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Published on January 13, 2009

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Slide 1: The global voice for consumers La voix des Consommateurs à travers le monde La voz global para la defensa de los consumidores GLOBAL MARKETING OF FOOD : CASE STUDIES FROM CONSUMERS INTERNATIONALRajeswari KanniahAssistant DirectorConsumers InternationalRegional Office for Asia and the Pacific : GLOBAL MARKETING OF FOOD : CASE STUDIES FROM CONSUMERS INTERNATIONALRajeswari KanniahAssistant DirectorConsumers InternationalRegional Office for Asia and the Pacific INTRODUCTION : INTRODUCTION Review 200: Top 10 Multinational Companies - 2000 1. Microsoft 6. Coca Cola 2. McDonalds 7. IBM 3. Nokia 8. Nike 4. Intel 9. Visa International 5. General Electric 10. Motorola GLOBAL ADVERTISING : GLOBAL ADVERTISING 20 biggest spenders in advertising: * 1986 - 3 developing countries * 1996 - 9 developing countries 1986 - 1996 advertising expenditure growth: * China - more than 1,000% * Indonesia - more than 600% * Malaysia & Thailand - more than 300% * India, S. Korea, Philippines - more than 200% BRAND RECOGNITION : BRAND RECOGNITION Coca Cola trademark recognised by 94% of world population. Topped the list of 24 brands worldwide with annual sales of over US$15 billion (March 2001). McDonalds Corp. has 27,000 restaurants serving 43 million people daily in 119 countries. McDonalds Asia Pacific region sales for the first quarter of 2001 is US$1.78 billion, an increase of 18% from the same period the previous year. CI STUDY OF FOOD ADVERTISING ON TELEVISION AIMED AT CHILDREN : CI STUDY OF FOOD ADVERTISING ON TELEVISION AIMED AT CHILDREN 1. Study covering13 countries: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Netherlands, Norway, Sweden, United Kingdom and the USA.(published as A Spoonful of Sugar, 1996) 2. Study covering 4 Central European countries: Hungary, Poland, Slovakia and Slovenia.(published as Easy Targets, 1999) CI STUDY OF FOOD ADVERTISING ON TELEVISION AIMED AT CHILDREN : CI STUDY OF FOOD ADVERTISING ON TELEVISION AIMED AT CHILDREN 3. Study in India covering Maharashtra and Delhi, 2001: how children influence buying decisions of the family. 4. Study in Asia Pacific covering 5 countries: India, Malaysia, Philippines, South Korea, Indonesia.(to be published in 2002) 5. Study in the Philippines, 2002: survey of both children and parents, urban and rural MAIN FINDINGS OF STUDIES : MAIN FINDINGS OF STUDIES Highest level of ads in Australia-double that of many European countries @ an average of 34 ads an hour. Second highest in the USA and UK has the most within Europe.Level of advertising in Central Europe is typical that of Western Europe. Food ads are largest category of products advertised to children in all countries. Confectionery, breakfast cereals and fast food restaurants accounted for over half of food ads. Most prolific advertiser - McDonalds. Others widely advertised are Nestle, Kelloggs, Mars & Cadburys. MAIN FINDINGS OF STUDIES : MAIN FINDINGS OF STUDIES Nutritional analysis of food ads: -50% for products high in sugar -62% for products high in fat -61% for products high in salt Overall 95 % for products high in fat, sugar and salt. In Central Europe: food ads make misleading claims, use unfair or inappropriate marketing practices. (chocolates portrayed as healthy, chocolates kept in medicine cabinet, etc) MAIN FINDINGS OF STUDIES : MAIN FINDINGS OF STUDIES In ALL countries surveyed, no specific requirements for food advertising in advertising regulations or codes of practice. Extent of protection of children from ads varies considerably from country to country.No consistent definition of “ a child”. None of the legislative and self-regulatory codes of practice meet minimum requirements of EU legislation or the ICC self-regulatory guidelines. MAIN FINDINGS OF STUDIES : MAIN FINDINGS OF STUDIES India: Advertising and purchasing power of the household are among the factors greatly influencing parent’s decision Food ads are often aimed at children 50% of adults revealed that children influence their buying decisions. MAIN FINDINGS OF STUDIES : MAIN FINDINGS OF STUDIES Philippines: Children can recall immediately two popular fast food selling hamburgers and spaghetti: Jollibee and Mcdonald’s. Easy recall is attributed to the employment of popular movie actors/actresses to endorse their products. 84% of children: ads update them about new products 78% of children: ads inform them about product features 59% of children: ads are a must. 40% of children: ads influence them to buy products that they don’t need. RECOMMENDATIONS : RECOMMENDATIONS Laws to regulate ads to children Cross-border advertising-broadcasters should be obliged to observe national rules of receiving state where the target audience are citizens of that state & the programmes/ads are in their language or with subtitles in their language. Advertising regulation should prohibit misleading, unfair or excessive number of ads, particularly products or foods which discourage healthy eating habits. RECOMMENDATIONS : RECOMMENDATIONS Ad regulations should take account of age of likely audience; younger children require greater protection than older children & teenagers No ads to children under 12 No ads during, just before or just after programmes for pre-school children Timing restrictions on amount of ads permitted during during children’s programmes Lack of differentiation between programmes and ads should be restricted RECOMMENDATIONS : RECOMMENDATIONS Since food ads are largest category of ads to children and promoting unhealthy diet, should be of concern to WHO and Health Ministries. Laws should regulate food ads aimed at children. Need more research into how much foods ads influence children’s food preferences and choices. Nutrition education and consumer education in schools, including influence of ads. RECOMMENDATIONS : RECOMMENDATIONS Ensure effective enforcement of ad regulations. Regulatory bodies should : - be independent and impartial; - have transparent decision-making process; - include consumer representation; - have majority non-industry interests in decision-making bodies; - pre-check and monitor ads to ensure compliance with regulations; RECOMMENDATIONS : RECOMMENDATIONS Regulatory bodies should : - be open to consumer complaints; - have power to enforce decisions and demand appropriate redress; - cooperate at the international level to harmonise regulations and codes of practice. RECOMMENDATIONS : RECOMMENDATIONS Regulatory bodies should : - be open to consumer complaints; - have power to enforce decisions and demand appropriate redress; - cooperate at the international level to harmonise regulations and codes of practice.

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