SaxonvilleAssignment - Saxonville Sausage Case Analysis...

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Saxonville Sausage Case Analysis Question 1 Nature of the Industry Market The breakfast sausage and bratwurst product categories have showed stagnant growth with a 0% volume increase. The Italian sausage product category is the only one exhibiting growth with 9% volume increase in 2004 and 15% volume increase in 2005. The industry is competitive and split between a ‘farm to table’ angle with regional distribution chains and nationally distributed but less fresh options ( Billy Bob and Country Home ) An opportunity can be found by finding the overlap between the ‘farm to table’ approach with a national distribution network. Female heads of household are the primary purchasers of Italian Sausage with the heaviest users being between the ages of 20 and 50 years old so the market should be segmented accordingly. Regional brands are positioned one of two ways: with an emphasis on the ‘authentic Italian heritage’ or ‘freshly and locally made.’ Advertising is primarily done through base trade spending with only a few brands doing TV and Radio. The requirements for success in this industry include finding a way to tap into and connect the core values of the female heads of household with brand positioning. The Organization Saxonville is a 70 year old privately owned company with German heritage that serves mostly fresh sausage. Saxonville had revenues of 1.5 billion in 2005 with: 70% from bratwurst, 20% from breakfast links/patties, 5% from Italian Sausage, and 5% from store brand products. Saxonville does not spend enough on advertising and product support to compete with the national breakfast sausage competition. Vivio has a weak brand identity but is still growing along with the Italian sausage market. Grocery store accounts are requesting Vivio to stay competitive. Vivio brand packaging is weak but is still gaining multiple facings in stores. Saxonville has limited market research data available. The Specific Problem In order to take advantage of the ‘Italian Opportunity,’ Saxonville needs to decide on how to correctly position the Vivio brand. Italian sausage only accounts for 5% of Saxonville’s total revenue while the Italian sausage market is the only part of the industry that is growing. To gain
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