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Marketing and Its Impact on Childhood Obesity: Strategies to Mitigate Unhealthy Messages
(Focus on Health Disparities and Marketing to Communities of Color)
Jerome D. WilliamsPrudential Chair in Business and
Research Director-The Center for Urban Entrepreneurship & Economic DevelopmentManagement and Global Business Department
Rutgers Business School-Newark and New BrunswickRutgers, The State University of New Jersey
Presentation at:6th Biennial Childhood Obesity Conference
San Diego, CaliforniaJune 28-July 1, 2011
IN-SCHOOL MARKETING
www2.coca-cola.com/ourcompany/ourdiversity.html
Kanye West
“Where restless Niggaz might snatch your necklaceAnd next these Niggaz might jack your Lexus…
We ain't going nowhere but got suits and casesA trunk full of coke rental car from Avis
My momma used to say only Jesus can save us”
Jesus Walks
“I drink a boost for breakfast, and ensure for dizzertSomebody ordered pancakes I just sip the sizzurp…
Story on MTV and I ain't trying to make the bandI swear this right here is history in the making man
All they heard was that I was in an accident like GEICO
They thought I was burnt up like Pepsi did Michael…
Unbreakable, would you thought they called me Mr. GlassLook back on my life like the ghost of Christmas past
Toys R Us where I used to spend that Christmas cash…”
Through The Wire
Kevin Lyttle
“The girl ya nah go get way tonite
If she think madd man nah go fight Me done feed she with popcarn and
spriteNow she whar
come fly way like kite…”
Turn Me On
McDonald's New Product Placement Aims At Hip-Hop Fans
By Eyewitness News' Jeff Rossen (New York -WABC, March 28, 2005) — A fast-food giant is accused of sending mixed messages. McDonald's - which has been trying to push a more health-conscious image - is launching a new ad campaign that relies on using hip-hop
artists to push less than healthy menu items.
McDonald's pays the rapper between $1 and $5 every time the song is on the radio. a popular song can air 350,000 times a year.
Food Guide Pyramid “Movie” Pyramid
Fats, oils& sweets
Milk, cheese& yogurt group
Vegetablegroup
Fruitgroup
Bread, cereal, rice& pasta group
Meat, poultry, fishdry beans, eggs& nuts group
Meat, poultry, fishdry beans, eggs& nuts group
( 22 % )
Fats, oils& sweets( 11 % )
Bread, cereal, rice& pasta group
( 28 % )
Milk, cheese& yogurt group
( 4 % )
Vegetablegroup( 22 % )
Fruitgroup(13 %)
Food Groups in the Movies
Historical Perspectives on Target Marketing
Marketers have been employing multicultural marketing in segmentation and target marketing strategies for decades in a number of product categories, particularly the non-alcoholic beverage category.Coke
– Public Relations pioneer Moss Kendrix recognized that Coke was not stocked in African-American grocery stores. He pitched to Coke in the 1950’s on how he could market Coke to the African-American market. He was hired as the first African-American to acquire a major account. While Moss Kendrix worked for Coca-Cola, he became an integral part of the product promotion efforts, and he had an opportunity to work with celebrities from the sports and entertainment industries. He also had the opportunity to design promotional ads for the beverage.
Pepsi– The cola wars between Pepsi and Coke began in the late 1930s when Pepsi started making gains in the
market. Pepsi sought the advantage, in part, by appealing to the African-American dollar. As early as the 1940’s Pepsi developed programs to target African American consumers. In 1940, Pepsi chief executive Walter Mack had the unprecedented idea of putting together a "negro-markets" department. Edward Boyd led the team of 12 black professionals, making Boyd one of the first black executives in corporate America. He and his group developed a marketing strategy seeking brand loyalty among African Americans. The strategy was one of the first attempts at niche marketing. Their task was to make contacts in Black communities, Black campuses, Elks club meetings, and Black churches. Pepsi started utilizing multicultural marketing before there was such a term. According to quote in a Wall Street Journal article on Pepsi’s effort, their mission was “To become intertwined in the community so they [black consumers] would look at you favorably and buy [Pepsi].’
Examples of Television Commercials Targeted Toward African Americans
Segmentation and Cultural Relevance
(30-40 years ago)
Coke – Urban neighborhood cueCoke – College students/HBCU cueCoke – Urban music cueMcDonald’s – casting cue
Understanding the Nature of the Beast
Marketers do what marketers do – basically they identify attractive market segments and then channel resources into getting those segments to purchase their products so that they can achieve profits.For the most part, they are not driven by social responsibility – If it doesn’t make $’s, then it doesn’t make “sense” – Example - Healthy check-out aisle
A Silver Lining in a Dark Cloud: Business Ethics– Move toward the triple bottom line – Social, Economic, and
Environmental– From stockholders to stakeholders
Health Disparities and Obesity
Is There A Problem for Multicultural Segments?
Table 3
Children (Ages 6 to 11) Prevalence (%)
Adolescents (Ages 12 to 19) Prevalence (%)
Race Overweight Obesity Overweight Obesity Black (Non-
Hispanic) 35.9 19.5 40.4 23.6
Mexican American 39.3 23.7 43.8 23.4 White (Non-
Hispanic) 26.2 11.8 26.5 12.7 Source: CDC, National Center for Health Statistics, National Health and Nutrition Examination Survey. Ogden et. al. JAMA. 2002;288:1728-1732.
WhiteBlack
MexicanAmerican
Youth Overweight: 1988-94 to 1999-2000
Source: National Health and Nutrition Examination Survey, NCHS, CDC.
Total
FemaleMale
0 10 20 30Percent
2010 Target
1988-94 1999-2000
White Female
Male
BlackFemale
MaleMexican American
FemaleMale
Adult Obesity: 1988-94 to 1999-2000
Source: National Health and Nutrition Examination Survey, NCHS, CDC.
Percent
Total
0 10 20 30 40 50
2010 Target
1988-94 1999-2000
Racial and Ethnic Disparities in Obesity Rates
(Source: AACORN 2010)
The obesity epidemic cuts across all categories of race, ethnicity, income and locale, but some populations are at higher risk than others.Lower-income individuals in some population groups, blacks, Hispanics/Latinos, American Indians, Pacific Islanders, and populations in the southern part of the United States are more likely to be obese than comparison populations (i.e., higher income, white or non-Hispanic, or in other regions).The most recent NHANES data on population weight levels, from 2007-2008, indicate that 78 percent of black women had a body mass index (BMI) that classified them as overweight or obese (Table 4). Nearly 50 percent were obese (defined as a BMI ≥ 30 kg/m2), and 14 percent were extremely obese (defined as a BMI ≥ 40 kg/m2). These levels are higher than obesity rates in white women and Hispanic women.8 Black men also have high obesity rates, but are not significantly different from white or Hispanic men.The 2007-2008 NHANES data also revealed a high prevalence of overweight and obesity in black girls compared with white and Hispanic girls, and black boys (Table 5). Black boys had obesity rates similar to white boys and lower than Hispanic boys.33
Racial and Ethnic Disparities in Obesity Rates
(Source: AACORN 2010)A trend analysis of NHANES data for 1971-1974 through 1999-2002 indicated that obesity levels increased more steeply in 6 to11 and 12 to17 year-old black and Mexican American children compared with white children in these age groups.34 In black children, obesity rates increased from 4 percent to 20 percent and from 8 percent to 22 percent, respectively for 6 to 11 and 12 to 17 year-olds compared with increases of 4 percent to 13 percent and 6 percent to 13 percent for white children and teens. Increases in Mexican American children were similar to those of the black children—from 6 percent to 22 percent in 6-11 year-olds and 9 percent to 25 percent in 12-17 year-olds.In 2007-08, obesity prevalence was 50% in black women aged 20 and over, and 26% in black girls ages 6 to 19.8, 33 Obesity prevalence among white women and girls in these age groups is 33% and 15%, respectively An analysis of obesity prevalence trends between 1971-1974 and 1999-2002 indicated a fivefold increase in black children ages 6 to 11 (from 4% to 20%), compared with about a three-fold increase (from 4% to 13%) in white 6 to 11 year-olds.
What We Know about Marketing/Advertising to Children
1) Children are a primary market for advertisers because:
They spend their own money
They are an influence market - they influence their parents’ spending
They are a future market - they will spend money in the future.
2) Advertisers spend a lot of money trying to reach and influence this market.
3) Children are “exposed” to a significant amount of advertising targeted to them and to advertising not targeted to them.
Increased Buying Power of U.S. Minority Groups
Source: The TRU Study UPDATE Spring 2005/Wave 45 Copyright © 2005 Teenage Research Unlimited, Inc. How Much Teens Spent in the Past Week
Total 12-15 16-17 18-19 $ $ $ $
Total Money 98 72 109 140 Own Money 68 42 76 112 Parents’ Money 30 30 33 28 — Numbers Shown are Averages — WHITE BLACK HISPANIC OTHER 95.72 100.25 107.48 92.00
African American Consumers and Marketing
Ethnicity key targeting variable for marketers and ethnic target marketing increasing given demographic changes.Food marketing may be synergistic with underlying audience characteristics.– African-Americans respond more favorably to targeted
commercial marketing activitiesHigher marketing exposure possible given African-Americans media use patterns.
Non-alcoholic Beverages: The Consumer - US - March 2010 - Impact of Race/Hispanic Origin
All White Black Asian HispanicHas the most exciting advertising % % % % %Regular soda 15 14 17 11 22Sports drinks 15 14 16 29 18Energy drinks 14 14 12 14 14Enhanced bottled water such as Vitaminwater or Propel 4 4 5 6 4Diet soda 3 3 3 2 3Fruit juice—100% juice 3 3 4 2 4Fruit drinks like Capri Sun 3 2 5 1 2Bottled water (unflavored) 2 2 5 4 3Don’t know 41 44 34 30 30Base: 1,969 internet users aged 18+ who have bought non-alcoholic beverages in the past month
Source: Mintel
Beverages perceived as having the most exciting advertising (soda, energy, water, juice grouping), by race/Hispanic origin, November 2009
Examples of Television Commercials Targeted Toward African Americans
Segmentation and Cultural Relevance
(Contemporary)
McDonald’s – Urban neighborhood/Rollerhoops/Music
McDonald’s – Young people/Entertaining/Hors D’oeuvres
Dr Pepper – Urban music/Celebrity/Dr Dre
Concern for specific ethnic groups
“Specific attention must be given to children and youth who are at high risk for becoming obese; this includes children in populations with higher obesity prevalence rates and longstanding health disparities such as African-Americans, Hispanic Americans and American Indians or in families of low socioeconomic status.”
Food Marketing to Children and Youth: Threat or Opportunity? (Institute of Medicine 2006)
Evidence Review FindingsLiterature supported relationships among marketing (TV
advertising), dietary precursors, diets, diet-related health, and body fatness.
With respect to dietary precursors:– Strong evidence that television advertising
influences food and beverage preferences and purchase requests of children ages 2–11 years.
With respect to diets:– Strong evidence that television advertising
influences short-term consumption of children ages 2–11 years.
Media Type Total ('000) % total Hispanic ('000) Hispanic as % Total African American ('000) African American as % TotalTV Network 564,635$ 38% 51,975$ 9.2% 5,978$ 1.1%TV Cable 451,124$ 30% 1,829$ 0.4% 28,275$ 6.3%Print Magazines 173,098$ 12% 695$ 0.4% 2,103$ 1.2%TV Spot 79,340$ 5% 2,591$ 3.3% 975$ 1.2%TV Syn 76,799$ 5% -$ 0.0% 1,852$ 2.4%Radio 75,645$ 5% 15,961$ 21.1% 13,466$ 17.8%Online 47,364$ 3% 862$ 1.8% 575$ 1.2%Print Newspapers 22,597$ 2% 369$ 1.6% 40$ 0.2%Print Trades 949$ 0% -$ 0.0% -$ 0.0%Grand Total 1,491,551$ 100% 74,282$ 5.0% 53,264$ 3.6%Source: Competitrack Advertising Tracking Service, Monthly Trend Spending by Advertiser and Media Type for Non-Alcoholic Beverage Industry, JAN 1 10 - SEP 30 10
BrandTotal Spend ('000)
Total Rank
% Total
Hispanic Spend ('000)
Hispanic Rank
% Hispanic Spend
African American Spend ('000)
African American Rank
% African American Spend
Coca-Cola $172,831 1 12% $14,191 1 19% $4,178 3 8%PepsiCo $108,506 2 7% $1,426 13 2% $4,404 2 8%Gatorade $87,270 3 6% $426 17 1% $1,939 8 4%V8 $78,786 4 5% $6 47 0% $2,681 6 5%Dr Pepper $70,211 5 5% $2,878 9 4% $4,717 1 9%Total Advertising Spend 1,491,551$ $74,282 $53,264Source: Competitrack Advertising Tracking Service, Monthly Trend Spending by Advertiser and Media Type for Non-Alcoholic Beverage Industry, JAN 1 10 - SEP 30 10
Brand
Hispanic Spend ('000)
Hispanic Rank Brand
African American Spend ('000)
African American Rank
Coca-Cola 14,191$ 1 Dr Pepper 4,717$ 1Nestle 10,655$ 2 PepsiCo 4,404$ 2Nescafe 8,235$ 3 Coca-Cola 4,178$ 37 UP 6,824$ 4 Sunny Delight 3,634$ 4Lactaid 6,537$ 5 Nestle 3,131$ 5Source: Competitrack Advertising Tracking Service, Monthly Trend Spending by Advertiser and Media Type for Non-Alcoholic Beverage Industry, JAN 1 10 - SEP 30 10
Which comes first: The Chicken or the Egg?
– The development of infrastructure for healthy living?
OR– The development of
population demand for healthy living?
Supply and Demand
“Chicken and Egg” Questions
Are African American food and beverage brand preferences driven by marketing, advertising, and media strategies?Or are marketing, advertising, and media strategies and expenditures designed to capitalize on African American food and beverage brand preferences?
All White Black Asian Hispanic% % % % %
Soda (net) 85 86 84 76 86Regular soda (net) 69 68 78 66 78Regular cola 59 58 66 57 69Regular carbonated non-cola soda 57 55 68 53 64Diet soda (net) 41 43 28 36 32Diet or sugar free cola 37 40 23 31 27Other carbonated diet soda 25 26 20 22 19Net bottled water 68 67 75 76 74
Non-carbonated bottled water 63 62 71 70 67
Sparkling waters, Seltzers and Natural Sodas 22 20 28 25 35Energy and thirst quencher-personal consumption
Sports drinks 38 36 44 33 57
Energy drinks 15 13 20 15 26Juice/juice drinks (net) 89 88 94 90 89Orange juice 73 71 83 79 79Tomato and vegetable juices 41 43 34 30 33Refrigerated/chilled other fruit juice/drinks (RTD) 39 35 55 50 42Non-refrigerated other fruit juice/drink (RTD) 27 29 22 25 23Base: 25,318 adults aged 18+
Source: Mintel/Experian Simmons NCS/NHCS: Spring 2009 Adult Full Year—POP
Non-alcoholic Beverages: The Consumer - US - March 2010 - Impact of Race/Hispanic OriginAdult Non-alcoholic Beverages, by sub-category, by race/Hispanic origin, April 2008-June 2009
Black consumers are signif icantly more likely to drink regular cola (66%) and non-cola sodas (68%) then the average; they are also less likely to drink diet soda (23%). Hispanics are also more likely to
drink regular cola (69%) and non-cola sodas (64%) then the average; they are also less likely to drink
diet soda (27%)
Blacks, Asians and Hispanics have a higher likelihood of consuming bottled w ater then the average (68%); this could be an environmental
result. Hispanics (35%) have a much higher likelihood to consume carbonated w ater then the
average respondent(22%).
Blacks and Hispanics have a much higher likelihood of consuming both sports and energy drinks despite
not being groups actively targeted by marketers.
Black consumers (94%) have a higher likelihood of drinking fruit juice/drinks then the average
respondent (89%); they are also more inclined to drink sw eet juices such as orange (83%) rather
than tomato or vegetable (34%).
Comments
92 138 108 95 98 149 91 155 101 102 11736
75 172 213 91 134 113
0
50
100
150
200
250
Drank in Last 6Months Pepsi-Cola
Drank in Last 6Months Coca Cola
Classic
Drank in Last 6Months Vanilla Coke
Drank in Last 6Months Caffeine
Free Pepsi
Drank in Last 6Months RC Cola
Drank in Last 6Months Cherry Coke
MRI Index of Regular Cola Drinks, Not Diet
White
Black/AfricanAmerican
SpanishSpeaking-EnglishS ki C bl
0
100
200
300
400
500
600
Heavy Users9+
Burger King Churchs FriedChicken
Jack-in-theBox
KentuckyFried Chicken
Mcdonalds PopeyesChicken
Wendy's Whataburger
MRI Index of Fast Food & Drive-in
White
Black/AficanAmerican
Spanish Speaking-English CapableHousehold
0
20
40
60
80
100
120
140
Diet Soft
Drinks
Regular Carbonated Soft Drinks
EbonyJetBlack EnterprisePeopleBusiness Week
Average MRI Index of Readers by Drink Type (2001)
Income Rank Zip Code Median HH Income % Asian % Black % Hispanic % White
Grocery Store Poverty
36 78704 Austin $38,713 1.38% 5.08% 38.54% 71.31% YES 15.1
37 78722 Austin $38,351 2.09% 22.72% 24.38% 61.89% 16.5
43 78751 Austin $31,529 6.10% 3.21% 23.84% 77.97% YES
18 78727 Austin $65,176 9.13% 6.64% 18.60% 74.67% YES 4.9
30 78758 Austin $44,734 7.78% 11.75% 37.15% 57.62% YES 11.1
45 78741 Austin $26,240 5.63% 9.21% 56.53% 49.10% YES 32.9
41 78752 Austin $32,020 2.23% 13.51% 61.11% 48.89% 28.7
42 78742 Austin $31,818 0.45% 13.80% 59.64% 48.28% 20.2
34 78744 Austin $41,166 1.34% 11.56% 69.95% 46.59% YES 17.6
29 78745 Austin $46,202 1.61% 6.11% 45.46% 65.36% YES 9.6
33 78753 Austin $43,626 6.18% 19.41% 40.63% 49.68% YES 13.9
46 78702 Austin $24,862 0.36% 24.09% 73.43% 29.58% YES 29.4
44 78721 Austin $29,509 0.13% 45.57% 55.54% 22.79% 25.8
38 78723 Austin $36,958 1.20% 31.41% 47.49% 40.81% YES 19.7
35 78724 Austin $39,610 0.29% 39.61% 51.12% 28.79% 17.9
Austin Zip Codes for Analysis
Billboards in Austin, Texas:Zip Code 78702
Results
Alcoholic Beverages are the most advertised item in all locations
With the second most advertised item being Fast Food
The largest number of Alcoholic Beverage and Fast Food Advertisements were found in the High Black & Hispanic Low Income Zip Code (78702)
New Forms of Marketing and Media to Reach New Potential Multicultural Customers
Viral marketingGuerilla marketingAmbush marketingCreate “buzz”Non-measured mediaStealth marketingBehavioral TargetingInternet and Digital Marketing
Kids research
Advertising Effectiveness on Kids’ Favorite Brand of Foods and Beverage
Research Objective
Comprehensive study regarding advertising
effectiveness on children’s perception of popular
brands
Empirically focus on food and beverage brands
Elaborate on the impact of advertising expenditures
on its brand perception
Brand Selection The Brand Affinity Scores of the Kids’ Top 100 Most Loved Brands
Smarty Pants, a market research firm, conducts an annual online survey.
Polling a representative sample of 4,500 U.S families with children ages 6 to 12.
The study evaluates more than 270 consumer brands in 20 categories.
This study focuses primarily on food & beverage products
50 brands appeared on both the 2009 and the 2010 in food & beverage categories.
Top 5 Food & Beverage Brands Brand Kidfinity Score
(2009)Brand Kidfinity Score
(2010)Oreo 887 McDonald’s 898
McDonald’s 880 M&M’s 884
M&M’s 875 Oreo 877
Doritos 860 Doritos 871
Kraft Macaroni & Cheese
857 Reese’s 852
Causal Ordering of a Simple Econometric Model
Other Print Advertising
BrandScores
Electronic Advertising
National Radio
SpotlightNetwork TV
Internet
Cable TV
Spot TV
Syndicate Media
NewspapersB-to-B Media
Magazines
Sunday MagazinesMagazines
Preliminary Findings
Only magazine advertising expenditures
exhibited a positive, significant relationship with
brand affinity scores.
The predictors explained about 30% of the
variance.
