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.

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!”