Saxonville Sausage Company is a privately owned family business based out of
Saxonville, Ohio. The company’s revenue in 2005 was approximately $1.5 billion with 70%
consisting of bratwurst, 20% in breakfast sausage, 5% in the Italian sausage branded Vivio, and
the other 5% in store-brand products. Since 2005, sales in bratwurst and breakfast products were
showing a 0% increase in volume and were not expected to grow in the short term. Saxonville
found potential in its Italian sausage market after having an annual increasing rate in sales of 9%
in 2004 and 15% in 2005. Vivio was only being sold in 16% of the country’s northeast
supermarkets.
Steve Sears, the company’s Vice President of Marketing, hired Ann Banks as the new
marketing director to uncover the potential Vivio had as a national leader in the Italian sausage
market by strengthening its presence across the nation’s supermarkets. Banks faced the
challenge of either developing Vivio as a national product or creating a new distinctive identity of
the Italian sausage by marketing it under a different name or even under the recognizable
Saxonville company name. In addition, she needed to be careful in how Vivio was being
positioned in the sausage industry in order avoid unintentionally cannibalizing Saxonville’s other
brands. Banks was experienced in marketing brands to consumers in a way that they could
connect both personally and emotionally. To better understand Vivio’s positioning with
consumers, she first formed a team of colleagues from the research and development, packaging
and graphics, marketing and sales departments. With the research and analysis results from
Banks and her team, Saxonville hoped that they would be able to create a new marketing strategy
that would relaunch the brand in early 2007 and thus meet profit goals for the next fiscal year.
2. Do you agree or disagree with what and how the Saxonville Sausage Company did in
research methodology? If disagree, what would you do differently and why?