofolio

24. SWOT ANALYSIS
Opportunities
 No national competitors of fresh Italian sausage
 Category shows growth across all product within
portfolio
Thread
 29 regional brans with large percentage of market
share according to geographic region
 Frozen product is currently distribute nationwide by
a number of other companies

25. 4P‟S ANALYSIS
Product
 Saxonville‟s Italian sausage is consumer
class product
 Homogeneous products, price will be the
main factor
Packaging
 Large windows so that fresh ingredients are
highly visible
 Strong Italian color/image to promote
heritage
 Included recipes for quick meals ideas

26. 4P‟S ANALYSIS
Place
 Distribution channels already in existence
from national distribution of other portfolio
products
 100% available in nation‟s supermarkets.
Promotion
 Advertising
 Personal selling
 Sales promotion
 Publicity
 Interactive media

27. 4P‟S ANALYSIS
Price
 Pricing in medium level
 Discount for the early stages of the national
product launch
 Currently Vivio Italian sausage priced at
20% higher from store brand‟s price

28. CONCLUTION
 Positioning as a “Clever Cooking” concept could
gain more benefits instead of “Family Connection”
since the tendency to buy is higher, that
consumers is definitely would buy with “Clever
Cooking”.
To the family who like to cook something special
and creative for their families, each variety of Vivio
comes with “family approved” one-dish recipes for
a wholesome real meal in minutes. With Vivio, you
never run out of ideas for dishes your whole family
will love.

29. CONCLUTION

30. CONCLUTION
 Ann Banks should stick with Vivio name. While
Vivio hasn’t been a huge success to sausage
market, change their name won’t give a huge
effect because many customer has aware with
the Vivio name. By changing name, it will
confuse or alienate the few loyal customers the
brand actually has.

31. CONCLUTION
 Clever Cooking
 Simply add your own personal touch to create
meals that make any day a little special
 Vivio – Creative meals in minutes!
 Comes with recipes everyone is sure to
love, unleash you creativity to create a wholesome
real meal in minutes