Transcript Vegemite - Mid-State Technical College

Vegemite
A product of Kraft foods
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In 1922, a Melbourne man called
Fred Walker (who started the Fred
Walker Company which eventually
became Kraft Foods Limited in
Australia) had the bright idea of
using yeast extract left over from
the manufacture of beer to create a
wonderful source of vitamin B and a
tasty new spread that every
Australian will grow up with.
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It is the registered brand name for
a dark brown -- almost black -salty food paste mainly used as a
spread on sandwiches and toast,
though occasionally used in
cooking.
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Its taste and manufacture are similar to
the British Marmite, and indeed the
product was for a short time known as
"Parwill" as a rather unfunny and
unsuccessful pun on Marmite's name (as
in the sentence: "Ma might not like the
taste, but I'm sure Pa will"). Vegemite's
current name was picked at random out
of a hat of other possible choices by Fred
Walker's daughter, Sheilah.
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The spread is extremely strongly
flavored, and a little goes a long
way - most people spreading
vegemite as thickly as jam or butter
will get a nasty surprise when they
bite into the resulting product
Nutrition
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Yeast extract is four or five times
more concentrated than yeast,
making it one of the richest known
sources of the vitamin B group.
In addition to being rich in vitamin
B, yeast extract also contains other
essential proteins and minerals
It is also fat free
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Prior to the outbreak of World War II in
1939, Vegemite gained official product
endorsement from the British Medical
Association. This endorsement coup
allowed Vegemite to be advertised in the
British Medical Journal and for medical
professionals to be able to recommend
Vegemite as a Vitamin B-rich,
nutritionally balanced food for patients
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Vegemite's rise to popularity was
helped by highly successful
marketing campaigns in the 1940s,
using groups of smiling, attractive
healthy children singing a catchy
jingle entitled "We're happy little
vegemites". Indeed, many
Australians still use the phrase
"happy little vegemite" to describe
such children.
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In April 1984, a 115g jar of Vegemite
makes grocery store history by becoming
the first product to be electronically
scanned at the checkout in a supermarket
in Australia. It was scanned in
Woolworths at Chullora NSW and the
price was 66 cents. The product is on
display at Woolworths head office in NSW
should anyone feel inclined to make a
pilgrimage.
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Today Vegemite, which remains
relatively unchanged in recipe and
label, now sells over 22 million jars
every year. Vegemite may have
started on toast but it remains a
vital ingredient in many
contemporary recipes such as
risotto.
Did You Know?
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22.7 million jars of Vegemite are
manufactured in Australia every
year - that's 235 jars per minute.
30 jars are sold in Australia for
every one exported.
Vegemite is in nine out of ten
pantries in Australia.
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Kraft launched Vegemite snack
abouts in 1999
"Snack abouts" was created for
children and adults so that people
could snack on Vegemite anywhere,
anytime.
With four buttery crispbreads in
every pack and a handy red stick for
spreading, Vegemite snack abouts
are a popular addition to Aussie
kids’ lunchboxes.
More information:
http://www.vegemite.com.au/index.cf
m?fuseaction=home.welcome
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This includes old ads for the company
in the Our Heritage section
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For the first time in 85 years,
Vegemite has now launched a new
product.
http://www.youtube.com/watch?v=
4wVmuUEOZe8
http://www.youtube.com/watch?v=
7lK4ADMuj8k
Issues for International Sales
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What market entry method would you
use?
Would you change the product or keep it
the same?
Who would you market to?
How would you promote the product?
What would your promotional message
be?
How and where would you sell it?
What kind of a price would you attach to
it?
4 P’s of Marketing
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Product
Promotion
Place (Distribution)
Price
Adaptation vs. Standardization
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Standardization: keep product the
same across countries
Adaptation: change product to meet
local needs
McDonalds
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Q. How many restaurants does
McDonald's have and in how
many countries?
A. There are more than 30,000
McDonald's restaurants in 119
countries.
Menus vary around the world.
Product Adaptation
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Packaging
Color
Size
Usage
Labeling
Features
Technical issues
Factors which drive standardization
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Cost
Brand Name
Control of Image
Economies of Scale
Globalization of marketplace
Factors which drive adaptation
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Use of product
Legal differences
Buyer behavior patterns
Cultural differences
Economic factors
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Coca-Cola
http://www2.cocacola.com/brands/brandlist.html
Electricity
http://www.voltagevalet.com/count
ry/all.html
Global Segmentation
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Identify a market segment that
crosses country lines and sell a
standardized product to it
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Barbie in Middle East
http://news.bbc.co.uk/2/hi/middle_
east/4605334.stm
Possible Segments
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Global segment: MTV generation,
global business travelers
Regional segments: Asian edition of
Microsoft word
Unique segments: first-time
parents, sophisticated
photographers; working women
India
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http://www.mcdonaldsindia.com/ou
rfood/veg/mcaloo_tikki.html
Malaysia
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i'm lovin' it! McDonald's® Malaysia
Middle East
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http://www.mcdonaldsarabia.com/e
nglish/uae/nutrition_inov.asp
Uruguay
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http://www.mcdonalds.com/countri
es/uruguay/food.html
Greece
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http://www.mcdonalds.com/content
/countries/greece.html
Signage
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http://www.mcdonalds.com/corp/ne
ws/media/multi/Rest/signage.html
Alternative International Product and
Promotional Strategies
The World’s 10 Most Valuable
Global Brands
Source: BusinessWeek 8/26/2007
http://www.finfacts.ie/brands.htm