A Harvard case focused on segmenting, targeting, positioning and pricing.

1. Saxonville Sausage Company
Alisha Daredia
143207173
MKM805- MMT
Professor Duncan Reith
21st June, 2018

2. 2
Breakfast Hot family breakfast in minutes
Weekday Dinner Quick Easy to prepare meal
Lunch Hot tasty meal to satisfy your taste buds
Other Occasions
Casual, friend- and family oriented
occasion, Cooked outdoor on grills
Market is defined based on the occasions when sausages are consumed in
the US Market
Products Revenue Earned
Bratwurst 70%
Breakfast
Sausage
20%
Italian
Sausage
(vivio)
5%
Store Brand
Products
5%
Company’s Revenue Stream
Products Revenue Earned
Distribution
Channel
Bratwurst
The sales have
been flat and no
growth is expected
in the short term
Sold throughout
United States via
both national and
regional brokers
Breakfast
Sausage
The company had
underperformed
the market
resulting in a
double digit
revenue decline
Sold throughout
United States via
both national and
regional brokers
Italian
Sausage
(vivio)
The product had
matched the level
of category growth
Vivio was available
in just 16% of
nations large super
markets
Company’s Current Financial Situation
Competitors:
-Italian Sausages faces competition not only
from sausage producers but also other
possible dinner meal options cooked at
home such as: mac n cheese, beef stew,
broiled salmon with rice, spaghetti, meals
made with chicken, etc.
-No national players, 29 local/ regional
brands
-Comparably priced with competitive brands
with 20% higher SRP than store brands
In order to grow in a mature market and achieve its profit objectives for next fiscal
year, Saxonville has to expand the distribution channel and enhance the positioning of
its Italian Sausage, the only product line category that is growing.
• With other two categories of products underperforming, and the market entering its mature
stage with no scope for growth it is advisable to focus on product where there is opportunity
to grow
• Since Italian sausage was one category that was growing across producers in the retail market,
having grown at 9% in 2004 and 15% in 2005, it is feasible for the company to use this product
as a platform for growth and enhance its revenue through this product
Customers:
-Customers felt that they had to trade off the
time and skill to prepare an evening meal
against the family members it would please.
-Customers are looking for a quick, healthy
meal solution to their weekday dinner meal
-Customers felt that they always had a quick
meal in the house if there was Italian sausage
-Customers used Italian sausage as an
ingredient food in combination with different
recipes
-The market should be defined as Dinner as this is the only category that is growing , also
according to consumers it is an ideal time for all members of the family to come together after
their long busy day.
-Hence customers want a quick, tasty meal that appeals to their family. Italian sausage: Vivio
is capable of providing consumers what they want, Dinner time is a suitable market to define.
Understanding the customer needs and the projected growth of the Italian sausage market is key for Saxonville to expand the
distribution of its Italian sausage- Vivio and recognize who its competitors are.

3. In order to launch Italian dinner sausage in the market and position it in the minds of the consumer it is important to analyze the right
segment to target and the factors that influence their buying decision.
3
Segments Description Behavioral Needs and Wants
Fit with Product /Frequency
of Dinner Preparation
Frequency of trips to Grocery
Store
Product Usage
Empty
Nesters
Individuals both male
and female aged 45-60
living alone without
children, with income
level of about $30,000
and may or may not be
professionally engaged.
Usually introverts who
avoid or doesn’t seek
human interaction and
engage in activities by
themselves.
They prefer to stay
indoors, doing their
own activities and
cooking according to
their own time as they
don’t have to worry
about anyone else.
These people stay alone and
hence can cook or eat outside
according to their own
convenience, are not much
concerned about time-
constraints. Hence not fit
with the product attributes.
These people would not go to
grocery store so often as they
are living all by themselves.
Probability is they will stock
up their grocery
Moderate
Oldster/
Old-timer
Retired individuals
(male &female) aged
60 and above, living
alone or with their
family.
Social life would depend
on meeting friends and
family, interest towards
recreational and
cultural activity like
walks in parks with
friends at parks,
spending time at home
reading books,
newspaper.
They would prefer to
have a cooked meal
rather than cooking
food everyday. Would
often prefer more
traditional home-
cooked food to
prepare.
Occasionally prepares meals
for the family due it its age
factor also wouldn't consider
sausages as an ideal meal to
prepare, hence this segment
doesn’t appeal to us.
Not very frequent trips due to
several reasons like how to
carry grocery back home,
time travel etc.
Low
Super
Women
(Mothers,
Wife)
Women aged between
25- 50 years, may or
may not have kids, with
average annual income
of at least $ 20,000 and
above and
professionally engaged,
working out of home
Trying to find a way to
balance the busy work
life and family life, but
nurtures and cares
about its family and
their health, she holds
high standard for
herself and wants her
family to think highly
about her.
Quick, healthy, easy to
prepare tasty meal
that appeals to the
entire family, Using
her creativity to come
up with meal ideas, to
spend time and help
her children have
happy memories.
Primary cook in the family.
According to the focus
groups, Italian sausage was a
meal-maker. It was also used
as an ingredient food in
preparation of other
wholesome meals and was
quick and easy to make.
They have a family to look
after and hence would have
frequent trips to the store to
purchase grocery. She is a
primary cook and a decision
maker as to what is to be
made for meals.
High
Teenage
Freaks
Individuals (male &
female) aged between
13-19, studying in
schools and colleges -
away from home or
staying with their
families, maybe
working part-time.
Extroverts, lazy, social
and outgoing. Updated
with trends, and usually
prefer eating out and
grab on junk fast food
and not care much
about healthy fresh
food.
Tasty ready-cooked
food, would enjoy
having dinners at café,
restaurants and would
prefer playing games,
watching movies, etc
over cooking.
Even if they stay alone, they
would hardly cook meals
rather they would prefer
meals that are already
prepared in comparison to
making them.
Teenagers would not
frequently go to grocery
stores to buy meal
preparations for their family
unless they are staying alone.
Low-Moderate
Segmentation is based on people who prepare dinner meals at home while criteria is based on what factors would influence their potential
purchase of Italian Dinner Sausage compared to other available dinner options.
Target- Super Women- Female Homemakers
Their Fear: They want to provide a
great appealing meal to the
family but dread “Dinner
Disaster”
Their Needs: A quick fresh healthy meal
that their husbands and
children enjoy
Insights that
tell their story:
“Its something you always
have in the house because
you can always do
something good with it”
We want them
to think/do:
Think: The product relieves
me from tension/stress of
preparing dinner meal
Do: Use Italian sausage as a
go-to ingredient when
deciding what to make for
dinner
The Italian dinner sausage appeals most to the
super women as they are the primary cooks at
home and it provides a meal solution to their
hectic weekdays, making cooking easier and thus
it is a desirable market segment to target.

4. 4
Cluster Where to Play and Where Not To?
Good Taste +
Freshness
With its strong distribution channel, Saxonville is
able to able to provide fresh good tasting sausages
to retail outlets and thus it is the perfect cluster to
position our brand. But the competitive level is high
here due to possible home cooked dinner options.
Freshness + Bad
Taste
The sausages are enjoyed by family because of its
great taste and texture, hence can not be placed
here.
Frozen + Bad Taste
This is not what our product delivers and also
doesn’t appeal to our target audience’s needs. They
are looking for a fresh, tasty meal and hence this
cluster is not where we fit in.
Good Taste + Frozen
Our sausages are known for being fresh as compared
to dried, semi-dried because of the ability to deliver
it efficiently. Thus this segment doesn’t match our
brand attribute and perception.
Cluster Where to Play and Where Not To?
Versatile Ingredient
+ Quick and Easy to
make
This cluster fulfils the requirement of our target
audience. Italian sausage is quick to make and is a
versatile ingredient meal maker that can be added
to make a wholesome dish for the family. It is the
one with which you can be creative without taking
a lot of time. It is the only one in this cluster and
can dominate, hence this spot is the perfect for us.
Quick & Easy to make
+ Stand alone
ingredient
Italian sausages can be as an ingredient food in
sauces, soups, casseroles, or sautéing it with
vegetables and combining it with pasta or rice to
make a make a quick wholesome tasty meal. Hence
it can be used as a versatile product rather than
stand-alone. Thus isn’t the right cluster for us.
Complicated & Time
consuming + Stand
alone ingredient
The cluster doesn’t define what our product stands
for and also doesn’t cater to the needs of the target
audience. Our product is a meal solution to their
everyday dinner making decisions.
Versatile Ingredient +
Compilated and Time
consuming
Since our target market are looking for a quick easy
weekday meal solution, this isn’t the perfect spot to
play in as it doesn’t match their needs.
Cluster Where to Play and Where Not To?
Effortless + High
Nutrition
Italian sausage can be placed in this cluster because
of its convenience and nutrition value but there are
many other options available to the target audience
to choose from which are much higher in nutrient
content.
High Nutrition +
Laborious
Our product has an above average ratio of solids to
fats making it a healthy option to chose from but it is
quick and easy to prepare, also laborious doesn’t
appeal to our target audience.
Low Nutrition +
Laborious
Our product attributes doesn’t match this cluster
and hence it is not the right spot for us.
Effortless + Low
Nutrition
Placing the product in this sector puts as in risk because of
the low nutrient factor, our sausages have higher ratio of
solids to fats and hence this cluster isn’t the right spot for
us.
Good Taste
Bad Taste
FreshnessFrozen Quick and Easy
to make
Complicated and
Time consuming
Versatile (multifunctional use)
Laborious
High NutritionLow Nutrition
Effortless
ITALIAN SAUSAGE MEAL WITH ITALIAN
SAUSAGE
BEEF STEW
Stand alone Ingredient (single use)
NEW RECIPE
LASAGNA
BROILED SALMON
WITH RICE
ROAST POT
HOME MADE SPAGHETTI
To successfully position the Italian dinner sausage, we have to leverage its product attributes in order to appeal our target audience and
be perceived as a solution to their weekday dinner meals.
ITALIAN SAUSAGE
BROILED SALMON WITH RICE
CHICKEN WITH SALAD
ROAST CHICKEN WITH GRAVY
ROAST POT
BEEF STEW
LASAGNA
MAC N CHEESE
MAC N CHEESE
Versatility along with quick and easy to make is the perfect
spot as these are the attributes that most resonate with
our target audience among all the other clusters and also
there is no risk of competitors in this cluster so we can
dominate it while exploiting our competitive advantage of
delivering fresh sausages.
HOME MADE SPAGHETTI
BEEF STEWBIBLLY BOB
COUNTRY HOME NEW RECIPE
BROILED SALMON WITH RICE
ROAST POT

5. 5
Brand Ladder Overview
Emotional
Benefits
- Family coming together after a long
day for a tasty meal- sharing moments
- A sense of satisfaction to see their
family smile
- Appreciation from family members
Functional
Benefits
-The product is multi-functional and
compatible to be used with different
meal combinations
-It is quick and easy to make (meal
maker)
Product
Attributes
-Production of fresh sausages as opposed
to smoked or semi-dried
-High quality with good color, an above
average ratio of solids to fats, and great
taste and texture
Target Needs
- A meal solution for their weekday
dinner meals
-A quick meal that their family loves and
enjoys
“For super women (female home makers) seeking a healthy and an easy
dinner solution for their families, Italian sausages (Nonna’s best) happens to
be a significant meal maker that allows them to prepare variety of meal
combinations in few minutes, offering adequate freshness and taste to be
adored by the family members thus bringing them together.”
Losing Zone
Dumb Zone Risky Zone
Winning Zone
MULTI FUNCTIONAL
APPRECIATION
QUICK AND EASY TO MAKE
HIGH NUTRITION
HELPS ME FEEL CONFIDENT
Assessing potential brand benefits
Positioning our product as versatile, quick and easy is the closest way to match our product attributes in the minds and hearts of the
consumers.

6. 6
Branding Options: Brand Awareness Source of Growth Brand's Perceived Value (Impact on Customer) Impact on Channels
Vivio by Saxonville
( Endorsed Brand )
- Branding under this approach might
give the required credibility needed for
the product to launch as Saxonville is a
well established firm operating since 70
years providing quality products.
-It limits the growth of new other flavor
other than Italian sausages, new branding
will be required for any other flavor
because there will be creative, legal, and
time-to-market costs for every endorsed
brand
-Vivio will gain required market attention if
branded as an endorsed brand by Saxonville,
but this doesn’t tie to the distinct offering we
are trying to convey.
-The channel partners have been associated
with the Saxonville and hence a product
branded under it will not have much
difficulty to gain shelf spaces in the stores.
Saxonville Italian Sausage
( Branded House )
-During research, branding under this
approach received a lot of votes
because of the brand credibility.
Branding under this adds a trust factor,
as company is known for its product
quality.
Saxonville’s Italian Sausage might gain
significant revenues due to current
demand for Italian sausages, but in the
long term the demand might decrease or a
new flavor could be introduced in the
market making this product less appealing.
-Saxonville was considered a poor brand name
among Italian sausage users because of its more
“German- seeming” heritage also some
consumers thought that the name doesn’t go
with an Italian product. Also consumers might
get confused and not perceive the product
(meal solution) they same way because of its
already pre perceived image.
-Saxonville has been in the market since
long and thus channel partners will not be
hesitant and will have a very open approach
to the product marjeted under their name
as it has built the earned recognition.
Meal Solutions: Nonna’s
Best
(House of Brand+ New
Name)
-Taking this approach might require
significant marketing efforts to ensure
credibility and maximum awareness but
spending this amount helps us to
sustain in the market, because new
flavor meal solutions can be added to
appeal the target according to their
demands.
-Since the demand for other two products
of Saxonville has been flat, branding under
a new name and as a stand alone brand
(Dinner Solutions) makes it easier to add
product lines like different sausage flavors
in the later phase that can be a platform
for future growth.
-Keeping a new product name allows us to
clearly position the product on functional
benefit and dominate the segment we are
targeting. The brand will directly connect with
its target customers as it ties in to their needs
(meal solution) This helps us to have diversity in
our products.
-The market channels through which we sell
our products can be convinced as the
demand for the Italian sausage market is
growing, and also our positioning directly
corresponds with the needs of the target
audience (meal solution) which will increase
sales. Also it will still be owned by
Saxonville hence the retailers could trust
the relationship with us.
Vivio Fresh Italian Sausage
(House of Brands)
-Vivio had matched the level of
category growth and hence while
launching it with the same name
nationally it would cost us less as it
already has a position in the market.
The Italian market for sausages has been
growing exponentially and thus is earning
revenue but there is not much room for
growth if the demand declines.
-Vivio ranked 7th among the 20 brand names
that fit best with the ideal Italian sausage and
hence has a perceived image in the mind of the
audience.
-Vivio is already distributed in 16% of the
markets, hence it wont be much of to
launch it nationally.
It is important to weigh the branding decisions to analyze the impact of each on our business and choose the one that is most feasible.

7. 7
•Giving the product new identity and giving it a
authentic Italian name that resonate with
people
Meal Solutions:
Nonna’s Best
•Since we have positioned our brand as
versatile, because it can be combined with
different food combinations to make
wholesome meal, this is the tagline that links
to the positioning statement.
Tagline:
Have it your
way
Recommendation:
House of Brands + New Name
Overview
1. New Offering
While launching under stand alone brand we are
trying to create a differentiated approach for
positioning this product: this is to be perceived as
a go-to dinner option after their hectic day which
is quick and easy to prepare.
A unique offering which cannot emerge under
the shadow of existing brand
2. Potential for growth
In the long run new products such as different
flavors can be added to dinner solutions, as the
demand for Italian sausages may or may not
decline.
3. Different Identity and Diversity
If the parent brand faces some legal issue, it
doesn't affect us and we will continue to earn
profits
Opportunity to be present in different market
niches, targeting different audience
Diversity in product offerings
Stand alone branding along with new name seems the right way to launch Italian sausages to ensure the perception it is aiming for
among its target audience.

8. VRIO Analysis
8
Company Capabilities Valuable Rare Costly to imitate Organized to Exploit
Distribution Network Yes-Saxonville delivers sausages that are
fresh and not semi-dried or smoked
throughout US.
Yes- Yes it is rare as the other competitors
are not providing fresh sausages, this is
possible due to its strong distribution
network.
Yes- Having a widespread distribution
network requires huge amount of
resources.
Yes- Saxonville has been successfully
selling its products since years around US
because of its logistics and distribution
network.
Saxonville- Brand Image Yes- Saxonville is a 70 year old business
providing sausages and hence has gained
recognition among the consumers.
Yes- People associated the company as
“The Family Company” that is established
since years providing quality products
Yes- It has taken years to build the image
in the mid of the customers hence it is
costly to compete at their level.
Yes- They have established its image in the
market since years and are preforming in
line with it delivering quality products.
Channel Network Yes- Saxonville has been selling their
products through these retailers since
years
No- Many competitors are building
relationships with the retailers to enhance
its offerings
Yes- It is costly as it requires time, money
and relationships with the retailer
Yes-Saxonville has been successfully selling
its products through its channel network,
earning its revenue stream
Financial Position & Experience Yes- 70 years old established company
with large financial cushion
Yes- Years of experience in this field and
good revenue stream
Yes- Experience comes with time and
knowledge about the industry hence it is
costly to imitate
Yes- They use their knowledge to adapt
according to the market needs