Download Module 10: Point of Purchase Strategies

Module 10: Point of Purchase Strategies
Learning outcomes
On successful completion of this module you will be able to:
•
Differentiate between consumers and shoppers (or buyers)
•
Define point of purchase and its role in the integrated communication mix
•
Explain shopper behaviour at point of purchase
•
Understand the in-store drivers of point of purchase decisions
•
Understand the role and importance of packaging and labelling as marketing
tools
Learning resources
Blewett, N., Goddard, N, Pettigrew, S., Reynolds, C. & Yeatman, H 2011,
Labelling logic – Review of food labelling law and policy (2011), Australia
and New Zealand Food Regulation Ministerial Council – Available here.
Readings
POPAI n.d, Shopper marketing road map: Why should your business
implement shopper marketing? Point of Purchase Advertising International,
accessible through this link.
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10.1
Introduction
In this module we consider the important role that in-store promotion and experience
has on shopping and, most importantly, purchase behaviour. This module is therefore
concerned with what influences shopper behaviour. This means considering the
difference between the consumer and the shopper as in this topic we are focussing only
on shoppers. While the consumer is the end user of the product, the shopper (or buyer),
not surprisingly, is the person who actually buys the product from a store or vendor.
These may be the same individuals, but in many instances, and in particular when it
comes to food purchases, they are not. Examples here should be easy to imagine, such
as, mum or dad who does the weekly household shop and is buying protein for the
weekly evening meals. Shall the meal be fish, chicken or pork? What size? What cut or
preparation style? Inevitably they will not be simply considering their own preferences
here but of all those who will consume the product.
In this shopper-focussed module we address three discrete, but interrelated topic areas:
1. point of purchase marketing, 2. packaging and 3. labelling. While point of purchase
(POP) marketing broadly refers to all aspects of the in-store (and some of the out of
store) marketing experience, packaging and labelling have their own distinct part to play
in food marketing. Remember that all of these activities are part of the overall integrated
marketing communication strategy – emphasis on ‘integrated’. These elements must be
consistent with the overall communication strategy. In the case of food where such a
large part of the decision is made in-store, there is a good case that the development of
IMC collateral should begin by developing these materials with POP first!
1o.2
What is Point of Purchase (POP) marketing?
The average supermarket shopper can be exposed to 20,000+ products in a
supermarket visit that may last less than 30 minutes. In addition, many purchases in
their trip may be largely unplanned. As discussed in the branding module, food products
often do not vary greatly functionally, so in-store motivations and activations at point of
purchase can have significant impact on shopper’s purchasing behaviour. So what
exactly is POP?
In short, we can consider POP marketing as all those marketing exposures that are
designed to have the shopper buy our product. These exposures generally occur instore, but as a by-product of packaging (seen later) occur out of store also. POP
marketing has an important impact on shopper purchase behaviour, in conjunction with
the other elements of traditional consumer focussed marketing already looked at in this
course. POP marketing is said to be one of the ‘new’ disciplines in the marketing field,
although it has been studied commercially for some time. According to Point of Purchase
Advertising International (POPAI, 2013) states that in the past, in-store marketing was
considered different to, separate from, and not as important as out of store marketing.
These perspectives have changed.
POP marketing activities are largely forms of promotion that are built around the product
standing out from the clutter and catching the shopper's eye, which are used to facilitate
impulse purchasing. One well-cited study by Phillips & Bradshaw (1993) suggests that
unplanned purchase of grocery items might be as high as 51 per cent depending on the
trip type. This implies there is a significant opportunity for marketers at point of
purchase to gain sales. Seafood CRC research confirms that while up to 75% of food
purchases are planned before a shopper enters the store, many of the items on the
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shopping list may simply be ‘tinned tomatoes’ or ‘fish’ – with the brand decision still yet
to be made in store (Retail Transformation 2010).
By definition, POP implies that the marketing message must be encountered on (or very
close to) a shopping trip. POP exposures are frequently referred to as customer ‘touch
points’ and have been shown in various studies to help contribute to the ‘brand image’ of
products. There are various types of POP ‘touch-points’ including:
•
Price promotions
•
Multipack buys
•
Product samples
•
Taste testing
•
Window displays
•
Counter displays
•
Floor stands/display bins
•
Banners of any kind
•
All types of open and closed display cases
•
Digital & interactive media
•
Aisle end caps
•
Packaging
•
Information pamphlets, recipe card holders etc.
Different POP materials and combinations of materials will be more suitable for different
products/situations. The figure below indicates which materials would be most likely to
influence a consumer when purchasing fish in store.
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Watch this YouTube clip to see how POP was used in the ‘Love Australian Prawns’
campaign.
Watch this YouTube clip to see how POP can be integrated within a bakery to increase
sales.
Activity
1.
On your next shop, consider all the marketing elements that you
encounter on your trip. When you return home see if you can note
them down.
2.
How much unplanned shopping you engage in. Were there any
extras in your trolley that you did not intend to buy at the outset?
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1o.3
Shopper behaviour at point of purchase
Over the last 30 years there have been a great number of changes that have impacted
shopper behaviour, for example, economic events like the GFC impact on consumer
spending and confidence. New social trends like Twitter, Facebook and online purchasing
have emerged, while there are new social norms such as women working increased
hours and the prevalence of dual income households.
However, time is noted as the single biggest factor of change in our shopping behaviour.
People work longer hours, have less time for leisure, have more store choice and shop in
more stores, consequently spending less time in each store. One European study found
that, of the 23 billion shopping occasions across Europe in 2002, 39 per cent were
carried out in less than 15 minutes and the average spend was 25 Euros, which is
roughly $37AUD (Soars, 2003).
Similarly, Sharp’s (2013, p. 288) fourth empirical law of marketing states ‘that people
make many short shopping trips and fewer longer shopping trips. The most common
shopping trips (about 15 per cent of them) are to buy a single item, even in
supermarkets. In fact half of all trips result in five or fewer items being bought.’
This means that retailers should increasingly provide for these quick shopping trips by
making it convenient for shoppers to find the few items that they are looking for.
Evidence for this can be found in the UK with Marks & Spencer’s decision to rapidly
increase its convenience store format in the 2000s (the Simply Food stores), and the
introduction of stores like Tesco Express, where quick shops are the aim. Even those
increasingly prevalent stock-up shopping trips require seeking out relatively few items
from the tens of thousands present in a regular or super store (Sharp, 2013).
The realisation across the retail distribution network, by marketers in particular, that
significant influence can be exerted by successful in-store (or shopping trip centric)
marketing, as well as advances in technology (interactive displays and experiential
marketing such as in-store tasting/free samples etc.) mean the competition for the
shopper’s dollar and their attention has become increasingly intense and at the same
time more time critical. This is mainly due to greater competition for shopper attention
with less time to capture it in! As a relatively new sub-discipline in marketing, unlike
more well established theories of consumer and buyer behaviour, POP has very limited
theoretical knowledge currently. There are, however, some pieces of knowledge that are
crucial for marketers to know about how shoppers shop and hence why POP is
important.
Sharp (2013, p. 286) notes there are a number of empirically validated observations or
‘laws’ about shoppers. A number of these are particularly relevant for understanding why
POP matters and also for what type of POP might matter. These include:
•
A typical household buys only 300 to 400 stock-keeping units from a supermarket
in an entire year.
This means that shoppers are quite selective and very loyal as they repeat purchase the
same items again and again without a great degree of variety seeking – how often do
you buy the same brand of jam or honey, or cheese? Chances are it’s fairly often. As
most supermarkets can stock between 30,000 and 50,000 items, each trip is like
‘looking for a needle in a haystack’ (Sharp, 2013). This means that store space is
generally very cluttered and as a result shoppers have to develop shortcuts (known as
heuristics) to help them decide what to buy and where. However, because of their
loyalty, shoppers usually know where to find what they are looking for, meaning
incidental POP marketing will have to be particularly effective to catch their eye if they
are ‘on a mission’, as we often are when we shop.
5
POPAI n.d, Shopper marketing road map: Why should your business implement
shopper marketing? Point of Purchase Advertising International, accessible
through this link.
Readings
This document from POPAI gives a brief outline of why POP is important and
outlines some of the benefits and challenges of implementing POP. The reading
finishes with some illustrative case studies – note in particular the Smiths case
study on pages 9 and 10.
The points below highlight some further shopper behaviours at point of sale.
•
Food consumers (particularly fresh produce) buy with their eyes (Danenberg &
Remaud 2010). Think of the last time you bought something from the fresh
produce section, the deli, or the seafood counter in a supermarket – visual
appearance is the predominant sense engaged in choosing what you will buy.
•
Shoppers read very little in store — instead, they react to colours and symbols.
(Note especially with an aging population – many shoppers cannot read small
print without glasses – and some even have difficulty with glasses!)
Sharp (2013, p. 290) notes:
‘Human beings are very visually oriented. Compared to our primate ‘cousins’, we
rely far more on visual information and we make little navigational use of other
senses such as smell. When in a store there is an enormous amount to read, but
eye-tracking studies show that shoppers are very selective about what they read.
Reading slows them down, dragging out the shopping trip. So, instead, shoppers
learn to navigate using colours and symbols that allow them to find an item on a
cluttered shelf quickly.’
•
Shoppers have been trained to buy specials.
Again, Sharp (2013, p. 291) notes: ‘Shoppers like to save money, time and
mental effort when shopping. Specials, especially when they are clearly flagged,
allow shoppers to save all three. They reduce the cognitive effort needed to pick a
brand from one’s repertoire by simply taking the one on special. Navigational aids
can do the same thing; for example a tag that points out the bestselling item.’
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10.4
In-store drivers of point of purchase decisions
Despite the prevalence of food shopping in daily life, there have been relatively few
studies of these shopping activities (in comparison to other food marketing studies).
There are fewer again within food marketing literature.
Retailer vs supplier/producer goals
An important issue to consider with in-store marketing is the different goals and
objectives of the retailer versus the supplier, hence the need for both parties to work
together. The supplier wants as much exposure in the best location for their product in
store, however the retailers’ goal is to maximise their return in each product category.
The retailer owns the floor and shelf space. Ideally, retailer and supplier should work
together for a win/win scenario, but this does not often happen in practice, with typically
one or the other (in Australia’s case, usually the retailer) having the most power.
Therefore, for a food product to be successful, it needs to be available through Coles
and/or Woolworths. The reverse is not so often true, i.e. that the retailer has to stock a
certain brand to attract customers.
While the supplier often has the best understanding of the consumer (e.g. why they
buy), the retailer has the best knowledge of how they buy (e.g. what time of day, which
aisles people go into, what products are bought together etc). Successful in-store
promotion requires both parties work together. Collaboration is key!
Retailer decisions
While the supplier just considers their own range of products, the retailer has several instore decisions to address. These can be thought about on three levels.
Store level decisions include issues such as how many categories of product will be
stocked, where will each category be located within store (and how much space), which
categories will be located next to each other, and how the store will flow.
Category management refers to managing a group of related products/brands
together. For example the category could be ‘baked goods’ or tinned vegetables’.
Typically in supermarkets, each category is separately managed and is like its own mini
business. Decisions made at the category level revolve around how much space is
available overall, how many brands/sizes, how much space per brand, where each brand
will be positioned – so decisions are made regarding range, space and layout, visibility
and price.
At the product level, decisions include the mixes of branded versus private label
products that will be stocked, and the size variations of these products.
Pricing
The final driver to be discussed is pricing. Again, this is a major decision made at the
retail level and covers issues such as the overall pricing policy of the store (think
‘everyday low prices’), and again, the pricing differences between branded products,
premium products and private label products. This area also covers decisions about sales
promotion involving price, how often will products be put on sale, how deep the
discounting will be, and whether loss leaders will be used.
7
Think about your supermarket or speciality food store shopping
experiences given the theory we have just covered.
•
How well do stores implement these decisions, e.g how often do
you have to search for a product that is not where you thought it
should be?
•
What aisles do you regularly skip?
•
Are there any favourite products that you can no longer find?
Activity
10.5
Activity
Why packaging is important
Watch this (seemingly basic, but well explained) video (available here)
about product packaging first. Watch the first 2 and a half minutes for key
points – it may then stop and ask you to subscribe – so stop watching
here.
This second YouTube clip is for interest only – it goes for about 7 minutes and is simply a
history of packaging. followed by highlights of issues such as over packaging. It’s
available through this link.
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Packaging is broadly defined as ‘all activities of designing and producing a product’s
container’ (Kotler & Keller, 2007 p.173). This can include up to three layers of package
type.
Primary packaging is the packaging that most consumers will be familiar with in
regard to any given brand, as it is the one that is on the shelf. For example, with a
packet of Arnott’s Mint Slice Biscuits, it is the familiar plastic wrapping seen below.
Secondary packaging accompanies the primary packaging either outside or inside.
Some goods may come in a bottle, but then for carriage, be packed in a box, which still
bears logo elements of the product. It can also be the inner packaging material that
supports the primary packaging.
Finally, the shipping packaging is that which contains a retailer’s order, and will be
delivered to the outlet within this packaging. For most grocery items, these will be
corrugate cardboard boxes or possibly Styrofoam containers for fresh or chilled items.
Packaging must protect, identify brand descriptive and persuasive information and
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facilitate transport. In addition, it should assist at home storage and aid product
consumption.
When it comes to packaging, a distinction is made between two sets of equally valuable
but functionally different components:
•
Image bearing components: colour of packaging, typography, the graphical
shapes used and the images introduced; and
•
Structural components: shape, size of the containers and the materials used to
manufacture them.
This is because the packaging has a number of different roles to perform. From a
marketing perspective (our interest), it has to be used to catch the eye of the shopper,
identify the brand correctly, convey information about the product (see more in
labelling) all of which must fit in according to supporting the other marketing elements
related to the product such as advertising, pricing and its positioning. Packaging also has
to aid product transportation both in-store and to home (or place of consumption i.e.
work lunch), assist with at home storage, and most importantly, to protect the product
from damage in all situations both pre (for the producer/retailer) and post
(shopper/consumer) purchase.
According to Kotler & Keller (2007), a number of factors have influenced packaging
ability to be used as a marketing tool:
Self-service – the ability for shoppers to limit the interaction and handling between
them and their purchase – they buy smoked salmon from a fridge case vacuum sealed,
rather than the fresh food counter with the help of a staff member.
Consumer affluence – as customer affluence increases, so does their desire to have
things that appear nicer and are likely to be presented in nicer or more up-market
packaging. They are also more likely to pay for convenience that nicer and increased
packaging elements bring to a product.
Company and brand image – with increased expenditure on and research into
branding, the package has emerged as one of the key marketing tools available to
companies. This is further emphasised by the fact that distinctive products and product
packages reflect well on their respective brand images. An excellent example here is the
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famous Coke bottle. Though it’s not really used that much anymore, it is still recognised
the world over as being uniquely associated with Coke.
Innovation opportunity – when new packaging designs and technologies are found
and brought onto the market, companies have the opportunity to create a competitive
advantage over competitors - Gourmet Garden’s herbs in a tube are a good example
here.
We have already established that shoppers browsing the aisles of a supermarket come
across many products, but choose to buy only a few of them. One of the elements of the
shopping visit is therefore exposure to the packaging that those products come in,
packages that have been designed to influence the shopper to buy the product.
According to Kotler & Rath (1984), shoppers are more likely to choose products that
have an attractive appeal than they are to select similar but less visually appealing
products. Accordingly, an appealing product packaging is said to be able to evoke an
impulse to buy.
However, more than just the impulse buy, packaging images may have a more longterm effect. On the shelf and in someone’s possession, packaging will generally carry the
brand image of the product in conjunction with the structural components of the
package. These are image variables that are not necessarily a part of the product itself
and are used to activate associations with a product so that consumers may rely on
them when evaluating the product. Further, these image variables can convey
information about the product that consumers can enhance, project, or attain by
possessing, using or being seen to buy a particular product. That is, the packaging
signals to others something about the shopper. This is similar to the effect of other
image variables studied in marketing, which have been seen to have an influence over
consumer evaluation and behaviour. Variables include price, country of origin, and
celebrity endorsements (DeBono et al., 2003).
Also, the packaging of a product will frequently stay with it until it has been consumed
(and even after as rubbish) hence the exposure to the packing and thus the brand image
is continually refreshed.
According to Vila and Ampuero (2007), the characteristics of a product can be
continually transmitted over seven stages:
•
Point of sale
•
Transporting the product home
•
Home storage
•
Opening
•
Serving the product for consumption
•
Reclosing or putting away
•
Disposal.
While advertising is incidental and often missed or ignored, the packaging elements that
a product has allows it to keep transferring information about the product to the shopper
and consumer while they use it. It may build further associations and helps to
strengthen loyalty to the product and brand in real time, at the home.
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Nancarrow et al., (1998) states that ‘a pack has many functions - some, if not all,
presenting marketers with the opportunity to gain competitive advantage’. They suggest
this comes from the answering of the following questions:
•
What it needs to hold and in what form
•
The amount
•
Shelf life required and under what conditions
•
Point of sale communication requirements
•
Branding requirements
•
Conditions for accessing/dispensing contents
•
Copy/illustrations needed to encourage optimum use.
Further, they suggest that there are seven instances where marketers are needed in the
package design process:
•
Of a new product or variant
•
A dated/tired pack
•
A product (changing what it competes with and/or its functional or symbolic
benefits)
•
Its target market
•
Cost reductions in packaging are required
•
Legal or regulation requirements demand it (this comes under labelling)
•
New packaging technology becomes available; (Nancarrow et al., 1998).
Activity
•
What do you like or not like in packaging?
•
What is your favourite package and why?
•
What do you think could be improved about packaging?
To finish off this topic you may like to watch this 8 minute discussion on portion sizing
and packaging over time. The video also starts to touch on labelling!
The video can be accessed through this link.
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TRENDS IN FRESH FOOD PACKAGING DR. TOM MADIGAN, SENIOR
RESEARCH OFFICER, SARDI
Trends in
Fresh Food
Packaging
Dr. Tom Madigan,
Senior Research
Officer, SARDI
Packaging of fresh meats (including seafood) sold in the marketplace has undergone a rapid change in recent years; gone is
the neatly folded butcher’s paper and most packaging types such as loose plastic bags and Styrofoam trays are rapidly being
replaced by new styles of packaging, designed to benefit both customers and retailers.
allow for branding of products that
Advantages of
Packaging
Packaged product provides a wide variety of
benefits to both the consumer and the
retailer and these benefits have fuelled the
rapid increase of packaged products onto
supermarket shelves in recent years.
differentiate the brand in the market place
Vacuum Packaging
and provide the producer with the ability to
Vacuum packaging has been used in the
engage with their consumer and describe the
marketplace for some time. Products are
provenance of the product. The ability to
placed into specialised plastic bags and a
provide QR codes or standard web addresses
vacuum applied that draws the plastic films
to provide further information is a powerful
down tight over the products contained within.
means of educating and exciting the
This style of packaging reduces the amount of
consumer. There is also opportunity to allay
oxygen surrounding the products. This is often
consumer’s fears of preparing fresh meats by
beneficial as it can result in reduced growth of
From a consumer perspective, packaged
providing cooking instructions or recipes
aerobic spoilage organisms, reduced oxidation
products are often appealing in appearance,
ideas. The packaging also allows producers
(that can lead to off flavours and odours) and
are clean and tidy during transport and the
to provide traceability information to be used
also prevent dehydration of the product. An
stated use-by date allows confidence in the
in the event of a recall event if the food is
advantage of this type of packaging style is
freshness of the food that they have
later found to be unsafe. Lastly, some
that it is well accepted by consumers in the
purchased.
packaging can also provide further benefits
market place; particularly with frozen foods.
From a retailer perspective, the benefits are
by extending the useful shelf-life of products.
more wide spread. The clean flat surfaces
TRENDS IN FRESH FOOD PACKAGING DR. TOM MADIGAN, SENIOR
RESEARCH OFFICER, SARDI
14
Skin Packaging
Skin packaging is a variant of vacuum
packaging and provides similar benefits. In
this format, there is usually a rigid backing
tray and the soft film is draped across the
product allowing for startling clarity of
product in comparison to traditional vacuum
package. The technique is particularly well
suited to soft meat products such as scallops
or sardines as the drawdown of the vacuum is
not as harsh as the traditional style. A
potential drawback of skin films is that the
top surface is not suitable for branding.
However, this issue can potentially be
overcome with the use of cardboard sleeves
for the packaged product.
Modified Atmosphere Packaging
Modified atmosphere packaging is when a product
of several days of shelf-life over that achieved by
is placed within an enclosed chamber and the
vacuum packaging. Oxygen is used in red meat
gases within the chamber are replaced with other
products to maintain the bright red colour that
gases to create an altered atmospheric condition.
consumers associate with fresh meat. Conversely,
This packaging is highly beneficial for the retailers
removal of the oxygen can result in reduced
as it can increase the shelf-life considerably and
rancidity in high fat products such as salmon.
can also maintain quality traits during storage.
Nitrogen is used as an inert gas and does not serve
Trays are closed with thin plastic films that provide
a technological purpose other than to balance the
good clarity of product and, although thin, provide
other gases. Modified atmosphere packaging
a barrier layer to prevent transfer of gases through
is now extremely common in the
the packaging.
marketplace indicating a strong consumer
Three main gases are used in modified packaging:
carbon dioxide, oxygen and nitrogen. Carbon
acceptance of the product style.
dioxide is used to slow the growth of spoilage
organisms, which can often result in an extension
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TRENDS IN FRESH FOOD PACKAGING DR. TOM MADIGAN, SENIOR
RESEARCH OFFICER, SARDI
15
SKIN PACKING
Packaging
Equipment
Vacuum packaging equipment can be
considered to be at the lower cost scale of
Emerging
Technologies
and Trends
the food safety status and quality of the
product.
To address consumer concerns regarding the
extensive use of plastics in food packaging
equipment. Although, with increasing cost
Evaluation of packaging films for commercial
and their effect on the environment,
they can provide increasing throughput of
use is an area of current research. One recent
particular consideration is being focused on
product. Some vacuum packaging
advance in commercially available packaging
biodegradable and compostable films to help
equipment can also be used to gas flush
technologies is the MYLAR® COOK films
promote a cleaner and healthier
plastic bags to create a modified atmosphere
from DuPont Teijin Films™. This film is
environment. Wide varieties of these
in the headspace that remains.
ovenproof and foods can be cooked within
materials have now been developed and are
packaging films; the specialised seals vent at
available in the marketplace.
Tray sealing machines can be used to pack
the final stages of cooking and allow the
product in pre-formed rigid trays under a
product to naturally brown. These films are
modified atmosphere. A small variety of tray
designed to assist busy consumers with low
sizes and colours are available that can be
mess, quick cooking methods and also be
used for either retail or commercial size
useful in commercial environments. Foods
In recent years, an explosion of packaged
packs. Some trays sealers are capable of
can be packaged under either a vacuum or
foods has emerged into the market place as
applying skin films.
modified atmosphere creating a versatile and
the packaging provides benefits for both
exciting new packaging technique.
consumers and retailers. A variety of
In thermoforming machines the bottom tray
is also formed on the machine and products
can be either vacuum, skin packed or
modified atmosphere packaged. As the trays
are formed at the point of production a wide
range of styles can be achieved; trays can be
either rigid or soft and the tray size can be
adjusted to the product specification. These
machines allow for extremely high
throughput of product no matter which style
of packaging is used.
Conclusion
different styles are available ranging from
Active and intelligent packaging are also a
basic vacuum packaging through to highly
current focus of commercial development in
specialised packaging that employs
areas such as the inclusion of natural
specialised atmospheres and ovenproof
compounds in packaging films that could
films.
reduce growth of pathogens in the product.
Also, several companies are currently
commercialising specialised stickers that
change colour when exposed to certain
temperatures that can be used to validate
15
TRENDS IN FRESH FOOD PACKAGING DR. TOM MADIGAN, SENIOR
RESEARCH OFFICER, SARDI
16
Student
Resources
Australian Institute of Packaging:
http://www.aipack.com.au/index.cfm?MenuI
D=40
.
Discussion Questions
1. Consider the advantages and
disadvantages of each of the
packaging formats outlined
here from both the
manufacturer and consumer
perspective. Which would
you recommend for a small
scale manufacturer?
2. How would you promote the
most recent forms of
packaging to consumers?
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10.6
Why labelling is important
This 4 minute video on labelling for food products looks at a national labelling approach
for processed food. The video is available here.
Labelling is a component of product packaging, one that is vitally important to the food
industry.
Inevitably, most items purchased at a supermarket must have a label, whether it is the
labelling contained on the packet of mint slice biscuit or a sticker on an orange. Labels
perform a function over and above that of packaging, although they clearly occupy the
same space. The label can be a simple tag to an elaborate graphic display. What
distinguishes it from simply packaging is that labelling has a key role in displaying the
correct product information to the shopper. This is distinct from merely a tactic to
persuade or entice the shopper to pick up the packet or portion up. The label is the place
where much regulatory information is stored.
According to the Australian government’s Review of Food Labelling Law and Policy (2011,
p 12), the priority on food labelling should be in the following order:
•
Food safety
•
Preventative health
•
New technologies
•
Consumer values issues.
Further (2011, p11) they state:
‘The food label is the arena in which many of the most intense disputes over food
take place, for the label provides the most public face for controversies over food.
It is also one of the most highly valued and competitively sought after
communication channels in the market place. As the battle for space on the label
has intensified, and the often competing interests of consumers, industry and
government come to the fore, food labelling policy has evolved in a sporadic
fashion to satisfy a range of interests, including protecting consumers.’
17
The figure below summarises the key issues around food labelling policy.
Blewett, N., Goddard, N, Pettigrew, S., Reynolds, C. & Yeatman, H 2011, Labelling
logic – Review of food labelling law and policy (2011), Australia and New Zealand
Food Regulation Ministerial Council – Available here.
Readings
Read the 15 pages of the Executive Summary and recommendations to get an
overview of the current issues around food labelling.
18
What are key elements of food labelling?
The figure below highlights some of the key things that consumers want to see on labels
for seafood. Note that for seafood, the Heart Tick was not seen as necessary as
consumers automatically think that seafood is healthy.
Do you agree with the items listed in the figure – what are the most
important things you look for on a food label? Do you look for different
things on different foods?
Activity
19
The great labelling
debate
The push by manufacturers
and the Australian Government
to promote Australian products
has been evident since the
(Business Lounge n.d)
1930s. The logo (launched in
1986), is known as the
‘Australian Made, Australian Grown’ (AMAG) logo, as seen within the accompanying
image (Australian Made 2014b).
The logo is registered with the Federal Government; therefore its usage must
comply with strict Codes of Practice. There are five variants to the AMAG logo.
‘Australian Made’ products are those that have been manufactured in Australia, with
50% of the cost attributed to Australian materials or production. ‘Australian Grown’
products are those that all of its ingredients are grown within Australia, or nearly all
processing is conducted in the country. ‘Product of Australia’ logos are used on
products abide to the same guidelines used in ‘Australian Grown’ products, but it can
be applied to locally manufactured products. ‘Australian Seafood’ logos abide to the
same guidelines as ‘Product of Australia’ products, but it applies to seafood
harvesting. Lastly, ‘Australian’ labelled products are only used on exported products,
and must satisfy one criteria aforementioned (Australian Made 2014a).
All food products (imported or otherwise) must abide by legislation to display their
country of origin. Under the ‘Australia New Zealand Food Standards Code’, the
packaging must identify where the food was made, produced or grown; or state
where the food was manufactured and packaged and whether it contains local or
imported ingredients (ComLaw 2013).
Country of origin legislation ensures that the consumer is provided with a
background of the product, granting them the knowledge to make a confident
purchase.
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Case Study – Food Labelling and the Seafood Industry
Fat free and 100% natural: seven food labelling
tricks exposed
If you’re confused by food labels, you’re not alone. But don’t hold your breath for an ata-glance food labelling system that tells you how much salt, fat and sugar each product
contains. Australia’s proposed “health star rating” labelling scheme was put on hold in
February, following pressure from the food industry. And it’s unclear whether the scheme
will go ahead.
Marketers use a variety of tricks to make foods seem healthier and more appealing than
their competitors, particularly when it comes to products aimed at children. One of the
most powerful advertising tools a food manufacturer has is the packaging, as it’s what
we look at immediately before deciding which food to purchase.
Next time you’re shopping for food, look out for these seven common labelling tricks:
1.
Colour
The colour of food packaging can influence our perceptions of how healthy a food is.
A recent study found consumers’ perceptions of two identical chocolate bars were
influenced by the colour of the nutrition label; despite the identical calorie information,
people perceived the one with the green label to be healthier.
2.
Ticks and seals
Another tool of savvy food marketers is the use of “ticks” and “seals” that we
subconsciously process as indicating that the product has met some form of certification
criteria.
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A recent study found that nutrition seals on unhealthy food products increased
perceptions of healthiness among restrained eaters. And a study with parents of toddlers
found 20% of parents identified the presence of a quality seal as one of the reasons for
their purchase of toddler formula rather than cow’s milk.
3.
Weasel words
Food packaging often contains words that imply the food contains certain ingredients, or
has been prepared in a way, that makes it healthier (or at least better than similar
foods).
But many of the words – such as “healthy” or “natural” – have no legal or formal
meaning. While the Australian New Zealand Food Standards Code regulates the use of
specific health and nutrient content claims, it doesn’t regulate or define these loose
terms.
“Weasel claims” describe modifiers that negate the claims that follow them. This allows
manufacturers to avoid allegations of breaching advertising or labelling regulations, while
being such a commonly used word that it is overlooked by the consumer.
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For example, Activia “can” help to reduce digestive discomfort - but did you read the fine
print? It “can” help if you eat it twice a day and “… as part of a balanced diet and healthy
lifestyle”.
Similarly, Berri Super Juice contains antioxidants which “help” fight free radicals (but so
does whole fruit, which also contains more fibre).
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4.
Less bad stuff than…
Unfinished claims tell us the product is better than something – but not better than
what. In food labelling, we really have to hunt for the “what”.
Fountain’s Smart Tomato Sauce still contains 114mg of salt per serving, while the
brand’s regular tomato sauce contains 186mg (more than several other brands).
The Heart Foundation defines low-salt foods as those with less than 120mg per 100g;
Fountain’s Smart tomato sauce has 410mg per 100ml. It does, however, have less sugar
than many of its competitors.
So, if you are trying to reduce your sugar intake it may be a good choice, but if you are
trying to reduce your sodium intake, look for one of the low-salt varieties and read the
label very carefully (reduced is rarely synonymous with low).
Smiths' Thinly Cut potato chips contain 75% less fat than “chips cooked in 100%
Palmolein Oil”. But they don’t contain less fat than Original Thins, Kettle, or most other
brands on the market.
It’s also worth taking a close look at the recommended serving size – in both cases the
nutrition information is based on a 27g serving, but Smiths' “single serve” pack is 45g
(15.7g fat; one-fifth of an average adult’s recommended daily intake, or RDI).
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5.
Irrelevant claims
A common strategy is to list a claim that is, in itself, completely true – but to list it in a
way that suggests that this product is unique or unusual (when in reality it is no different
to most foods in that category).
“All natural” and “no artificial colours and flavours” are appealing features for parents
looking for snacks for their children. But most standard cheeses (including many
packaged products such as cheese slices) also contain no artificial colours or flavours.
This is not to suggest that Bega Stringers are a bad product or that you shouldn’t buy
them – just that you may want to think about the cost per serve compared to other
cheeses that are equally healthy.
Like most lolly snakes, Starburst snakes are “99% fat free”. The old adage of “saltsugar-fat” holds here; products that are low (or absent) in one are typically very high in
another. In the case of lollies, it’s sugar.
As with the potato chips above, serving size is important. Those of us who can’t resist
more than one snake might be surprised to realise that if we ate half the bag, we would
have consumed two-thirds of our daily sugar intake (although we can’t blame the pack
labelling for that!).
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Sun-Rice Naturally Low GI White Rice illustrates this use of technically correct claims.
Let’s start with “cholesterol free” – this is totally true, but all rice is cholesterol free.
The pack also states in very large, bright blue letters that it is “Low GI”. In much smaller
letters that almost disappear against the colour of the package is the word “naturally”.
This use of different colours to attract, or not attract, attention is a common marketing
technique.
The product is indeed low GI, at 54 it is just below the cut-off of less than 55. But the
“naturally” refers to the fact that what makes it low GI is the use of basmati rice rather
than another variety, and other brands’ basmati rice would have a similar GI.
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6.
No added…
Berri Super Juice proudly, and truthfully, claims it “contains no added sugar”. You may
conclude from this that the sugar content is low, but a closer look at the nutrition
information label may surprise you – a 200ml serve of this super juice contains 25.8g of
sugar (29% of your recommended daily allowance).
While contentious, some have even suggested that there is a link between fruit juice and
both obesity and metabolic disease, particularly for children. A better (and cheaper) way
of obtaining the fruit polyphenols is to eat fruit.
7.
Healthy brand names
Healthy sounding words are not only used as “claims” but are often used as brand
names. This first struck me when I was looking for a snack at my local gym and noticed
the “Healthy Cookies” on display; they had more sugar, more fat and less fibre than all
of the others on sale (Healthy Cookies was the brand name).
Brand names are often seen as a key descriptor of the nature of the product. Research
has found that people rate food as healthy or unhealthy based on pre-existing
perceptions of the healthiness of a product category or descriptor, particularly among
those who are watching their diet, and may thus select the unhealthier option based on
its name or product category.
If, for example, you’re watching your weight, you may be attracted to the Go Natural
Gluten Free Fruit & Nut Delight bar, assuming that it will be a healthier choice than a
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candy bar. But you might be surprised to note that it contains 932 kJ (11.0% of your
RDI) and a whopping 13.6g of fat (10% of your RDI).
A 53g Mars bar contains slightly more calories (1020kJ) but a lot less fat (9.1g),
although the Go Natural bar could argue for “healthier” fat given the 40% nut content.
So, can we really distinguish between healthy and unhealthy foods by looking at the
wrappers?
The healthiest wrappers are made by nature, from the simple ones that can be eaten
after washing (like apples and carrots) to those that need some disposal (like a banana
or a fresh corn cob).
If you are buying your food wrapped in plastic or paper, it’s a little more complex. We
need to see past the colours, pictures and cleverly-crafted claims and take a careful look
at the ingredients and nutrition panel.
Source: The Conversation, available from here.
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Case Study – Food Labelling and the Seafood Industry
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10.7
Conclusions
In this module, we have considered the perspective of the shopper rather than the
consumer in the food marketing process. In particular, we consider the way in-store (or
very near to in-store) marketing communications are used by producers and retailers to
influence shoppers at the point of purchase. Given that as much as 50 per cent of all
purchases may be made on impulse and that the typical shopping trip can see shoppers
pass 300 items per minute on their way around the supermarket, gaining some
understanding of how this purchasing occurs is important. Given the relative infancy of
the area (from an academic perspective at least), food marketers need to take the
knowledge from the existing research and apply these tactics or understandings of the
shopper to help promote their products while their customers are close to a sale.
Displays, taste tests, recipe cards, serving suggestions are all ways in which the food
producer and retailer can attempt to capture a sale. You have completed a number of
exercises relating to your opinion about the effectiveness of these measures. Reflect on
these. What do you think, from your experience, is the most effective?
Given their special place in the POP marketing promotion strategy or as a function of
their legal requirements, we also looked at packaging and labels. Packaging serves a
number of functions, from advertising the product on shelf, and if purchased, through its
life in the consumption cycle. Packaging has been said to communicate ‘brand image’
through the correct use of colours and logos, leading the shopper to associate attributes
about the product – is it healthy? Is it luxury? Is it pitched at men or women? Packaging
also serves a functional purpose, it protects the product so that it can be stored and
consumed satisfactorily. Labelling, as a sub-genre of packaging, is a more defined type
of demarcation. While we know from Sharp’s (2013) empirical laws of shopping (that
shoppers don’t read much in-store as they are more captured by colours and shapes),
that when they do read product information, the label comes into play. The label, which
may or may not be part of the packaging, is crucial for selling food. The label carries
important and often legally prescribed information such as the country of origin, the
contents, nutritional information, the use-by date, unit pricing, portion size and health
claims.
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References
Blewett, N., Goddard, N, Pettigrew, S., Reynolds, C. & Yeatman, H 2011, Labelling logic – Review
of food labelling law and policy (2011), Australia and New Zealand Food Regulation
Ministerial Council, available from: <
http://www.foodlabellingreview.gov.au/internet/foodlabelling/publishing.nsf/content/48C054
8D80E715BCCA257825001E5DC0/$File/Labelling%20Logic_2011.pdf>
Danenberg, N., & Remaud, H. 2010, Omnibus consumer research findings, Australian Seafood
Cooperative Research Centre and the UniSA Ehrenberg-Bass Institute for Marketing Science.
DeBono, KG., Leavitt, A. & Backus, J. 2003, ‘Product packaging and product evaluation: An
individual difference approach’, Journal of Applied Social Psychology, vol.33, no.3, pp. 513 –
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Kotler, P. & Keller, KL. 2007, A framework for marketing management, 3rd edn, Pearson Prentice
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Nancarrow, C.,Wright, LT. & Brace, I. 1998, ‘Gaining competitive advantage from packaging and
labelling in marketing communications’, British Food Journal, vol. 100, no. 2, pp.110 – 118.
Phillips, H. & Bradshaw. R. 1993, ‘How customers actually shop: Customer interaction with the
point of sale’, Journal of the Market Research Society, vol.35, no.1, pp. 51 – 62.
POPAI n.d, Shopper marketing road map: Why should your business implement shopper
marketing? Point of Purchase Advertising International, <
http://www.popai.com.au/uploaded/documents/Why-Implement-Shopper-Marketing.pdf>
Sharp, B. 2013, Marketing: theory, evidence, practice, Oxford University Press, South Melbourne.
Vila, N. & Ampuero, O. 2007, ‘The role of packaging in positioning an orange juice’, Journal of Food
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Labelling Vignette References
Australian Made 2014a, About the logo, viewed 04 April 2014,
<http://www.australianmade.com.au/why-buy-australian-made/about-the-logo/>
Australian Made 2014b, History of Australian made, viewed 04 April 2014,
<http://www.australianmade.com.au/why-buy-australian-made/history-of-australianmade/>
Business Lounge n.d, Australian logos, viewed 04 April 2014, <http://businesslounge.net.au/wpcontent/uploads/2013/01/AMAG-Mixed-SwingTags_AllFive.jpg>
ComLaw 2013, Australia New Zealand Food Standards Code - Standard 1.2.11 - Country of Origin
Labelling (Australia only), viewed 04 April 2014,
<http://www.comlaw.gov.au/Details/F2013L00051>
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