the case

Instructions: Please read the following case and answer question related to the case.

In 2007, Beckey Neal and Kim Neal opened a candle and gift shop in Tupelo, MS, selling their hand-poured candles. Over the course of seven years, Wicks and More grew to a multi-million dollar company, selling candles in more than 3000 boutiques and fine department stores throughout the United States. Wicks and More candle shop features a wide variety of candles, from simple scented candles to highly ornate candles that are used for decorations. Wicks and More shop also features candleholders, incense, and candle-lighters of all kinds.

There are four major uses for candles. The first is to serve a functional purpose, providing light when the electricity goes out. Many people keep stocks of candles on hand just for those times. Second, candles are used for decorations. Third, candles can be burned to provide a romantic environment. Scented candles add to the experience of the warm glow of a candlelit bedroom. Other candles provide the perfect light for a romantic dinner. Fourth, candles are used as part of religious ceremonies.

The owners of Wicks and More have just contacted a marketing consulting firm. They wanted to know if there is a way to make the store's marketing program more effective. Thus far, they had run ads in the newspaper and occasional spots on local radio. Most of the store’s radio advertising has been during the Christmas holiday season. Newspaper ads run all year.

The company provides the demographic information for Wicks and More’s current target market. Far more women buy candles than men. A typical customer is at least 20 years old. In terms of psychological characteristics, candle buyers tend to have a strong sense of fashion and decor. Many enjoy home decorating. Wicks and More’s customers have enough disposable income to shop for nicer home decorations. Many are affluent, though it is not unusual for a middle class income shopper to come into the store. People with lower incomes who want candles for power outages tend to buy them at Wal-Mart or a discount store.

Wicks and More have been in business for quite a few years now, and the company believes a more effective marketing program might help them build a stronger company.

1. A company has four choices when it comes to developing existing brands. Describe what they are and suggest three to four specific brand development ideas to help Wicks and More take advantage of their existing brand equity. (Your answers are expected to incorporate the discussion on iSnack 2.0 case)

i Snack 2.0 case; which is your answers are expected to incorporate the discussion on it)

Problem/s                  

 Kraft Foods was presented with two problems, one in which was already addressed by Simon Talbot, Kraft’s Director of corporate affairs. Since Vegemite sales were declining by almost 10% and it was clear that Talbot had to do something about it. After the successful social media campaign, a new version of Vegemite was introduced and received well in the court of public opinion. This problem seemed to be under control until the announcement of the new name was released; hence problem number two.

 After launching a ‘Name Me Campaign’ Kraft received 48,000 different names for the new Vegemite product. Names such as ‘Cheesymite’ spelled in different ways or ‘Vegemite Smooth’ were among the popular consumer choices.1 Kraft decided to go with iSnack2.0 because the ‘i’ signified a personalization with the product, ‘snack’ because of the new association they wanted and ‘2.0’ to identify as the second version of Vegemite. This turned out to be a disaster after is official announcement during the 2009 Australian Football League Grand Final. The backlash was evident throughout social media and in Australian communities; it was clear that the name was not liked nor accepted. Mr. Talbot was faced with changing the name of iSnack2.0 due to the public outrage or holding steady in hopes that it was a temporary public

Alternative Solutions  

 Alternative solutions that Mr. Talbot can pursue include changing the name of the iSnack2.0 at the request of the media and consumers. This seems like the obvious and immediate decision to make based on public feedback. This can be done by launching another social media  campaign that includes the top 5 most popular names that can be copyrighted. Kraft can call this ‘The People’s Choice’ campaign. So over a couple of months time, Kraft will advertise on all major social media platforms and also TV and public transportation ads. It could even be a good idea to offer some type of sweepstakes as incentive for the public to vote. 

Another obvious solution is to hold on to the name and wait on addressing the iSnack2.0 criticism directly. It has only been about 72 hours since the big announcement of iSnack2.0, maybe the public can forget about the name for the following reasons: 1. Sales actually risen 47% since the launch 2. There were no notable complaints in regards to the taste of the iSnack2.0. This give reason to conclude that the name of a product is not a strong revenue factor. The CEO can later then send a message via social media to explain the reasons behind the name iSnack2.0 to attract empathy.

Other more extreme solution include dropping the new Vegemite version altogether, revert back to the original Vegemite, and utilize social media and other mediums to create brand awareness and recapture market share. 

Evaluation of Alternatives           

 If Kraft is going to change the name of iSnack2.0, they need to do quickly and ride the wave of its current product awareness. If they create the proposed ‘People’s Choice Campaign’, it will be their opportunity to choose a name that connects with Vegemite consumers. Kraft would have to consider the costs associated with another advertising campaign. Considering the fact that sales were up after the launch indicating a successful product, this may not be an issue. It’s important to note that sales were up during the initial launch and may only be because of curiosity and anticipation. 

 Staying true to the name iSnack2.0 name can come with its advantages. As sales continue to grow with only a backlash of a bust name, Kraft can take advantage of the publicity. Afterall, any publicity is good publicity. 2This would be a good opportunity for Kraft to save on any additional short term marketing costs or possibly utilize increased revenue to later concentrate advertisements how good the taste of iSnack2.0 is. This could possibly divert attention from the hated name iSnack2.0. 

 Dropping the campaign altogether is the final alternative and very well the most costly. This would require that Kraft suspend production of iSnack2.0 and focus attention on the original Vegemite. Paul Farris, Professor of Business Administration from the University of Virginia states that by replacing existing products with new and improved product mixes is very risky, can compromise consumer loyalty and should only be considered with a thorough market test.3 This is a critical component that Kraft failed to do. In the case of Kaft, if they drop the new version of Vegemite and revamp their marketing efforts to create brand awareness. A great strategy and advantage is the use of product positioning; Kraft has created a household brand with Australians which they can use to its advantage. From commercials depicting mothers

Recommendation/s                      

The ideal recommendation for Kraft is to create the ‘People’s Choice Campaign’. Their prior campaigns proved to be a huge success. Not only will this create the maximum brand awareness, but also connect consumers with their beloved Vegemite product; they will feel like the renamed iSnack2.0 is a product of the people. Also, in regards to consumer behavior, Vegemite currently addresses Maslow’s social and physiological needs section of the Maslow’s Hierarchy of Needs. Social in that Vegemite is a food product with essential vitamins that can be consumed daily and physiological in that it is a product that Australians resonate with. This could be an opportunity for Kraft to hit yet another category in self-actualization where the new Vegemite product will be an artistic reflection of its consumers. Consumers will feel as if the new Vegemite is their product; this will recapture the loyalty of the original Vegemite consumers and also create a new customer base. 

This case can be a good learning lesson for Kraft to continue to create brand awareness with its products no matter how popular it once was as in the case of Vegemite and its popularity from 1940-2000. They must also listen to their customers and actually give them what they want. Kraft was on the right track with their campaigns though did not deliver on an ideal name that was staring at them from the thousands of public suggestions.