Brand Naming: Kraft Foods' "iSnack 2.0"' Controversy in 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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Case Details:

Price:

Case Code : MKTG249 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Consumer Behavior / Brand Management Curriculum
Case Length : 23 Pages
Period : 2009-2010
Pub Date : 2010
Teaching Note : Not Available
Organization : Kraft Foods Inc.
Industry : Consumer Packaged Goods
Countries : Australia

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 Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

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.

Issues:

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 cons of using social media as a marketing tool to generate publicity for a product.
Understand why the target segment rejected the brand name 'iSnack 2.0' for the brand extension of the iconic Vegemite brand.
Discuss and debate whether Kraft's decision was a deliberate attempt to create a controversy to create awareness for its new product and the related ethical issues.
Explore ways in which Kraft could have made the branding campaign more effective and also explore branding strategies that Kraft's marketing team can adopt in the future.

Contents:

  Page No.
Want a Spread of iSnack 2.0 on Your Toast? 1
Background Note 3
Change in Consumer Preference? 5
So, How Would You Like to Have Your Vegemite? 6
Launching iSnack 2.0! 7
The Backlash 7
Kraft's Swift Withdrawal Sets Tongues Wagging 9
Is Crowd Sourcing a Good Idea for Brand Naming? 10
Branding Strategy Gone Wrong or a Clever Marketing Ploy? 11
Employing New Media - A Two-Edged Sword? 14
Kraft's View 15
Renaming to Cheesybite 15
Looking Ahead 16
Exhibits 18

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

Want a Spread of iSnack 2.0 on Your Toast? - Next Page>>


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