WIXLIB

Saxonville Sausage: New Brand Name NewOpportunitiesCreated for: CFO, CEO & CMO –Duncan ReithCreated by: Quang Khoa Truong 155765175Mail: qktruong@myseneca.caCourse: MKM805MMSSubmission Date: 23rd June, 201923/06/20191

Based on the consumers’ perceptions, the Weeknights Dinner can be an ideal marketplace for us to play and optimize our competitiveadvantage of product.Market DescriptionCriteriaMarketIs it strategically relevantto the decision that wemake?Is it fit with our currentchannels?Is the level of competitionstrategically big enoughfor us to compete?Can we maximize oursales in this market?The market includes allsausage suppliers that hasrelevant Italianate factors.Italian Sausage MarketNo. The market is too smallcompared to our long-termplan.No. In fact, the market is tootypical, so the channelsmight be limited ourproducts.No. The market only relatesto small amount of directcompetitors.No. The market size andchannels are too smallThe market includes all kindof sausagesTotal Sausage MarketNo. The market is notstrategically relevant to themain function of our product.It might cannibalize to theother brandsRelatively Yes. However,they will consider since theyalready have had lots ofoptions.No. We only compete withsausage players in thismarket, since we aim to abigger target.No. Because customersusually eat sausage basedon occasion. Therefore, ourstrategical decisions andtargets will be unclear in thismarketThe market includes wholehome meal solutionsuppliersHome-Made WeeknightsDinnerYes. This market fits withthe function of our productand do not cannibalize theother brands. However, itquite relates more to theshoppers’ perception thanthe consumers’ perception.Yes. The channels willaccept to take as theshoppers will more havechoices beside prepared orready to serve options.No. The market excludesindirect competitors, suchas: takeout, fast-food,restaurants.Yes. An appropriatepositioning and tacticallyselling approach can helpus earn money from thetarget consumers.The market includes dinnersuppliers for weeknightsWeeknights DinnerYes. Besides being relevantwith the product, we canalso extend the brand in thelong termYes. They will think ourproducts as a supplementoptions for female shoppersfor dinner time.Yes. The market includesboth direct and indirectsubstitutes of customers fordinner timeYes. We can utilize ourcore competencies tocompete since the potentialaudiences is big.*Fore more details, please reference to the 6 Forces Analysis in the AppendixSaxonville should play in the Weeknights Dinner, which includes weeknight dinnersuppliers, to strengthen our market share and develop in the long run.23/06/20192

Within the crowded competitors in the Weeknights Dinner market, Vivio is still struggling to grow after 2 years launchingMARKETCOMPETITORS The retail sausage market has been growing at annual rate of 9% in 2004 and 15% in2005. The level of competition is aggressive since there are lots of direct and indirectcompetitors in the field Penetrating in Weeknights Dinner market, we do not cannibalize the other existingbrands. “Authentic Italian heritage” and “freshly and locally made” are two commons positions ofthe local sausage suppliers in terms of sausage category The level of new entrants threat is medium as it can comes from the opening ofrestaurants, bistros, prepared food brands, or food courts Since the market has variety of options for dinner and the uprising of consumers’motives, Saxonville Sausage is easily to be switched The sales of the market can be impacted strongly from the other industries, such asentertainment, publishing, tourism.CUSTOMER Female heads-of-household are primary purchasers of Italian SausageCOMPANY 70 years existing in the market and 1.5 billion provide us definite competitive advantageof experience and financial resources Heaviest usage is among consumers aged 25-50 years October to February is the peak season of buying Vivio Complete manufacturing and logistic system let us dominant the sausage market byoffering the fresh option. The main motivations of our shopper - home manager are convenient and satisfyingfamily Our product lines present in nationwide. However, the Vivio just accounted for 16% ofnations’ large supermarket. According to the recent research, respondents believed that our product is exceptionalproduct quality. With 5%, Vivio contributed the lowest income to the company.*Fore more details, please reference to the 6 Forces Analysis & VRIO in the Appendix23/06/2019For capturing “the Italian opportunity” in the next 3 years, how should we revitalize the Viviobrand which can help us increase brand’s revenues to 15%?3

According to the Family Status, we can determine the following potential segments to match with the brand-revitalizing decisionCan we solve the jobsto be done?Do they cook athome often?Singles.Single males &femalesRelatively Yes. We canserved the singles whoneed a quick home mealsolution.No. They are not afan of cooking athome. They are easyto switch to differentoptions.Yes. It takes themless than 30 minutesto cook Italiansausage andwholesome mealNo. They normallybuy 1 – 2 packs anddo not consume muchper mealFamilies WithoutKidsYoung couples,married coupleswithout kidsYes. We can help busycouples to get everythingdone quickly.Relatively Yes.However, they canenjoy takeout orrestaurant instead asthey do not have kids.Yes. They do not paymuch time to prepareand clean up thedinner.Not Really. They caneat a few once orshare togetherFamilies WithKidsCouples or marriedcouples with kids.Yes. We can providethem wide range ofbenefits, such as feedinggood food, saving time,creating their own meals,gathering peopletogether etc.Yes. They alreadyhave kids and theywant to feed themwell and spend timefor them. Dinner is atypical kind of familytime.Yes. We providefresh sausage withtime saving Italiansausage for dinner.Besides, we are alsoavailable in largesupermarkets.Yes. Especiallyfamilies withteenagers. Theirdinners amount arehuge.Retired FamiliesRetired Coupleshave kids andwithout kids.Yes. Italian sausage is apart of their lives andthey enjoy traditionalfamily time when everyone sitting around andhave dinner.Yes. They enjoy thecooking time.Yes. We can servedthem with premiumquality and deliciousItalian flavor.No. They eat lessthan before.Occasionally, whentheir whole familyreunite, they mighteat more or share totheir children.CriteriaSegmentQualified Segment Base: Family Status Although the main shoppers are femaleheads of household, the real consumers arethemselves and their families. Theyinfluenced each other and impacts to thepurchasing decision. When it comes to families, we prior toapproach female audience. It provides us insights to make strategicalapproach It can help us to clarify how differentconsumers purchase and consume theproduct The segment base fits with the function of theproduct.23/06/2019Does it leverage ourcompetitiveadvantages?Do they consumehigh volume?The target audience that we can leverage our core competencies, provide huge volumesales and fit with our Italian sausage is the Families With Kids4

To appeal Family with Kids, Saxonville should position itself as a clever cooking and convenient dinner solutionHigh QualityStrong Home Cooked MotivationClever CookingRestaurantsSaxonville - VivioHome MadeChickenSaxonville - VivioLocalSausageSuppliersHamburgersHome MadeChickenHomemadeItalian FoodSaxonville - VivioHomemadeItalian FoodLocal SausageSuppliersHighPriceLocal SausageSuppliersConvenientTakeoutHome MadeChickenHomemadeItalian ntsQuality: Taste, Fresh IngredientsPrice: Consumers’ expense onproductClever Cooking: Create own recipe from fresh, high qualityingredients.Convenient:Time saving, easy to prepare, less cooking effortTakeoutRestaurantsHome Cooked Motivation: Family Satisfaction, Time Saving, LessCleaning, Appreciation from family membersQuality: Delicious taste, fresh ingredientsWill our target consumers interest?Can our competitors deliver it?Quality & PriceNo. Despite the fact that Vivio sausageis fresh, has good taste, and low price,our revenue was very poor. It meansthat low price is not a real key driver topersuade consumers.Yes. We cannot compete with rawmaterials food suppliers.Relative Yes. We can providefresh sausage; however, pricingstrategy is a considerable matterNo. Price wars could damage ourrevenue and cost.Clever Cooking &ConvenientYes. They are seeking for a healthydinner solution that helps them easy toprepare and create their own recipe fortheir family.No. It is difficult to provide both“fresh” and “easy to cook” featuresto the consumers.Yes. We have manufacturing andlogistic system to guarantee “fresh”and consumers do not cost muchtime to cook.Yes. As most of our sausagecompetitors defined themselves byItalian origins and local made, wecan use this position to stand outfrom the crowd.Home Cooked Motivation &QualityRelative Yes. In some cases, themotivation to feed the family well mightdrive the household leaders to choosebetter options, such as raw foods.Yes. They could be prepared foodor ready to serve suppliers.Yes. Our products are freshsausage and cost less time to cookNo. The competitors con improvetheir products; while, consumersalso have different substitutes toprovoke their motivation.CriteriaPositioning23/06/2019Does it fit with our corecompetencies?Will it last for a long time?5