Case3SaxonvilleSausageCH - Course MKT 5070 Managerial...

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Course: MKT 5070: Managerial Marketing Title of Assignment: Case 3: Saxonville Sausage 1. What is the current situation? Saxonville is a 70 year-old, privately held company in Ohio. Its revenue in 2005 approached $1.5 billion. The company produces a variety of pork sausages, predominantly fresh as opposed to smoked or semi-dried. The majority of its revenue is generated from bratwurst (70%), next breakfast sausage (20%), then Italian sausage (5%) and the remainder from store brands (5%). Both the Bratwurst and Breakfast Sausage markets have plateaued with no growth expected in the short term. However, the Italian sausage market is growing at rapid rate (9% in 2004, 15% in 2005). Saxonville’s Italian sausage brand Vivio has grown at the industry rate, but it has only distributed in 16% of the nation's supermarkets. Anna Banks was hired in the fall of 2005 to develop a national product under the “Vivio” name or a new brand completely, to take full advantage of the growth in the Italian sausage market. She conducted market research to accurately determine the current positioning of Saxonville’s Vivio brand. With this information, Ms. Banks’ team came up with four new potential positioning concepts that were then tested by focus groups, resulting in the “Family Connection” Concept as the significant favorite. 2. How was the research methodology determined? Develop a research design and explain what behaviors, demographics, and lifestyle components you deem important and why.
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The research methodology was determined by Ms. Ann Banks, the new product marketing director of Saxonville Sausage. The research methodology was comprised of the company’s market research results for the past ten years, the brand’s annual business plan, the year-end reports, the meeting with her research task force, and her previous professional experience. The goal of the research is to finish the positioning work for Saxonville Sausage. Before starting the research, Ms. Banks knew that eventually she would like to have quantitative findings to back up the qualitative research results that she had obtained, which was why she handed out 2 documents to her task force colleagues. The first was a one-page qualitative summary of the sausage business and the second one presented the quantitative data of Vivo’s 2005 sales performance. She had been hired for her expertise in positioning a product that relates to the core values of a the target consumer. Once Ms. Banks was able to identify who her target consumer was, she could then use a descriptive research approach to locate consumers’ values and pin them to a product. In order to accomplish this, Ms. Banks opted to initially use a qualitative approach to develop her understanding of the situation and then back up her findings with a quantitative research study, a method that combined both quantitative and qualitative research. Therefore, the
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  • Fall '10
  • Huber
  • Marketing, Qualitative Research, Saxonville, Sausage, italian sausage, Saxonville Sausage

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