Saxonville Sausage - Case Analysis
Analysis – Saxonville Sausage Company
I. SITUATION ANALYSIS
Saxonville Sausage Company (“Saxonville” or “the Company”) is a privately-held, family owned business specializing in fresh pork sausage products. The Company’s 2005 revenues were roughly $1.5 billion driven by the following business lines: bratwurst (70% of revenues); breakfast sausages (20% of revenues); Italian sausage (5% of revenues); and store-branded products (5% of revenues). Since 2004, the overall market demand for sausage products has been flat in both the bratwurst and breakfast sausage categories, while the only market segment showing significant growth was the Italian sausage category (overall market growth of 9% in 2004 and 15% in 2005). Saxonville’s Italian line, Vivio, was keeping pace with the growth of the category, but was distributed in just 16% of large supermarkets, principally in the Northeast and mid-Atlantic states. In contrast, the Company’s bratwurst and breakfast products were generally distributed and sold nationwide, however, with little distribution in the Northeast markets.
To capitalize on the market opportunity and growing demand for Italian sausage, the Company’s new product marketing director, Ann Banks, was tasked to develop and implement a plan to properly position and launch a national Italian sausage brand. Saxonville’s goals were to become a national leader in the Italian sausage segment, take advantage of the growth in that category, avoid or minimize cannibalization of its other product lines, and achieve its profit objectives for the next year and beyond.
II. PROBLEM DEFINITION
The Company faced two key issues: (i) how to optimally position its Italian sausage brand for national success; and (ii) which distinctive brand identity (e.g. “Vivio” vs. something else) would resonate most with the principal purchasers of Italian sausage to influence them to desire and buy the Company’s product.
III. ANALYSIS OF ALTERNATIVES In order to
I. SITUATION ANALYSIS
Saxonville Sausage Company (“Saxonville” or “the Company”) is a privately-held, family owned business specializing in fresh pork sausage products. The Company’s 2005 revenues were roughly $1.5 billion driven by the following business lines: bratwurst (70% of revenues); breakfast sausages (20% of revenues); Italian sausage (5% of revenues); and store-branded products (5% of revenues). Since 2004, the overall market demand for sausage products has been flat in both the bratwurst and breakfast sausage categories, while the only market segment showing significant growth was the Italian sausage category (overall market growth of 9% in 2004 and 15% in 2005). Saxonville’s Italian line, Vivio, was keeping pace with the growth of the category, but was distributed in just 16% of large supermarkets, principally in the Northeast and mid-Atlantic states. In contrast, the Company’s bratwurst and breakfast products were generally distributed and sold nationwide, however, with little distribution in the Northeast markets.
To capitalize on the market opportunity and growing demand for Italian sausage, the Company’s new product marketing director, Ann Banks, was tasked to develop and implement a plan to properly position and launch a national Italian sausage brand. Saxonville’s goals were to become a national leader in the Italian sausage segment, take advantage of the growth in that category, avoid or minimize cannibalization of its other product lines, and achieve its profit objectives for the next year and beyond.
II. PROBLEM DEFINITION
The Company faced two key issues: (i) how to optimally position its Italian sausage brand for national success; and (ii) which distinctive brand identity (e.g. “Vivio” vs. something else) would resonate most with the principal purchasers of Italian sausage to influence them to desire and buy the Company’s product.
III. ANALYSIS OF ALTERNATIVES In order to