MRKT3011 Tutorial4 – Branding Elements

Australia's Bega Cheese wins peanut butter labelling dispute with US food giant Kraft

Wedyan AlObaidan

60088936

17-May-2022
Question: 01

What are the branding elements that are the same on the two brands of peanut butter?

In 2013 Kraft Foods limited restructure and renamed as Mondelez Australia. In 2017

Kraft sold assets and peanut business to Bega cheese. Bega Cheese involved in deceptive and

misleading conduct because it acquired the right to utilize the lidded peanut and yellow labeled

on peanut butter jar same like Kraft.

1. Color scheme

Peanut butter jar of both Bega and Kraft consist of red, blue, white and yellow which

reflects high similarity and same packaging. Bega just made slight difference to light the overall

color scheme.

2. Tagline

"Never oily, never dry" reflects the similar label with just sight different of color scheme.

Moreover, Bega just tilted the tagline but the company name and product name located at the

same position.

3. Logo

Bega copied the same logo of Kraft with similar tagline, font size, location and image.

Only the colors are shuffled and slight difference in logo is made to avoid exact similar issue.

4. Shape
 Overall shape, font, color scheme, similar tagline, and design reflect that both shape of

brand have huge resemblance with slight difference.

Question: 02

Why would they have the branding on both so similar?

Kraft Foods limited is an Australian subsidiary of US Food industry. In 2013 Kraft

restructure and rename as Mondelez Australia and granted proper license to use the packaging

and label brand on its peanut butter. In 2017 Mondelez sold assets and peanut butter to Beg

Cheese which starts producing similar products with same lidded jar and yellow labeled

(Deborah Jackson, 2020). So, the main reason behind the same label and packaging is that

Mondelez sold the license to use the assets and products. David O'Callaghan disclosed that

Bega acquired legal right to utilize the lidded peanut and yellow labeled jar from Mondelez

Australia. According to justice Callaghan Australian company is Entitles exclusively to utilize the

same label and packaging on its products. This was the main reason which entitles Bega to use

the label of Kraft.

Question No: 03

Evaluate the following statement: “It is a good thing for brands to try to pirate your

trademarks, as it shows that they are worth copying”. Discuss.

Pirated trademark comprises bootleg, counterfeits and plagiarism of products which

allowed business of copyright and design right. Piracy provides to make illegal copies.

Trademark piracy is a food option because it showed that business ensure worth copying in the

market. Moreover, piracy gives a stronger access to brand in marketplace. Brand ensures long
term retention to brand in marketplace because original brand stay protected and new entrants

bring innovation in existing product features (Yoo & Lee, 2005). Moreover, pirated trademark is

also good for competitors because they copied existing pirated trademark rather than making

new private label. It enlace the overall worth and reputation of pirated trademark.

Question no: 04

What could the impact be on the brand if we allow other companies to copy our branding?

Strong brand image need much time, cost, and struggle to build. If the other companies

allowed to copy brand the actual brand face following challenges:

Decrease sales volume

Copy right issues lost the product originality and actual worth. Customer builds

emotional connection and show high loyalty toward associated brand. If brand provide

trademark to other companies their sales volume ultimately reduce.

Reduce in market value

Brand reduces reliability, authenticity, and actual worth after copyright (Yang & Yuan,

2022). After losing the unique identity the market value and reputation of brand ultimately

affected negatively.

Decrease customer loyalty

Customers are the main sources of revenue which provide actual strength and

reputation to brand. When brand transfer and lost the actual identity confusion about the

original brand arise. In this way brand lost the emotional connection and loyalty factor lost

which ultimately reduce customers gradually.

 References

Deborah Jackson. (2020). Bega vs Kraft: The peanut butter saga comes to an end. Retrieved

May 17, 2022, from Convinience and impulse retailing:

https://www.c-store.com.au/bega-vs-kraft-victory-for-the-little-guy/

Yoo, B., & Lee, S. H. (2005). Do counterfeits promote genuine products. Hofstra University,

Hempstead, NY.

Yang, B., & Yuan, T. (2022). Trademark and IPO underpricing. Financial Management, 51(1),

271-296.