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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Want a Spread of iSnack 2.0 on Your Toast?

In September 2009, Kraft Foods Inc. (Kraft), the world's second largest food and beverage company, announced that a new version of its Vegemite brand - an Australian food icon - would be called ''iSnack 2.0''. The announcement kicked off a huge debate that resulted in the company hurriedly withdrawing the brand name.

Vegemite, salty, slightly bitter, pungent tasting bread spread had been an Australian favorite for decades. Australians even had it with crackers, tomatoes, or avocados, or added it to soups and curries. The product was so popular that it was found in almost all Australian households and was considered a vital part of Australian lifestyle.

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But after the mid-2000s, Australia witnessed a gradual change in its demographic composition. The number of immigrants increased considerably in comparison to people born and brought up in Australia. Foreign born people, who had not been exposed to Australian traditions and tastes did not like the strong taste of Vegemite, preferring butter or cream cheese instead. Thus, Kraft witnessed a falling demand for the product in Australia. The company conducted online research and formulated a new recipe for Vegemite based on consumer insights. It introduced a new spreadable version of the original Vegemite in July 2009 and, as part of the product promotion, started a naming contest 'Name me'. From among the 48,000 suggestions received, Kraft's marketing team picked out the name 'iSnack 2.0' for the product, hoping that the trendy name would appeal to the target segment - Generation Y⁶ consumers.

Excerpts >>

6] Generation Y, also referred to as the Generation Next or the Millennial Generation or the Net Generation, usually denotes the generation with birth dates starting from 1970 to the 1990s. The generation is characterized by its increased use of digital technologies, media, and communications.

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