Brand Naming: Kraft Foods’ ‘Isnack 2.O’ Controversy in Australia

Australia Consumer packaged goods Abstract This reason is about Kraft Foods Incs decision to launch a breakfast spread with the name iSnack 2. 0 in Australia, and the hostility 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 on-line brand naming contest would appeal to the generation Y element 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 brand experts were divided in their reactions to Krafts 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 lone(prenominal) 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.The case will help students to (1) understand the issues and challenges in naming a brand (new brand, brand extension, rebranding) (2) analyze the effectiveness of crowd sourcing in branding decisions (3) appreciate the importance of marketing research in branding decisions (4) analyze the pros and cons of using social media as a marketing tool to find publicity for a product (5) understand why the target segment rejected the brand name iSnack 2. for the brand extension of the iconic Vegemite brand (6) contend and debate whether Krafts decision was a deliberate attempt to create controversy to create awareness for its new product and the related ethical issues and (7) explore slipway in which Kraft could have made the branding campaign more effective and also explore branding strategies that Krafts marketing team can buy out in the future.This case is meant for MBA / MS students as part of the brand management / consumer behavior/ marketing communications curriculum. The teaching note includes the abstract, teaching objectives and methodology, assignment questions, feedback of the case discussion, and additional readings and references. It does not contain an analysis of the case.