Marketing on Vegemite

Topics: Marketing, Kraft Foods, Vegemite Pages: 5 (2059 words) Published: April 11, 2011
This essay will explain the target market and the 4P’s analysis for one of the Kraft product, Vegemite. Kraft Inc Company, which is the owner of Vegemite product in Australia, is the largest food and beverage company in The United States. Kraft has been a major player in the food and beverage industry for a long time ago. Kraft has broad range products of food and beverage that are available around the world. One of the Kraft products that are marketed in Australia is Vegemite. Vegemite is considered as much a part of Australia's heritage as kangaroos and the Holden cars. It is actually an Australian obsession that has become a unique and loved symbol of the Australian nation (Vegemite Australia, 2010). It is made from leftover brewers' yeast extract and various vegetable and spice additives (Vegemite Australia, 2010). Vegemite has been available in the Australia’s market since a long time ago; vegemite is defined by the Australian people as a jam that is healthy and rich of nutrition. Kraft has been the owner of the vegemite product since 1935. First of all, marketing mix will be explained for the vegemite product. The first marketing mix is product. Vegemite has been a-long history product for Australia for the Jam market. From the marketing theory, vegemite can be classified as a consumer product, which is categorised as a convenience product, which has inexpensive price, 7.65$ and also it is available in almost all of the supermarkets in the Australia. Vegemite also can be concluded as a staple product, which is consumed regularly. From the product life cycle perspective it can be seen that vegemite is in the maturity stage and it is unlikely to move to the decline stage in the short time, because its popularity for the Jam product. Vegemite can be seen very different with other jam products, because of its unique and basic taste of Australian. With now vegemite is owned by Kraft Company, it has strong reputation from Kraft brand, which is internationally recognised. Kraft uses family branding for all of its products, which use all Kraft Name on its brand to help booster the sales of the Kraft’s existing and new products. Kraft, which is producer of vegemite, can be categorised as a manufacturer brand, because it produces its own products and using its own brand, name for its products, and it also has its own manufacturer to produce its products. From the research there is unlikely licensing or franchising for the vegemite Kraft product. Packaging is also crucial for Kraft’s Vegemite. It has primary package, without secondary package, which is used to hold the actual products, the Vegemite jam. While for labeling Kraft’s Vegemite labels its name, Vegemite and its brand, Kraft, it also includes the statement that it has rich of energy from vitamin B. It also has nutrition information, statement of quantity which is 600g NET, ingredient list, bar code for, and expired date which is likely to be a long life jam. From the research it can be shown that Kraft’s Vegemite is unlikely to obsolescence in the short time, because it has become the basic need of jam for Australia Family. The second P for the marketing mix is price. Price is the one of the main determinants for Kraft’s Vegemite. Because it is a convenience product, it is charged with relatively cheap price, which is 7.65$. Kraft’s Vegemite is expected to have big market share and big sales for its popularity thought Australia’s tradition to consume Vegemite jams. It charges relatively cheap price to cover big market share, so then it will have big sales to generate revenue. Because it is categorised as convenience product, when the price changes, there is unlikely the change on the demand of Kraft’s Vegemite, thus it can be concluded as an inelastic product. Kraft’s Vegemite is unlikely to have big margin of profit, instead it charges low price to reach big market share. Competitors are also the main concern for the Kraft for pricing its vegemite. There are broad...
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