People InvolvedAnn Banks
Product Marketing DirectorSteve Sears
Vice President of MarketingLaura Bishop
Director of Market Research
General overview of company Saxonville was a 70-year-old, privately held family
business headquartered in Saxonville, Ohio.
The company produced a variety of pork sausage products:
Growth History: Bratwurst- Flat(0% volume increase) Breakfast sausage- Decline(2-digit revenue decline) Italian sausage- Rise(9% in 2004,15% in 2005)
o Bratwursto Breakfast sausage o Italian sausage named Vivio
Background of Italian Sausage
Saxonville first entered the Italian sausage market in 2002.
The company gave it the required trade support, but chose not to go for any advertisement like the other companies in the category.
For Vivio’s first six months, it went on deal every other month, and also offered some in-store sampling.
What about positioning the Vivio brand?
Company used a Styrofoam tray covered in plastic wrap, with a label depicting coiled links of sausage next to a head of garlic and an old-fashioned sausage grinder.
It says ‘Vivio fresh Italian sausage’ and has an Italian flag in one corner.
“The product was basically lobbed out there.”
Researching and Evaluating the Italian Opportunity (Ann Banks)
“Project Score”
Which consisted of 10 colleagues that would provide input and perspective in her investigation of the Italian sausage opportunity.Note: Saxonville had not conducted market research on the Italian sausage customer before her joining.
A multifunctional task force
Their first Task:
Main Objectives: To understand customer’s behaviours and needs. Gain an idea of the language consumers used.
Introduction of Liz KellerA top brand consultant, and a professional from a marketing
research company.
They main priorities as set by Ann Banks for conducting the focus groups:
Understand current behaviours, triggers to purchase, and unmet needs
Get a clear understanding of product benefits, attributes and ideals
Develop a solid feel for core values and the role this product plays, or can play, in these people’s lives.
To make the score team easily understand the outcome of the focus group Banks and Bishop constructed a perceptual map
According to both maps Italian sausage was revealed as a “meal solution”(high rating on both X and Y axis)
From the conversations with focus groups six distinct themes were selected as potential territories (bases) for positioning the brand:
FAMILY CONNECTIONCLEVER COOKING
CONFIDENCEAPPRECIATION
QUICK AND EASYTRADITION
The discussion finally led to the establishment of 4 mock concepts. Namely:
“Family Connection” concept
“Love” concept
“Balance” concept
“Creative Cooking” concept
Consumers were exposed to these 4 mock concepts and asked to select and prioritize their three favourites.
Result
Brainstorming potential tactical strategies that would support the two top-voted positionings and optimize brand identity gave out the three lists:
“The Italian opportunity”
Develop a national product under the Vivio name or as a new brand.
Saxonville needs a well-thought-out positioning plan.
“Family Connection”Pros vs Cons
Fulfils the emotional value sought by the target customers.
Saxonville is perceived as a family brand.
Aspirational value.
No unique positioning
Easily replicableCannibalization
more likely
“Clever Cooking”Pros vs Cons
Broader perception of product use.
Easier tactical application
Wider customer base.
Unique tag line/approach.
First choice in buying intention.
Catchy name/idea.
Loss of focus from original target group.
Less aspirational value.
Final ComparisonThough “Family connection” may seem better idea, it might be because of consumers’ familiarity with existing brands’ “authentic Italian heritage” positioning, it is clear that “Italian” implied “family”, so there might exist a tendency of the consumer to feel more connected with this concept.
From the Italian Sausage Concept Assessment data we see that:“Family Connection”(F) would buy:81%(23% definite+58% probably)“Clever Cooking”(C) would buy: 72%(41% definite+31% probably)
We see that in F, % of definite buyers is not even 1/3 of the total “would buy”, and due to tough competition by similar positioning(Italian name brands) many from 58% may not buy the product.
The Vivio brand was rated at 7 among 20 in the data from focus groups, hence change in name is necessary to implement premium positioning as it is difficult to change the prospective in consumer’s mind.
Introduce a new brand name
CapucinaMade from Italian words
capace(clever) and cucina(cooking)
It was a superficial fear
The research conducted by Ann Banks and team clearly states that, the consumers under weekend-barbeque ‘Brat pack’ will remain unaffected by Italian sausage as the use of Italian sausage has nothing to do with what happens on the weekends.
And secondly, ‘Brat’ was used mainly in outdoor grills on weekend afternoons and evenings, whereas Italian sausage was used mainly for dinner time eating. So, they are the options for totally different sections.
How did the superficial fear exist in such reputed company?
Main reason: Due to the lack of any market research on the
Italian sausage customer.
Brand Name
Capucina by Saxonville
Including Saxonville in brand name: Nationwide recognition and popularity. Signifies premium quality. Preferred placement with retailers.
Packaging Large window such that the Fresh product is
clearly visible. Strong Italian colour/image along with the
Italian flag to promote heritage and it would also indirectly promote the feeling of a family.
Back placed recipes(diff recipes for diff packages) for quick meals ideas only.
Vacuum sealed to preserve freshness.
Priced at 10% higher SRP than competitive brands and 25% higher than store brands.
Conveys the premium positioning.
Will help support promotional costs.
Also consistent with the pricing of Saxonville(all other product also priced above competitive brands).
Nationwide Distribution channels already in existence via “Saxonville” name.
SKU positioning important: eye level, easy accessible in regional market areas.
All major supermarkets and grocery markets.
But currently stay out of discount warehouses.
In-Store Product Sampling Recipe book giveaways Limited stock/duration BOGO
Print Magazines(recipes/advertisement): women’s and
cooking. Puzzle games based ads in newspapers eg-reach a
packet of Capucina via maze
Internet Recipe-a-day campaign/competition. Interactive puzzle/fun games.