The name for Vegemite's new product is being branded a spectacular failure by many, but a marketing expert thinks it is part of a clever strategy.

Western Australian web designer Dean Robbins coined iSnack 2.0 for the new creamier version of Vegemite.

The 27-year-old father's idea was picked from almost 50,000 submissions in a three-month nationwide competition.

Mr Robbins says he was going for a take on mobile phone and computer technology, and even though Kraft gobbled it up, it is not going down well with many Australians.

Bloggers and tweeps are uniting in hatred for the new name, with the topic #vegefail hitting number seven in Twitter trending when it was announced on Saturday.

And they are still bemoaning the choice today.

"iSnack 2.0? Attn: Kraft... what were you thinking!?!? Not a happy little iSnack... I mean Vegemite," Miss___Megan tweeted.

"What will happen to iSnack2.0 when the "i" in front of every word goes out of fashion??," jasongray tweeted.

Some Facebook groups have even popped up too, including "Boycott iSnack 2.0!!!".

Suggestions for a better name include "spreadgemite", "iSuck 2.0", "Betamaximite" and "literally anything".

But tweep BettyBrowne suspects this may all be a clever ploy.

"Laughing about iSnack 2.0....dumbest name ever. In fact so dumb you have to wonder if it's deliberate, everyone's talking."

Marketing expert Kenneth Miller agrees. He says the new name is getting people so worked up that even if the name is a dud, this is a win-win situation for Kraft.

"It's good PR, they've got the people talking and how often do people talk about a new snack?" he told ABC News Online.

"It could be a fad product anyway and they might not necessarily be serious but it will generate interest.

"At least people will try it and that's the idea ... it's getting people talking."

Professor Miller, from the University of Technology Sydney, says the name may be perceived as "weird" and "irrelevant", and could be scrapped if it does not take off.

"It could be relaunched at some point and renamed," he said.

"But if the product lives up to the hype, they've got it."

Professor Miller does not see the idea as such a bad thing.

"It may not have been a brand name I'd pick, but I don't mind it frankly. Some of these other snack stuff get boring names," he said.

"It might just breathe some life into an old brand. It's certainly not going to cannibalise the traditional Vegemite user. It won't damage the parent brand and the downside is low."

A competition also decided the name of the traditional Vegemite spread more than 85 years ago.