Johnsonville Marketing Plan 2
List of Tables and Figures ....................................................................................................... 4
Executive Summary ............................................................................................................... 5
Market Analysis ..................................................................................................................... 7
Situation Analysis ...........................................................................................................................7
Market Summary ...........................................................................................................................7
Demographics ................................................................................................................................8
Geographics ...................................................................................................................................9
Psychographic/Behavioral Factors ................................................................................................ 10
Market Needs .............................................................................................................................. 10
Market Trends ............................................................................................................................. 11
Market Growth ............................................................................................................................ 11
SWOT Analysis .................................................................................................................... 11
Strengths ..................................................................................................................................... 11
Weaknesses ................................................................................................................................. 12
Opportunities ............................................................................................................................... 12
Threats ........................................................................................................................................ 13
Product Offering .......................................................................................................................... 13
Competition ................................................................................................................................. 15
Keys to Success ............................................................................................................................ 16
Critical Issues ............................................................................................................................... 16
Marketing Strategy .............................................................................................................. 16
Marketing Strategy ...................................................................................................................... 16
Value Proposition ......................................................................................................................... 17
Mission Statement ....................................................................................................................... 17
Marketing Objectives ................................................................................................................... 17
Target Markets ............................................................................................................................. 17
Positioning ................................................................................................................................... 17
Strategies ..................................................................................................................................... 18
Marketing Mix ..................................................................................................................... 18
Pricing .......................................................................................................................................... 18
Distribution .................................................................................................................................. 18
Marketing Communication ........................................................................................................... 19
Market Research .......................................................................................................................... 20
Financials ............................................................................................................................ 20
Break-Even Analysis ..................................................................................................................... 20
Sales Forecast .............................................................................................................................. 21
Expense Forecast .......................................................................................................................... 21

Johnsonville Marketing Plan 3
Controls ....................................................................................................................................... 22
Implementation ........................................................................................................................... 22
Marketing Organization ................................................................................................................ 23
Contingency Planning ................................................................................................................... 24
References .......................................................................................................................... 25
Appendix 1: Team Survey Taken March 8, 2013 ................................................................... 26
Appendix 2: Variable and Fixed Cost Calculations ................................................................. 27

Johnsonville Marketing Plan 4
Figure 1: Age of Survey Respondents………………………………………….....................……8
Figure 2: Flavor preference……………………………......................……………………...…….9
Table 1: Competitor’s Marketing Mix………………………........................………………..….15
Figure 3: Distribution Channel………………………………………………………………..…19
Figure 4: Break-Even Analysis…………………………………………………………….…….21
Table 2: Sales Forecast…………………………………………………………………………..21
Figure 5: Marketing Team……………………………………………………………………….24

Johnsonville Marketing Plan 5
Johnsonville’s line extension of dinner sausages is expected to become a market leader due to our choice ingredients and flavor combinations. These sausages will initially be sold in
Kankakee, Illinois, and later spread across the nation. Our product will contain only the best ingredients while offering a variety of flavors and individual packaging. The ingredients are organic and the packaging will be comprised of biodegradable materials. This will be attractive to the potential consumers buying our product over other meat offerings.
Johnsonville’s target market will be males between the ages of 25-55. This demographic has been specifically targeted due to the responses from our primary research, which was conducted on March 8 th
. We will differentiate ourselves by using labels which demonstrate our dedication to an organic and health-orientated lifestyle. Moreover, we will collect annual surveys to gauge consumer sentiments towards our product.
Americans are becoming increasingly aware of health concerns, and our product will seize this opportunity. The product which we offer is beneficial to shoppers who are concerned with sodium intake and added preservatives. All of the ingredients offered are organic and will contain no Genetically Modified Organisms. Our product is also packaged with biodegradable materials.
The competitors Johnsonville is up against include Sara Lee, Oscar Mayer, Hormel, and Premio.
All of these brands are located in grocery stores such as Safeway, Publix, and Kroger Foods.
Very few of our competitors sell sausages that are completely free of GMO’s and plastics.
Multiple factors can affect the result of Johnsonville’s product. The first being the economic condition of the United States because the state of the economy directly affects the price of our materials. If this were to happen, we would need to settle for lower quality ingredients in our sausages. A reduction in the price and quality of materials purchased will greatly inhibit our success.
Our sausages are slightly higher priced than the industry average, and we will have to convince consumers that our product is superior. The food market is dynamic and constantly changing.
The current trend in the U.S. is healthy and sustainable foods. This means products that contain low amounts of preservatives and no chemically altered ingredients.
The fixed costs associated with operating our business include the monthly rent of $2,850. We anticipate in that we will need three employees to keep our business running. The variable costs

Johnsonville Marketing Plan associated with our company are $8.78 per unit. The company expects to break even once our product sales 14,065.57 units, this would equate to roughly $140,657.00 in revenue. It is expected that our team will become profitable in the fourth quarter of this year.
The marketing strategy Johnsonville will use to promote these sausages will be a “more for more”. We will emphasize the quality of our product, even though it will cost more. Our product will be promoted through social media and online advertising, thus lowering our advertising expenses.
6

Johnsonville Marketing Plan 7
Consumers in today’s market are faced with many decisions when shopping for food and more specifically, meat. Consumers are faced with a variety of options that include taste, price, quality, and variety. When cooking for a party, consumers must decide what options of meat are going to be purchased and eaten. Theoretically, a vast variety of meat would be preferred.
However, some consumers do not have the means to purchase assorted types of meat and flavor.
Consumers in the sausage market are in need of more variety provided from an affordable brand.
Dinner sausage typically comes in packs of four or six links, or 16 oz. of ground beef, and these packages consist of the same flavor sausage with no variety. For a consumer to meet the flavor needs of different palates one would need to buy two to four different packs of sausage, each with six links in them. That results in overspending and a possible waste of meat. Currently, few brands offer variety packs of sausage, including American Pride Foods, Bavarian Summer
Sausage and Big Easy Foods. Unfortunately for consumers, these are all products that come in bulk and can be found at Costco. They are meant for serving large groups of people, not the everyday sausage consumer.
Clearly, for most sausage consumers, the variety packs offered by the other brands are not good solutions to increase diversity, they are too expensive. Johnsonville currently targets the everyday consumer so these brands aren’t going to be direct competitors. The direct competitors include Sara Lee, Premio, Oscar Mayer Foods, and Hormel Foods. These brands offer personal packs of sausage similar to ours, but lack diversity. To achieve desired variety, consumers end up spending double or triple of what is necessary when they purchase from these brands.
Johnsonville is the current leader in the sausage market, but it is just as guilty as the rest when it comes to depriving the consumers of options. By incorporating our team’s direction, in terms of taste, variety and affordability, they can take over the market.
The target markets that we will concentrate on will include large grocery stores such as Kroger,
Ultra Foods and Walmart. The majority of Americans shop at these stores so targeting them will produce the most product awareness. Once the product begins to succeed, it will move into smaller stores such as Whole Foods Market and Trader Joe’s.

Johnsonville Marketing Plan 8
Our team developed a survey that consisted of questions that involved age, gender, sausage flavors, and favorite meats. This questionnaire was distributed via social media, and in person methods in order to gather customer opinions at Costco, SaveMart, and Safeway. The data provided in this survey allowed our team to target specific demographics. My two colleagues and
I asked customers entering. We also sent out the survey via Facebook and email. This gave us the opportunity to distribute our survey all over the country. We conducted between the hours of
11:00am and 4:00pm. A total of 67 volunteers took our survey. Figure 1 below displays the ages of all volunteers.
Figure 1: Respondents by Age, Taken March 8, 2013
As seen on the chart above, 39% of all respondents were between the ages of 18-25 and 22% were between the ages of 26-35 and 45-55. This makes for a staggering 83% of respondents between the ages of 18-55. A question that the volunteers responded to was flavor preferences.
This is a huge asset to our production because we want to see what flavors will be most popular in our variety packages. Figure 2 below exhibits the flavors that respondents preferred.

Johnsonville Marketing Plan
Figure 2: Flavor Choices, Taken March 8, 2013
9
Classic Italian, Garlic and Basil, and Chipotle were the top three choices. We will heavily advertise these three flavors after commencing our advertising campaign. The other flavors will be included in order to meet customer expectations and demands.
We will begin marketing our product in and around Kankakee, Illinois because it is perfectly situated near Johnsonville’s meat packing facilities. We believe that we should maximize current relationships between Johnsonville and its retailers. Our team will focus primarily on stores such as Publix, Kroger and Ultra Foods because of their name recognition. We have chosen this strategy because it would be easier to advertise and distribute a product near the source of origin.
Consequently, this will reduce costs associated with transportation and cooling. Thus our team can work to further mitigate additional costs by utilizing Johnsonville’s established infrastructure.
Once we are able to achieve brand recognition and market share, our team will begin to expand to each of the seaboards. Most grilling occurs in warm and sunny areas, so we will target the
Sunbelt heavily, e.g. western and southern states, although, we will not rely solely on these regions for our success. Sausages can be eaten at any time and it is our aim to ensure that this

Johnsonville Marketing Plan 10 occurs. We will focus on stores that are located in highly urban areas. This measure will allow our product to come in contact with more people than would be experienced in rural and austere environments.
According to the data in Who’s Buying Groceries , the biggest spenders on sausage include households that are married with children, earn over $100,000, and have graduated college (The
New Strategists Editors, 2012). The biggest spenders include married couples between the ages
40 and 55 years old, which includes the last of the baby boomers. Unfortunately, the baby boomers are becoming empty-nesters, and the generation Xers are beginning to fit the description of the “best customer”(Who’s Buying Groceries). Therefore, we must attract the younger 25-35 year old age bracket of the smaller generation X.
We are targeting consumers that are regular users that prepare sausage more than once a week.
We also hope to attract occasional users that only purchase sausage one or two times a month.
Our product will appeal to those seeking the following benefits:

Quality

Sustainability

Convenience

Health
We hope to gain the business of customers that are informed and aware of what goes into their food. We anticipate them to be very positive and enthusiastic towards the product, bringing them back for more. In the end, the most important behavioral factors to the marketing of our product are the consumers’ concerns for a healthy and sustainable lifestyle.
Consumers are more cognizant of their actions and they are beginning to demand higher levels of quality from their products. They are more aware of issues such as organic foods; this segment has been consistently growing. Currently 58% of Americans said that they prefer organic and low sodium options over conventional products (Hensley, 2011). We have targeted grocery stores such as Kroger and Ultra Foods, both of which have large and expanding organic and health food options. We want to target those who are health conscious because they are our target market. By providing consumers with more options we are certain that we will be able to

Johnsonville Marketing Plan 11 increase our market share. There are many sausage companies that use sustainably raised meat products and low sodium options including D'Artagnan, Shady Brook Farms, and Shelton's. We will be able to differentiate ourselves in the marketplace because of our options and flavors.
Various retailers have begun to market gourmet sausages because consumers enjoy a variety of products. Industry leaders within the marketplace have estimated that the demand for sustainable agriculture will grow by nine percent (Delate, 2012). This growth is beneficial for our product because we will be able to seize upon this opportunity. Iowa State University stated, “rapid growth in the organic sector has highlighted issues that need to be addressed: shortages of organic raw materials” (Delate, 2013). This will be beneficial as the current demand for sustainable and organic products exceeds the supply.
According to the Center for Disease Control and Prevention, “more than one-third [35.7%] of adults in the U.S. are obese” (Ogden, 2012). This means that obesity related health concerns are constantly growing in today’s market. Consumers are becoming more aware of which foods are healthy and which lead to obesity. Offering a healthier selection of food products consumers enjoy will result in an increase of new and returning buyers.
Even though the obesity rate is high, healthier food products are not the only growing market trend. Environmentally friendly products and packaging are major concerns for consumers today.
According to the World Packaging Association (WPA), “64% of consumers view recycled packaging as a major concern” (WPA, 2011). By having biodegradable packaging on our products, it will open up a new range of potential buyers.
Currently Johnsonville is the market leader in sausage production, and as part of its line extension, our product will be synonymous with quality and flavor. We anticipate the three flavor choices per package will entice people towards our product because the current market lacks diversity. We will be packaging our products using biodegradable packaging so that

Johnsonville Marketing Plan 12 consumers do not have worry about harming the planet. Our sustainable practices will be what set us apart within the marketplace while offering competitive prices to the consumer. Pricing will be standardized for all regions as the product demand increases. Our product will be completely different from what currently exists on the market, thus giving us an advantage over the competition.
We will be working with Johnsonville because it has the infrastructure to support the creation and production of sausages. This will reduce the amount of investment needed to build a meat packing center. This will also limit the amount of equipment that is needed for our product because we intend on using the established platforms at Johnsonville. Moreover, this will reduce our shipping costs because we will focus on the Illinois region first. Once established, we will begin to move our product outside of the state. Our team plans on reinvesting the saved money into advertising.
Our product is new to the market and consumers don’t know that it exists. Customers are familiar with the Johnsonville brand, but not with this new variety. The public is not aware of the improvements that have been made in our sausage. By putting our product in only three stores we are cutting costs, but we may be missing out on a lot of possible buyers. The current facilities are unfamiliar with the making and packaging of this specific product, and the cost of packaging will increase with the new individual casing.
The American people are concerned about their health and what they eat now more than ever.
We see this as an opportunity for a high-quality, low-fat, healthy product to enter the market that satisfies those concerns as well as the consumers’ taste concerns. “The 2012 Food & Health
Survey: Consumer Attitudes toward Food Safety, Nutrition & Health is the seventh annual national quantitative study designed to gain insights from Americans on important food safety, nutrition and health-related topics” (Food Insight). According to the survey, nearly all Americans stated that they “have given at least a little thought to the healthfulness of their diet, physical activity, and the safety of their food”(Food Insight).
The problem is that the public is having trouble figuring out how to eat healthfully. About half of the survey’s respondents said that it is harder to do their own taxes than to figure out what is and

Johnsonville Marketing Plan 13 isn’t healthy (Food Insight). We see this as an opportunity to provide American’s with a product that they can trust is safe and healthy. However, healthfulness is not the most important factor when making food-purchasing decisions; it ranks third according to the survey. The two most important factors are taste and price, in that order. So we can never neglect the need for great tasting food at a decent price.
Americans are also showing more concern for the environment and the need for sustainable products. According to Nielsen’s Global Online Environmental Survey, the “global unease over the use of pesticides, packaging waste and water shortages overtake global warming as top concern” (Nielsen). We see this as another opportunity to help consumers by providing our product in an environmentally friendly way.
Although meat isn’t the top choice for consumers when they think to be healthy and lose weight, we see a chance to contribute to healthier lifestyles around the country. We also seek to be a factor in improving the sustainability of the industry.
Since health concerns are a major problem for consumers in today’s market, people may be looking for vegetarian and vegan alternatives. Meat, especially sausage, has high levels of saturated fat. This is a major concern for consumers because high levels of saturated fat can raise cholesterol level and increase the risk of heart disease.
We might be hindered by market fluctuation because consumers may lose interest with the organic market we are entering. If the trend toward organic products starts to decline, our product would be significantly affected.
Another situation that can hinder our product would be E. Coli. This is a disease that can outbreak in some of the crops we purchase such as the herbs and basil. We also might be hindered by government regulations. Laws and policies are always changing in the food and agriculture business. A new regulation enforced by the government could easily set back our product and increase production costs.
We will create a package of 6 dinner style sausages that of premium cuts of chicken, beef or pork. We will choose meats that have not been injected with growth hormones, and that is outside of the typical “slaughtering” paradigm. Our meats products will originate from farms that

Johnsonville Marketing Plan 14 have exceptionally high ratings on as outlined in the Federal Meat Inspection Act. This will minimize the effects of contaminated meats from unsanitary conditions. Our sausages will not be laden with preservatives such as BHA & BHT, Olestra and Propyl gallate. These additives have been linked to cancer (Heist, 2012.). Furthermore, our sausages will be low sodium so that we are able to attract consumers who are allowed a minimal salt intake. This consideration will help our team broaden its fan base by providing quality meats. We have also decided on choosing a thin casing for the sausage so that the product is protected without it impeding the meal.
The herbs that we will use will be organic and washed in a cleansing solution of bleach and water to reduce the amounts of E. Coli. E Coli is a naturally occurring bacterium which exists in soil. As the crops are removed and sent for packing, soil comes into contact with the edible portions. If not washed correctly, this could lead to serious illness and possibly death (Purdue
University, 2010). What will set our product apart from the competition is that we will ensure that contaminants are non-existent prior to them being placed in our product. It is impossible to mitigate all risks associated with contamination, although careful planning can reduce these effects. We will have a label stating that our product is not Genetically Modified because we want to be one of the few companies who advertise this crucial piece of information. From the responses to the initial survey, we have chosen these flavor varieties:

Garlic Basil o
Premium chicken cuts, roasted garlic, dried basil leaves, white wine and spices.

Chipotle o
Whole chipotle pods, pork, beef, roasted jalapenos, apple cider vinegar and spices

Classic Italian o
Tenderized pork, Italian herbs and spices, white wine
Each sausage will be under 200 calories and approximately 6.5 inches long, thus offering size without being calorically heavy. The large size will counteract the shrinkage that will occur during the cooking process. We will be using a wrapper that is biodegradable because we want to limit the amount of waste that is created by our product. Each sausage will be individually packaged so that the consumer will not be concerned about safe storage or exposure to pathogens in the air. Having each sausage being fully contained will ensure that our products will be able to reach their maximum storage life. Around the outside of the original biodegradable packing will be cardboard. We will be using soy based ink products on recycled cardboard packaging. Eco-

Johnsonville Marketing Plan 15 friendly packaging will attract consumers of all ages who want a product that tastes great and that is environmentally responsible.
The main competitors Johnsonville currently faces are Sara Lee, Oscar Mayer, Hormel, and
Premio. Table 1 below compares the “4 P’s” of each brand.
Table 1 – Competitor’s 4 P’s
Brand Product Price Place Promotion
Sara Lee
Jimmy Dean Breakfast
Sausage 8 ct.
Oscar
Mayer
Classic Beef Franks 10 ct.
$3.69 Grocery
Fast, easy; More flavorful
(Jimmy Dean)
$3.49 Grocery
Tasty family fun
(Oscar Mayer)
$7.49 Grocery
Finest quality and craftsman ship in sausage
(Hormel) Hormel
Andouille Sausage
8 ct.
Premio
Italian Sausage 6 ct.
Sweet/Hot Combo $3.99 Grocery
Real Italian taste made with real imported fennel
(Premio)
The one thing that each of the above brands have in common is that they fail to promote any sort of organic, healthy benefits. This is where we can differentiate Johnsonville from the rest. By placing labels that illustrate the organic produce, we will stand out to our target market. The only brand that promoted a similar product to ours is Premio. They have a sweet/hot sausage combo pack for the people that are “having trouble deciding if they’re a hot or sweet kind of person”(Premio). To differentiate from Premio we need to really focus on the many different varieties offered as well as the labeling.

Johnsonville Marketing Plan 16
For our product to be successful, we will rely on organic and healthy foods to stay trending. This will make our product stand out on the market because it is a healthier alternative to similar products. Our organic products and environmentally friendly packaging will lead among competitors. The sausage market is a unique market that will never disappear. Sausages are a staple in backyard barbeques and tailgates. The variety package will lead the market of barbeques because it offers options of delicious flavors to each person eating.
Our low shipping costs will be a major component to our success. Since we are distributing first in the same town as our packaging plant, prices on shipping will be very low. We will be able to use the saved money for advertising our product and creating new varieties. After getting our product out to the market, a group of loyal followers will be behind us. This will give us the opportunity to create new variations of our product and gain popularity of our merchandise.
Our product will face many issues that can seriously affect the company. Lack of exposure of our product can hurt sales. If consumers do not know about our product, it will be hard to gain a profit. Consumers might also not be fond of the flavors that we offer. Also, fluctuating prices in the raw materials we purchase can seriously affect our product. For example, the organic produce we put in our sausages could easily have price fluctuations. Raising prices could put us out of the market that we are currently in. Lastly, transportation costs can easily increase. Oil prices today can easily vary which would lead in more expensive shipping costs. Increased oil prices would also lead to more expensive storage, cooling, and distributing costs.
The quality sausage that we will offer consumers will be the most desired on the market. Being the healthiest sausage on the market is only a fraction of what we have to offer. We will individually package each sausage with an environmentally friendly corn-based plastic. This will make it simple to maintain the freshness of the ingredients after the first use. All of the ingredients used in the sausage will be organic. We will have appropriate organic and non
Genetically Modified Organisms (GMO) labels on our packaging. Furthermore, we will

Johnsonville Marketing Plan 17 continually survey our customers and see which flavors are preferred. This will keep our product current and it can potentially expand what flavors we offer.
Our sausage is made for consumers who are looking for a healthy, organic based sausage without the use of genetically modified ingredients and high amounts of preservatives. Our product is high in protein contains only organic ingredients and each sausage is individually packaged. This will offer the consumer a healthier and convenient sausage that is not currently on the market.
“To create superior sausages using sustainable and environmentally friendly products in order to delight consumers.”
Our marketing plan seeks to influence sausage consumers to choose a better, healthier, organic sausage. We must show why our product is a better option than other brands.
Our product is superior because of the ingredients inside, and we provide Non-GMO labeling to inform customers what goes into their food. We provide quality that can be tasted in separate environmentally packages for convenience. The goal is to show consumers that no other producer offers the same variety or quality. Once we gain the business of customers, we are confident that they will remain loyal to our product.
The target market chosen will be males between the ages of 25 and 55 years old located in
Kankakee, Illinois. They will be consumers who are sausage connoisseurs that lead a healthoriented lifestyle and are willing spend more money for a quality product. Although our product is priced a little higher than our competitors, it will stand out due to the organic labels and low preservatives we use. This will be made obvious to the consumer because of the specially placed
Non-GMO and organic labels on our packaging.
Our sausage will be positioned in a “More for More” category. This is because our product will be priced more than our competitors, but it offers more. Our product will offer individual

Johnsonville Marketing Plan 18 packaging for each sausage, allowing the meat to preserve its freshness after opening. All ingredients in the sausage will be organic and this will be labeled on our packaging. This will put us above the competitor’s sausages that are filled with preservatives and chemically modified organisms. This process will be more costly, but it is a healthier alternative.
The marketing strategy we are using will be customer-driven. We will let the quality of our product speak for itself. The age ranges we are targeting are males 25-55 years old starting in
Kankakee, Illinois. This will be the consumer who enjoys to barbeque sausage but also lead a healthy lifestyle. We will have low shipping costs because the packaging plant is located in the same town as our starting target market. This will allow us to spend money on advertising costs and surveying customers on which flavors are favored.
The price of our sausage was determined by comparing our competitor’s prices. We are producing the best quality sausage in the market and our price will reflect that. Our product will sell for $10 for a pack of six sausages. The price is above market value because it contains the highest quality, organic ingredients and no other sausage compares.
To increase efficiency and reduce costs, we will begin distributing to local stores in Kankakee.
This will allow us to use a three-tier distribution channel in which we ship directly to the retailer and avoid the wholesaler. We will be using a Just-In-Time Inventory system to maintain freshness and avoid wasting any product. Figure 3 shows a simple version of the distribution channel we will use.

Johnsonville Marketing Plan
Figure 3 - Distribution Channel
19
The promotion mix for this new product will focus on advertising, public relations, and direct marketing. We will not be using any sales promotions when promoting our product.
To expand our business beyond our local area we must prove to retailers that there is a high demand for our sausage. To achieve this success we must build awareness through advertising.
We will not be advertising on television due to the high costs, but we will create a commercial to put on YouTube. The goal is to come up with a humorous, unique video that has possibilities of going viral. We will also advertise on numerous forms of social media. Customers will see our product on Facebook, Twitter, LinkedIn and Pinterest.
We will also rely on our public relations team to create product awareness. PR is responsible for creating the high quality image that we seek. We will create a blog so the public can post about our product and create a buzz. Also, at the Kankakee County Fair we will have a booth set up preparing free sausage samples for people. This will give consumers a risk free way of tasting our product without having to purchase it. We will also work with the Chicago Bears to become sponsors to build awareness to football fans in the area.
Our communication objective is to increase customers’ awareness and knowledge of our product.
Every promotional tool is directed towards achieving this goal because customers won’t purchase product they are unfamiliar with. Once we get the customer to try our sausage, we know the quality will sell itself.

Johnsonville Marketing Plan 20
Our primary research was collected using a questionnaire that was conducted on March 8 th
, 2013.
This questionnaire was distributed on various social media sites, and in person at Costco, Costco,
SaveMart, and Safeway in order to gather customer opinions. Additional information regarding the survey can be located in Appendix 2. There were 67 respondents who took the survey, both using digital and in person forms of communication. The data, which was collected in this survey, allowed our team to pinpoint who our target audience is.
Our secondary research was gathered at various several local grocery stores to see what types of additives were placed in their products. We analyzed their usage of packing, lettering and font of our competitors to determine what is common within the market. Our team also used online resources from credible sites in order to gain an inside perspective on dinner sausage.
Future market research will be conducted by offering customer feedback surveys to consumers.
This will give our team insight into potential future flavors. We will then use this data in order to distribute our product to grocers outside of Illinois. Our future goal would be to sell our product in Trader Joes and Whole Foods because their products are synonymous with quality and sustainability. We must ensure that all research is conducted thoroughly in order to break into these markets.
The next couple of sections below illustrate our Financial Analysis
The table below demonstrates the variables used in the Break-Even Analysis

Johnsonville Marketing Plan
Figure 4: Break-Even Analysis
21
Table 2: Sales Forecast
Measurement of Time
1 st Quarter
2 nd
Quarter
3 rd
Quarter
4 th
Quarter
2 nd
Year
3 rd
Year
Beginning on:
1-Jan-13
Units
Sold
Sales
1,100 $11,000
1-Apr-13
1-Jul-13
1-Oct-13
1-Dec-14
1-Dec-15
1,200
9,000
10,500
28,000
28,500
$12,000
$90,000
$105,000
$280,000
$285,000
Listed in Appendix 2 are the specific marketing expenses that we will have to adhere to in the business. Listed below are some fixed and variable costs need to be considered as well.
Fixed Costs:

Johnsonville Marketing Plan 22
·
Non-GMO certifications
·
USDA organic certification
·
Government fees
·
Utilities
· Real Estate
Variable Costs:
· Monitoring social networks
· Public relation events
·
Email maintenance
For our product to be successful, there are multiple controls that need to be taken into consideration. First, we will collect weekly sales reports from the distributors that carry our sausages. This will see where sales are highest and where we need to advertise our product more heavily. We will collect demographic reports at the end of every month. This will explain to us which consumers are buying our product and whether our marketing strategy is correct or not.
This helps us decide which areas of our concentration need to change. This will also tell us if we are getting repeat buyers. Returning buyers are going to be a major factor for our product’s success. We will also have surveys on our package labels. It will direct customers to our website that has surveys of our product, we will ask customers to rate the taste and flavor. This will allow us to see which flavors consumers prefer. We will offer product giveaways and prizes to random survey takers. Offering giveaways will make consumers more inclined to take the survey.
To begin the implementation of our product, we have to first get certifications that show our product is USDA organic and Non-GMO licensed. This means the companies that supply our raw materials will have to possess these licenses. Getting these certifications will be the most important aspect for our product. This will allow us to label our packaging with these certifications and increase interest in our product.
As soon as the proper certifications and licenses are taken care of, we will use just in time inventory. This means that we will be able to make shipments of our product whenever it is

Johnsonville Marketing Plan 23 necessary. This will also keep our product as fresh as possible. Just in time inventory will allow us to keep from freezing our sausages.
After our product is in the stores, we will develop a close relationship with all of our distributors.
We will offer free samples and product giveaways every quarter to each distributor. This is a win-win situation for both distributors and us because it will bring in more customers and promote our product at the same time. Developing a close relationship with our distributors will be a key role in making or sausages more successful among our competitors.
Figure 5 - Marketing Team
As displayed in Figure 4, our Marketing Department Personnel consists of three teams: a tech team, a sales team and public relations. The tech team is responsible for all of the online marketing. This includes the maintenance of our social networks, blogs, and our company website. These must be up to date at all times and without defects or viruses.
We will also need a sales team to represent the company to the retailers. Since we are starting out in such a small geographic area we won’t need more than one sales rep, but as we expand, our sales force must grow. The sales representatives are responsible for creating and maintaining good relationships with our business customers. They must be friendly, motivated and disciplined. Above all else, the ability to build relationships is the most important trait of a sales representative.

Johnsonville Marketing Plan 24
As previously stated, our PR team will be heavily relied upon to build product awareness. They are going to be the ones out in the field promoting our product at events and creating a buzz. This is going to make them the face of the company.
Things don’t always go as planned in business, so in order to succeed we must recognize the risks and possible issues. Like most others, our market is dependant on the status of the economy. If a recession hits and people stop purchasing sausage, we have the potential to suffer more than other vendors, due to our high pricing. To deal with this issue we may have to lower the quality and price of our product. Another difficulty will be finding vendors to supply the high quality raw materials we need to create the finest sausage possible.
Our biggest fear is lack of consumer awareness. If customers don’t know about our product, our sales will suffer greatly. Once people are aware, we need to make sure customers like our product. Because we are putting the best, organic ingredients into our sausage, we are confident the public will enjoy the taste of our sausage. However, the variety of flavors we offer may not be preferred. To fight this issue we must be able change our flavors quickly and fluidly.
If we can manage to fight off these possible difficulties, we will achieve success.

Johnsonville Marketing Plan 25
Delate, K. (2011). Research And Extension Activities. In Iowa State University . Retrieved
March 5, 2013, from http://www.hort.iastate.edu/research/delate
Food Insight. (2013). 2012 Food & Health Survey: Consumer Attitudes Toward Food Safety,
Nutrition & Health. Retrieved from http://www.foodinsight.org/foodandhealth2012.aspx
Heist, K. (2012, June 14). How packaging Protects the Environment. In Harvard Business
Review . Retrieved March 12, 2013, from http://blogs.hbr.org/cs/2012/06/how_packaging_protects_the_env.html
Hensley, S. (2012, June 20). Organic Foods Have Broad Appeal. In National Public Radio .
Retrieved March 7, 2013, from http://www.npr.org/blogs/health/2011/07/20/138534183/organic-foods-have-broadappeal-but-costs-temper-demand
Hormel Foods.
(2013). Saag’s Brand Overview. Retrieved from http://www.hormelfoods.com/Brands/BrandWall/Saags-sausages
Jimmy Dean. (2013). Products. Retrieved from http://jimmydean.com/products/originallinks.aspx
Nielsen. (2011). Sustainable Efforts & Environmental Concerns. Retrieved from http://www.nielsen.com/us/en/reports/2011/sustainable-efforts-environmentalconcerns.html
Ogden, C. L., Carroll, M. D., Kit, B. K., & Flegal, K. M. (2012, January). Prevalence of Obesity in the United States. In Center for Disease Control Prevention . Retrieved March 12,
2013 , from http://www.cdc.gov/
Oscar Mayer. (2013). Beef. Retrieved from http://www.kraftbrands.com/oscarmayer/hotdogs/beef.html
Premio. (2013). Premio Hot/Sweet Combo Pack. Retrieved from http://www.premiofoods.com/premio-hot-sweet-combo-pack-132-132-133-324.html
The New Strategist Editors. (2009). Who's Buying Groceries (7th ed.). Ithaca, NY: New
Strategist Publications, Inc.
World Packaging Association . (n.d.). Market Statistics and Future Trends in Global Packaging.
In World Packaging . Retrieved March 12, 2013, from www.worldpackaging.org

Johnsonville Marketing Plan 26
1. Gender: M ___ F___
2. Age: 18-25 ___ 26-35 ___ 36-45 ___ 46-55 ___ 55+___
3. Education Level: Some High School ___ High School Graduate ___ Some
College ___ College Graduate ___ Advanced College ___
4. Race: Asian ___ Hispanic ___ Black ___ White ___ Other ___
5. Location:
City: _____________________________________________________________
State: ______________________________________________________________
Zip Code: __________________________________________________________
6. Social Class: Upper Class ___ Upper Middle ___ Middle ___ Working Class ___
Lower Class ___
7. How many days per week do you eat sausage?
once ___ 2 or 3___ 4 or 5 ___ 6 or 7 ___
8. How many times in a month do you Barbeque?
Once ___ Twice ___ 3x ___ More ___
9. Select your preferred flavor:
Chipotle ___ Garlic & Basil ___ Classic Italian ___
Jalapeno ___ Smoked Apple ___
10. On a scale of 1-10, how important is variety of sausage?
11. How do you prefer your sausage?
Chunks ___ Fine Ground ___ Links ___
12. Would you benefit from combo packages of multiple meat options that include turkey, beef, chicken or pork? Yes or No.
13. Do you pay attention to G.M.O. labeling and added preservatives? Yes or No.

Johnsonville Marketing Plan
Requirement Total
Renting Building $2,850
Employee Wages (3) $1,440
Total Fixed Costs per
Week
$4,290
Contribution Income Analysis
Price Per Unit
Number of Units Sold
Total Sales
Less: Variable Production Costs
Less: Variable Selling Costs
Total Variable Costs
Contribution Margin
Less: Fixed Production Costs
Less: Fixed Selling and Administrative Costs
Total Fixed Costs
Income Before Taxes
$10.00
12812
$128,120 100%
$25,624.00 20%
$0 0%
$25,624 20%
$102,496 80%
$17,160 13%
$0 0%
$17,160 13%
39% 39%
27