Italian Sausage Market Analysis

For two years, industry wide volumes have been flat for Saxonville Sausages’ two main products, bratwurst and breakfast sausage. Analysts foresee no short term growth in either category, and breakfast revenues are declining. However, there exists an opportunity elsewhere in the industry. Italian sausage is the one category showing growth across all producers, with Saxonville’s sales matching the category’s growth at a rate of 9% in 2004 and 15% in 2005. One issue is that Saxonville’s Vivio sausage is only available in 16% of the nation’s largest supermarkets. In order to really capitalize on this market opportunity, Saxonville would need to take the product to the national level. The second issue is that Saxonville has done minimal positioning in current market. A realistic growth strategy will require a concise marketing strategy. The line is still experiencing considerable growth, which leads us to believe that the rest of the industry is employing equally minimal strategies and there is immense market potential for any firm able to implement an effective marketing strategy.

Regional competitors with comparable lines have positioned their products as either locally made, or as coming from authentic heritage recipes. Neither of these strategies would provide much benefit for Saxonville, as its heritage is German and a “locally made” strategy does not translate to a national brand. The strategy with the most potential for Saxonville is one that targets the consumer’s desire to promote close family connections by delivering benefits that reinforce this desire.

Existing market research showed that the main purchasers of Itialian sausage are female heads of household, ages 25 to 50. The products heaviest users are contained in this segment, making three plus purchases a month. In an initial round of focus groups, Saxonville talked with members of this market segment to discover what language they use to discuss the benefits delivered by Italian sausage. In further...