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 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 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 to market to teens Overwhelming majority are for unhealthy foods, high in calories, sugar, fat, and/or sodium Average teen sees 15 food commercials a day Adds up to about 5,500 commercials a year Commercials are for high- sugar breakfast cereals, 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 –It’s Good Mood Food! Kellogg’s They’re grrrrreat! Subway –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” » –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: –Food preferences –Purchasing habits –Consumption of foods –Eating behaviors Influenced to choose higher calorie, low-nutrient foods – 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 lhttp:// FIRST-DATEhttp:// FIRST-DATE Uses Humor –“Very Funny” Egypt McDonalds commercia lhttp:// Uses Celebrities –“I’m Lovin It” 2003 commercial with Justin Timberlake

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 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.