interoffice memorandum to: Steve spears, vice president of marketing from: ann banks, product marketing director subject: marketing recommendations for vivio italian sausage date: [ 3/3/2012 ]
I propose a national launch to the market segment of women 20 – 50 years old. I recommend a simple packaging design and a brand position targeting “The Family Connection” and “Tradition”. I would keep the Vivio name. My recommendation for the name is Vivio Italian Sausage from Saxonville. Currently ranked in 7th place, a good marketing plan could change the name ranking. Vivio’s price, currently set above top competitors should remain unchanged. Because the product is “fresh – never frozen” and “locally made”, Vivio should have no problem commanding a slightly higher price. However, to grow the market segment, advertising is required. I recommend about $3.7M for the new launch. (See Note 1) Based on industry averages, this would increase Revenue by $29M, a 28% increase and add a 7.4% market share increase of stores. Each step in the process is explained as follows:
Launch Concept – I believe a national launch is the correct approach. There is currently no national Italian sausage brand, so this is an excellent opportunity for Saxonville. We are well established in the sausage market, already known as the “Family Company”. The products I recommend for Stage 1 are Hot and Mild Links and Sweet and Mild Ground; Stage 2 would be Link Sweet and Mild larger packages with flavored links of Cheese and Garlic. I based the stages on current revenue by type, Link Hot and Mild account for 82.4% of current sales. (See Exhibit 1) The Tag Line for Vivio – “for the discriminating cook, who cares…”.
Market Segmentation Concept – The target market is women 20 – 50 years old, broken down into sub-segments. Segment number one is professional women without children. The advertising should