Lesson 5: The Art and Science of Junk-Food Marketing Food Marketing Basics

Student Question

What are the top leading food items that teens aged 13-17 spend their money on?

Answer:

Candy, soft drinks, and salty snacks or chips

Definition: Food Marketing

Food marketing is an activity or process that delivers, communicates or exchanges information about food that is important to the consumer

Food Facts

Kids aged 2-14 spend about $500 billion dollars a year on food Teenagers spend about $140 billion

Food Products Targeted to Youth

http://www.iom.edu/~/med ia/Files/Report%20Files/2 005/Food-Marketing-to Children-and-Youth Threat-or Opportunity/Productgrowt hslideFINAL125.pdf

Food Marketing Facts

• US food industry spends over $1.6 billion per year • Average teen sees 15 food commercials a day to market to teens • Overwhelming majority • Adds up to about 5,500 commercials a year are for unhealthy foods, high in calories, sugar, fat, • Commercials are for high sugar breakfast cereals, and/or sodium fast food, soft drinks, candy, and salty snacks

Food Marketing Facts

• Teens see fewer than 100 ads per year for healthy foods such as fruits, vegetables, and water • Similarities to tobacco industry marketing • Study showed that it is necessary to watch ten hours of kid’s television to see ONE advertisement for a healthy product

Second Largest Advertiser

Food companies are the second largest advertiser in the United States, second only to the automotive industry

Why is it the second largest advertised item?

o Because food accounts for 12.5% of consumer spending, so there is vigorous competition o There is repeat business – consumers need to purchase food o Food is one of the most highly branded products

Definition: Food Branding

• • • A combination of elements that communicate a food product through the use of their name or logo It influences a consumer’s decision to buy a food product and it creates value It is a combination of both functional and emotional benefits to the consumer

Branding Example

• Children prefer branded foods over foods that are not branded • Example of 3 to 5 year old kids that ate French fries • If the fries came in a McDonald’s package, 76.7% liked them more than the unbranded package (13.8%), even though they were the same product.

Why Brand?

Companies desire to: –Build brand awareness –Build recognition –Build brand preference –Build brand loyalty

Teens are also persuaded by the power of these marketing messages if they relate to:

– Appearance – Self-identity – Belonging – Sexuality • Over 80% of US grocery products are branded

Food Branding Examples

• Do you know any of these?

– M&M’s have the official spokescandies • And, chocolate is better in color – Fans recently voted for their favorite one by color

Food Branding Examples

• Oreo’s – Interactive food • Dunk in milk • Twist it • Eating the crème in the middle first •

Campbell’s Soup

o M’m! M’m! Good!

•

Coca-Cola

o It’s the real thing!

Food Branding Examples

• Arby’s • Kellogg’s – It’s Good Mood Food!

• Subway They’re grrrrreat!

– Five, five dollar foot long!

Student Question

Are there others you can think of?

How Much is Spent on Youth Advertising?

• Over $4.5 billion on promotions • About $2 billion on broadcast and print publicity • Roughly $3 billion on youth packaging

A substantial amount is spent marketing sugary drinks:

• This includes sodas, sports drinks, energy and fruit drinks • The amount of money spent on sugary ads geared towards teens, doubled from 2008 to 2010 • Sugary drinks are the top source of calories in teens’ diets

TOP 3 • RESTAURANTS MARKETED TO TEENS

McDonalds

– In 2006, McDonald’s spent

$2.5 million per day

on advertising in the United States.

• 40% total advertising budget was directed at children.

TOP 3 • RESTAURANTS MARKETED TO TEENS

Burger King

TOP 3 • RESTAURANTS MARKETED TO TEENS

Subway

• Do you think Subway is a healthier option?

– If so, why?

TOP 3 • RESTAURANTS MARKETED TO TEENS

Subway

– Marketing makes you

think

it’s healthier!

– Subway commercial “Greasy Fast Food” » http://www.youtube.com/watch?v=TxqRg2Nohso – Subway is not really any healthier.

– Many of their items are still high in fat and saturated fat.

– Meat is highly processed.

– Cheese is highly processed.

– Most menu options are high in sodium.

• TARGET MARKETING

McDonalds and KFC

– Target African-American youth with TV advertising, targeted Web sites and banner ads.

 African-American children and teens see at least 50 percent more fast-food ads than their white peers.

PASS OUT ANNUAL ADVERTISING BUDGET FOR PRODUCTS/BRAND OF FOOD AND BEVERAGES IN THE US, 2001

Why do food companies want to market to teens?

– They have money to spend on goods and services – They can decide what they will spend their money on or have purchasing influence – They will be future adult consumers

How does marketing influence teen choices?

• Affects their: • Influenced to choose higher calorie, low-nutrient foods – Food preferences – Purchasing habits – Consumption of

foods

– Eating behaviors – Promote positive

outcomes from consuming these foods

• Foods appear cool, fun and exciting to buy!

APPEAL TO TEENS • • •

Messages That Relate to Teens

– McDonalds “First Date” commercia l http://www.tvspots.tv/video/27586/McDONALDS- FIRST-DATE

Uses Humor

– “Very Funny” Egypt McDonalds commercia l http://www.youtube.com/watch?v=Wuvqv9IycgM

Uses Celebrities

– “I’m Lovin It” 2003 commercial with Justin Timberlake http://www.youtube.com/watch?v=dI-xHMM8wXE

APPEAL TO TEENS •

Often Has Entertainment Ties to Products

– Burger King; Twilight Saga promotional products.

•

Snack Items Are Commonly Used for Advertising

– Snack items are found to be popular among teens.

NEGATIVE IMPACT • Teenagers ages 13-17 purchase

800-1,100 calories

in an average fast food meal, roughly half of their recommended total daily calories.

• At most fast food restaurants, a single meal contains

at least half

of young people's daily recommended sodium.

• At least 30% of the calories in menu items purchased by children and teens are from

sugar

and

saturated fat.

NEGATIVE IMPACT • At Burger King, a 42-ounce "King" drink is now "large"; a 32-ounce "large" is now a "medium"; a 21-ounce "medium" is now a "small"; and a 16-ounce "small" is now "value." • Most fast food restaurants have at least one healthy side dish and beverage option for a kids' meal, but the

healthy options are rarely offered

as the default.

• Does fast food marketing entice you with healthier options? If so, how?

Recommendations for improvements for that coincide with Teen Marketing

• Food Manufacturers change their product to be substantially lower in: – – – –

Total calories Fats Salt Added sugars

• Higher in nutrient content

Recommendations for improvements for that coincide with Teen Marketing

• Shift their advertising and marketing towards healthier foods • Restaurants should expand and change their menus to serve healthier options to children and youth

Recommendations for improvements for that coincide with Teen Marketing

• Engage several methods of promoting healthy foods: – – – –

Print Broadcast Internet Wireless-based technology

• Develop and market teen-friendly products with less added sugar and no artificial sweeteners or fake colors

Recommendations for improvements for that coincide with Teen Marketing

• Make nutrition and ingredient information easily accessible • Stop targeting teens with marketing for sugary drinks • Remove nutrition-related claims from high-sugar products.

What Should the Fast Food Industry Do?

• Develop and advertise healthier options for menu.

• Develop standards for appropriate marketing approaches to children and teens.

Food For Thought

In the US, there are few policies and standards for food marketing or advertising aimed at teens.