Marketing plan for the launch of an Italian sausage brand in US

1. GROUP F
Carlos Aquiles – Valeria Deserto – Eka Fitria – Thierry Abi Nader - Pedro Oliveira – Nicholas Sowell

2. SAXONVILLE
THE COMPANY MAIN BRANDS VIVIO
70 years old company 1. Bratwurst Italian sausages brand
70% sales, mainly used during
Well established German brand in weekend BQ
Regional distrib.: Eastern US
the US Declining sales in a flat market
5% of company sales
1.5 $ billion sales in 2005 2. Breakfast sausages
20% revenues
Growing segment (+15% national
Mainly producing fresh pork growth in 2005)
sausages 3. Store brand sausage
5% of sales

3. HIGH
QUESTION
VIVIO
STAR VIVIO
VIVIO
Eastern US VIVIO
MARK
Nationwide
MARKETGROWTH
SAXONVILLE
PORTFOLIO
bratz
BRATZ
CASH COW Breakfast DOG
LOW
sausage
HIGH MARKET SHARE LOW

4. • Undifferentiated product
• No clear positioning
PRODUCT • Italian name to create consistency
• In line with competition
• Inconsistent with Saxonville pricing strategy (15 % premium)
PRICE
• 16% of national supermarkets
• Mainly Eastern part of US
PLACE
• Discounted price during the launching period
• No communication
PROMOTION

5. Strengths Weaknesses
• Vivio’s success in the existing market • Vivio’s lack of clear positioning
• Saxonville’s strong national distribution • No product differentiation
Network • Italian brand, German company
• Saxonville’s strong brand Recognition
• Saxonville’s association with high
quality products
Opportunities Threats
• Growing market for Italian sausages • Competition from 29 local, already
• No national competitors for fresh established brands
sausages • Some competition from national
• Risk of cannibalization with Brats
• Capitalizing on Saxonville nationwide
• Appealing to Western region?
brand awareness
• Exploiting Saxonville’s retail power

6. 1. Successful launch of a national Italian Sausage brand
 Take advantage of high annual growth rates (2004 – 9%, 2005 – 15%)
 Increase market share and contribution to total revenues
2. Limit cannibalization of other market segments (Brats and Breakfast
Sausage)
3. Decrease problems associated with distributing outside of core
geography

7. Segmentation Target Values
DEMOGRAPHIC
• Busy female head of • good, nutritious meal
Gender, status, number of
kids, age of household • satisfy everyone’s
children,, education
level, working staus • age: between 20 and needs
PSYCOGRAPHIC 50 • time spent with family
lyfestile: busy life, short • Geography: • get everything done
time available for family
needs everywhere in the US • creativity
BEHAVIORAL
frequence: heavy, medium
and light users

8. PROs: PROs:
Recalled by the Italian brand: Add more value to the general family
opportunity to make it stronger concept
FAMILY CONNECTION
Emotional bound Easier tactical application
Not yet exploited 1° choice in “buying intent” test
CLEVER COOKING
Consistent with Saxonville moniker:
“The Family Company”
Aspirational value
1° concept choice CONs:
Loss of focus on the original target
CONs: Every sausage is “easy and fast”
Already implied Less aspirational
copiable
Unrealistic idea

9. EMOTIONAL
BENEFITS
Family happiness
CONSUMER BENEFIT
More time for the mother, make
meal that everybody loves
FUNCTIONAL BENEFITS
Creativity, ease of use, quickness
PRODUCT ATTRIBUTES
Nutritious, short cooking time, ingredient for other meals

10. FUNCTIONAL BENEFITS: Quick, easy, creative, nutritious
EMOTIONAL BENEFITS: everybody loves it, the family is happy, the
mom spends less time cooking,happy memories
CHOSEN POSITIONING:
FAMILY CONNECTION
REASONING:
CLEVER COOKING already perceived by Vivio’s customers
Enrich the brand with emotional content
Exploit the first mover advantage and bind the customer

11. For the obsessing question “what do we have for dinner tonight?” busy
mothers have now the right remedy: Vivio by Saxonville.Thanks to its high
nutritional value and ease of use, this brand of Italian sausages allows
moms to prepare a variety of recipes that everybody loves in only a few
minutes. The rest is all about sharing moments!

12. Saxonville
Italian sausages
Vivio by Saxonville
• German • Italian
1. • Unknown
brand
2. heritage
• Italian
product
3. brand
• Quality
recognition

13. Brand name – Vivio by Saxonville
WHY VIVIO ? WHY BY SAXONVILLE?
 Well established in Atlantic areas  Nationwide recognition and popularity
 Cost of reintroduction of new brand?
 Necessity?  Signifies quality/credibility for an
unknown brand
 Italian Name
 Placed 7th out of 20 choices of Brand  Preferable placement with retailers
Names
 How much value does moving from 7th to
1st add?
 Italian family message is still conveyed

14.  SKU choices:
 4 highest performing SKUs from 2005
 91% of 2005 Italian Sausage revenue
 Limits product variability/eases distribution problems
Vivio Size Sales % Sales
Italian Sweet Sausage 24.41 oz $ 3.714.499 5%
Italian Hot Sausage 24.41 oz $ 18.858.587 25%
Italian Mild Sausage 24.41 oz $ 42.414.884 57%
Italian Mild Sausage 55oz $ 2.829.047 4%
Total Revenue of Vivo % of Revenue of
Brand $ 74.320.898 Selected SKUs 91%
 Packaging:
 Uniform/ large window to make fresh product visible
 Large Vivio Brand/ Family Image
 Italian colors in the brand
 “Back-Placed” recipes

15.  5-10% premium above competitive brands
 Brats and Breakfast sausage both priced above SRP of competing brands
 Price must signal quality
 5-10% on a low price product doesn’t impact that much
 Consistent with overall brand image
▪ Especially if we are going to keep “by Saxonville” in the brand
▪ Especially after the emotional positioning and communication effort
 Must be careful not to overprice too much:
 Multiple regional competitors as opposed to brats and breakfast
 Regional brands will have “homegrown” differentiation and firm established customer base

16. Prominent placement in the Italian Sausage section in
the store
Grocery Market Revenue Share ($)
National Supermarket Chains WalMart
Supercenter concept Kroger
Ahold
Safeway
Supervalu
Target
Other
Currently stay out of Discount Warehouses despite
increasing popularity

17. Influence FHH @ home Magazines/Websites
• 83% of shoppers make their purchase • Older vs. Younger (Babble.com & Family
decision before they leave the house Circle)
• 90% of Mothers prefer brands • Family theme ads/Sponsored Recipes
recommended by other mothers
Complements/Coupons On-Site
• Rice, Pasta, etc. • BOGOs
• Online Coupons • Sampling/Events

18. Target
FHH vs. MHH
Seasonality Eating Habits
Different Peak Purchasing Special Events vs. Everyday
Periods Dinner
LOW
Cannibalization ?

19. Base Year 1 Year 2 Year 3
Sweet Sausage $3,714,499.00 $9,576,442.73 $10,725,615.86 $12,012,689.77
Hot Sausage $18,858,587.00 $48,619,794.61 $54,454,169.96 $60,988,670.36
Mild Sausage $42,414,884.00 $109,350,872.81 $122,472,977.55 $137,169,734.86
Mild Sausage (55oz) $2,829,047.00 $7,293,636.80 $8,168,873.21 $9,149,138.00
Totals $67,817,017.00 $174,840,746.95 $195,821,636.59 $219,320,232.98
% of Revenue 5% 10% 12% 13%
ASSUMPTIONS: 55% National Supermarket
Penetration
75% Relative to Current
Sales

20. Pre-Launch Launch Post-Launch
March 2006 - Dec 2006 January 2007 – Feb 2007 Jan 2007 – Jan 2008
2 Weeks Prior to Launch
Magazine/Online Advertising Launch (Following 4 Weeks)
Ambassadors/Word of Mouth Complementary Products
IMMEDIATE Launch (First 2 Weeks) Post-Launch
Distributor Coordination On-Site Sampling/Promotion Measurement/Control
Ad Campaign Buy One/Get One New Growth Ideas
Website
Sales Info

21. Product • Additional SKUs/Flavors
Ideas • Differentiated Packaging
Measurement/Control
Broader Geographic Focus
Raw Sales Data
Sales Force/On-Site Feedback
Promotional • Television/Radio?
Ideas • New Target/Target Expansion