Swot Analysis Of Vegemite

Customer centricity

Considering where Vegemite is in the Product Life Cycle, it is obviously a mature and established brand. With such an established brand, it is a constant process of revitalization to ensure it stays relevant in the contemporary market place, and “iSnack 2.0” is one of the outcomes.

The new type of Vegemite is also to turn around the company, refocusing the organization toward customer-centric strategy. An organization can be truly customer centricity only when it is as part of a knowledge management system (understanding the customer), as part of the development of strategic competence as a learning organization (building a customer-centric culture), and as a foundation for corporate strategy development and execution (serving the customer). Kraft, however, is lack some of essential components to become the one. Following is an analysis of Kraft’s customer centricity based on case’s information

Understanding the customer - MODERATE

With strong commitments to understand its customer, Kraft enlisted IBM to perform market research on social media, using its sophisticated system to mine content on the internet.

The study found out new insights that Vegemite users are very active online, and many have unusual ways to use Vegemite. These vital insights helped the marketing team to come up with campaign “How do you love your Vegemite?,” which was an exponential success. The company has achieved the goal of understanding its customer, finding customer needs then use the new knowledge to design innovative initiatives. However, the company should consider combining social media market research with traditional one because not everything is fully expressed on the

internet.
Building a customer centric culture - LOW
Although the company’s attempt to have a better understanding of customers can happen quickly by a hefty investment, building a customer-centric culture, in another hand, will take time and effort of the whole company. It is especially tough with a bureaucratic business that enjoyed more than 70 years of success. Such business can easily turn out to be lack of connections with customers and entrepreneurship spirit, which are imperative factors of customer-centric strategy.
Serving the customer - LOW
Kraft fails to incorporate the new market dynamics of customer centricity into strategic planning and across the entire marketing mix. The negligence of new vital segments such as young adults and families without children or declining sale of the aging brand are vital signs of the symptom. Thus, the new brand should capture the needs of mentioned customer segments, and represent relevant values such as using Vegemite as snack.
Customer centricity and innovation - MODERATE
Another notion that Kraft emphasizes its customer centricity strategy is when company allows its customers to name new products. While the tactic was successful in the past, the second time is not following the suite. However, considering the company’s attempt to engage with its customers, Kraft is paying more attention to their clients’ needs, opinion and contribution.