Marmite and Vegemite case study: capitalizing on the nostalgic appeal of a product to build brand loyalty

Marmite and Vegemite case study: capitalizing on the nostalgic appeal of a product to build brand loyalty

Introduction

This report on Marmite and Vegemite forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It looks at how the well-established brands have capitalized on their nostalgic appeal in marketing campaigns, while embracing new media marketing potential.

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DATAMONITOR VIEW 1
CATALYST 1
SUMMARY 1
ANALYSIS 2
Marmite, credited for inventing the yeast extract product, is a hundred-year-old iconic brand 2
Nostalgia has been a key focus of Marmite's long-lived advertising campaigns 2
Marmite is being increasingly promoted online to exploit new media marketing opportunities 3
The company has expanded Marmite's product range with portable offerings 4
Vegemite, the iconic Australian version of Marmite, sells over 22 million jars a year 5
The brand's marketing emphasizes its family-friendly formula 5
New promotions released in 2008 encourage consumer feedback through a new website presence 6
The brand has few product extensions, concentrating instead on marketing its traditional product 6
Can Marmite and Vegemite overcome their single-country sales bases and expand abroad? 8
APPENDIX 10
Case study series 10
Methodology 10
Secondary sources 10
Further reading 10
Ask the analyst 10
Datamonitor consulting 10
Disclaimer 10
List of Tables
Table 1: Vegemite's latest campaign humorously divides Vegemite eaters into different personality types 7
List of Figures
Figure 1: Since the mid-1990s, Marmite adverts have focused on the "love it or hate it" campaign 3
Figure 2: Marmite brand extensions include a range of on-the-go snacks, while the spread is also available in a squeezable jar 5
Figure 3: Vegemite adverts have often focused on the healthy properties of the spread 6
Figure 4: 83% of Marmite's launches have been in the UK over the past decade (total SKU launches = 71) 8
Figure 5: 75% of Vegemite's launches in the past decade have been in Australia (total SKU launches = 20) 9