Abstract

This case study is about Kraft Foods Inc.’s (Kraft) decision to launch a breakfast spread with the name ‘iSnack 2.0’ in Australia, and the controversy that followed which forced the company to withdraw the brand name. The company had decided to give the name ‘iSnack 2.0’ to a new version of the Australian food icon – Vegemite — in September 2009. While the company felt that the name it had arrived at after conducting an online brand naming contest would appeal to the Generation Y segment who were using popular products such as the iPod and the iPhone, the target segment rejected the name outright and there was a huge backlash against the company. Marketing and branding experts were divided in their reactions to Kraft’s branding exercise. While some experts felt that this was a genuine misjudgment on the part of the company, others felt that it was a clever marketing ploy to raise awareness about its new product. While the debate on this issue raged on, experts were almost unanimous in their view that this episode would not only be remembered as a horrible example in the history of branding but would also serve as a valuable lesson in branding strategy for all marketers.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Understand the issues and challenges in naming a brand (new brand, brand extension, rebranding). Analyze the effectiveness of crowd sourcing in branding decisions. Appreciate the importance of marketing research in branding decisions. Analyze the pros and

Keywords

Brand Naming, Change in consumer preference, Waning brand appeal, Market research, Crowd sourcing, Naming competition, Branding, Branding disaster, Planned publicity gimmick, Misjudged marketing effort, Ethics, iSnack 2.0, Vegemite, Kraft, Australia