Saxonville tactical marketing_plan_launch_of_national_italian_sausage_brand

SAXONVILLE

Tactical Marketing Plan:
Launch of National Italian
Sausage Brand
Primo Italian Sausage
Nicholas Dilley
Dave Mongan
Dan Wheeler
James Wolf
2/13/2008

A comprehensive report into the viability of a national Italian sausage brand. Including marketing
research, product analysis, promotional and price recommendations.

Tactical Marketing Plan: Launch of National Italian Sausage Brand
February 13, 2008

TABLE OF CONTENTS

Analysis of Product Market 3

Analysis of External Market 4

Customer Analysis 5

Competitor Analysis 6

Company Analysis 8

Marketing Information Requirements 9

Product 17

Place 19

Promotion 20

Price 24

Control 25

Financial Forecasts 26

Timing 28

References 29

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February 13, 2008

ANALYSIS OF PRODUCT MARKET

QUALITATIVE ANALYSIS

Stagnant growth rates for bratwurst and breakfast categories across all sausage
producers nationwide.
Several years of solid growth rates for Italian sausage across all producers
nationwide.
Grocers are finding that the predicted growth of specialty meat items can help raise
their profits, especially if armed with educational materials and product-specific
knowledge. There is becoming a need for point of contact personnel to understand
the common terminology such as “organic, natural, and naturally raised”.1
While dinner sausage has become the fastest growing product within the national
sausage market, it is important to note that consumers view Italian sausage as an
ingredient rather than a dinner option. This attitude will need to be addressed in
the promotional campaign.3
Industry research increasingly shows the consumer’s demand of wholesome
product to be on the rise. This shift in consumer preferences will need to be
addressed in the promotional campaign.2
No current national producer of fresh product
29 current regional producers of fresh product

MAJOR CONSTRAINTS

Italian sausage marketing potentially leads to cannibalism of other portfolio
products
Capital intensive distribution network necessary for delivery of fresh product
nationwide
Large number of regional producers necessitate flexible marketing in order to be
competitive in all markets

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February 13, 2008

ANALYSIS OF EXTERNAL MARKET

ECONOMIC ENVIRONMENT

While the Federal Reserve Bank of Chicago is forecasting the national economy to
expand by a rate of 2.5%, in line with the last two years growth numbers, they are
quick to point out that this figure is considered below the potential growth for the
United States. We should also expect to see volatile quarterly fluctuations, as well as
slightly higher unemployment figures when compared to last year. 5
While core inflation is expected to dip slightly below current levels throughout the
year, it is important to note that this figure excludes energy and food prices, both of
which are predicted to continue their upward trend.5
Rising food and energy costs have adversely affected consumer expectations and led
to a reduction in consumer consumption. Furthermore, consumers are altering their
consumption decisions based on these rising prices coupled with the collapse in the
housing sector.5
While these Federal Reserve forecasts certainly paint a bleak picture for the state of
the economy as we proceed with our planned expansion into new markets, we
interpret this data much differently. Increasing skepticism among consumers about
job and wage growth provides our company with an opportunity to capitalize on
decreasing consumption spending. As consumers change their spending habits,
they will be looking for less expensive products that are easily substituted for areas
where their spending is traditionally high. One change we expect to see is the
consumer’s increasing unwillingness to spend money dining out. As many people
across the nation increase the frequency at which they eat meals prepared at home,
there will be greater pressure to create new and unique meals. Saxonville has an
opportunity to demonstrate to consumers the many uses of our Italian sausage
products, how they allow for a wide variety of delicious meals with a minimum
amount of effort, and how using our products will ultimately save them money in
uncertain times.

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February 13, 2008

CUSTOMER ANALYSIS

POSSIBLE SEGMENTING DIMENSIONS

Customer Attributes
o Values creating wholesome meals with fresh ingredients
o Desires to please entire family with single dish
o Hopes for quick meal preparation without sacrificing nutritional quality
o Envisions family dinner facilitating feelings of togetherness

IDENTIFICATION OF TARGET MARKET

Primary demographics
o Female head-of-households
o Sixty percent of users are described as a “loyalist”
Secondary demographics
o Work status
 Full-time
 Part-time
 Work from home
 Homemaker
o Number of children in household
o Education level
o Household income

CURRENT MARKET CONSIDERATIONS

Behavior considerations
o Vivio Loyalists
o Competitive-brand loyalists
o Degree of price-sensitivity
o Frequency of every day dinner preparation
o Use of other products within company’s portfolio
Geographic considerations
o Currently in strong Italian sausage markets
o Strong Bratwurst markets where Saxonville is well developed
o Strong Saxonville markets were Italian sausage is distributed
o Strong Saxonville markets where Vivio is distributed

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February 13, 2008

TYPES OF BUYING SITUATIONS

First time product purchase triggered by positive association with family branded
products
Current consumers who view Italian sausage as a “meal-maker”, an ‘ingredient’ food
in sauces, soups, and casseroles

NATURE OF RELATIONSHIP WITH CUSTOMERS

Saxonville will need to establish itself as the company that understands the core
values of our customers
Regardless of why a customer chooses Saxonville Vivio Italian sausage, their needs
will be met by our quality product

COMPETITOR ANALYSIS

NATURE OF CURRENT COMPETITION

Current producers of nationally distributed sausage distribute frozen product
National competitors have existing nationwide distribution networks
Products with their portfolios are marketed under a nationally recognized and
respected family brand
o Jimmy Dean
 Primary focus is on breakfast meats
 Web resources greet customer with, “The Day Begins with a Happy
Breakfast”7a
 Current marketing involves Happy Breakfast Tour7b
Free samples
Live cooking demonstrations with professional chef
Focus on teaching consumers how to create home-style
breakfast quickly and easily
o Bob Evans
 Primary focus on “hearty home style” image of their products6
 Product portfolio concentrates on breakfast meats
o Johnsonville
 Primary focus on sausage as “party food”
 Marketing aimed at male consumers during warmer seasons
“Flavor Up Your Game Day Party”8a
 Relies on family brand identity to sell new products8b

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February 13, 2008

Current producers of fresh sausage products confined to geographic regions
Local consumers prefer purchasing a product that is perceived to be “home grown”
Fresh product made with local ingredients instills a sense of wholesomeness and
nutrition, opposed to frozen or nationally distributed products
o Syracuse Sausage Company
 Based in Texas
 Uses founder’s heritage to promote brand identity of, “True Italian
Heritage”9a
 Promotes use of highest quality hand blended spices and lean meats9b
 Offers fresh Italian sausage, cooked products, gift packs
o Scimeca’s Famous Italian Sausage Company
 Based in Kansas City, Kansas10b
 Brand identity rests on family tradition10a
 Offers fresh Italian sausage and pre-cooked products
o Fortuna’s Sausage Co.
 Promotion centers on “Homemade” aspect of production11a
 Uses interactive media to provide cooking tips to consumers
 Product has received a number of national accolades and
endorsements
Google’s #1 pick, “Best Italian Sausage”
Featured in L.A. Times, Playboy, Westerly Sun, The Tonight
Show11b

PROSPECTIVE COMPETITORS AND LIKELY RESPONSES

Competitors to our planned nationwide fresh product will likely come from
established companies
o Current Frozen Competitors
 May attempt to introduce fresh product under family brand, then
distribute through existing supply chain
o Current Fresh competitors
 May attempt to distribute to larger geographic region, possibly
nationwide

COMPETITVE BARRIERS TO OVERCOME

Frozen national distributors
o Nationwide brand awareness
o Experience marketing product nationally
Fresh regional distributors
o Regional brand awareness
o Consumers identify with local heritage

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February 13, 2008

POTENTIAL AREAS OF COMPARATIVE ADVANTAGE

Respected products within family brand
Nationwide distribution network for fresh product
Vivio implied branding as “authentic Italian sausage” not as locally produced

COMPANY ANALYSIS

COMPANY OBJECTIVE

Launch a national Italian sausage brand
Achieve profit objectives for the next fiscal year

COMPANY RESOURCES

National distribution network
Strong brand recognition
Vivio brand Italian sausage has matched the previous year’s rate of growth, though it
is only available in 16% of the nation’s supermarkets.

S.W.O.T. ANALYSIS

Strengths
o National distribution network
o Strong brand recognition
Weaknesses
o Potential confusion of Italian-named sausage, Vivio, from German-named
company, Saxonville
o No comprehensive advertising campaign
o Possible cannibalism of similar products within portfolio
Opportunities
o No national competitors of fresh Italian sausage
o Category shows growth across all producers nationwide
Threats
o 29 regional brands with large percentage of market share according to
geographic region
o Frozen product is currently distributed nationwide by a number of other
companies

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February 13, 2008

MARKETING INFORMATION REQUIREMENTS

CURRENT MARKET RESEARCH

Planning new research on the target customer
o Attitude and Usage data, Pennsylvania research facility
 Men and women aged 25-50
 Research identifies primary and secondary considerations
 Relevant data from latest A&U study:
Female head-of-household are primary purchasers of Italian sausage.
Six out of last 10 purchases given to a particular brand is considered “a loyalist.”
Heavy users used Italian sausage 3 + times a month.
Mean Italian sausage usage constituted two times every six weeks.
Heavy usage is among consumers aged 20-50 years.
Age differentiation tends to manifest in 10 year increments.
 Other potential demographic considerations:
Working out-of-the home, part- or full-time vs. working at home as a homemaker
The number of children in the household
Ages of children in the household
Education level
Household income level
 Other potential behavior consideration:
Vivio loyalists
Competitive-brand Italian sausage loyalists
Uses/ does not use private label and store brands (degree of price sensitivity)
Uses/ does not use Saxonville Brats
Uses/ does not use Saxonville Breakfast Sausage
Frequency of every-day dinner preparation
Use of other sausage products; bratwurst, breakfast, kielbasa, etc.
 Geographic considerations
Strong Italian sausage markets where Vivio is distributed
Markets where Vivio is particularly strong
Strong Bratwurst markets where Saxonville is well developed
Strong Saxonville markets where Italian sausage is distributed
Strong Saxonville markets where Vivio is distributed

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February 13, 2008

Building on learning from focus groups
o Consumer behavior
o Research identifies habits of typical Italian sausage users
Three groups of Italian sausages consumers clearly emerged. Heavy users purchased at
least once a week during the winter months and once every two weeks during the spring
and summer. Light users purchased at least once every six weeks with the same seasonal
variations as the heavy users. (Earlier A&U data had revealed the Negligible and Non-Users
seldom if ever purchased Italian sausage).
Heavy, Medium, and Light users alike reported that Italian sausage made their lives easier
because it was a meal that their husbands and children enjoyed. It was the one meal they
prepared that they did not need to call the family to the table to eat.
Respondents were consistent in reporting that they did the cooking versus their partners
93% versus 7% of the time, and that cooking was done primarily for evening dinner meals.
Most respondents were very passionate in their descriptions of cooking and eating Italian
sausage. They said it “had the same effect as popcorn at the movie theater,” in that “the
minute you smell it you have to have some.” Many of the consumer sessions ended with
respondents saying they would go home and make Italian sausage for dinner that night.
Italian sausage was considered a great “meal-maker.” Unlike bratwurst and breakfast
sausage, respondents reported using Italian sausages as an “ingredient” food in sauces,
soups, and casseroles, or sautéing it with a few vegetables and then combining with pasta or
rice. Users reported felling they always “had a quick mean in the house” if there was Italian
sausage in the refrigerator.
The Vivio brand was considered by loyalists and competitive users alike to be of
exceptionally high quality, with good color, and above-average ratio of solids to fats, and
great taste and texture.

o Brand name issues
o Research examines possible conflict for family-branded product
o Respondents were given 20 brand names, including Vivio and Saxonville, and asked
to select the names that fit best with their “ideal” Italian sausage products. The top-
scoring names across groups were “Italy’s Best,” “Primo,” and “Perfecto.” “Vivio”
ranked seventh.
o “Saxonville Italian Sausage” did receive a lot of votes among Italian sausage users
whether or not they used the brats or breakfast products. Consumers stated that
they knew Saxonville by its moniker, “The Family Company,” and believed it was
well-established business that would make good product.
o In geographies where Saxonville Bratwurst was distributed, “Saxonville” was
considered a poor brand name among Italian sausage users because of the more
“German-seeming” heritage.
o Among heavy Saxonville Brat users, “Saxonville Italian Sausage” received a mixed
response: while consumers thought it might not “go with” an “Italian” product, they
believed anything from Saxonville would have exceptional product quality.

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February 13, 2008

o Product positioning map
o Research gives clear picture of consumer’s perceived trade-offs between ease
of meal preparation and which family members will most likely enjoy it.
Meals that require minimal preparation are most enjoyed by children, while
the adults desire meals that involve much greater skill and time.
o The perceptual maps show an incredible opportunity for a product to fill
both the need of easy preparation and the need to please the entire family.

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February 13, 2008

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February 13, 2008

o Initial positioning territories
o Research identifies a number of core values held by current users of Italian
sausage. These are then narrowed down to the four most powerful buying
influences.

Family Connection
Family and friends around the table with good food, sharing and enjoying themselves and
each other, is what good living is all about. Everybody loves Italian sausage and the meal it
makes-and she is the magnet that pulls everyone in.
Clever Cooking
Using fresh, high-quality ingredients and making a recipe her own way, she puts a little of
herself into the meal. Italian sausage is so versatile it can be used in a number of different
ways and it always adds a little zest to her dishes.
Confidence
She’s not a confident cook especially when it comes to making things that are new and
different. She wants to make meals that her family will not only eat, but will love. With
Italian sausage she knows that whatever she makes will taste good and that she can’t go
wrong. Italian sausage is a sure fire thing that enables her to “pull it off.”
Appreciation
Her family knows that her efforts in the kitchen are a true labor of love as she works to
make things that will keep everyone interested in “what’s for dinner.” While she doesn’t
measure herself by praise or their appreciation, she’s happy to be recognized by them; it’s a
nice affirmation.
Quick and Easy
Italian sausage is quick and easy and so versatile that she can pull a delicious and
wholesome meal together in less than 30 minutes. She can take nearly anything she
happens to have on hand-dry pasta, rice, fresh peppers, tomatoes, etc.-and make a quick
homemade meal.
Tradition
She remembers simpler times when everyone came to the table every day and shared good
home-made cooking. She’s like to provide a home environment where her children can
have those same feelings and grow up with happy memories of their childhoods. Italian
sausage has always been a part of her life and is the main ingredient in a number of her
mother’s recipes that she makes today.

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February 13, 2008

Building positioning concepts
o Mock concepts
o The four most powerful buying influences are further developed to reflect
how the features of the product achieve the benefits sought after in each
concept.

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February 13, 2008

Positioning concept voting
o Analysis to further narrow the concepts down to the top two brand positions

Concepts: (F) Family (C) Clever Cooking (B) Balancing Act (L) Labor of Love
Connection
N= 69 69 69 69
st
1 Votes: 37 14 9 9
2nd Votes: 15 35 12 7
rd
3 Votes: 16 12 9 1
Top Two Votes 52 49 21 16
54% of first place votes went to “Family Connection”
Less than half as many went to “Clever Cooking” and “Balancing Act” respectively

*Note: not all respondents selected a third favorite

R&D, graphics, and sales
o Focus groups brainstorm a number of ideas for continuing innovation of the
physical product and its promotion.
 R&D
Kid-friendly-shaped pre-cut sausage pieces; dinosaurs, goldfish
Different flavor varieties: spicy mustard, sweet “Oriental” style, gourmet cheese and smoked
flavor, macaroni and cheese flavor, jalapeno pepper and cheese-infused “stuffed” varieties
Insert fresh herbs that would be visible through the sausage casing but no impact the taste
of the sausage
Frozen sausage pellets, both raw and pre-cooked
Different forms: uncooked pre-sliced “disks,” mini-patties, mini-links, and precooked
“meatballs,” “salami” slices and “disks”
 Graphics
Label size and shape changes to maximize the product visibility window and provide in-
case differentiation
Alternate label graphics using background photographs, fresh ingredients depictions, the
Italian flag
Faux labels used as tip-ins in magazines to reinforce the brand
Labels with “back-placed” recipes
Different label-copy stickers that “pop”
 Sales
Larger package size with dinner-plate shaped trays
Running more frequent BOGO’s (buy-one-get-one promotions)
Famous potential spokespeople like Rachael Ray
Refrigerated display units placed in the produce and dry grocery sections
Celebrity recipes
Celebrity store appearance program with on-site sampling
Temporary Merchandising Display units that carry recipe cards, great cooking-with-sausage
graphics, and can hold store merchandise, given with new account authorizations and/or
increased facings

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February 13, 2008

Additional Research
o Concept assessment
o Research into the purchasing intent of prospective customers finds a near
statistical equality between the final two positioning concepts.

PURCHASE INTENT________________ ______CONCEPT_______________
Family Connection Clever Cooking
(A) (B)
Base Total Respondents (250) (256)
% %
Definitely/Probably Would Buy 81 72
Definitely would buy it 23 41(A)
Probably would buy it 58(B) 31
Might or might not buy it 15 2
Probably/Definitely Would Not Buy 4 2
Probably would not buy it 1 1
Definitely would not buy it 1 1

Note: letters in parentheses denote relative statistical significance at the 95%confidence level

FUTURE MARKET RESEARCH

It will be important to perform identical research in new markets after the first
season of nationwide sales
Research may show different preferences for usage, positioning, and concepts than
identified in preliminary research
There remains the possibility that single product will need to be marketed
differently according to geographical preferences

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February 13, 2008

PRODUCT

PRODUCT CLASS

Saxonville’s Italian sausage is a consumer class product.
As a homogeneous shopping product, consumers view all competitors’ products as
substitutes and will buy according to price. As price will be the main factor in the
buying decision, there will be implications for our pricing strategy as we launch
nationwide. Furthermore, it will be vital that we differentiate our product from that
of the competitors to avoid a pricing battle.

CURRENT PRODUCT LIFE CYCLE STAGES

Growth product stage in 16% of nation’s supermarkets
Product introduction stage in remaining 84% of markets

BRANDING

In markets where the Vivio brand is currently established, we have enjoyed success
with family branding. In these markets, other portfolio items such as bratwurst are
not the staple item they are in the Midwest. As such, when Vivio was marketed
under the Saxonville flag, consumers believed the product to be of exceptional
quality. However, research in areas where there is less brand awareness, the name
Saxonville appears too German to produce a quality Italian sausage. We could
choose to continue with the family branding of the Italian sausage product, with the
assumption that the Saxonville name will continue to encourage belief in a quality
product. There is the possibility that confusion of the product’s heritage will have
an adverse affect on the brand identity. Another possibility would be to market the
Italian sausage under an individual brand name. While this certainly alleviates any
confusion surrounding the product’s heritage; it fails to utilize the powerful family
branding that has enjoyed success in certain markets.
It is our finding that there is a viable compromise between the two plans.
Saxonville’s Italian sausage will continue to be marketed under the family brand
name Vivio in the markets that it is currently distributed in. This will allow the
product to benefit from the positive association consumers have with all Saxonville
products. In the remaining 84% of the nation’s supermarkets, the Italian sausage
will be branded individually under the name Primo Italian sausage. The name
scores high in market research to determine the ideal Italian sausage name, and will
alleviate any confusion with a product from a German-sounding company.

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February 13, 2008

o While it may appear to some that this plan cannot be accomplished, further
research has found a number of products that are marketed under different
names according to geographic region. When Dryer’s Grand Ice Cream
brand began its eastern expansion from California in the early 1980’s, it came
across a well-known competitor with a similar name, to further differentiate
itself, Dryer’s Grand was to become known as Edy’s Grand in markets east of
the Rocky Mountains.4

PACKAGING

Large windows so that fresh ingredients are highly visible
Strong Italian colors/images to promote heritage
Included recipes for quick meal ideas
“Tips and Tricks” to teach clever cooking techniques

CULTURAL SENSITIVTY OF PRODUCT

While Italian sausage is generally viewed as a rather inert product, there are aspects
that should be considered. While Saxonville uses only the freshest ingredients and
top quality meat in the production of its Italian sausage, the product is essentially a
pork derivative. As such, it would be wise to consider the demographic groups that
do not use pork products, religious and ethnic. Geographic concentrations of such
groups should be taken into account when determining the specific advertising copy
to be used in each market.12
We should also take care to not discount special interest groups. Organizations that
bring pressure on businesses in order to effect change for a specific cause often
target industry leaders. For instance, should animal rights activists become
concerned with the treatment of animals used in the production of pork products;
they will likely focus their attention on the largest producers, as they will have the
greatest influence of suppliers. It would benefit Saxonville to take proactive
measures up the supply chain to ensure the ethical treatment of animals. Such
action could preempt any charges by special interest groups.13

FIT WITH PRODUCT LINE

Company product portfolio
o Our cash cow product remains our bratwurst line. As 70% of sales, the
product is in a maturity stage nationwide, but projects little opportunity for
growth.
o Breakfast sausages remain a question mark product. Though also a mature
product, ne expectation for growth, and a highly competitive national market
raise doubts about the viability of the breakfast sausage line.

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February 13, 2008

o The rising star is certainly the Italian sausage line. With nationwide growth
in the double digits, and expected continued growth for the foreseeable
future, it is imperative we capitalize on this opportunity by launching the
first national brand of fresh Italian sausage.

PLACE

OBJECTIVES

For Vivio/Primo brand Italian sausage to be available in 100% of the nation’s
supermarkets. Because of the near commodity status of the product, consumers are
unlikely to make a special trip for Italian sausage. We must recognize the
importance of time and place utility to our consumers. Purchasers of our product
will expect the ability to buy Vivio/Primo brand Italian sausage when and where
they buy the rest of their food items.
High level of customer service required in introductory markets. As a near
commodity item, we must have personnel in place, whether our own sales
representatives or retail employees trained in the features and benefits of our
product, to aid in differentiating ourselves from our competitors.

TYPE OF CHANNEL

Distribution channels already in existence from national distribution of other
portfolio products

TRANSPORTATION REQUIREMENTS

Currently have the necessary shipping equipment used for national distribution of
other portfolio products

FACILITIES REQUIRED

Currently have necessary facilities used for national distribution of other portfolio
products

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February 13, 2008

PROMOTION

OBJECTIVES

The major objective for Saxonville’s promotion efforts will be to introduce the Primo
brand to a nationwide market.

MAJOR THEME

The research into the identified product positioning concepts shows strong support
for both the “family connection” and “clever cooking” marketing angles. While
“family connection” surpassed all other mock concepts, when asked about intent to
buy respondents answered with statistical significance that they would “definitely
buy” the product marketed under “clever cooking”. Further insight into the core
values of consumers reveal that the “family connection” benefit may be reached by
the “clever cooking” feature. As such, we recommend that Saxonville market its
Primo brand Italian sausage as an ingredient that allows female head-of-households
to, “Release the chef within!”

PROMOTIONAL BLEND

Advertising
o In the 16% of national markets in which Vivio brand Italian sausage is sold,
the brand was born with virtually no comprehensive advertising. Basic trade
support and in-store sampling was all that was needed to raise the brand
awareness. Coupled with the family name, Saxonville, customers knew they
could expect a quality product. Within these current markets, we can still
benefit by playing to the customers routinized response behavior. When a
product is near commodity level, has a high level of price elasticity, and a
small unit value, it is important to use a heavy amount of advertising as
reminders. In conjunction with intensive distribution, and a copy thrust that
downplays product info, we must simply remind current consumers to,
“Don’t forget the sausage!”

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February 13, 2008

o Entering the national market, however, will require a much more
comprehensive advertising campaign. We will not only be competing with
nationally known and respected companies that currently produce a frozen
product, but regional producers of fresh Italian sausage that have enjoyed
relatively little competition within their geographical regions. These
consumers will be exercising a degree of limited problem solving as they are
currently aware of the product class, but may be willing to spend a little time
investigating the differences between brands. Copy thrust in these emerging
markets will require much more information about the brand, as well as
where the product may be purchased. Once in the store, it will be up to print
media and personal selling to finish educating the consumer about the new
choice in Italian sausage.
o Our advertising campaign must demonstrate the ability for time-constrained
mothers and wives to put their own creativity into making a meal that
everyone will love. Creating a unique dish that is both delicious and
wholesome satisfies the woman’s desire to add a little of themselves to every
meal. Apart from this internalized benefit comes the belief that the family
will once again be excited about dinner, and the connection that so many
women desire will also be fulfilled.
o Italian sausage is a product that simply must be experienced to promote
sales. Television advertising will be a key component to the campaign. As
our primary demographic is women with husbands and children who cook
dinner for the family but want something everyone can enjoy, we can
maximize our investment by being selective about when we air commercial
spots. Our initial television campaign will be centered in the early afternoon
time slots on the broadcast networks. Such television programming as, The
Martha Stewart Show, and Rachel Ray daily show women creating one-of-a-
kind meals using all manner of spice and seasoning, with a minimum of
effort. The viewers of these shows are at once inspired by such
demonstrations, and discouraged by their own lack of knowledge. Promoting
Vivio Italian sausage as the product with which such amazing meals can be
prepared, for even those who doubt their ability, we tap into our target
market at the very height of their emotion.

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February 13, 2008

o Print media will also be an important aspect of our advertising blend. As we
are promoting our product as the answer to the customer’s desire to express
their love through the meals they create, it is important to aid them in their
knowledge. Included with supermarket mailers and manufacturer coupons,
it is vital we include custom recipes for the customer to use. As well as entire
recipes, we will lend credence to our market thrust by adding such features
as “Tips and Tricks for making a recipe your own.” In such sections, we will
describe the various spices and seasonings that are available to consumers,
as well as the effects they have on food. Rather than forcing a particular set
of ingredients, provide a full list of substitutes for each recipe so that the
individual consumer has options to personalize each meal.
Personal Selling
o While the free samples provided at many retailers allow potential consumers
to taste the product, we must take this idea even further. Limiting ourselves
to precooked sausage placed on a nondescript tray and given to anyone who
passes by, limits the experience our consumers will have. We need to
aggressively promote cooking demonstrations, such as providing our own
chefs (possibly current employees trained in cooking presentations) to
prepare a meal in front of the customer. This will allow the public to not just
see the sausage, but to experience the aroma as fresh sausage is cooked, to
hear the sizzle in the skillet, to taste a freshly created dish using a fresh
product. Individual customers may even be invited to step in and aid in the
cooking, reinforcing the idea that anyone can cook a unique meal without a
lot of time or training.
Sales promotion
o Sales promotion is likely the one area of our national advertising campaign
that is currently suitable for a national audience. We will continue to provide
retailers with the same trade support through offers and incentives currently
provided in the existing markets. We will also continue with the strategy of
providing consumer deals every other month as we did in the initial markets.
Publicity
o It is important that the company demonstrate our commitment to helping the
public not just with daily task of cooking a creative meal the whole family
will enjoy, but to aid our friends and neighbors when surviving become the
main goal. As natural disasters seem to occur with more frequency, and a
greater number of people are displaced by these events, Saxonville needs to
understand the needs of the people, and be ready to do our part in aiding
them however we can. An emergency relief program of donating food items
to the support groups that come to the rescue of individuals in times of
disaster shows the commitment to social responsibility that is the foundation
of the Saxonville family. The expressed goal of this project should not be to
garner goodwill, but to simply give back to the community that has put its
trust in our product and our company.

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February 13, 2008

Interactive Media
o The internet will allow us the opportunity to provide consumers with
additional support that ties in with our “clever cooking” theme. Recipe ideas,
tricks for ingredient substitutions and seasoning alternatives will be
augmented by archived videos of actual cooking demonstrations. Televised
cooking shows or live demonstrations are great, but they rely on the
consumer’s ability to recall the steps hours or even days later. A greater
benefit is provided by allowing the home chef to watch a program over the
internet while creating their meal. The ability to pause and rewind a video
will allow the cook to move at her own pace. The ease with which ideas for
ingredient substitutions or seasoning alternatives can be accessed allow for
even greater creativity during meal preparation.
Who will do the work
o The print and television media will need to be handled by an advertising
agency. The size and sophistication of the campaign will prove too
complicated to handle within the company.
o The personal selling may require the hiring of new employees, individuals
from a culinary background who can travel to the various regions to put on
cooking demonstrations. Another viable option would be to train the current
sales managers for each region on how to prepare a few simple meals before
a live audience. We feel that the latter option will be the best, at least during
the introduction stage. The regional sales representatives already have
established relationships with retailers in their area. Because these
representatives are already located in each major area, there is no additional
cost of transporting a few specialists to each region. Furthermore, the early
stages of promoting will not require extensive cooking skills, simply a few
basic dishes that can be quickly learned and preformed. As the product
moves into the growth stage, and consumers become accustomed to the basic
recipes demonstrated, we may find that trained specialists will become a
greater benefit.
o Interactive media can be produced through either our current information
technology department, or through the outsourcing to an independent
contractor. Further cost analysis will determine which option will produce
the greatest benefit at the lowest cost.

Page | 23

February 13, 2008

PRICE

NATURE OF DEMAND

Due to the nature of our competition and availability of substitutes, we expect a high
degree of price elasticity. While there will certainly be some flexibility in which to
maneuver the price within a market, we can predict extremely limited flexibility.
Pricing too low will only serve to discount our product as an inferior good, yet
pricing too high will drive consumers toward purchasing any one of our
competitor’s brands.
There are a number of pricing strategies we may want to adopt. A target return
objective, or profit maximization objective will shift focus to markets where the
most profit is to be reached. While this seems to fit well with the company’s
objective of reaching our profit goals for the next year, it will ultimately ignore a
large number of markets where the highest markups are simply unattainable.
Certainly a sales-oriented objective seems to fit with the, considering the method we
have chosen to evaluate performance, yet this type of strategy often ignores profit,
the underlying motivation behind the launch of the national brand. Penetration
pricing is a viable option, especially when moving into regions with a dominant local
producer. However, this method can easily lead to a pricing war, with each
competitor dropping prices to gain market-share. It is important to be competitive,
without giving away too much in profits. For these reasons, it is recommended that
we follow a combination of introductory pricing, discounts for the early stages of the
national product launch, and flexible pricing in order to achieve both our
distribution and profit goals.
Price levels will need to be tied to a more aggressive target than a simple markup of
our store brand. Currently Vivio Italian sausage is priced at a twenty percent
markup from our store brand’s price. While this strategy has produced a
competitive price within our existing markets, it may not be the best strategy to
pursue in a nationwide plan. As such we propose an alternative pricing scheme, one
that is tied to the prices of regional leaders. This method of determining our
product’s price will ensure competitive pricing in new markets, more so than a
simple markup of our own store brand product.

Page | 24

February 13, 2008

Adjustments to the list price will follow not only geographic terms, but seasonal as
well. The pegging of our price to that of regional producers both ensures a
competitive price in every market, and will inherently involve a form of pricing
discrimination. Regional pricing of our brand will allow for higher prices in certain
markets, as well as lower prices in other markets. Furthermore, our pricing will
follow seasonal demand differences for Italian sausage. Research shows that the
winter months, October through February, are the months when Italian sausage
products reach their peak demand. As such, it will be possible to charge a higher
price that reflects this increased demand. During the summer months, when
demand shifts to bratwurst and other products within our portfolio, we will find it
beneficial to charge a lower price to increase sales.

CONTROL

CONCURRENT FEEDBACK

It is of the utmost importance that we evaluate the success of our nationwide
product using real time data. Sales volume will be the most effective way of
concurrently tracking our performance. As these numbers will be available
monthly, we will be able to compare actual sales values against our projections.
Regional sales managers will play a crucial role in the concurrent control process as
well. Actual versus budgeted sales variances can best be interpreted by these
employees that already have an understanding for geographical preferences.
Should there be differences in preferred core values based on geographical region, it
is important that we recognize these immediately, in order to tailor the promotional
thrust for these areas.
Toll-free telephone lines and a forum for internet communication will add to the
real time feedback we need. While these channels are seldom used by the majority
of consumers, they offer the benefit of immediate responses to the consumer’s
satisfaction with the product. In order to increase the volume of feedback through
these channels, we recommend Saxonville offer rebates on purchases. While
coupons and other discounting promotions are an option, they will likely only entice
users who plan to continue purchasing the product. A rebate, however, is useful not
only to those who will purchase again, but those who dislike our brand of Italian
sausage. It is these people who can provide us with the most beneficial information
to the effectiveness of our campaign.

Page | 25

February 13, 2008

NON-CONCURRENT CONTROLS

The marketing research conducted in Pennsylvania and New Brunswick, New Jersey
has been the major basis on which our conclusions are drawn. As such, similar
research will be invaluable as we measure our performance in the months following
our initial product launch. Therefore, we recommend conducting research in
several regions throughout the nation at the close of our primary sales season. By
coupling our findings from the concurrent controls with the more in-depth
understanding of individual markets through market research, we gain the greatest
amount of insight into the promotional needs for each geographical region.
The compilation of each month’s sales data will also be important. As our fiscal year
ends at the midpoint of our peak demand season for Vivio/Primo Italian sausage, it
is vital we not only account for monthly data or yearly data, but rather seasonal
data. The analysis of the seasonal sales data will only be understood after the
winter months give way to spring.

FINANCIAL FORECASTS

Expected growth of the Vivio/Primo brand will come from two distinct sources:
o Expanding from 16% of the nation’s supermarkets to a nationwide product
will have the effect of increasing volume more than six-fold (6.25)
o Continued growth in the Italian sausage market across all producers
provides an additional increase to that of simply selling in more markets.
 Our base case projections for Vivio/Primo brand Italian sausage is
based on reaching 100% of markets coupled with a 7% increase in
industry sales

Product $ Volume
Vivio Italian Sweet Sausage Link 24.41 oz $24,840,712
Vivio Italian Hot Sausage Link 24.41 oz $126,116,801
Vivio Italian Mild Sausage Link 24.41 oz $283,649,537
Vivio Italian Mild Sausage Link 55 oz $18,919,252

Vivio Italian Sweet Sausage Ground 14 oz $13,504,136
Vivio Italian Hot Sausage Ground 14 oz $231,956
Vivio Italian Mild Sausage Ground 14 oz. $9,036,905

Vivio Italian Cheese Sausage Link 14.7 oz $5,818,666
Vivio Italian Pepper Sausage Link 14.9 oz $1,071,552
Vivio Italian Garlic Sausage Link 14.7 oz $5,571,136
Vivio Italian Mix Sausage Link 55 oz $8,260,353
$497,021,006

Page | 26

February 13, 2008

o In order to perform a scenario analysis, we must include best case and worst
case projections for our yearly sales figures.
 The assumptions on which we base our best case scenario is that our
product reaches 100% of the nations markets, and the industry-wide
increased consumption rate of 15%

Product $ Volume


$534,181,455

 Of course, there is also the possibility that the industry has seen the
end of its continued growth. This assumption leads to the worst case
scenarioz: Saxonville achieves its goal of reaching 100% of the
national markets, but there is not further industry growth

Product $ Volume


$464,505,613

Page | 27

February 13, 2008

TIMING

SEQUENCE OF EVENTS

Because the purpose behind the launch of a national Italian sausage brand is to
achieve profit objectives for the next fiscal year, it is imperative that the national
launch occur before the start of the peak demand season. As such, we are proposing
an aggressive timeline.
o We must begin the search for an advertising company to handle the
multifaceted national campaign immediately. In order to maximize sales at
the end of the fiscal year, it is important to have the national advertising
support ready to launch concurrently with the product. We recommend
spending no more than two months to select the agency that will handle the
account; this will take us through the end of May. The agency will then only
have four months to create a national campaign of both print and televised
media.
o With six months until national product launch, we must also begin training
our regional sales executives on basic product knowledge and sample
cooking demonstrations. These too will need to coincide with the product
launch in order to maximize sales in the final three months of the fiscal year.
o Three months prior to launch, we must hire an information technology
contracting firm to begin development of the interactive media. One month
prior to launch, the internet tools should be online and available for use.
Current users of the other portfolio products can begin touring the additional
information.
o One month prior to the national launch, regional sales managers will begin
communicating with retailers the details of the new product, as well as
channel promotions and shelving requirements.
o Two weeks prior to the launch, regional sales managers will begin educating
retailers on the features and benefits of the Primo brand. Retailers are the
first point of contact for the consumers; retailers also will only carry those
products which generate a profit. These factors create the need for retailers
to be trained about how our product is differentiated from the competition.
o October 1st, national product launch

LIKELY CHANGES OF PRODUCT LIFECYCLE

As the existing market and new markets move from the growth and introductory
stage respectively, they will reach a point where both converge in the product
maturity stage. As such, new promotional methods will be adopted, specifically
advertising.

Page | 28

February 13, 2008

REFERENCES

1. Major, Meg (2006).Kicking it up a NICHE. Progressive Grocer. 85, 42-45.
2. Pellegrini, Megan (2007, August). Edging out the competition. The National
Provisioner, 46-48.
3. (2006, August). Dinner sausage sizzles. The National Provisioner, 54-56.
4. Dori Fors
Business/Facility Coach
Johnsonville Sausage, LLC,
PO Box 906 Sheboygan Falls, WI 53085-0906
920-453-6924
Wed. 2/4/2008 11:39 am
Email Contact
5. Dreyer's grand ice cream, inc. Retrieved February 6, 2008, from Funding Universe
Web site: http://www.fundinguniverse.com/company-histories/Dreyers-Grand-Ice-
Cream-Inc-Company-History.html
6. Strauss, William A. (2008). Economic outlook symposium: Summary of 2007 results
and forecasts for 2008. Retrieved February 5, 2008, from Chicago Fed Letter Web
site: www.chicagofed.org
7. http://www.bobevans.com/
8. A. http://jimmydean.com/
B. http://jimmydean.com/specials/
9. A. http://www.johnsonville.com/home.html
B. http://www.johnsonville.com/home/about-us.html
10. A. http://www.syracusesausage.com/
B. http://www.syracusesausage.com/about.htm
11. A. http://www.scimecassausage.com/
B. http://www.scimecassausage.com/aboutus.html
12. A. http://www.nvo.com/soupy/
B. http://www.nvo.com/soupy/faqaboutus/

13. http://www.peta.org/

14. http://www.vegtampabay.com/grocery-stores/vegan-groceries/sausage-pork-ham-
substitutes/

15. http://www.alacartetv.com/html/lidia/chef.htm

Page | 29

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