Analysis of Johnsonville Sausage Co. (a) Case Study Essay
2029 WordsApr 9th, 20139 Pages
ANALYSIS OF JOHNSONVILLE SAUSAGE CO. (A) CASE STUDY
IN THE ASPECT OF STRATEGIC DESIGN
Prepared by USANUS SIRITARARATN, 2012
The Johnsonville Sausage Co. (A) case study from Harvard Business School is about Johnsonville Sausage Co, a sausage manufacturer and wholesaler in Johnsonville, Wisconsin. As the company grew over time, the president of Johnsonville Sausage Co., Ralph Stayer, faced many big problems in his organization. After Stayer listened to a lecture about how managers could change their philosophy and style of management from Dr. Lee Thayer, a professor at the University of Wisconsin, Stayer thought about his organization and found out that the problems in his organization were the result of the way he managed his…show more content…
Stayer’s Liaison role in the organization after the transition can be seen when he said, “I spend a lot of time with people in the organization just talking things through, I don’t tell what to do anymore” (Roberts, 1986: 5). Many positions which serve as minor Liaison roles were also added after the transition. For example, the Sales Coordinator position is responsible for coordinating and eliminating the problems between Sales and Manufacturing function. Another important example is the replacement of the Manufacturing Supervisor by a Lead person. The Supervisor was seen by the workers as a person who yelled at them when they did something wrong or not good enough. But the Lead person’s role is to train new workers, give workers the information they need, fulfill workers’ needs, and collect data. This replacement had improved the quality of Strategic Linking and the Formal Reporting Structure in the organization by eliminating the distance in relationship between workers and their superiors. Another important change after the organizational transition was the establishment of many Temporary and Permanent Cross-unit Groups. These groups include: 1. Annual Budgets and Goals Development Group
Consists of employees from manufacturing (line workers), sales, and accounting. Together develop annual sales forecasts,
- Length: 1706 words (4.9 double-spaced pages)
- Rating: Excellent
Saxonville Sausage companies entered the market 70 years ago and found themselves struggling to position and segment one of their Italian sausages in the market. They recently decided to find a new positioning and segmentation plan where they are able to identify and profile distinct groups of buyers who might require varying product mixes by examining their information such as demographics, psychographics and behavioral difference. Through quantitative research such as focus groups. Their objective was to find a new concept to apply to their Italian sausage ‘Vivio’ and appeal to a new market as well as to create a new marketing plan, in order to achieve its profit objectives for the next fiscal year.
Through focus groups, Saxonville was able to study and analyze different attitude and consumer behavior towards one of their sausage brands ‘Vivio’, which assisted them to improve on positioning their product in the right place of consumer minds.
From the first study (exhibit 4) they came to a synopsis that Vivio was a home cooked meal for the family, mainly purchased by woman who had hectic lives and barely had the time to prepare a home cooked meal. Woman enjoyed preparing this dinner meal because it was convenient and resulted in happiness of the family, furthermore it can be concluded, in terms of positioning that the product should appeal more to the female side, since they are the main purchasers.
They also inferred that the Italian Sausage was a seasonal product mainly bought during the months of fall and winter, this can help Saxonville learn to have a stronger promotion and advertisement strategy during that period of time. Vivio had all three types of users; the heavy, medium and light users, Vivio has consumers that a very loyal to their brand.
The Italian sausage was a multipurpose meal; it wasn’t only used as meal on its own, women usually cooked it with other meals such as casserole or sautéed with a few vegetables. This emphasizes Vivio’s strong base to its customers, not only do they enjoy cooking the meal, but they enjoy preparing Italian sausage with their other dishes.
One of the main problems Vivio had is that it had a poor brand name, it basically confused users because it was an Italian sausage under a German seeming heritage, this might have reflected badly on their sales.
In the second study (exhibit 5)- the perpetual map of Italian Sausage Use; the one dish meal made with Italian Sausage was ranked best under family pleasing as oppose to kids pleasing and adult pleasing.
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Kids were in favor of hot dogs, beans and mac n cheese. It t Vivio appealed more to woman because it was a relatively easy meal to prepare, easier than a one dish made with chicken. It appealed to them more because it was a meal solution to their problems and they felt they have accomplished something because it is not a frozen meal, but a fresh and nutritious one.
Saxonville later came to a conclusion of several position territories for Italian Sausage use by homemakers (exhibit 6). They presented six different themes where each one portrayed a different purpose. The benefit of such an exhibit creates six different niches that they could possibly target in the future, which later on defines their brand identity and gives them a more precise direction to how the product should be positioned.
Each one revolves around homemakers but present a different purpose. These six themes are: family connection, clever cooking, confidence, appreciation, quick and easy and tradition.
The additional information from exhibit 9 consumers selected and their favorite theme. Family connection and clever cooking out of balancing act and labor love were prioritized where family connection received 54% of the votes, whereas clever cook and balancing act received less than half of the votes.
This brings Saxonville to the conclusion of two different themes where one leans more towards the emotion side (family connection) and the other one leans towards convenience.
Exhibit 11 presents a table showing the purchase intent towards which concept.
32.4 % responded to definitely/ probably would buy to family connection and 28.125 to Clever cooking.
Family connection is a very direct name, attracts its targeted customers and is very straight to the point; it immediately attracts a homemaker who is shopping for a healthy fresh meal. A mother would definitely go for family connection than clever cooking. She wants to feel as if she is preparing a healthy meal for the family, it also comes with an emotional benefit.
Choosing family connection will also benefit Saxonville as a company because it won’t cannibalize Saxonville’s other products such as bratwurst. It highly distinguishes itself from other sausages. Family Connection is a name that stands out because so many of other brands do not specify a theme, thus seizes the attention of homemakers.
Advertising for family connection would be so much more easier because they are targeting market is much specific and smaller.
On the contrary targeting a family only excludes individuals who take up a huge percentage of the market such as single, divorced, widowed and college students.
The name itself might be unattractive to homemakers because the name ‘family connection’ might seem to be a bit too sophisticated and do not have the time to prepare a meal that sounds will take up a lot of their time.
On the other side, the concept Clever Cooking is a very self-explanatory concept, easy to make, seems less complicated. It attracts a larger market, however Clever Cooking might cannibalize Saxonvilles other line of sausages such as Bratwurst, since it does not have a main target market.
Advertising for Clever Cooking arises several conflicts; whom do they aim to target since there is a larger market for individuals? How do we appeal to different individuals at the same time? Therefore Clever Cooking has such a broad name that might seem attractive but at the same time work against Saxonville.
And finally the name itself does not depict a healthy meal; it conveys a quick and easy meal to cook on the go. Quick and easy meals to cook depict a frozen meal where Vivio is not.
The alternative chosen for this marketing plan would have to be ‘Family connection’. Choosing this concept triggers new ideas and separates this sausage apart from all of Saxonvilles sausages as well as other competitive brands.
The name of the product shall remain: Vivio, Saxonville’s Italian Sausage, with the positioning of Family Connection. This should not be changed because it already has positioned itself in the market, has its customers and created its brand identity, and by changing the brand or product name, Vivio would have to prove itself in the market from the very beginning, there fore this is a way of improving.
The new positioning plan of this brand would be for family’s looking for a home cooked meal to gather all members of the family around the table. The product should highly appeal to the women since they are the ‘female head of household’.
The tagline for Vivio should be have ‘Family Comes First’, it shows an immediate depiction of a meal for the family and is attractive to homemakers. During the launch of the first month, samples should be given out to customers in store from employees looking as a housewife, it appeals to women, creates an in-store experience and gives Vivio a chance to expand to customers who have never tried there product, and refresh old customers.
As for the communication approach, Saxonville would be using both the ‘pull’ and ‘push’ marketing because a balance of both creates a great marketing mix that powerfully entices costumers moreover to react to each one differently, however Saxonville is concentrating more on the pull aspect.
There will be massive advertising (pull) to build up consumer demand, through advertising in the newspapers, radio and TV commercials, to be able to capture consumer’s attention in every different way. As for the push communication strategy the producer of Vivio will be promoting the product to wholesalers, the wholesalers promote it to retailers, and the retailers promote it to consumers.
The key functional benefit of Family Connection will basically is a very convenient, healthy fresh meal, which can be cooked with various different meals. It is an extremely tasty dish that will satisfy the entire family.
The key emotional benefit is explanatory through the title, family connection attaches an emotional benefit to it, all the family loves it and creates a certain time of the day were a family can meet up and spend time together.
Vivio’s Italian sausage will expand their line by adding mild, medium and spicy. Saxonville will not expand with the flavors because this might cause family members to fight over wish sausage to buy and cook for the family, by keeping it simple and traditional the Italian will expand a little bit.
On the packaging Saxonville will add different recipes on the box so that a woman can feel creative every time she uses Vivio but in a different way.
Saxonville’s packaging can be described in this way it has the same colors and idea as the packaging however ‘Saxionville’ will be place on the right bottom using a very small and discreet font, and on the center of the box ‘Vivio’s Italian Sausage’ will be place in the center with a small Italian flag. The tag line ‘family comes first’ will be writing in italics in a smaller font under Vivio. The transparency of the package will remain in order to maintain the fresh look of the sausage.
Inside the store Saxonville will have huge signs in the sausage area with billboards and pictures of housewives cooking their favorite meal. This is a way to catch consumer’s attention and inform them about our new theme for our Italian sausage.
As mentioned previously free sampling will be going around in the store to give consumers a chance to try their new product.
Saxonville was close to choosing coupons, however coupons is a waste, consumers think they will be using them but they never will. Saxonville does not need coupons to attract customers, because they have a strong customer loyalty and base.