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Copy of Marketing Implementation Project - Saxonville Italian Sausage

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Yushu Gu

on 19 February 2013

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Transcript of Copy of Marketing Implementation Project - Saxonville Italian Sausage

O T Marketing Plan - Group B Vivio Saxonville Sausage Situation analysis Market, company, competitors, customers
SWOT analysis Marketing strategy Implementation 1 2 3 Tactics 4Ps
Control Market

Company Saxonville No national fresh Italian sausage player
Other national sausage producers mainly serving frozen products
Regional brands are positioned as "authentic Italian heritage" or "freshly and locally made"

FHH are primary purchasers
Heaviest usage among consumers aged 20-50 years
Heavy users consumption: 3x month
Perceive Italian sausage as life-facilitating product (liked by everyone, great “meal-maker”, quick meal)
Value creation of meal with fresh ingredients
Desire to join the family and make them happy
Cooking mainly done for evening dinner meals Bratwurst & breakfast
growth stagnation nationwide since 2004

fewer people serving sausage for breakfast

significant growth across producers in retail markets (9% in ‘04, 15% in ‘05)

Fresh sausage company
4 product categories
Brats & breakfast - sold nationwide but with stagnant/declining sales
Little distribution in Northeastern markets
Vivio available in only 16% of large supermarkets Competitors

Customers of Italian Sausage No national players for fresh Italian sausages

Little advertising investments by local competitors

Consumers willing to have healthy habits (fresh food) and quick solutions Strong local/regional competition in the Italian sausage market (29 brands)

Flat sales in brats, double-digit decline in breakfast sausages

Current nationwide frozen producers may attempt to introduce fresh products and have strong brand awareness

Regional competitors emphasizing “authentic Italian heritage” may start selling nationwide and have strong regional brand awareness W S Longevity of Saxonville Sausage brand

Nationwide distribution network (bratwurst and breakfast)

Successful introduction of the Vivio brand which keeps up with growth in Italian sausage market

Vivio perceived to be of exceptionally high quality, with good color, great taste and texture

Strong brand recognition Potential confusion of Italian-named sausage (Vivio) from German-named company (Saxonville)

Limited availability of Vivio branded sausages (16% of large supermarkets)

No clear positioning for Vivio

Capital intensive distribution network necessary for delivery of fresh product nationwide

No significant investment in advertising Strengths Weaknesses Opportunities Threats Objectives and Strategies Short Term Objective

Long Term Objective - 5 years

DIFFERENTIATION Strategy: Brand Identification and Product Quality

Define a USP aligned with consumer's core values (product/branding)

Offer the best value for money (price)

Enhance the national distribution network (place)

Establish strong brand recognition nationwide/market share (promotion) Objectives
Strategies Nationwide

Nearly 12% of women 18+ are the heads of their households*

Aged 20-55

Employed and homemakers
women are 47% percent of the total U.S. labor force*

Couples with/without children
49% of women aged 18+ are married and living with a spouse*

Middle income households

Frequent, health-concerned and time sensitive cooks Family Connection x Clever Cooking Strong Synergy "For mothers and partners, the Italian sausage Vivio is their accomplice when it is time to cook a fresh, creative, quick and practical dinner to bring together their loved ones for a enjoyable moment" Tradition, heritage
Time together
Love, care Modern life
Verstility Family Connection Respondents "Definitely Buy" the product market under "Clever Cooking"

Core values of consumers reveal that the "Family Connection" benefit may be reached by the "Clever Cooking" feature

Since there is no current “Clever Cooking” marketing campaign it might have more staying power

Since“Family Connection” is not a new idea to many, Saxonville runs the risk of competitors copying the same strategy offer a high quality and fresh product for a similar price to main competitors
Vivio Premium priced 50% higher formation of a strong sales/distribution force, highly trained in the features and benefits of the product
Primary focus - big supermarket chains, high density states, high consumption of dinner sausage (Los Angeles, NY and Chicago)

use of salesforce to introduce Vivio in the national and regional brokers and distributors B2C
sampling in the main supermarkets
highlight in supermarket catalogues
merchandising material within supermarkets
promotion - Buy X packages of Vivio and win a receipe book

volume discount
loyalty program (based on volume and shelf space) Achieve profit objectives for the next fiscal year

To become the national leader in Italian Sausage category
68% increase in sales
80% enhance in distribution network Targeting Positioning Segmentation PRICE Strategy: To offer the best value for money Strong Sales/Distribution Team

Use current distribution network of brat and breakfast PROMOTION Strategy: Establish a strong brand recognition nationwide (increase market share)

Trading Actions partnership with cooking shows
association with chefs, good restaurants or celebrities
national advertising - unique message
higher incidence in new markets
focus on the brand and quality of product TV Campaign celebrities' receipes using Vivio
contest: My secret recipe - win a clever cooking course
videos of recipes
vivio's communitites hot dog car in parks, schools (summer)
stand at events like San Fermines Total sales increase
Number of distribution channels
Brand awareness natiowide (share of mind, share of wallet and image association surveys)
Page views (website)
Penetration (market share) per region Brand Laddering Brand Solution: Individual name strategy

Unique brand identity nationwide (memorable, meaningful, likeability)
Consistent and coherent message
Strength of the brand
Good image and reputation
No restriciton per region as Saxonville
Same or lower effort than starting a new brand Q&A Vivio Vivio Premium
Vivio Flavored
Vivio Kids
maintain high quality
higher investments in new markets PRODUCT Strategy: Define a USP aligned with consumer's core values

Product Line Extension Executive Summary Assumptions

Increase investment in marketing
Enhance distribution network
1st mover advantages
Retaliation from competitors

Marketing Investment
2006 (setup): 10%
2007 (introduction): 30%
2008 (growth): 25%
2009 (growth): 25%
2010 (maturity): 10% 16% of the nation's large supermarket
East Coast

Increase up to 80% in distribution network

Use of brats and breakfast national and regional brokers and distributors
High investments in logistics
Opportunities to increase distribution in Northeastern markets
Focus primarily in big chains Performance Control Distribution Network 2005

Forecast Y5

Assumption Positioning Proposed PLACE Strategy: Enhance the national distribution network Website Seasonal Actions - Estimulate consumption during spring/summer time Situation analysis Market, company, competitors, customers
SWOT analysis Marketing strategy Implementation 1 2 3 Tactics 4Ps
Control Objectives
Strategies Agenda PRODUCT Strategy: Define a USP aligned with consumer's core values

Branding 1) Identification with the brand and association with the product
2) Establish the brand meaning in the mind of customers
3) Elicit the propor customer responses ot the brand identity and brand meaning
4) Loyal relationship between consumers and the brand Packaging larger window to display the product
more atractive packaging
include recipes and tips for a quick meal Implementation Schedule and Marketing Budget Forecasting of 68% increase in sales in 5 years *US Department of Health and Human Service 48%
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