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Saxonville Sausage Case Solution
Saxonville is a national brand known for the production of fresh sausages. The company is planning to promote its sub brand ‘Vivio’ in the Italian market by extracting the potential of becoming a market leader out of it. Slow growth of the company is pressing the management to apply new marketing strategies for an increase in the market share. It has been decided to re launch a new product by taking the old one out of the market. The new product will be launched after a carefully examined synchronized implementation of a marketing plan focusing on the positioning of the new product.
Following questions are answered in this case study solution:
What is the current situation?
How was the research methodology determined? Develop a research design and explain what behaviors, demographics and lifestyle components you deem important and why?
What were the research results? Select two different positioning territories identified in exhibit 6. Trace back through the case, using exhibit 4 and other embedded information, to rationalize the development of these territory ideas. Alternative question: what might a positioning “Ladder” look like for each of the two “finalist” Italian sausage positioning?
What alternative do you recommend and why?
What tactics should accompany the product launch?
Saxonville Sausage Company Case Analysis
1. What is the current situation?
Saxonvile has a history of market leadership in fresh sausage industry, but there has been a decline in the product demand since 2004. Brands of the company which include Brats and breakfast category had been at a level of zero growth or have underachieved. Only Vivio was able to achieve the expected targets, predetermined by the company. The main issue was that Vivio was only available in some parts of America. Introduction of this brand in Italy is essential to exploit the emerging market of fresh sausages. For this purpose, Saxonville has employed Ann Banks to examine the Italian market and the ways in which the new product can be launched most effectively.
The management has told the new employees that the company does not expend the amount required to beat the competitors in breakfast class. Furthermore, the demand of breakfast sausages has been decreasing due to the fact that people prefer sausages at special occasions rather than in breakfasts. Vivio, a sub brand of Saxonville, is performing well in the sausage market since 2002, but it is lacking an adequate positioning in the Italian market as done by its major competitors. Positioning of the product is highly important for sustainability in the market.
2. How was the research methodology determined? Develop a research design and explain what behaviors, demographics and lifestyle components you deem important and why?
Research methodology was determined through a rigorous process, starting from the collection of the market research reports from the past ten years to the yearly plan reports of the company. A special project team was created for the research process and research methodology design. The main issue in the case of Vivio was that it had to represent itself as a national brand in order to be a major brand of Italy. Project team identified the lack of positioning of the product. There was a need for effective positioning of Vivio in Italy’s sausage market. Research methodology was determined by considering the behavior, demographics and lifestyle of the Italian sausage consumers.
An effective research design must take every important consumer related aspect in to consideration. It should include a series of qualitative tests in order to include consumer perception into the research. A series of successive consumer sittings assist the researcher to discover their response over several ideas regarding the positioning of the product. The information collected in the previous step must be refined with an objective to properly analyze the information. Further testing is essential for an appropriate and understandable result. A research design should include both the qualitative and quantitative techniques in order to make the results comprehensive and accurate.
3. What were the research results? Select two different positioning territories identified in exhibit 6. Trace back through the case, using exhibit 4 and other embedded information, to rationalize the development of these territory ideas. Alternative question: what might a positioning “Ladder” look like for each of the two “finalist” Italian sausage positioning?
An extensive research was carried out by Ann Banks to evaluate the perspective of an Italian woman about cooking. Qualitative and quantitative techniques were used to attain maximum accuracy in the results. The project team managed to lead the research according to plan and conceptualized the positioning phenomenon with regards to the targeted market. The research provided a set of factors categorized according to particular hierarchy. It included factors such as the values of an Italian cook, and sentimental advantages of using the product. The team tried to attribute a value other than monetary value, to the product and thus made a list of feelings/sentiments which motivate an Italian cook to prepare food for her family.
Two of the most important positioning areas identified were family connection and creative cooking. It meant that cooking was basically serving the purpose of connecting a family together. A good meal can result in a great time with family and friends, and a meal with sausages is liked by everyone on the table. Product positioning can be focused on the lady of the house and everybody loving her cooked food. It can also focus on the fact that cooking is not just mixing several ingredients, but it’s an art to be mastered. Italian sausage can be prepared in various ways giving a room for showing some creativity in cooking.
4. What alternative do you recommend and why?
The project team of the company ended up with having a number of alternatives for the product launch in Italy. They came up the number of alternatives focusing on the name, target sentiments and diversification of the product. I would recommend that the company should keep the name Vivio as it is, and connect the product with the sentiment of family connection in the mind of consumers through marketing and promotional activities. The reason of this recommendation is that Vivio is an Italian name, and it will be easy for Italian customers to relate to the product. The target of becoming a national brand will become easier. Vivio has been in the market for a while, which means that customers will know the name before using it. The product should be positioned in a way that whenever a customer buys it, he/she will think of a happy family sitting around the dining table having a good time.
5. What tactics should accompany the product launch?
Product launch is the introduction of new merchandise by a company. It is highly significant that the company has met each requirement for an effective launch. Many of the times, first impression on the consumers is the last impression. A customer who is dissatisfied the first time may not return to buy that product again. Hence, a product launch should entail the 4 P’s of marketing i.e. Price, product, placement and promotion.
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