Prepared by the students of marketing strategy at the MBA program of IE Business School, this presentation proposes a marketing strategy for launching a new brand of Italian sausages in the United States.
To Create Your Own Wig Online To Create Your Own Wig Online
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: 1528 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
Add a little Italian inspiration to your meals
Who are the customers, what do they valueCannibalization
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
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
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.