Not only that, they were able to tap in to what visitors to the country were also talking about. Working alongside IBM and its COBRA system, Kraft undertook a Social Listening strategy and started to gain some insights into what their customers were talking about. Kraft searched for valuable insights for the development of a potential Vegemite product extension. The Strategy Social listeningįor Talbot at the beginning it was simple, he felt that as a company they needed to get closer to their consumers in order to understand what they expected from Vegemite. The main idea was to get some consumers’ insights to launch a new product that would boost sales. Talbot, understood that he needed to do something with the aging brand. For Kraft with this brand and product it was as if time stood still.
They didn’t look to target any other audiences. The company’s marketing team also did not get away unscathed, as because the product and the brand had been so successful there was no need for innovation, entrepreneurialism or creativity in their communications.There was an increasing number of immigrants, who were not familiar with the product.Australian households were getting smaller.Some people said it was because people had less time for breakfast in the morning, and Vegemite was not the best “grab and go” breakfast solution.Because of the creation and ingredients it contained, it had no expiry date, which meant an everlasting shelf life. There was a recognition that Vegemite didn’t need to be purchased every week, with a family’s weekly shop.The challenge: an iconic brand in declineįor Simon Talbot, Kraft’s Head of Corporate Affairs, sales had been declining for over five years, market share was dropping by almost 10%, and of course for any company in this situation something had to be done. So when sales started to fall (Vegemite household penetration had fallen from 80% to 72%), you can understand the apprehension of now wanting to change a brand to try and turn it around. But for Vegemite they kept everything the same. Even changing your marketing and approach to selling to your target audience can help. We all know that people don’t like change but it is vital for brands to continue to evolve, even if ever so slightly. It has its own story to tell and for Australians they have built it into a big part of their culture.īut as a brand it had also not changed in decades. The brand is a leader for Kraft foods (alongside Philadelphia Cream Cheese) and has long been an iconic breakfast spread for Australians, but also a brand leader across the globe according to IBM’s brand index. It is a nutritious product, one of the richest known sources of Vitamin B.
Vegemite is a salty spread made out of yeast extract.
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