Brand Naming: Kraft Foods' "iSnack 2.0"' Controversy in Australia

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Case Details:

Case Code : MKTG249
Case Length : 23 Pages
Period : 2009-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Kraft Foods Inc.
Industry : Consumer Packaged Goods
Countries : Australia

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Vegemite was invented in 1922 by Cyril P. Callister (Callister). He was the chief chemist of Fred Walker & Co., an Australian food company established by Fred Walker (Walker) in 1903. By using a chemical method called autolysis, Callister prepared Vegemite from the yeast extract available from breweries as a by-product of the beer manufacturing process...

Change in Consumer Preference?

Vegemite was a rage among Australians who had it almost daily, mainly as bread spread. To understand the consumer's perceptions of the brand, Kraft conducted an online research analysis with the help of social media...

So, How Would You Like to Have Your Vegemite?

To analyze people's opinion, Vegemite opened a website called www.howdoyoulikeyourvegemite.com.au in 2008. Based on their preference, online users could vote for the best way of having Vegemite by clicking any one of the twelve options given on the website...

Launching iSnack 2.0!

As a marketing strategy, Kraft decided to launch the product without a name. After announcing the product's release, they held a competition that ran for two months urging Australians and New Zealanders to suggest a name for the new Vegemite version...

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The Backlash

Just after the launch of the iSnack2.0 on September 26, 2009, Kraft was hit by a wave of criticism against the new brand name. Industry observers opined that customers had rejected the name outright as was evident from the negative comments that poured in on Twitter and other social networking sites as well as blogs overnight...

Kraft's Swift Withdrawal Sets Tongues Wagging

Faced with public wrath, Kraft's board members decided at an emergency meeting called on September 28, 2009, that the name 'iSnack2.0' should be immediately dropped. Within four days of the launch of the new name, Kraft announced that it would give iSnack 2.0 a new name...

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