SAXONVILLE SAUSAGE COMPANY
CASE SUMMARY
Saxonville sausage, a privately held company has been doing business for 70 years. In 2005, the company had revenues of approximately $1.5 billion from a variety of its fresh pork sausages. The company is producing three main types of products namely: bratwurst, breakfast sausage and an Italian sausage Vivio. The main source of revenue for the company is bratwurst (70%) followed by breakfast sausage (20%). But since 2004, the company is experiencing problems: bratwurst and breakfast sausage has been facing a stagnant growth; however Saxonville, due to poor performance with breakfast sausage had a double digit decline in revenues which resulted in being ranked 6 out of 8 in market share of the
The focus group study revealed (from exhibit 4) that users were passionate about the Italian food; they can add variety of things in their cooking. Italian sausage had the same effect on people as popcorns at the movie theatre; that they wanted to have the Italian sausage as soon as they smell it.
Ann Banks wanted to use a ladder to show how core values lead to the aspects of a product. The core value which most women held was that they wanted to do a good job as a mother and homemaker. “Family Cooking” concept showed that at top of the ladder this concept gathers the whole family around the table who enjoy a whole meal by consuming delicious food. Whereas, “Clever Cooking” ladder showed delicious meals by adding a flavor of their own. The creative cooking allows women to win the hearts of their family by adding a touch of their own flavor.
I would recommend “Family Cooking” as compared to “Clever Cooking” because people are already aware of this concept. This idea brings out new ideas and separates the company’s Italian Vivio concept from the company’s other sausages. Also, this concept will create a unique and different position in the minds of people particularly women. The name Vivio shouldn’t be changed as the product has already created its positioning and identity in the market.
The company should position its product very carefully as it is experiencing a flat growth in its other two products. The