Isanck 2.0 Harvard case ( Vegemite)

CASE ANALYSIS

Introducing iSnack 2.0 : The New Vegemite

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CASE FACTS

• Vegemite is the bread spread product of Kraft’s

• It has a penetration of 80% in the households

• They came up with new name iSnack 2.0

• Sells over 22 million jars per year

• In 2008, they sold over 1 billion jars

• In Australia they are present for the last 70 years

• People are close to this brand

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CONTINUED…….

• In 2007, business started dumping

• Revenue declined and profits fell

• Social Media Research

• Research analysed 1.5 billion post on social network sites

• Uncovered half million mention of vegemite in 38 languages

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CONTINUED………

Research result showed that:

• 75% people use the product on toast for breakfast

1. limiting effect on the volume of usage

• They uses the product on bread

1.Limited number of usage occasion

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PROBLEMS 1.INITIALLY INCREASE IN SALES BUT BRAND IMAGE WAS TARNISHING

2. DOSEN’T SOUND LIKE FOOD

3. A VERY HIGH DICLINE IN SALES

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• LACK OF CONNECTION TO THE CONSUMERS & CONSUMER TRENDS.

• REWARDS AND AWARDS DESPITE OF DECLINING SALES.

• LACK OF ENTREPRENEURIAL DRIVE SO LACK OF INNOVATION.

PROBLEMS

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CASE INFERENCES

• In the first 2 months the company sold 2 million jars which had 12% household penetration.

• Companies’ sales were at the peak in 2002 but then started falling till 2008.

• The name me campaign was truly successful.

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• How do you like your vegemite personality traits

• The edger, the streakier, the dunker cuts , the slapper etc

• Household penetration was down by 8 % earlier from 80 to 72 %.

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OBJECTIVES OF SOCIAL MEDIA RESEARCH

To identify various trends and patterns

Insights for development of product extensions.

Find unique trends exiting in the market

FINDINGS OF THE PROJECT

Connection of the project was missing

Was a catalyst for urban myths.

People had personalised use of Vegimite.

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RECOMMENDATIONS

1. The company should change their name.

2. They should make the customers aware about the multiple usages of the product through their campaigns.

3. They reached the market very early, so they should have waited for the right time to hit the market.

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THANK YOU

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