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Viviamo
                                                by Saxonville


                                          -Living the Italian Inspiration-



                                                         Group G
                                                Marketing Strategy and Plan




Anurag Jaiswal -Geoff Gibson -Alessio Tixi -Eliza Ng -Leidy Suarez -Patrick Oliveira -Matthias Wetzel
Executive Summary

1 Saxonville, a national producer       2     The marketing objectives
                                            include an increased market
    of fresh sausages, has in its
                                              share by 25%, increased
      portfolio Vivio, an Italian
                                             profitability and a cash flow
    Sausage with the potential to
                                             positive investment within 3
    become a national category
                                                          years
                leader



3    The weak positioning and a         4
  limited distribution of the current         Through a phased
   product suggest that one viable        implementation plan and a
    strategy would be to demarket       careful monitoring process we
        the current product while        expect to raise sales by 42
      launching a new one better         mio$ and profits by 18mio$
       suited for the expansion at      within a time frame of 3 years
              national level
Saxonville
 Company               Convenience          Communication


A national            Products are         SAXONVILLE:
 producer of fresh      available             print media
 pork sausages.         nationwide in         campaign, televisi
Revenues of 1.5        large                 on campaign
 billion in 2005.       supermarkets and      “harry the brat” as
It is a 70 year old    through               the market is
 family business,       distributors.         declining, compan
 known for the         There is a            y is spending little
 quality of its         difference in the     money in
 products and           distribution          marketing for the
 associated with        patterns of the       breakfast category.
 strong family          different product
 values.                categories.
Current Product Portfolio
            Portfolio includes 3 product categories

BCG        Relative Market Share
Matrix
                                                Vivio
                                               Product:
Relative   Star: Italian       ?: Breakfast     Undifferentiated, pa
Market     Sausages                             ckaging conveys a
Growth                                          basic
                                                message, unclear
                                                position.
                                               Price: 20% Higher
                               20% Sales        SRP than store
           5% Sales                             brands.
           Cash Cow: Brats     Dog: Other      Promotion: No
                                                advertising.
                                               Place: Available
                                                only at 16% of large
                                                retailers nationwide.
           70% Sales
Current Customers
        Purchasers:                            Medium
        • Female Heads of Households            Users
                                       Heavy               Light
                                       Users               Users

        Uses:
                                               Frequenc
        • Italian Sausages = dinner             y of use
        • Brats = BBQ
        • Breakfast Sausage

 Attributes:
  Authentic Italian                                          Vivio
  Locally made, fresh                          Brats &
                                               Breakfast
  Reliability                                 Sausage
  Family atmosphere
  “Job well done”
SWOT Analysis
  Strengths                       Weaknesses
   Exceptional product quality    Italian heritage difficult to
   Meal-maker, versatile           defend
   Appeals to adults and          No information about the
    children                        market outside of
   Quick and Convenient            Northeast
   Main competitors are           Vivio name is weak
    locally based or focused on    Consumption only on
    frozen                          special occasions
  Opportunities                   Threats
   No clear positioning for     29 local competitors
    Vivio                        Cannibalization
   Only distributed in
    Northeast
   Leverage on existing
    distribution system
   Product category is growing
Marketing Objectives:
The Italian Sausage Category
Primary:
             Become the first national fresh Italian
             Sausage brand
             Increase profitability
             Increase market share

Secondary:
             Increase availability of Italian sausages in
             supermarkets nationwide.
             Grow more than the current market rate
             Minimize Cannibalization
Choosing The Concept
Family Connection                      Creative Cooking



 Fulfills the No unique               Possibility to   Might alienate the
emotional value positioning            broaden the        target segment
sought by target Easily replicated    perception of      Difficult to
customer         Cannibalization is   product use        integrate creative
Saxonville is more likely             Wider             with family values
perceived as                           customer base
family brand                           First choice in
                                       buying intention
Positioning Statement

   For homemakers and aspiring chefs who
      want to impress their loved ones with
  creative meals, Viviamo Italian sausage is a
   fresh, high quality meal-maker that inspires
   new recipes and provides exceptional taste
       thanks to its authentic Italian flavor.




    Viviamo                  by Saxonville
Value Proposition and
Target Customers for
Viviamo

                                  VALUE: Makes every dinner special.


Interest: Making unique dinners
Behavior: Cooks several days a      EMOTIONAL BENEFIT: Gets you
                                  praised for cooking, provides a sense
week                                of satisfaction for a job well done

Primary target customers
                                  FUNCTIONAL BENEFIT: Meal-maker
•Homemakers                           for a multitude of dishes.
Secondary target customers             Fast, easy, and reliable.
•Aspiring chefs.
                                    ATTRIBUTES: High quality, good
                                  color, above average ratio of solids to
                                        fat, great taste and texture.
Product
                                  •Change in name necessary to
                                   implement a premium positioning
                  Viviamo         •Saxonville stands for quality and
  Name
                by Saxonville      credibility
                                  •To create a bridge for existing
                                   customers of ¨Vivio¨
           3 best selling SKUs:
            • Sweet Sausage Link •SKUs with proven success record
                                 •To build brand recognition and
Product mix • Hot Sausage Link
                                  achieve volume
            • Mild Sausage Link  •Reduces marketing costs



     Important to research new markets to assess the
                  viability of other flavors
Packaging
   Size      24 Oz.                        Handy to purchase

             • Cardboard box
             • Vacuum sealed individual    • To portray premium positioning
              packs                        • Easy to consume and store - will
 Packaging   • See-through window in the    promote increased usage
              box                          • Preserves the freshness of the
             • Recipes and nutritional      product
              information on the back
Price
 Priced at 10% premium over competitors
  and 25% premium over in-store brands.
 Conveys the premium positioning
 Will help to support the promotion costs


Place
 Leverage on existing
  nationwide distribution
  channels
 SKU positioning is very
  important: eye-level, next
  to the regional market
Promotion
  % of
 Budget

                     • Product sampling
50%         In-      • Recipe book giveaway
           Store     • Cooking contests


                     • Ads in women’s magazines and
30%        Print       cooking magazines




                     • Recipe-a-day campaign
20%       Internet   • Website for sharing creative recipes
                       and blogs, videos of recipes
Launch Strategy

       Phase 1             Phase 2            Phase 3           Phase 4
    Prelaunch           Launch of          Geographic       Refinement of
    • Additional        Viviamo in         Expansion        the positioning
      market research   selected areas     • Increase in    • Launch of
    • Internal          • NE: Launch in      market           additional SKUs
      preparation         parallel with      penetration    • Complete
      (R&D), operatio     Vivio            • Phase out of     Demarket of
      ns                • Nat: launch in     Vivios           Vivio
                          Key areas &        secondary
                          distribution       SKUs
                          channels
  Marketing of Viviamo while Demarketing
                     Vivio
 Additional and continuous market research
  to validate Viviamo’s USP value to target
                   customers
    Leverage on our National presence to
  have a comprehensive understanding of
              the category trends
Implementation Plan
                          Phase 1                  Phase 2
      2006          Jan   Mar   May   Jul   Sep   Nov     Jan   Mar May    Jul    Sep
                                                                                                2007
               •     Market research                             •     Heavy In store promotion
Activities &




                             to establish cluster areas                Launch of the above the line
Milesones



                       •                                         •
                            where to launch the product                marketing campaign
                       •    on other focus groups to             •     Monitor sales in key areas &
                            identify possible secondary                cannibalization of Vivio in the NE
                            target customers                     •     Continue market research to pinpoint
               •     Develop packaging, arrange new                    gaps in the market and geographic
                     production lines                                  differences
               •     Build the Microsite
               •     Identify exact price point

               1.      Obtain a national picture of              1.     Market penetration: 32%
                       category spending                         2.     Market share: 18%
   KPIs




               2.      Develop a competitors mapping             3.     Cannibalization of Vivio: 20-30%
                       for different areas                       4.     Cannibalization of other products: 5%
                                                                        max
   Budget




                    Budget: 1 mio$                                   Budget: 20 mio$
Implementation Plan
                                        Phase 3                                Phase 4
      2007                 Mar    May    Jul   Sep    Nov      Jan   Mar May        Jul    Sep
                                                                                                         2008
               •        Geographic expansion to all existing          •        Launch of additional SKUs to create
Activities &
Milestones



                        distribution Channels available to                     a more comprehensive market
                        Saxonville                                             offering and increase sales
               •        Assess success of first marketing             •        Leverage on the sales volume to
                        campaign and refine successful                         justify increased advertising budget
                        activities                                             and raise brand awareness
               •        Start development of new products             •        Complete phase out of Vivio
                        focused at secondary target groups            •        Refining of the positioning according
                                                                               to market research results



                   1.      Market penetration: 64%                        1.     Market penetration: 80%
   KPIs




                   2.      Market share: 22%                              2.     Market share: 25%
                   3.      Cannibalization of Vivio: 30-50%               3.     Cannibalization of Vivio: 35-70%
                   4.      Cannibalization of other products: 10%         4.     Cannibalization of other products: 10%
                           max                                                   max
   Budget




                   Cost: 40 mio$                                          Cost: 30 mio$
Financial Projections

 Objectives and assumptions

 Revenue Drivers                       2005       2006        2007        2008
 Market growth               Average15%         12%       12%
                                        growth for the period               12%
 Market penetration        Based on current distribution potential
                                       16%       32%       64%              80%
 Market share                    Targeted market share 22%
                                       10%       18%                        25%
 Price premium                According to pricing strategy
                                      10%       10%       10%               10%




 Cost Drivers                       Budgeted figures
 R&D and production                              $500,000
 Marketing research                              $200,000    $100,000
 Promotions                                    $12,000,000 $28,000,000 $20,000,000
 Additional SKUs                                $5,000,000 $10,000,000 $15,000,000
 Decreasing Vivio Sales                       $15,000,000 $30,000,000 $75,000,000
                                               $22,000,000 $40,000,000 $75,000,000
                                2 Scenarios: low and high
Financial Scenarios

2 Scenarios for the revenues               Expected growth in sales over the period:74 116mio$
                                           Expected growth in revenues: 1528 mio$
 Revenues- for succesful demarket of Vivio


                                           Revenues- for unsuccesful demarket of
                                           Vivio




        In both Scenarios “Viviamo” is a
        financially sound project
Risks and Mitigation

         Goal                   Strategy                      Risk                    Mitigation
Become the first         •   Introduce a new         •   Lose existing           •   Facilitate a bridge
National Italian             brand with a clear          customers                   between new and
sausage brand                positioning                                             old brand
Increase profitability   •   Position Viviamo at a   •   Loose market share      •   Attentive monitoring
                             premium                     to lower positioned         of market and target
                                                         competitors                 customers
Increase market share    •   Focus on best           •   Competitors enter       •   Strong brand
                             selling SKUs                the market                  development
Increase market          •   Launch nationwide       •   Wrong target market     •   Defend current share
penetration                  through a phased                                        by gradual demarket
                             approach                                                of Vivio
Grow more than the       •   Aggressive              •   Geographical            •   Use national
current market rate          expansion                   differences curb the        presence to
                                                         overall appeal of the       maximize customer
                                                         market                      value and adjust
                                                                                     proposition
Avoid cannibalization    •   Create a                •   Positioning not in      •   Phased launch and
of other products by         differentiated, more        line with customer’s        constant refining of
Thank you!!!




And remember – “If you want to impress your
wife, drop the flowers and try the sausage!”

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Marketing Strategy and Plan for Viviamo by Saxonville sausages

  • 1. Viviamo by Saxonville -Living the Italian Inspiration- Group G Marketing Strategy and Plan Anurag Jaiswal -Geoff Gibson -Alessio Tixi -Eliza Ng -Leidy Suarez -Patrick Oliveira -Matthias Wetzel
  • 2. Executive Summary 1 Saxonville, a national producer 2 The marketing objectives include an increased market of fresh sausages, has in its share by 25%, increased portfolio Vivio, an Italian profitability and a cash flow Sausage with the potential to positive investment within 3 become a national category years leader 3 The weak positioning and a 4 limited distribution of the current Through a phased product suggest that one viable implementation plan and a strategy would be to demarket careful monitoring process we the current product while expect to raise sales by 42 launching a new one better mio$ and profits by 18mio$ suited for the expansion at within a time frame of 3 years national level
  • 3. Saxonville Company Convenience Communication A national Products are  SAXONVILLE: producer of fresh available print media pork sausages. nationwide in campaign, televisi Revenues of 1.5 large on campaign billion in 2005. supermarkets and “harry the brat” as It is a 70 year old through the market is family business, distributors. declining, compan known for the There is a y is spending little quality of its difference in the money in products and distribution marketing for the associated with patterns of the breakfast category. strong family different product values. categories.
  • 4. Current Product Portfolio Portfolio includes 3 product categories BCG Relative Market Share Matrix Vivio  Product: Relative Star: Italian ?: Breakfast Undifferentiated, pa Market Sausages ckaging conveys a Growth basic message, unclear position.  Price: 20% Higher 20% Sales SRP than store 5% Sales brands. Cash Cow: Brats Dog: Other  Promotion: No advertising.  Place: Available only at 16% of large retailers nationwide. 70% Sales
  • 5. Current Customers Purchasers: Medium • Female Heads of Households Users Heavy Light Users Users Uses: Frequenc • Italian Sausages = dinner y of use • Brats = BBQ • Breakfast Sausage Attributes: Authentic Italian Vivio Locally made, fresh Brats & Breakfast Reliability Sausage Family atmosphere “Job well done”
  • 6. SWOT Analysis Strengths Weaknesses  Exceptional product quality  Italian heritage difficult to  Meal-maker, versatile defend  Appeals to adults and  No information about the children market outside of  Quick and Convenient Northeast  Main competitors are  Vivio name is weak locally based or focused on  Consumption only on frozen special occasions Opportunities Threats  No clear positioning for  29 local competitors Vivio  Cannibalization  Only distributed in Northeast  Leverage on existing distribution system  Product category is growing
  • 7. Marketing Objectives: The Italian Sausage Category Primary: Become the first national fresh Italian Sausage brand Increase profitability Increase market share Secondary: Increase availability of Italian sausages in supermarkets nationwide. Grow more than the current market rate Minimize Cannibalization
  • 8. Choosing The Concept Family Connection Creative Cooking  Fulfills the No unique  Possibility to Might alienate the emotional value positioning broaden the target segment sought by target Easily replicated perception of Difficult to customer Cannibalization is product use integrate creative Saxonville is more likely Wider with family values perceived as customer base family brand First choice in buying intention
  • 9. Positioning Statement For homemakers and aspiring chefs who want to impress their loved ones with creative meals, Viviamo Italian sausage is a fresh, high quality meal-maker that inspires new recipes and provides exceptional taste thanks to its authentic Italian flavor. Viviamo by Saxonville
  • 10. Value Proposition and Target Customers for Viviamo VALUE: Makes every dinner special. Interest: Making unique dinners Behavior: Cooks several days a EMOTIONAL BENEFIT: Gets you praised for cooking, provides a sense week of satisfaction for a job well done Primary target customers FUNCTIONAL BENEFIT: Meal-maker •Homemakers for a multitude of dishes. Secondary target customers Fast, easy, and reliable. •Aspiring chefs. ATTRIBUTES: High quality, good color, above average ratio of solids to fat, great taste and texture.
  • 11. Product •Change in name necessary to implement a premium positioning Viviamo •Saxonville stands for quality and Name by Saxonville credibility •To create a bridge for existing customers of ¨Vivio¨ 3 best selling SKUs: • Sweet Sausage Link •SKUs with proven success record •To build brand recognition and Product mix • Hot Sausage Link achieve volume • Mild Sausage Link •Reduces marketing costs  Important to research new markets to assess the viability of other flavors
  • 12. Packaging Size 24 Oz. Handy to purchase • Cardboard box • Vacuum sealed individual • To portray premium positioning packs • Easy to consume and store - will Packaging • See-through window in the promote increased usage box • Preserves the freshness of the • Recipes and nutritional product information on the back
  • 13. Price  Priced at 10% premium over competitors and 25% premium over in-store brands.  Conveys the premium positioning  Will help to support the promotion costs Place  Leverage on existing nationwide distribution channels  SKU positioning is very important: eye-level, next to the regional market
  • 14. Promotion % of Budget • Product sampling 50% In- • Recipe book giveaway Store • Cooking contests • Ads in women’s magazines and 30% Print cooking magazines • Recipe-a-day campaign 20% Internet • Website for sharing creative recipes and blogs, videos of recipes
  • 15. Launch Strategy Phase 1 Phase 2 Phase 3 Phase 4 Prelaunch Launch of Geographic Refinement of • Additional Viviamo in Expansion the positioning market research selected areas • Increase in • Launch of • Internal • NE: Launch in market additional SKUs preparation parallel with penetration • Complete (R&D), operatio Vivio • Phase out of Demarket of ns • Nat: launch in Vivios Vivio Key areas & secondary distribution SKUs channels Marketing of Viviamo while Demarketing Vivio Additional and continuous market research to validate Viviamo’s USP value to target customers Leverage on our National presence to have a comprehensive understanding of the category trends
  • 16. Implementation Plan Phase 1 Phase 2 2006 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 2007 • Market research • Heavy In store promotion Activities & to establish cluster areas Launch of the above the line Milesones • • where to launch the product marketing campaign • on other focus groups to • Monitor sales in key areas & identify possible secondary cannibalization of Vivio in the NE target customers • Continue market research to pinpoint • Develop packaging, arrange new gaps in the market and geographic production lines differences • Build the Microsite • Identify exact price point 1. Obtain a national picture of 1. Market penetration: 32% category spending 2. Market share: 18% KPIs 2. Develop a competitors mapping 3. Cannibalization of Vivio: 20-30% for different areas 4. Cannibalization of other products: 5% max Budget Budget: 1 mio$ Budget: 20 mio$
  • 17. Implementation Plan Phase 3 Phase 4 2007 Mar May Jul Sep Nov Jan Mar May Jul Sep 2008 • Geographic expansion to all existing • Launch of additional SKUs to create Activities & Milestones distribution Channels available to a more comprehensive market Saxonville offering and increase sales • Assess success of first marketing • Leverage on the sales volume to campaign and refine successful justify increased advertising budget activities and raise brand awareness • Start development of new products • Complete phase out of Vivio focused at secondary target groups • Refining of the positioning according to market research results 1. Market penetration: 64% 1. Market penetration: 80% KPIs 2. Market share: 22% 2. Market share: 25% 3. Cannibalization of Vivio: 30-50% 3. Cannibalization of Vivio: 35-70% 4. Cannibalization of other products: 10% 4. Cannibalization of other products: 10% max max Budget Cost: 40 mio$ Cost: 30 mio$
  • 18. Financial Projections Objectives and assumptions Revenue Drivers 2005 2006 2007 2008 Market growth Average15% 12% 12% growth for the period 12% Market penetration  Based on current distribution potential 16% 32% 64% 80% Market share  Targeted market share 22% 10% 18% 25% Price premium According to pricing strategy 10% 10% 10% 10% Cost Drivers Budgeted figures R&D and production $500,000 Marketing research $200,000 $100,000 Promotions $12,000,000 $28,000,000 $20,000,000 Additional SKUs $5,000,000 $10,000,000 $15,000,000 Decreasing Vivio Sales $15,000,000 $30,000,000 $75,000,000 $22,000,000 $40,000,000 $75,000,000 2 Scenarios: low and high
  • 19. Financial Scenarios 2 Scenarios for the revenues Expected growth in sales over the period:74 116mio$ Expected growth in revenues: 1528 mio$ Revenues- for succesful demarket of Vivio Revenues- for unsuccesful demarket of Vivio In both Scenarios “Viviamo” is a financially sound project
  • 20. Risks and Mitigation Goal Strategy Risk Mitigation Become the first • Introduce a new • Lose existing • Facilitate a bridge National Italian brand with a clear customers between new and sausage brand positioning old brand Increase profitability • Position Viviamo at a • Loose market share • Attentive monitoring premium to lower positioned of market and target competitors customers Increase market share • Focus on best • Competitors enter • Strong brand selling SKUs the market development Increase market • Launch nationwide • Wrong target market • Defend current share penetration through a phased by gradual demarket approach of Vivio Grow more than the • Aggressive • Geographical • Use national current market rate expansion differences curb the presence to overall appeal of the maximize customer market value and adjust proposition Avoid cannibalization • Create a • Positioning not in • Phased launch and of other products by differentiated, more line with customer’s constant refining of
  • 21. Thank you!!! And remember – “If you want to impress your wife, drop the flowers and try the sausage!”

Notas del editor

  1. Add a little Italian inspiration to your meals
  2. Who are the customers, what do they valueCannibalization
  3. Strenghs: main competitors are either locally based or focused on frozen Weakness:italian heritage difficult to defend, perceived as a german brand, not local, no clear market for viviooutsienotheast, no info to support it, consumption only for special occasionsOpportunities: no clear positioning for vivio, only in the northeast, take off untapped markets, product category is growing.Threats: cannibalization
  4. Product range: initially 10 SKUs, 5 different flavours and single and double packages.Size: 24 ounces. Packaging: in vacuum and in a carton box (slightly smaller?). On the bottom (Fresh, natural and easy to prepare, see the back). Recipe with time, other ingredients, quantities. all under 30 min) On the back iconographic: section with recipe calories, fat(with pictures) section about packaging and sustainability, section with ingredients. Image “Con” is in a heart which becomes the logo.  alessiotixi:Create a logo, a graphical design
  5. Campaign theme. Receipes for love. Convivio is not only a sausage, it supports you deliver love through cooking. All you can do with ConVivio and a heart. Love is essential when cooking. Convivio is the only Italian sausage that guarantees you the taste, the quality and the reliability that guarantee you can express Media mix: TV, print, Internet, Launch a movement “Cook with the heart”- allign with high quality suppliers of local foods.- as a guarantee of reliability because of the quality and as a way to increase consumption of other mixPress advertisement: Copy-A perfect dinner requires only the best ingredients. You and your loved ones. Art- A picture, a bit out of focus, with a family sitting slightly formally at a table and eating from a big central plate that is heart shaped.TV advertisement: Content: “Intro voice: A dinner is a good moment to show your love. Life is fast. tracks hardly ever cross.. “ An empty table, the clock clicking, people coming back home, [fast forward] people moving through the house, mother comes in, cooks, people come more and more close as they smell the food, automatically a kid takes 1 plate, then thinks again and takes 5. [...] food is ready. everybody smiles and talks. Convivio in super impression. Tone: Music getting from fast to slower, modern music played with old instruments. Not sophisticated but niche) House with kitchen in wood, large table, suggesting a middle class home in the suburbs. Colours to reflect the presence of Convivio in the house (if the line is blu, all blues will be bright. If red, all reds will be bright including the eyes, hair trousers of the kids)Other possibilities (one for each secondary target segment we chose)Friends 30-40 hanging out at home. Do Americans do dinners at home?Parents (70-80) get at home for dinner. ???Single cooking dinner (men) - (more independent, modern, than woman. + joke...Convivio the italian sausage with the heart)In store promotion:Old convivio bundled with a product of the new line. 7 receipees for 7 days), tv shows. Web: create an online list where people can upload pictures of their dinners. (You select a product line, the software modifies the colour to reflect the line distinctive colour) and play with their pictures.Offer cooking classes and allow people to upload their receipes. Connect to a wider Convivio platform to other companies with websites related to the ingredients you suggest (making sure they support you first!). Create a health conscious approach that lobbies in favour of Convivio. You can save recipes on your page and ask the platform to send you a text or email at a certain time to remind you.