Download Children`s consumerism in the food industry

CHILDREN AS
CONSUMERS
Anna Wujkowska
Noémie Muret
Issues in Global
Economic and
Business
Master 1 SEDI
IUP, University of Nice
Sophia Antipolis
Table of Contents
Abstract ............................................................................................................................................ 3
What is childhood consumerism? ................................................................................................... 5
Factors responsible for the development of childhood consumerism ........................................... 5
Triple power of children’s consumption ......................................................................................... 6
How important is children’s consumption for companies? ............................................................ 7
Different stages of children’s development .................................................................................... 7
Advertising techniques used to reach the youngest consumers .................................................... 8
Children’s consumerism in the food industry ............................................................................... 10
Negative effects of consumerism on children .............................................................................. 11
How to increase the awareness of negative influence of advertising campaigns directed at
children? ........................................................................................................................................ 11
In need of new regulations ............................................................................................................ 12
Controversies about media industry ............................................................................................ 12
Possible side effects of banning advertising aimed at children .................................................... 13
European Union regulations and companies’ self-regulation ....................................................... 13
How to make children become more conscious and critical? ..................................................... 14
Don’t think, just buy ....................................................................................................................... 14
Bibliography.................................................................................................................................... 15
ABSTRACT
Children have a big power on decisions
This new trend did not remain unnoticed.
concerning
Quite the opposite, companies very
the
choice
of
clothes,
software and hardware used at home,
quickly
food, restaurants in case of eating out,
children’s influence on family decision-
holiday destinations, ways in which a
making and as the representatives of
family
(selection
young generation are media users and
between cinema, museum etc.) and
early adopters of new technologies what
even cars. Parents accepting children’s
better way to reach them than through
growing influence on their decisions
advertisements in cell-phones, iPods,
make them a target of advertising
game platforms and television channels
campaigns and unconsciously contribute
which remain the most effective method
to the fact that in the future they will
of attracting them. Companies are eager
become
whose
to spend huge amounts to capture the
happiness will depend on having all the
attention of the young consumers; just in
branded, expensive products that they
the U.S. in 2009 the firms sacrificed
have considered important since early
around 16 billion dollars for this kind of
childhood
is
advertising. The campaigns differ in
reinforced by the parents who are
regard to the age of the targeted public,
desperate to give their daughters and
there are two main groups: teenagers
sons
to
who receive more attention from the
compensate for the time they cannot
marketers and the biggest share of their
spend together because of long working
budget because they spend directly the
hours. Moreover, in the XXI century it is
money they have at their disposal:
common that both parents work which
around 160 billion dollars per year in the
increases their purchasing power and as
U.S. only and children under 12 who
the size of a modern family is relatively
spend
smaller than in the past and bigger
parents’ decisions. It is the second
income is divided by fewer children.
group that is mostly affected by the bad
spends
heavy
This
everything
free
time
consumers
worrying
they
trend
deserve
realized
indirectly,
the
magnitude
influencing
of
their
impact of advertising because children’s
abilities
to
distinguish
reality
from
luring children to consume unhealthy
marketing lies and their knowledge of
fast-food
without
regard
to
the
the world are both very limited and
consequences like increased risk of
companies hoping to boost their sales
childhood obesity and chronic illness.
do not hesitate to violate basic moral
values. They use various strategies to
keep
children’s
attention
such
as
branded characters, celebrity images
and free goods that accompany a
product. Firms do not respect any
professional
ethics
and
exploit
naivety of young consumers.
the
The
dishonest advertising can be observed
in all types of sectors: from toys industry
to fast food industry which encourages
overconsumption by providing small toys
together with a meal. These toys aim at
Advertising and commercials do not
reflect the reality, they try to manipulate
children and take advantage of their
vulnerability.
The
above
described
problem is a very serious issue and
cannot be ignored anymore by the
governments. New laws and effective
policies need to be implemented and
public awareness in this aspect must
grow.
.
1. What is childhood consumerism?
The concept of children as consumers started to develop in the second half of the 20th
century. In general, consumerism means an increased consumption and buying bigger
amounts of goods. Before, only adults were concerned by this trend, but recently
advertisers have discovered the importance of children for their sales and started to
launch campaigns directed at the youngest members of the society. This shift was
caused by several factors that occurred recently and it has changed the way we live and
the world around us.
2. Factors responsible for the development of
childhood consumerism
First of all, new technologies revolutionized the way in which companies reach their
customers; nowadays children are surrounded by marketing campaigns broadcast not
only on the TV and radio, but also omnipresent in the internet, in supermarkets and even
in schools. Unfortunately, this change in advertisement techniques was not
accompanied by new regulations which could protect children who don’t know how to
distinguish the lies sold by big companies from the truth.
Secondly, the model of a contemporary family has evolved, single-parent families have
become the new normal. Children whose parents divorced tend to receive twice the gifts
they would get in traditional families which increases their tendency to always ask for
more and become obsessed with what they own.
Moreover, the pace of life is quickening; adults spend more and more hours at work at
the expense of time devoted to their children. As a consequence they feel guilty and try
to compensate their children for the lack of attention by offering expensive toys and
fancy gadgets.
Last but not least, in present times children have more money at their disposal; they
receive regularly their pocket money as well as extra money for special occasions like
birthday
or
Christmas
which
they
can
spend
as
they
please.
3. Triple power of children’s consumption
After having described the factors responsible for creating consumerism among children,
the dimensions of this phenomenon will be explained in more details. Children became
the target of advertisements because they represent a triple power of consumption.
To start with, children are important for companies because they spend their own money
following the latest trends. According to Sharon Beder, author of the article entitled
“Marketing to Children”
[1]
children under the age of 12 in USA were responsible for
spending more than 11 billion dollars on their own which represents a significant amount
that cannot be ignored.
Next, children represent future customers and the sooner the companies make them
acquainted with their products, the more loyal to the brand they will be. If the process of
acquiring new clients starts in the further stages of their life by obtaining the market
share of the competition, the customers will be constantly searching for the best deals
and they will never feel attached to any brand in particular.
Finally the main interest of enterprises in the young generation results from their power
to influence the shopping behaviors of the adults. Children have a huge impact on the
choices made by their parents not only in the trivial aspects of daily life concerning food,
drinks or clothes but also regarding fundamental and costly decisions like choice of a
car, house, computer, household appliances or holiday destination. To sum up this trend
it can be affirmed without exaggeration that the selection of products is made by the
children in the name of the whole family. As a result it should not come as a surprise that
advertising spots of serious products are nowadays made in a way that attracts the
attention and convinces also the youngest viewers. As Sharon Beder claims, in 1997
children contributed to their parents spending a value of 165 billion dollars.
Markeing to Children, Sharon Beder, http://www.uow.edu.au/~sharonb/children.html,1997
4. How important is children’s consumption for companies?
To illustrate the importance of child consumerism for companies it may be a good idea
to look at the most recent publications in the domain of marketing. Guidebooks like:
“Born to Buy: The Commercialized Child and the New Consumer Culture”, “Marketing to
the New Super Consumer: Mom & Kid”, “Creating Ever-cool: A Marketer's Guide to a
Kid's Heart”, “The Kids Market: Myths and Realities”, “Kids as Customers: A Handbook
of Marketing to Children” prove clearly the vivid interest of advertisers in techniques
letting them reach the children’s attention and gain shares in the newly appeared
market.
The growing importance of the youngest customers makes companies desperate to
understand their shopping habits and the factors that determine their decisions. That is
why enterprises tend to seek the help of psychologists and researches to understand the
stages of children’s development and adjust the most appropriate advertising methods
for each age group. This practice was perceived as immoral by the American
Psychological Association who tried to oppose to it, unfortunately in vain.
5. Different stages of children’s development
With the assistance of the above mentioned specialists, the marketers managed to
establish that every child passes through five different stages of development.
In the beginning they just accompany their parents and observe them shopping, in the
second phase the children begin to notice there is a connection between the
advertisements and reality and that’s when they start requesting certain products from
their parents, in the following stage they already know how to recognize particular
brands and they decide by themselves about their product selection, later on the young
consumers become capable of paying for their own purchases, and in the last stage they
are independent enough to go to the supermarket alone.
6. Advertising techniques used to reach the youngest consumers
Considering those differences in the child’s development the companies were forced to
develop various advertising techniques in order to reach all age groups of potential
customers. Furthermore, the fast progress in new media and online marketing opened
additional possibilities of planning and carrying out marketing campaigns which will be
presented and discussed in the following part of this essay.
The primary medium to reach children is through commercials passing on TV.
Researchers claim that in Europe the youngest generation watches TV around 5 hours
per day during weekdays and 8 hours per day at the weekend. Assuming this data as a
starting point, it can be easily assessed that in total children stay watching TV for 41
hours per week, 174 hours per month and 2088 hours per year. In the USA the situation
is even more dramatic, according to the recent surveys children spend more time in front
of TV than at school. Marketers know how to take advantage of the time spent watching
television. Disney can serve as a simple example to illustrate this marketing trend. On
the basis of old comics the producers first create movies and later TV series. Once the
characters become popular enough the advertisers release a wide range of products
based on their image or containing their name. Products like toys, cosmetics, books,
electronic equipment, snacks and clothes are later distributed to Disney stores. The
characters are also used for marketing purposes in Disney parks, schools or
supermarkets where they appear trying to boost sales. Having your own line of products
aimed at children became very popular also among celebrities: singers and actors like
Miley Cyrus or Justin Bieber are both trying hard to increase their income by tagging
perfumes, nail polishes, toothbrushes, shoes, pullovers, headphones, pillows,
bedclothes, cups, plates, clocks and mobiles with their names.
Another trend connected with advertising products on the TV is product placement. This
technique consists on including a subtle reference to a product during a television
program or a movie. Children who see this form of advertisement develop positive
connotations regarding the featured product and start to subconsciously desire it. This
form of hidden advertisement is frequently more effective than its more obvious
equivalents like commercials. Product placement is particularly dangerous for children
as they are very vulnerable and they do not know how to tell the difference between the
imaginary world of television and real life. While being exposed to this hidden form of
ads sometimes they may not even realize the producers are trying to manipulate them
and convince them to select their products.
An even more worrying phenomenon is the appearance of advertisements at schools.
School is a place children have to attend every day and where parents do not have any
power to protect them or limit the exposure to marketing campaigns that is why it should
stay an advertisement-free area. Nevertheless, schools that are in need of financial
funds, willingly reach out for help to big companies that are just waiting to enter this
market. Enterprises supply schools with vending machines full of snacks and soft drinks,
provide modern equipment to schools like laptops, projectors and TV screens, sponsor
educational materials, organize contests with prizes like free entrances to the cinema or
discount vouchers for pizza or invite students for field-trips to their factories or offices to
improve their image and help children gain experience. The companies also place
advertising materials like posters all around school and buses in exchange for payments
in cash. The marketing campaigns placed at schools diminish the ability of critical
thinking of students, might encourage unhealthy eating habits and reinforce the
consumerism trend among young and unaware children.
Furthermore, in the last decade there have been important changes in the technology
available for advertising with new forms of media such as the Internet or mobile phones.
These new forms of media are offering low-cost and effective means of reaching
children directly for marketing purposes. Indeed, it is estimated that about four million
children are using the Internet worldwide. Children have increasing access to both
mobile phones and internet sites and many of them own smartphones with internet
access. Therefore, they can easily use them unsupervised, without parent control.
Marketers are also using a new method to attract children called “buzz marketing”. This
idea is based on dressing a kid or making him use a company’s product in order to
create a buzz around it. Thanks to this method, companies can easily reach children by
giving their products a “cool status”. Buzz marketing is particularly well known in the
Internet, where young people use social networking platforms such as Youtube,
Facebook, Hotmail or Twitter.
These marketing methods are accompanied by free samples or extra products meant for
children, a practice especially common in the fast food industry. To target children
directly, fast food industry uses different techniques like giving them a free toy, games or
snacks.
7. Children’s consumerism in the food industry
For instance, McDonald’s HappyMeal represents a way of encouraging kids
consumption. This fast food giant knows that each time children go to McDonald’s they
will get a free toy together with their meal which constitutes a way of inciting them to
return and develop their loyalty. In this case, toys may actually be more tempting for the
small consumers than the food itself.
Marketing tactics undermine their health. Food advertising remains the high stakes and
its harmful commercials have a negative influence on children. About 98 percent of all
food advertising in TV seen by children is related to food high in sugar, fat or sodium. In
the past 30 years, obesity rate among children aged from 6 to 11 has quadrupled and
nearly tripled for children aged from 2 to 5. Childhood obesity has caused a public health
crisis and numerous children developed very serious health problems like diabetes,
which is a disease usually found only in adults.
Besides, in supermarkets everything is made in a way to attract children. As we can
notice in every department store, sweets and snacks are often put on the shelves in
shops at the eye level of children and their packaging is more attractive than the one of
vegetables or fruit. The display of products in a shop is a part of marketing strategy and
has an impact on children’s behavior.
8. Negative effects of consumerism on children
The new ways in which food companies reach children make it difficult for parents to
prevent their children from negative effects of all the food advertising rich in low-nutrient
and calorie-dense products that appeal to kids in an interactive way.
In addition to their dependence and increased demand in unhealthy fast food, children
may make excessive requests and pester their parents because they cannot obtain the
product that they saw in the advertisements. In consequence, the youngest generation
gives priority to material items and insists on having the latest models of toys.
Advertising aimed at children can change their social behavior and make them more
capricious.
A healthy society is based on being a responsible citizen and not just a consumer.
Spending money rather than spending time with family shows another side of a new
family lifestyle where children’s identities can be defined by their consumer habits.
9. How to increase the awareness of negative influence of advertising
campaigns directed at children?
International organizations understood the magnitude of the problem and they are now
trying to make people aware of the influence of media’s advertising. The Committee on
Communications of the American Academy of Pediatrics is in charge of supervising the
messages transmitted to children through media. This Committee is allowed to protect
children from anti-social content in TV by using all ways of communication with families
in order to save child’s health. Therefore, they can influence families’ choices and warn
them about the minimum age that the children should have to watch television.
According to the Committee, children under the age of two should not watch television
because their brain development depends on human interactions at that age.
10.
In need of new regulations
Minimum age requirement is an important point because until a certain age, children are
inherently resilient and vulnerable to media messages. Some countries such as Sweden
or Brazil have banned advertising for children under the age of 10 because the state
considers that before reaching this age, children cannot see the difference between a
commercial and a TV program. To deal with the effects of advertisements on children,
states are trying to find solutions in order to regulate companies’ practices by going
deeper into their media governance. The government regulators found out that the
departments of these companies dealing with law and other departments responsible for
management, financial control and self-regulation; even with government guidelines for
their media governance are affected and influenced by informal facts and relations such
as market forces, financial pressure, lobbies, norms and company values. Therefore,
this approach aimed at children’s protection is not effective because companies very
often do not follow the guidelines of governments.
11.
Controversies about media industry
Members of the European Union are considering implementing regulation policies or
even banning some commercials for children’s sake. However, these regulations could
lead to a controversy in the media industry. The media industry provides jobs
opportunities for people and banning advertising would mean dismissing employees who
work in this industry. Furthermore, it would lead to a decline of employment opportunities
in this field and a decrease of media’s revenue. In addition to that, parents would
become less aware of products available on the market and it would decrease sales for
manufacturers and retailers of children products causing lay-offs and downsizing of the
employees.
12.
Possible side effects of banning advertising aimed at children
According to the members of RACP (The Responsible Advertising and Children
Program), a ban on commercial advertising targeting children could push them to watch
more adult contents in the television and they could also be influenced and exposed to
other types of commercial advertising that are not appropriate to them.
13.
European Union regulations and companies’ self-regulation
Other regulations have been discussed by the European Union such as taxing junk food
or implementing nutrition criteria for food promotion. The fact that most multinational
food and beverage companies had to develop their own policies of marketing
communications directed to children can serve as an example of measures already
adopted in accordance with the directives of European Union. They defined which food
can or cannot be advertised to children following the general code of ethics related to
products specificities such as their energy (kcal), total fat, added sodium and sugar.
Burger King, General Mills, Ferrero, PepsiCo (snacks and beverage), Danone, Nestlé
and other big companies can be cited among the companies that adopted this kind of
measures. Companies also regulate their marketing messages directed at children by
describing very precisely which media they include in their campaigns according to
European Union pledges. Companies have also promised to restrict advertising on their
own websites.
The culture of consumerism in children’s behavior tends to be reduced thanks to
companies’ self-regulation and countries pledges. However, children still believe that the
material objects advertised on television will increase their happiness. In this way,
children are focusing more on materialism and they are forgetting other aspects of life
such as their family and friends. Advertising techniques damage children’s health by
causing social ineptness, physical deterioration and slower mental development.
14.
How to make children become more conscious and critical?
Media awareness can improve and change children’s point of view about advertising.
This process enables children to develop their critical thinking towards media. Thanks to
media education, children can analyze and evaluate different messages broadcasted by
media.
The role of the parents is not insignificant in this educational process because they have
an influence on their children. They should teach their children how to become less
influenced by advertising messages and guide them in their choices.
15.
Don’t think, just buy
The mass consumption of toys reveals the dark side of the toy industry. The majority of
toys are nowadays made in South East Asia and despite their knowledge people tend to
ignore the working conditions there. The power of advertising can take people’s mind off
the striking reality of the working conditions. According to the National Labor Committee
of America: “The companies do not want us to know or to think, just to buy”. This
sentence sums up the entire reality of the advertising campaigns and shows that it is
necessary to look beyond advertising, to notice that there should be a reflection before
acting.
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