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Case Analysis – Saxonville Sausage Company
The product marketing director sought to employ strategies to develop a plan that will guarantee increased profitability. thus the need to boost profit. The company has seen dismal performance in its other brands of sausage. Ohio. S.O. the Italian sausage line has been growing steadily for the past two years and future growth is expected. and Italian sausage • Saxonville products are sold widely throughout the United States therefore consumers are familiar with the brand Weakness . there has been zero percent increase in sales volume.T analysis The below listed analysis assesses Saxonville Sausage company internal abilities and their ability to compete externally. The company produces a form of Italian sausage under the Vivio brand that accounted for five percent of the company’s revenues. In order to achieve its profit objective.W. Saxonville whishes to launch its Italian sausage brand.Saxonville Sausage Company 2 Background Saxonville Sausage Company is a seventy year old family owned business located in Saxonville. in two (2) years. Strength • Saxonville offers three main pork sausage products: bratwurst. the company manufactures a variety of fresh pork sausages which are sold throughout the United States. The company employs a new product marketing director to launch the Vivo brand Italian sausage across the United States to increase its current distribution from sixteen percent in national supermarkets. breakfast sausage.
Saxonville Sausage Company • • • • • 3 Saxonville produces fresh sausage. • Some brands do some TV/radio advertising and others advertise trade deals in newspapers and store circulars to increase market share . rather than whole meal to the females who are predominantly sausage users • • There is no national Italian sausage brand Customers in the Northeast are willing to try other Saxonville products based on the trust they have in the Vivio Italian sausage Threat • Competitors either put emphasis on “authentic Italian heritage” or freshness and being locally-made similar to how Vivio has categorized itself. there is zero percent volume increase nationwide and minimal growth is expected in the short term for bratwurst and breakfast sausage Introduced Italian sausage brand based on packaging with no form of promotion Saxonville have not conducted any market research on the Italian sausage customer and was skeptical of positioning. they do not manufacture smoked or dried sausage The Saxonville name is associated with German heritage thus impacting on the company breaking into the Italian sausage market The company have limited distribution of bratwurst and breakfast sausage to the northeast United States Sales are flat or declining. • Opportunity • Saxonville employed a product marketing director to launch the Vivio brand Italian sausage into a growing market for Italian Sausage • • Italian sausage category is growing rapidly in the United States Plans to market Italian sausage to be “meal solution” and meal ingredient.
“The basis on which customers will choose your product over the competitor’s. Since Vivio Italian sausage does not seem to have price difference from the other products.Saxonville Sausage Company • 4 Customers outside the Northeastern U. Ann Banks employed key marketing strategies in order to make the Vivio brand sausage successful. thus the way in which the sausage would be marketed is for householders to purchase Italian sausage which can result in customers purchasing any brand of Italian sausages. should have incorporated competitive advantage . Assumption and missing information The new product manager. are wary of buying Italian sausage from Saxonville. This is called competitive advantage”. She did not compare the Vivio brand with that of other players in the market. her application of product positioning failed to acknowledge the role of the competitor. If products are similar in their offering and benefits are the same. customers will not be able to distinguish the Vivio from other products. Differentiation strategies to gain competitive advantage is a good way in which Saxonville Sausage company can ensure product success.S. The value proposition for the Vivio brand sausage was not clearly defined. The new product manager. page 44). according to Winer and Dhar “Positioning takes the competitive advantage and plants in the mind of customer so that it is clear what the product stands for and how it is different from other offerings in the product category” (page 50). Ann Banks. thus the customer will purchase a product based on price. (Winer and Dahr. a German heritage company.
Problem Statement Saxonville Sausage Company has been experiencing reduced profits in its major product . however. although this is an emerging market. It is a foregone conclusion that the company did not apply objectivity in determining how to improve profitability. There is an increasing amount of male only households and the target group could have been widened to include male head of households which would have produced a different market segment. Profitability may not be achieved by looking at the Italian sausage market only. Saxonville Sausage Company did not consider improving sales in the other products manufactured or try to determine why these products are under performing. The focus group was selected from on women who were users of Italian Sausage.Saxonville Sausage Company 5 strategies. these products can be reenergized by applying strategies that would determine the market position of the product and by investing in the product. employment of this strategy will allow for the following: Development of a better product that is sold at a high price to achieve the Saxonville’s objective of increase in profit or Consider long-term road to instant profitability by increase market share by coming into the market at a lower price. A large segment of the population that had a taste for Italian sausage was probably not discovered. They have done little or no market research in order to determine the breakfast sausage market to determine competitiveness. this failed to recognize male users of this type of sausage. It would appear that these products have reached their maturity stage as stated in the case.
It will allow Saxonville to study the relationship between the company and the consumer. Develop competitive advantage strategies so that Vivio sausage will be superior to that of the competitors that will impact on profitability. Market research can be described as the systematic collection and analysis of data about the important characteristics of the market. such as consumer behavior and competition. this information is beneficial to the company. A good market research allows the company to determine whether it has been able to satisfy . They also need to identify and implement the right strategies that would launch their brand of Italian sausage that would revive profitability. 3. Employ strategies that would reposition the breakfast sausage line. Based on the problem statement. Employ market development strategies to increase market share of breakfast sausage line. Conduct market research that would give a clear indication of who the main competitors are and how the Vivio brand of sausage is positioned against the competitors 2. The data collected is ideal to determine the company's progress after the product launch. and also to target particular segments of the society before the Vivio Italian sausage launch. Evaluation of alternatives and recommendation Conducting market research to know the competitor would be very important to Saxonville.Saxonville Sausage Company 6 lines and wishes to launch its Italian sausage brand “Vivio” to increase profit. Saxonville Sausage company needs implement strategies that would stem the loss of revenue due to dismal sales. Development of Alternatives Saxonville Sausage Company should consider the following alternatives: 1. 4.
New markets can be achieved by expanding geographically to markets such the . It helps the company to formulate plans. They are products that need a boost at this point in their product life-cycle. Competitive advantage is having the edge over the competition.Saxonville Sausage Company 7 its customers or not. Saxonville must be able to sustain their competitive advantage. The customers must see a consistent difference between Vivio Italian sausage and those of the competitors. implementing market development strategies. The product must have a benefit that the competition cannot be duplicated easily or they do not understand how to replicate. If your competitors can easily copy the product difference and immediately implement it will not an advantage." Saxonville’s breakfast sausage line has reached the mature product stage and repositioning of the brand should be considered in order to save it. It provides the company with crucial information about the various factors which affect the business. the product needs to be repositioned in this mature product so it has a second life in the growth stage. Potential new markets must be identifies as opportunities. and price wars begin. Saxonville’s breakfast sausage line can grow by pushing the product knowledge to reach new customers. The competitive advantage must be difficult to imitate. take necessary measures and evaluate its performance. They were successful products that have been a source of profitability and they are signs of declining sales. At this stage new ways need to be found reenergize the product. Most companies have a product that has reached the mature stage of the product life cycle. This concept referred to as "scalloping the curve. the market becomes saturated. sales level off. and protect it from imitation. In other words. This difference needs to be obvious to the customers and it must influence their purchasing decision.
This area is such a popular growth strategy. Conclusion The Saxonville Sausage Company must implement marketing strategies that will reposition its Italian sausage product to take advantage of the rapid growth in this product category. but also for heart attack prevention if taken daily. such as Bayer aspirin now being sold not just for aches and pains. These strategies must also be applied to its breakfast sausage lines in order to save the products. Growth can be achieved by appealing to a new or additional market segments.Saxonville Sausage Company 8 Caribbean. examples of this strategy abound. .
(2011) Marketing Management. . 2011 http://www.S & Dhar. New Jersey: Prentice Hall.com/articles/why-is-market-research-important. Naik. 4th ed. Retrieved October. Why is market research important. Abhijit. R.html .Saxonville Sausage Company 9 Reference Winer.buzzle. R.
Saxonville Sausage Company 10 .
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