Problem Formulation

Tasnim Rahman | MKTG 671 | Summer 2019

Case: Saxonville Sausage Company

1. Protagonist:
Company: Saxonville Sausage Company, Personnel: Ann Banks (new product marketing
director), Steve Sears (Vice President of marketing)
2. Strategic Marketing Problem: Commented [U1]: Focus on the critical strategic marketing
problem. This is usually the one getting most attention by the execs
Promotion and positioning policy: Company needs to decide on the marketing plan for the in the case.
brand Vivio, decide on which concept would be most successful for advertising the product.
It will be positioning here, a product decision. Recall positioning
Place Policy: Saxonville is evaluating possibility of entering nationwide market for existing clarifies essence (how product will be used), value proposition, and
(regional) product, Vivio. differentiation. Latter two indicate benefits provided by the
product.
3. Significance of the problem to the subject:
Commented [U2]: This is the positioning decision.
Saxonville Sausage Company’s major product lines: bratwursts and breakfast sausages have no
growth expectation in the short term. These products are sold nationwide. Lesser-known,
regional brand from Saxonville, Vivio shows promising growth potential. Vivio currently exists
in a few regional markets positioned as authentic and a fresh product. Saxonville known for the
high quality of their products. Due to double-digit decline in revenue in the past. Saxonville
needs growth and profits.

4. Decision Options:
With lack of growth in bratwurst and breakfast sausage market, Saxonville can expand on their
Italian sausage product, but they have to do without cannibalization of the other products. They
can either develop the product under the Vivio name or as a new brand. Meanwhile, they also Commented [U3]: Brand name options, a relevant decision, but
not included in point 2.
need to assess their target market and establish the position of the product and its potential in
the national market. Otherwise, they can continue to push for increasing sales in the current
Northeastern market of they want to continue advertising themselves as a local grown food
product. Commented [U4]: You are offering support for decisions here.
Offer options for addressing the strategic marketing problem
5. Knowledge Needed: identified in point 2. That is all you need to do.
Product-market fit: Saxonville is a company of ‘German heritage’ based off Ohio with its Vivio
Commented [U5]: Specify the information that will be needed
product line primarily in the Northeastern market. The company has not put in the effort to to decide among options. Don’t provide data here. Don’t analyze.
create a distinctive identity for this product line, this needs further assessment based on Analysis comes later.

qualitative research for a national wide expansion, as it has only been successful regionally.
Product-company fit: Is the company equipped to take on distribution of a fresh sausage
product to a national level? Does the product in question have enough potential to hold as
strongly in the national market and is it worth it for Saxonville
Marketing Strategy: How can consumers be convinced of the freshness and high quality of
ingredients that come at a reasonable price? Is there a need to push for the simplicity of
preparation for the product amongst female homemakers?
6. Possible evaluation criteria: market share in Italian sausage sales, market share in fresh sausage
sales nationwide, total sales, break-even analysis. Commented [U6]: Only information you have is purchase
intentions based on position. This would be an indicator of sales.

You have the right idea for the problem formulation but the strategic marketing problem you
focus on is too broad. That makes it difficult to construct a PF that sets up analysis.

Grade is 79/100.