Case Analysis 2: Kraft AustraliaCompany BackgroundKraft Foods Australia is a subsidiary of Kraft Foods,the second largest branded food and beveragecompany in the world. Established in 1926, KraftAustralia is headquartered in Melbourne and has salesrevenue of over A$650 million. The companyâ€™sflagship brandâ€”Vegemiteâ€”has long been consideredan Australian national icon.For all the diversity in the worldwide consumerproducts market, the most successful companies tendto have an important thing in common. They focus oncontinually improving the business functions that arecritical to the consumer products business model, frommaintaining vibrant and market-driven productdevelopment to having efficient manufacturing and alean and flexible supply chain. Even morefundamental to consumer-products success, however,is the strength of the relationships companies formwith their customers. Thatâ€™s why a companyâ€™s brands,as the embodiment of this bond, represent the mostimportant strategic asset for a consumer productscompanyâ€”indeed the backbone of its success. In abusiness built on customer loyalty, brands also serve toconvey the promise of a consistent and high-qualityexperience that customers can count on. Maintainingthe integrity of this promiseâ€”and thus the strength ofthe brandâ€”is a first level priority for consumerproducts companies and a key to maintaining andgrowing market share.The billions of dollars companies spend every year onbrand research and advertising attests to thecontinuous nature of this challenge. Withdemographics constantly changing and new marketopportunities opening up, consumer productscompanies need to not only strengthen their brands,but also ensure that they are in sync with marketplacetrends. It was through such an exercise that KraftAustralia (www.kraftfoods.com.au) made an importantdiscovery. Its hero brand, Vegemite, has been abeloved fixture in Australian households since it wasintroduced half a century ago. While its brandremained strong, Kraft found that a large portion ofâ€œnewâ€ Australiansâ€”such as those who immigratedinto Australiaâ€”had no relationship with the Vegemitebrand. Seeking to tap into this market potential, Kraftwas determined to gain a comprehensiveunderstanding of this group, and more specifically itsbeliefs and attitudes toward Vegemite. At the sametime, Kraft was also looking to bring its longtimebrand messageâ€”which featured children as â€œHappyLittle Vegemitesâ€â€”up to date with changinglifestyles, demographics and usage patterns. Kraft alsounderstood that there were many lapsed users who hadgrown up on the spread who needed to be reminded oftheir affinity for the brand. Kraft didnâ€™t take suchchange lightly. It was determined to get the deepestpossible insights into what consumers were thinkingand saying about the Vegemite brand and to tailor amessage that would resonate most strongly with thosethemes.The web offers a wealth of the insights fromconsumers through web content. There are half amillion mentions of Vegemite out of 1.5 billion postsof user generated content across 38 languages. Thesecan provide Kraft the answer that they may need.One of Kraftâ€™s goals going into the research was to testcertain hypotheses about the kind of issues it wouldaddress in its upcoming advertising campaign. Anexample was whether or not customers were lookingfor variations to the â€œclassicâ€ Vegemite product, and ifso what they should be (e.g., new flavors, different jarsizes).Business Objectivesâ€¢ Change the branding campaign based on howthe consumers view and used Vegemiteâ€¢ Identify market opportunities at a very earlystageâ€¢ Detect and respond to threats to Kraftâ€™s brandsand corporate reputationâ€¢ Ability to increase sales and customer loyaltythrough more targeted advertising campaignsQuestions1. What are the problems that Kraft Australiawould like to address?2. What are the data available that can be usedfor an analytics solution?3. How can these data be used to identify howthe customers view and use Vegemite?4. What are the possible solutions that can beprovided for Kraft Australia to help themsolve their problems?