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AIM-X-XX-XXXX-XX MARKETING TO CHILDREN: AN ANALYSIS OF ITS IMPACT AND APPLICATION TO SELLING HEALTH BEHAVIORS INTRODUCTION Stated in the 1995 report of the Committee on Communications to the American Academy of the Pediatrics is a queer fact: "In 1750 BC, the Code of Hammurabi made it a crime, punishable by death, to sell anything to a child without first obtaining a power of attorney. In the 1990s, selling products to American children has become a standard business practice." Throughout the years, marketing to children has become a trend. Numerous giant corporations have taken over the young population as consumers. They targeted a wide range of commercial commodities and services to the children, including clothing lines, food products, school supplies, gadgets, and toys, among others. These corporations in the United States spend more than an accumulated amount of 12 billion dollars every year for marketing strategies directed to children. Compared to expenditures ten years ago, this amount has increased to more than twenty times. Why shouldn't they want to focus their efforts to children? Various studies have shown that altogether, children as consumers have the greatest market potential than any other demographic group. The vastness of the influence that the children have in the marketing world can be described through grouping them into three types of consumer markets: Firstly, they are a primary market, having their own money to spend out of their own volition. In the United States, it was estimated that ____________________________________________________________________________________ This case was written by Reulyssa A. Peralta under the supervision of Dr. Kenneth Hartigan-Go, Asian Institute of Management – Dr. Stephen Zuellig Center for Asian Business Transformation. Special acknowledgement also for the guidance of Mr. Harold Grande of the Asian Institute of Management and Ms. Maya Estrada of . All case materials are prepared solely for the purpose of class discussion. They are neither designed nor intended to illustrate the correct or incorrect management of problems or issues contained in the case. Copyright 2012, Asian Institute of Management – Dr. Stephen Zuellig Center for Asian Business Transformation, Makati City, Philippines, http://www.aim.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a report or spreadsheet, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the consent of the Asian Institute of Management - Stephen Zuellig Center for Asian Business Transformation. To order copies, interested parties must secure a Site License Agreement from the Knowledge Resource Center Library Casebank, AIM, 123 Paseo de Roxas, Makati City 1260, Philippines, Tel. No. (632) 892-4011 local 164/214/212; Telefax: (632) 817-2663 or e-mail [email protected]. AIM-X-XX-XXXX-XX Marketing to Children 2 23.4 billion dollars were spent directly by children, mostly through their pocket money and allowances. This amount was quoted more than a decade ago, and the rate was observed to be steadily increasing at an estimated 1520% every year, still excluding the independent purchases made by teenagers, which may have their part-time jobs. Even in a study conducted in the Philippines during the year 1995, it has been shown that Filipino children represent a substantial segment of the consumer market in terms of their individual needs, with a significant fraction also coming from the children's personal money. Secondarily and most significantly, they are an influence market. Children were said to possess the 'pester power' or 'kidfluence' which are modern terms referring to the child as an important role-player on the decision-making process of the family, especially on the choice of consumer goods and services. Studies have shown that the expenses incurred by the family generally through this type of market are ten times bigger than that incurred from the primary market. By 2010, Marketing Week estimated the children’s global purchasing influence to be upwards of $1.88 trillion. Lastly, they are viewed as the future market for all goods and services, which will provide a steady stream of new customers when they reach the market age for a particular commodity. Children were targeted and bombarded with all sorts of brand names at the earliest ages, so as to acquire brand loyalty or promised consumerism in the preceding years. Thus is the importance and the coverage of potential consumers when marketing strategies are targeted to children. Moreover, numerous and seemingly simple circumstances during the last decade were seen to be simple, yet very powerful forces which paved the way for the increase in the rate of consumption of children's commodities throughout the years. For the last decade, there has been an increase in the number of households with both of the parents working and earning money for the family. This, most commonly, equates to additional money for the family than before, so luxuries such as entertainment and designer items can now be afforded. With both parents away from home, children are usually left on their own, and the responsibility for consumption decisions is ingrained earlier in them than with other kids having more parental supervision. These types of children are also the ones more vulnerable to succumb to peer influences and commercial advertisements, and thus, become early primary consumers. Another important implication usually observed is the perceived 'guilt factor' of the working parents. Since they rarely have time to spend with their children, they try to compensate the lost time through provision to the kids of more entertainment, gadgets, food, and pocket money for them to freely spend. Such are termed the latch-key kids. It has also been a trend that working parents, in response to being frequently out of the house, set schedules for 'bonding' moments or time spent exclusively with their kids. This is usually done through trips to the consumer havens: shopping malls ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 3 and theme parks. The role of grandparents in the increase of consumerism of children is also quite significant, especially if the parents are usually not around. They indulge the children with whatever childhood pleasures they can contribute to. All of the aforementioned situations are also applicable for single parents. For career-oriented individuals, of which number is highest in the urban areas, the decision of having children come later than the others. Therefore, when the child arrives, it would be given the utmost importance needs would be tended and wants would be graciously provided. Studies have also shown that the increase in the divorce rates particularly in the United States may be a contributing factor to the progress of the market, since the resulting child would most probably be given combination of gifts and pocket money from the two separate families, usually amounting to more than what is received by a child from a non-splintered household. The rise in the number and types of mass media technology being developed and distributed worldwide has now grown to be the most important and most frequently utilized in marketing strategies for children. Approximately twenty-five percent of preschool-aged kids in the United States have televisions in their own rooms, and the estimated watching time, in average, is for two hours each day. Annually, an American child sees fortythousand television commercials. A study in Stanford University has correlated the children's demands for specific consumer items with the time they spent in front of the television. In China, it was also noted in a study during the year 1998 that the television is a more influential source of information than the parents. With the success of advertising schemes using television, radio, and print ads, companies have also being exerting efforts to expand to social networking sites and hand-held devices such as smart phones, of which younger kids are now being able to utilize, and may have already overtaken the television as their most valuable form of entertainment. As Walt Disney once stated, "The child's mind is like a blank book. The quality of writing during its first years would affect its life profoundly." With their limited cognitive abilities and capacity for abstract reasoning, coupled with their very high degree of curiosity, children are said to take the greatest impact from advertising schemes. There have been numerous studies showing that children under the age of eight cannot distinguish commercial ads from regular television programming, and also, unable to understand the intent of advertisements. As a result, they easily accept the claims made by the commercial advertisements as the valid truth. Jean Piaget contributed much to the study of the development stages of a child's cognitive abilities. Based on this foundation, later researches discovered the points that would make a highly effective advertisement based on the child’s level of cognitive ability: First, it must be simplified, and ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 4 second, it must contain as much visual information as possible, because of the child’s ability for simple analyses and comprehension. Lastly, it must be repeated adequately for effective retention of the message. Intensive research is an absolute necessity. These contributed much to the success of television shows such as Blue’s Clues and Sesame Street. Consultations with child psychologists, children, and the family should be done. Research and development, and evaluation of the existing marketing strategies are absolute necessities. While this is a great strategy, this could also expose all of the child’s vulnerability, while the companies helplessly trap them into buying the consumer products. Whatever strategy is used, it should not be forgotten that advertisements have the primary aim of selling merchandise, so even if advertising regulations and policies are in place to protect the wellbeing of the child, the primary protection must be initiated by the family through proper guidance of the child. The family should be the ones responsible in instilling the proper consumer values to the child. With all these in mind, the marketing strategies targeted to children, together with the evolving life situations and technology at present, should be further analyzed in order to fully understand the implications they have for the child. These implications should be noted and manipulated so as to be used to affect positive behavioral changes, rather than the bad. Two companies have set trends in marketing to children, and their marketing strategies would be thoroughly discussed in the preceding pages. The first one is an international company that has mastered the art of kid’s entertainment through various media. The second is a local company which has successfully catered to the Filipino children’s palates. Knowledge of their history, exemplary strategies, and the critics’ opinion of them, hopefully, could provide lessons in marketing social behaviors to the children. Marketing to children has its downsides, too, especially when marketed through the media. Its implications are enumerated in the hopes that in the future, definite ways of dealing with them would be crafted. With this, it is of equal importance to present the existing policies and regulations of the Advertising Board of the Philippines regarding the marketing strategies to the children. Social marketing is an important strategy that must be learned public health professionals. By taking examples and applying concepts commercial marketing to selling public health messages, the efficiency delivery of social commodities, especially for the children, is anticipated have greater impact. by of of to ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 5 DISNEY, INC. Walt Disney has been known, arguably, as the most influential man of the twentieth century. Beginning in the late 1920s and accelerating through the decades, the multifaceted company has produced, primarily, movies and animated films. In addition to this, the company has in its hands one of the widest variety of consumer items and services, distributed and consumed all over the world. As of 2011, the Walt Disney Corporation has in its assets a number of cable networks (ESPN, Disney Channels Worldwide, ABC Family, and SOAPnet networks), six domestic television stations, five Disneyland parks and resorts located all over the globe, Disney vacation clubs, cruise lines, tour packages, the Disney Music Groups and Theatrical Productions, and a huge line of branded Disney Consumer Products. Recently, they also launched the Interactive Media Group, which provides online games, information about their product and service offerings, stores, and other services. Disney also has the Imagineering Department which takes care of the training and support services, also the research and development strategies of the company. With all these possessions, it is not surprising that the Disney corporation is known as one of the largest in the world. Walt Disney was born in Chicago, Illinois on 1901. His deep interest in art was noticed in a very early age. He first established the “Laugh-O-Gram Films” which produced the highly successfully series “Alice Comedies”, among others. Despite the immense creativity of the staff, the company declared bankruptcy after a short period of time. Instead of accepting defeat, Walt Disney went to Hollywood. With Walt’s creativity, and Roy’s business strategies, the Disney Brothers established their own studio, which produced “Oswald the Lucky Rabbit”, and later on, their signature character: “Mickey Mouse.” During the following years, Mickey Mouse’s friends were also created by the same studio. In less than ten years in Hollywood, the Disney Brothers were a domestic name, with the Mouse as a national symbol. Its fame paved the way for the first Disney-branded consumer product released in 1927: a child’s writing tablet embedded with Mickey Mouse’s image. During the later years, all popularized Disney characters where branded into a huge line of Disney Consumer Products. One of the strengths that the Disney Corporation has is its capacity to evolve, and its never-ending quest for growth. Such is also evident during its early years. In spite of having highly successful animation flicks, Disney planned to produce full-length animation films and produced the classic movies: “Snow White and the Seven Dwarves,” “Pinocchio,” “Fantasia,” “Dumbo,” and “Bambi” during the next few years. Live action films are his next venture, and he was extremely successful with the “Treasure Island” ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 6 and “Mary Poppins.” Television started to become popular and Disney penetrated this field as well, producing his own television shows. During the latter years, domestic and international television channels were also acquired. The Walt Disney Music Company and company’s own Art School were also established. When Internet has finally been within the grasp of children, Disney also expanded into this field. During the 1990s, the Walt Disney Internet Group (WDIG) was created, and this launched several internet-based businesses and applications. Around the year 2000, Disney started its wireless initiatives. It entered into agreements with 22 global telecommunications companies around the world, so subscribers would be able to receive a huge range of offerings for Disney items and services. Later on, WDIG launched ‘Toontown’, an collaborative online game. Walt Disney conceived the plans and personally supervised the construction of the very first Disneyland Theme Park. While it was inspired by the typical carnivals, Disney aimed to ‘bring dreams into life.’ With his painstaking obsession for details, hard work, and immense talent, he was able to transform dreams into reality. While carnivals were known to be a place enjoyed by kids while parents wait idly on the sidelines, Disneyland was designed to be a place for the whole family. The first one was constructed in Anaheim, California, and, with its success, subsequent ones were built in different areas of the world, namely: Florida, Paris, Tokyo, and Hongkong. Disney marketed dreams and childhood innocence. These are his signature products. These are what made his products pure and simply irresistible. For the child, it gives space for its imagination to run wild. It is an escape from reality, into a place where animals can talk, genies and fairies can grant wishes, and everyone can have the chance to be a lovely princess. For the adults, it gives them a feeling of nostalgia. In addition, Disney also banked on the promotion of moral conduct in most of his movies, which parents love and certainly endorse to the kids. His stories are also about protagonists seeking self-identity and self-worth, an enticing subject for all ages. It provides hope, defines childhood innocence, and strengthens moral values and self-worth, aside from its vastly successful entertainment value. It is known to provide ‘clean’ entertainment. All of these are what explains its unique charm, and of course, market viability. As mentioned earlier, Disney owns a vast quantity of businesses, and it is known as one of the biggest media moguls in the world. They have penetrated all types of mass media, from local and international television stations, the Internet, record media, etc. Moreover, the Disney Consumer Products have a very extensive range of product lines. Branded with the Disney logo are toys, clothing, school supplies, even food. Simply put, Disney is everywhere. It is now powerful enough to be a component of the culture we live in, especially for a child. It was mentioned in the Advertising Age by the CEO of Disney himself in 1989, that the corporation’s activities reinforce ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 7 each other. "The Disney Stores promote the consumer products which promote the [theme] parks which promote the television shows. The television shows promote the company.” Disney enjoys the privilege of taking part in such a “media oligopoly,” which is further reinforced by its consumer products. Therefore, it comes as to no surprise that Disney has such a powerful consumer effect among the children and the family. The company also has been especially active in hosting events such as tournaments, school programs, and a variety of other events, not excluding those in which there are only adult participants. The industry publication, Brandweek, explains: "Disney has started hosting events to try to appeal to everyone from empty nesters and senior citizens to honeymooners and postcollege singles." Disney knows that in targeting children, the knowledge and influence of the adult population is also very beneficial to their success. Partnerships and outsourcing is highly inevitable for the success of giant corporations such as Disney. The death of the Disney brothers, Walt and Roy Disney, during the decades of 70’s and 80’s, respectively, resulted to the alleged Dark Ages of Disney. Adjustments in leadership and shifts in goals caused confusion in the corporation, and certainly took a toll on their creative efforts and succeeding outputs. During the late 80’s, Steve Jobs established the Pixar studio. It consists of a rather small group of artists, with its creativity and unique methods already starting to attract attention. Its film-making strategy involved the use of highly-innovative computer graphics, focusing on a small number of projects with meticulously-written script. However, they still do not have enough means to market and distribute its films. Its collaboration with Disney was mutually beneficial, as Pixar was provided with access to distribution and marketing, while Disney was able to produce highly successful movies, from Toy Story movies to Finding Nemo. With Disney’s animation division lagging behind that of Pixar, it was acquired in 2005 by Disney for ten billion dollars. Its partnership with Pixar is not its only successful partnership strategy. Throughout the years, Disney has been partnering up with fast food chains such as McDonald’s, which consistently featured Disney’s creations for their Happy Meals. McDonald’s was able to incorporate fun and play into their foods, while Disney was able to promote their films and Disney characters. The company’s research and development strategies paved way for creation of television shows, films, and consumer products targeted to specific age groups. During the last decade, it set the trend for marketing to the ‘tween’, or the pre-teen population, with shows and movies such as Hannah Montana, Lizzie Mcguire and the High School Musical. During the past decade, the corporation has been using social advocacies to promote itself. Recently, Disney has made a commitment to promote good healthy eating habits for kids through a wide array of means. Nutritional guidelines were set, which are now globally implemented. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 8 Nutritional portfolios of foods were branded with Disney characters. Conspicuous labels were put in Disney food products in order to highlight nutritional facts for shoppers. All Disney Parks and Resorts committed to offer only healthy options to the children, through serving nutritious prebundled kids’ meals in the parks. Imagination Farms were founded to serve and to engage farms in producing fruits and other organics under the Disney Garden brand. Regulation of foods served in the theme parks aimed to serve healthier options to the children. Recently, they also launched programs in support not only to child’s nutrition but to healthy living. In their program, “The Disney Magic of Healthy Living,” they focused on the benefits of physical activity and exercise for kids. Thus, it was proposed, and now implemented, that at least one episode of each series in Disney production has a healthy lifestyle theme. Another advocacy that the corporation made is its denouncement of cigarette-smoking. They announced that Disney will no longer feature smoking in any of its movies, as part of this campaign. THE BAD SIDE: The large number of protests and criticisms over the offerings of the Disney Corporation is a testament that all directives towards children must be thoroughly analyzed before offering them to public. But even so, as it was mentioned earlier, backlash must still be expected and appropriate responses should be made accordingly, since the target population is composed of the children, which are perceived to be the most vulnerable of all the population groups. Nothing seems to be wrong when the Baby Einstein videos were adopted by Disney as one of their consumer products. Its product offerings include educational materials designed for infants and toddlers. They are said to be ‘created from a baby’s point-of-view,’ and based on its name, it initially promised to create geniuses out of the babies, through enhanced methods in the development of speech, language, and math skills of the children. This is considered to be one of the first educational materials using video that is targeted to children under the age of two. This is where the problem started. According to the recommendations set but the American Academy of Pediatrics, television must be avoided for children less than two years of age. In addition, they specifically mentioned that: ‘Babies and toddlers need direct interactions with parents and other significant caregivers for healthy brain growth and development of appropriate social, emotional, and cognitive skills.’ The videos could even provide means for some working parents to consort to having the babies to watch Baby Einstein, instead of personally teaching and spending time with them. Thus, the Baby Einstein videos, according to these critics, do not teach anything significant to the children, despite the company’s claims. It could even be detrimental to the learning process of very young children. After the complaint, the company made ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 9 major modifications on its promotion and marketing strategies, particularly in their claims. However, their products are still being distributed, while the company was able to refute the attacks of their protestors. Another problem with Disney is its immense number of acquired assets, including television channels or shows not specifically directed to children. The messages relayed by these can be conflicting with children’s values. Disney has stuck with its ‘clean, innocent, child-friendly looks’ for its decades of existence. Its acquisition of ABC, and the quality of shows the channel continues to air, has earned them numerous criticisms. Initially, ABC marketed itself as a family-centered network. However, themes related to violence, homosexuality, premarital sex, and the use of alcohol and drugs have been used. This is directly exposing the child to things and themes that are detrimental to its values. A company for children should stay true to its goals and remain child-friendly in all of its ventures, or else, this could lead to damage to its reputation. The Disney Consumer Products released dolls of the Disney Princesses during the early 2000s. Marketing these toys also pushed critics to sign their protests against Disney. They say that these consumer items encourage materialism and luxurious fantasies to little girls. However, pro-Disney counterparts say that their allegations are far-fetched, and that no studies have been proven that these types of toys do permanent damage to a child. The issues of subliminal messages in several Disney films, such as ‘The Little Mermaid,’ ‘Alladin,’ and ‘The Lion King’, also made considerable noise, with groups even filing lawsuits against Disney. Subliminal messages, consisting of obscene words and images, were allegedly placed purposefully by Disney into their movies, according to the protesters. Disney vehemently denied the allegations, but reportedly, disciplinary actions were filed against the creators of the cartoons with the questionable messages. The effects of the subliminal messages are still unclear for psychologists. The corresponding significance and influence to the audience’s behavior change of these subliminal messages must be given further studies. Disney’s strategies for commodification, globalization, and capitalism are indeed very successful. However, according to Roy Disney, nephew of Walt Disney, and also a past CEO, too much effort for commercialization of the company during the past decade is killing the magic of Disney. Walt’s ulterior motive of providing pure entertainment for the children, according to him, is now being gradually replaced into a motive full of schemes for pure money-making venture and conquest for more control and power. Throughout the years, the quality of Disney films, according to some critics, has also been disintegrating instead of improving. According to them, this is one of the reasons why Disney partnered with, and later on, acquired Pixar. They know that its innovativeness overpowered theirs. They used their ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 10 supremacy to control and own whatever competition that may appear. That is now their vision: to continue ruling the world with their media. In summary, strategies successfully done by Disney are within the following principle: (1) A successful company never fails to evolve. They must be open to modify their strategies based on the changing needs of the target population and the existing technology available. Stagnancy signifies the death of the company. However, this must be in place while retaining the successful characteristic of the brand. For Disney, this would be the pure, unadulterated type of entertainment it has since provided. (2) A brand is necessary. It is one that should set it apart from its competitors. As mentioned, Disney’s brand is innocent fun and pure entertainment value. No other company has beaten the quality and value of Disney movies. (3) Ubiquity of the consumer products is a necessity. There is strength and more market viability in numbers. (4) Partnership strategy is important. As it was said, if you can’t beat them, join them. Also, products that satisfy multiple needs attract a greater number of consumers. (5) Social advocacy is a helpful way in refreshing a company’s image. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 11 JOLLIBEE It was in 1975 that Mr. Tony Tan founded his own franchise. His vision is of a company of hard-working individuals, yet never losing the perspective for good times and fun, so he named it Jollibee. Around this time, the internationally-acclaimed fast food chain, McDonald’s, have just entered the Philippine market. It was suggested to Mr. Tan that it would be more practical to give up Jollibee and instead, invest his money for a McDonald’s franchise. He refused to do so, and believed in the power of his brand. More than 25 years later, Jollibee has grown to be the most dominant fast food restaurant in the country. It was said to be one of the only local fast food chains in the world that easily toppled the sales and popularity of the internationally-successful McDonald’s and KFC. With its acquisition of various other businesses, the Jollibee Foods Corporation (JFC) group was established. It is easily the Philippines’ largest restaurant network. By the end of 2011, it was operating an accumulated number of 2,001 stores in the country consisting of Jollibee and its subsidiary stores: Greenwich, Red Ribbon, Mang Inasal, and Burger King. Around the globe, it has over 400 stores. JFC has been awarded and commended for its financial soundness, vision, and excellent management and marketing strategies over the past three decades not only in the local scene, but even outside the Philippines, earning tons of respect and accolades. It has been awarded numerous times as one of the highest achieving companies in Asia by the Far Eastern Economic Review and the Asian Wall Street Journal. Recently, it has been highly praised as one of the top twenty leading fast food chains in the world. Like McDonald’s, children is primarily targeted by Jollibee. Despite having been modeled from American fast food chains and serving Western foods, Jollibee still retained obvious evidences of its Filipino heritage. This quality is what put Jollibee on its pedestal, above all its counterparts and competitions. Jollibee imitated and made innovations on all the strong points of McDonald’s; however, they customized the menu and the flavor of the Western-influenced foods. They incorporated the Filipino taste, giving much consideration to the preferences of the Filipino children. Their hamburgers and fried chickens were made tastier through the use of Filipino soy and spices. Its trademark recipe for spaghetti is much sweeter than the traditional ones, which is certainly a hit for children and adults alike. This signature sweet flavor popularized by Jollibee is now known as the Filipinostyle spaghetti. Palabok, a Filipino noodle dish, remains to be one of their most popular products. Other Filipino meals were also included in their menu, including the Chicken Barbecue, Shanghai rice, and Fried Bangus Belly, among others. Through this, the menu of Jollibee was seen to provide ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 12 options for the whole family. Their meals were priced a little less than the cost for McDonald’s. Good taste and better cost-efficiency made for a dashing winning strategy. However, its expansion to other countries was not so successful, with the Filipino version of Western foods not faring well enough with foreigners. Jollibee stores abroad still have Filipinos as their primary consumers. This, they need to improve on: How to incorporate the Filipino palates they are an expert on, with those of the foreigners? Another element that contributed much to the success of Jollibee is the fun ambience emanated for the children and the whole family. All restaurants have been painted with bright colors and designed innovatively. Product names were modified and branded into childish names for easy retention: Yum, ChickenJoy, JollySpaghetti, and Jolly Twirl, for examples. In addition, there was a time when every Jollibee store has a children’s play area, so children do not only go to Jollibee to eat, but also, to socialize with other children. Jollibee’s party packages were also a hit among kids. Jollibee developed its own group of mascots. Starting with the big bee, which was declared to be more child-friendly than Roger McDonald’s, Jollibee created the other mascots, representing some of their famous food products on sale: Yum for the hamburger, Twirlie for the ice cream, Popo for the fries, and Hetty for the Spaghetti. Branded toys and other commodities in response to the popularity of the mascots were released. Later on, the famous Jollibee characters were also used for a television show for children entitled “Jollytown.” Besides promoting their products, the show typically teaches good moral conduct to the kids. The corporation is also known to be one of the first businesses in the Philippines to realize the vast power of mass media advertising, which was again, in response to the highly successful television advertisements of McDonald’s and other brand names abroad. Since then, it has produced a number of television commercials. At most occasions, they dwelled on the theme of children and their relationship with the Filipino family. Jollibee is also a multi-awarded employer. All employees receive extensive training so that corporate values of humility, respect for authority, and integrity would be instilled to them. A family-like atmosphere at work is what they aim for, to maintain a happy disposition for everyone. The corporation realizes that a friendly set of staff would complement the corporation’s goal for a restaurant that could foster a cheerful atmosphere, for children and their parents, alike. Social advocacies have also been a powerful marketing strategy of Jollibee since 1995, when it started the nationwide toy drive “Ma-AGA ang Pasko sa Jollibee” (Christmas is early at Jollibee). Throughout the years, the program has been widely recognized and supported by DSWD and other organizations. In 1997, another advocacy program was launced: “Sabi ng ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 13 Jollibee, Kaya Mo, Kid!” This program particularly aims to inspire Filipino children by showing them examples of positive values and providing a platform to use their talents and express their creativity through drawing and painting contests. By the year 2005, the corporation has finally established the Jollibee Foundation, which aims to provide community service, especially targeting the Filipino children. With their partners, they are doing endeavors on several fields: For education, school feeding and scholarships were given out. For agriculture, an entrepreneurship program was developed. For housing and development, they partnered with Gawad-Kalinga in the nourishment of their villages. There were also a very visible help in calamities. Lastly, they advocated for tree-planting and nurturing programs. With these social advocacies, creative manipulation of its philosophies, and strong management of its financial resources, the Filipino children, as well as the whole Filipino population has been branded by the bee. A mid-90s market study found that nearly 100% of respondents in the Philippines knew about the Jollibee brand. Jollibee, indeed, is the Philippine’s Mickey Mouse. The Issues Regarding Food Advertising: The harshest criticisms being thrown to fast food restaurants are about the seemingly low nutritional values of the food products they serve. In the United States, McDonald’s has been attacked numerous times because of the high calorie, trans fat, and salt content of the food products they sell. There have been books and news articles about the danger of fast food items. There has also been a movie entitled “Supersized Me” which is a documentary that demonstrated how McDonald’s ‘evil’ foods can induce unhealthiness for people of all ages. In the Philippines, however, there have been no such demonstrations that have occurred against our favorite fast food restaurant. This is interesting, knowing that Jollibee has patterned most of its products on McDonald’s. It also serves the deep-fried chicken, French fries and hash browns, soft drinks, burgers, and ice cream, all of which can be rich and more than sufficient sources of sugar and calories. A study done by the Nippon Foundation in Japan on 2005 entitled “Globalization of Fatness: Cultural, Social, and Economic Perception of Obesity in Southeast Asia”, included Philippines in its list of respondents, analyzing and comparing their consumer characteristics when it comes to fast foods and its corresponding relationship to some health factors. Amazingly, yet not surprisingly, it was only in the Philippines that there was a 100% positive answer when they were asked if they have consumed, at any point of their life, a product from the country’s most popular fast food ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 14 restaurant, which in the Philippine’s case, is Jollibee. Results also stated that Filipino respondents frequented fast food outlets more than any other respondents from other countries. Manila was regarded as having the most number of fast food outlets than any other city in Southeast Asia. The food products are also generally cheaper as compared to the other countries in study, which maybe, can explain the high rate and frequency of consumption. However, compared with Malaysia and Thailand, the respondents from the Philippines also garnered the highest average Body Mass Index, thus provided a positive correlation between the rate and frequency of fast food consumption to the BMI. The commercial value of fast food businesses in the Philippines is unquestionably high, so the implications of these to health and other aspects should be thoroughly inspected and evaluated. Most especially, the nutritional value of the foods being distributed by Jollibee must be given further analysis since they are targeting their marketing efforts towards family and children. It is disheartening that McDonald’s has the nutritional value sheet of all its products made available for public, while the same could not be said for Jollibee. The writer personally sent an electronic message to Jollibee requesting for the nutritional value sheet, but unfortunately, no response was received. In a study done in the US, children were said to typically view one food commercial every five minutes. Studies have shown that food advertisements significantly affect the children’s preference of food products. Because of food advertisements, the children choose sweets and junk foods over fruits. Through the promotional stints, food is also presented as more than just a mean of satisfying hunger and staying healthy. It is also a way of socialization and status symbol, relieving from stress, and a reward for self. However, generalizing food advertising as a direct proponent for the children’s poor eating habits is still an exaggeration and needs further studies. Various environmental factors, such as the family habits and physical activities, or the lack thereof, can also be significant influences for this. Like in other developing countries, the Philippines also has a double burden of malnutrition, and they are on the opposite sides of the scale. During the 2011 National Nutrition Survey of the Food and Nutrition Research Institute, it was estimated that 3.5 million Filipinos are suffering from malnutrition. 2 out of 10 children, or 20% of all the respondents were observed to be underweight. 5% was seen to be obese, a value that has consistently increased during the past years. The largest quantity of obese children was seen in Metro Manila and the nearby provinces. While some nutritionists argue that children need calories that are provided more than sufficiently by fast food restaurants, an intervention for the rising problem of obesity must also be formulated by authorities. Added to this is the fact that health and proper nutrition are being taught as early as in the elementary schools, and Jollibee, with the types of food they serve, does not fit well into ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 15 the ‘ideal food model’ as taught in schools. Foods being served by Jollibee and the other fast food companies are usually belonging to the upper portion of the Food Pyramid, being rich in saturated sugar, oil, and meat. This equates to requirement of smaller servings per day, while the larger ones should be reserved for fruits and vegetables, which are usually lacking in fast food meals. As Jollibee is also posing itself as a Foundation committed to providing proper nutrition for the kids, they should also be able to provide a healthier menu for the children. Nevertheless, this is far from happening. Minor modifications might be in place, but modifying the ingredients and preparation of the much-loved, yet also, deep-fried ChickenJoy, or their other popular food products, to give way for meals comprised of more fruits and vegetables would mean a definite loss in their sales. Jollibee and the likes should be able to present more nutritionally-aesthetic meals to avoid any future backlash and widespread criticism on their products. Jollibee’s philosophical motives can be summed up in 5F’s: Friendliness of the staff and the place itself attracts customers. Flavorful food is their primary selling product. Its customized flavor and their ability to provide options for different age demographic are very good marketing strategies. It caters a fun atmosphere. Its flexibility and innovativeness is also accountable to its success. Like Disney, it evolves, improves, and tries venturing into diverse fields in marketing their products. Lastly, also similar to Disney, it focuses not only to the child but to the whole family. They promote the importance of the family relationship. However, as they are selling food products, the importance of ensuring the safety and the ability to satiate the daily nutritional needs of a child is also very important so that criticisms and future backlashes would be avoided that could possibly be detrimental to their business. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 16 THE MARKETING MIX: Marketing mix, more popularly known as the 4P’s of marketing, is a set of interrelated variables by which a company set its strategies towards a particular target group. These 4P’s are composed of: Product, Price, Place, and Promotion. In analyzing marketing strategies for children, the marketing mix should not be ignored. With children as the target group, the following marketing mix is typically and especially used by the corporations, especially those which were just discussed: Products. For marketing products especially designed for children, commodities should have a degree of ‘kidness’ in them, a quality that distinguishes or makes it unique from adults’ items. These are items wherein kids are especially attracted to, or are mostly satisfied in. Usually, this is the ‘fun’ or entertainment factor of the commercial product. It can also be something that would improve the child’s self-esteem and identity, especially among a group of kids. These are not only true for commodities but also for services. Health services do not usually tip high on the ‘kidness’ scale, so incorporating this unique characteristic is a must, so that they would not only be inviting to the parents, which are able to comprehend the usefulness of the services, but also, give satisfaction and identity with the kids. Price. Children were observed to be price-conscious around the age of eight or nine. Their favorite price is ‘free,’ and this strategy has been used widely by marketers to attract children customers. It is so strong that children, sometimes, buy products just because of its promised freebies. Another important price strategy is the introduction of products wherein the cost is usually within the child’s pocket allowances. In the Philippines, one-tofive peso bite-sized snacks are very popular among elementary pupils. Place. Retailers or stores that handle products also play an important role in the success of the children’s commodities. Successful ones are those that are positioned within the eye-level of the child, storekeepers or service crew who are child-friendly, prices which are clearly visible. Retailing in childprone areas like schools an shopping malls, and the use of vending machines for children’s sweets and other products have also been prevalent and likewise, successful. Promotions. Promotions inform customers and persuade them to buy. Methods usually for promoting child commodities come in all sorts of classes: (1) Promotions using mass media and print ads, (2) Sales promotions through contests and free samples, (3) Event developments, usually through athletic competitions and other school activities, and (4) Publicity, may be through magazines and resource speakers signifying the products’ credibility. Publicity was said to be the most effective, among children and parents, ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 17 alike, while the use of mass media i.e. television commercial was stated to be the least credible promotional scheme, though it has the capability to reach the largest audience. Three other marketing strategies are seen to be very effective and have been utilized extensively. The first is the brand-based strategy. Brand, they say, is the vehicle of modern marketing. Companies cultivate the brand names, market and promote it, sometimes, much more than the product itself. They try to win customers through giving their products a value and an identity unique from its competitors. When the target customers have identified with the product and have perceived its value as marketed by companies, they would continue buying the product, thus, ensuring what they call the brand loyalty. A brand name is now a very important deciding factor for a consumer’s buying preference. In targeting to children, companies try to cultivate and ensure brand loyalty among children and their corresponding families as early as possible. The partnership strategy has also been a very effective technique. This is done by having two corporations come together to use each other’s brands or products. Through this, they are able to promote each other, giving themselves a greater market of consumers. Social marketing is also a highly effective strategy in marketing. The two aforementioned corporations have extensively utilized social marketing as a valuable marketing strategy. Social marketing is defined as the marketing of social behaviors to a certain target group. Like commercial marketing, it also requires careful product planning, pricing, communication, advertisements, and most importantly, research and development. It aims to promote ideas, rather than products, and to influence the acceptability of the target group to these ideas. Similar to Jollibee and Disney, social marketing can be used for profit. These corporations commit to certain social causes for them to ‘look good by doing good. THE EFFECTS OF MEDIA USE FOR CHILDREN’S MARKETING With all the discussions, it is safe to assume that there is really a lot more to the effects of marketing to children than what it really aims to do, which is to promote and sell products. Although the media has been proven to be a very successful mean to promote items for it is able to target the largest audience, the risks are also aplenty for this particular field. Again, the media is the consumer haven, not only for the children’s commodities but also for adults’ consumer items. The marketer’s relentless use of mass media, especially the television, has been widely criticized to have the greatest effect on a child’s development and behavior. Too much consumerism ingrained in the child, especially through uncontrolled and ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 18 unguided media use, has been seen to have numerous negative effects not only for the child, but also for the whole family. First, early exposure of the child to consumerism, especially with the television, if not thoroughly guided, may implant on him a materialistic attitude. This might give the child the perception that owning the best and most expensive products available on the market is the way of gaining the most self-worth. It has also been shown that advertising can cause various conflicts on the child’s relations to the family. Since not everything a child wants can be bought by its parents, or not all products can be provided equally to all of the children in the family, a strain on the relationship of the children to their parents or siblings can be expected in a materialistic child. A study in Netherlands has reported that there is a significant relationship with the child’s purchase requests to family conflicts, whether with the parents or sibling rivalry. It could also cause disappointments for the child, and later on, life dissatisfaction. The relationship of the child’s exposure to food advertisements to the development of unhealthy eating habits has already been mentioned earlier. It must be minded that unhealthy eating habits acquired from childhood has the greatest probability to persist throughout life, and therefore, have the most serious implications on a child’s health and well-being. Therefore, the influence and implication of food advertising must not be underestimated. While children are able to watch television shows and advertisements generally targeted to them, advertisements of products that are inherently detrimental for the children are also aired, like those of cigarettes, alcohol, and others. Children, through the television, can also be targeted by these products, though unintentionally. Studies have shown that the airing of the cigarette advertisements have generally contributed to the rise in the rate of early cigarette consumption among the younger population. The advertisements portray it to be an indication of ‘coolness’ or masculinity. Older children, especially those with self-esteem and self-identity crises, succumb easily to these advertisements. Also in the television are aired various shows which portray violence, sex-related messages, and other immoral principles, all of which are definitely unsuitable for children. Without adequate supervision from the parents, children would have direct and unlimited access to all of these liberal values. Some children’s cartoons nowadays have been depicting violence and illicit behaviors, as well. Disturbingly, they are also being shown during the children’s hours on local and international television networks, which is the early morning and later afternoon hours. Regulation policies regarding these are seen to be insufficient, with just suggestions of parental guidance posted before the shows start. Thus, the media is not just an ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 19 excellent conveyor of information, but is also very powerful influence. Guiding the children on which television networks or shows they should watch, and carefully explaining the good from bad should be the very first consideration. Such is also similar for commercial advertisements. A very significant factor in counteracting the effects of media consumption of the children is still the immediate family or guardians of the children. Their guidance, discipline, and their ability to set a good model for the children are highly important in delimiting the messages they absorb. Having close and constant communication with the children, and their presence to answer all their concerns is vital to the development of the children into well-rounded individuals and responsible consumers. The media should not be the child’s primary source of information and influence, but still, the parents. The role of the government in protecting the welfare of the audience or consumer through adequate screening of advertisements is also significant. It was with this need that during the presidency of the late Ferdinand E. Marco, the first Mass Media Council was formed. On January, 1973, the manual for the Code of Ethics in was formalized. Preceding this is the establishment of the Philippine Board of Advertising, more commonly termed nowadays as the Adboard or the Advertising Board of the Philippines. This aims to screen all advertising that falls under the jurisdiction of the Department of Trade and Industry (DTI). With this, corresponding violations and penalties would be recommended by the Adboard to the DTI. One of their stated missions is to ‘safeguard the interest of the consumers through truthful and responsible advertising.’ For the Code of Ethics in Advertising in the Philippines, the issue of children with regards to the effects of advertising was most probably raised during its formulation. As a result, articles for solely for the standards for protection of the child can be found on the manual. Several policies were drafted, including: 1. All advertisements with regards to drugs, medicines, or any devices or services related to medical treatment should NEVER be directed towards children, nor encouraged to be taken without the supervision of an adult. 2. It should not promote any improper behavior. 3. Alcohol and cigarette brands should never be used in promoting children’s consumer items. 4. Children should never be exploited in all types of advertisements. 5. No child should be used in advertisements of games of gambling, and the like. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 20 The support of the state is also very important in influencing children. The formulation of policies such as these, and their extensive and strict implementation, would benefit the children and the whole community. SOCIAL MARKETING What is social marketing? In 1971, Kotler and Zaltman coined the term to describe the ‘use of marketing principles and techniques to advance a social cause, idea or behavior.’ Basically, it markets behavior. It also primarily aims to influence a target audience to do either or all of these things: accept a new behavior, reject a potential one, modify a current behavior, or abandon an old one. Social marketing leads to a voluntary change and may be intended to affect individuals, a group, or the society as a whole. The principles surrounding the use of social marketing is generally similar with commercial marketing, and this would be further explained in the preceding pages. However, social and commercial marketing are also very different because of the varying elements composing them: The primary difference would be the types of product sold: commercial marketing involves the marketing of goods and services, while in social marketing, the non-tangible products are sold, which are ideas, attitudes, and behavior. In consequence to this, social marketing strategies are generally long-term projects, for it is far more difficult to make an effect with concern to attitudes than influence people to buy goods and services. Thus, commercial marketing are generally short-term; the success of a marketing strategy can be evaluated in just a matter of weeks, depending on the project or the product being sold. The effect of a social marketing effort is evaluated, on the minimum, every after a few months, and may stretch to years or decades. Commercial marketing exists primarily for financial gains. Social marketing is done specifically for individual and societal gains. The messages, therefore, of commercial marketing are more superficial. Social marketing strategies require a higher degree of involvement among the program managers and stakeholders. Another point is that, since commercial marketing generates funds, it also has more money to spend for its strategies; social marketing has limited funds. Also, the cost of buying social products or behavioral change goes beyond the financial concerns. They usually entail more of physical efforts, social and lifestyle sacrifices, and time expenditures. Commercial marketing frequently entails just money for its customers. It may cost all of the abovementioned costs for commercial marketing, as well, but to a lesser degree. In addition, the competitors are not similar for commercial and social marketing. In the latter, marketers compete with the current or preferred ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 21 behavior; commercial marketers compete with different products which provide the same goods and services. Since the 1970s, the principles of social marketing have been used to affect behavioral changes with regards to public health, injury prevention, environmental protection, and various projects that require community involvement. The World Health Organization and the Center for Disease Control and Prevention used social marketing for public health programs since the 1980s, and from that time onwards, has managed to launch several successful projects. Similar to commercial marketing, children can also contribute to having the largest potential market of consumers. The reasons for targeting children for social marketing strategies can also be quite similar to those of commercial marketing. As a primary market, children can be targeted for behavioral changes for various explanations: They are seen to have the greatest time to spend for leisure and other activities. Thus, social organizations try to recruit them into joining their causes, in forms of summer camps, workshops of all types, sports activities, and simple events like tree-planting and peer counseling activities. Schooled children are the easiest to organize and also, the most likely to oblige in social activities. As it was pointed out earlier, children have a significant amount of money to spend. It is aimed by social organizations that this money is utilized on more socially desirable products and services. Promotion of healthy consumer habits, while demarketing unhealthy commercial products like cigarettes, alcohols, and junk foods have been some of the goals of a social marketing project. Lastly, children have the highest degree of curiosity, and they are able to absorb the greatest possible amount of information. Behavior change is also the easiest within their age group. Social marketing strategies aim that the children absorb the information that would be healthy and socially relevant to them. As an influence market, children may also be utilized as reformers of social behaviors, in a process called as ‘reverse consumer socialization’. Children may be used as a primary target for social messages, upon which it is aimed that these messages be diffused to their family members, and thus, to other adults. The children’s value for marketing social messages is the greatest when they are viewed as a future market. Some messages may not be immediately needed by a child, like values for premarital sex or the use of drugs and cigarettes, but instilling these ideas at the earliest time would make the strongest foundation for a child’s adequate and proper behaviors. Successfully marketing health ideas for a child would not only greatly impact its development into a healthy adult, but would be ingrained deep enough that he could also be an advocate of the idea to his family and friends throughout his lifetime. The success of a social marketing strategy can be based on the preceding principles, which are similar to commercial marketing strategies. First, it is imperative that the needs of the consumer be adequately ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 22 assessed, and it must be ensured that they meet the needs of the consumers, while the consumers realize and fulfill the goals of the organization. Especially for social marketing strategies, the behavior or idea should be marketable for the target audience by knowing the wants and needs of the consumers. Second, the best marketing strategies are those that put emphasis on the voluntary exchanges of goods and services between the providers and consumers. Social marketing sometimes require demarketing of some commercial products, as was already mentioned, but marketing strategies should not use that as the focal point of their messages. Instead, the satisfying qualities of the behavior or social idea being sold must be sought. This is to be used to persuade the consumer to voluntarily accept and peruse the social product, not out of fear of the danger in not using it, but because, they are genuinely impressed with its benefits. Third, like in commercial marketing, research is very important for social marketing. Through research, the most adequate message and design would be purposely formulated for the subgroup of choice, and also, the most efficient distribution and communication channel. Lastly, there are also similarities in the marketing mix used for children in both social and commercial marketing: For advertisements directly for kids, it should be made fun and entertaining. They must ensure that the kids would identify with it, and should definitely be able to contain the ‘kiddie’ factor also possessed by successful commercial products targeting children. They should adopt the ideas they want to market in a way that the kids would easily comprehend. It should be leveled into the child’s culture and life issues. The teaching of moral values in some Disney movies and signifying the importance of family togetherness in Jollibee’s advertisements are effectively done through this first principle of inserting fun into the picture. While doing this, they also manage to promote their products. The ‘kiddiness’ principle contributed, as well, to the great deal of success enjoyed by children’s shows such as Sesame Street and Blue’s Clues, and local television shows like Batibot and Sineskwela. Education is partnered with entertainment, so while they retain their audience because of their antics, they also manage to teach them. The challenge in this is the balance. While the entertainment value is vital for the children’s physical and mental presence, this should not be overdone to prevent obscuring the real message. Second, they must be able to make the children comprehend the price or inherent value of the behavioral change that they are selling. The cost for changing old attitudes or creating new ones must come forth as being insubstantial compared to the benefits of adapting the social behavior being sold. For commercial products like Jollibee, they won the competition amongst other fast food chains through customizing its flavor and making its prices more affordable. Thus, it gives its products an edge by giving more value for their costs. Social marketing products can be sold by showing them ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 23 how convenient, safe, or healthy it would be to accept the new behavior, amidst all the inherent sacrifices or cost of accepting it. Thirdly, the social idea being marketed should be ubiquitous and relatable everywhere a child goes. While Disney products and Jollibee stores are everywhere, social or health messages, too, must be seen or reinforced in multiple aspects of their lives. Another thing to consider with this is the child’s environment. The compliance or opinion of the immediate family toward the social messages targeted to the child can make or break the chances of successfully teaching a new behavior to a child. This again, points to the inherent importance of the family in affecting the child’s behavior. Lastly, there should be adequate promotion for the social product. It should be marketed in all the elements also being utilized for commercial marketing. Modes of mass media technology must be explored and utilized. The Internet also provides a vast avenue for promoting behavioral change. Free social networking sites can also be used. Creativity and resourcefulness is necessitated of social marketers because of their limited manpower and funding as compared to the commercial marketers. In spite of this, similar rules in marketing commercial product still apply for social marketing: that messages be simplified as much as possible and abstract messages be avoided, that messages be repeated multiple times, and that messages must contain as much imageries as possible. Other strategies or elements must be taken into consideration when marketing social products. Like in commercial marketing, a brand-based strategy is also necessary. The targeted individuals should be able to associate an improvement in their life status or well-being to the marketed social message. Partnership or co-branding with other tried and tested brands, which may also be commercial in nature like Disney, Jollibee, Sesame Street, or the likes, can also be done. In social marketing, the element of competition is the hardest to acquire and conquer. First, they are competing for the children’s attention against commercial marketers. This is very difficult to do, realizing how saturated the media already is with advertisements for commercial products. They should be able to present something new to the target audience, or like Disney, cooperate with some of its competitors. In doing this, however, the social marketers should ensure that they would be partnering with companies who have goals consistent to theirs, for any inconsistencies would cause confusion for the target audience. Second, they are directly competing against, or demarketing a particular brand, which was already mentioned earlier. Lastly, they are competing against past behavior or lifestyle. Through efficient research and development strategies, and ingenuous creativity and commitment, it is highly anticipated that the social marketers win all these competitions. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 24 The principles of marketing strategies of Jollibee and Disney which were previously presented and their subsequent application to marketing social causes or behavioral changes have been ubiquitously discussed in this section. To summarize, such are the most important lessons drawn from the strategies put forth towards children of the aforementioned companies: The evolution of strategies, or, keeping the knowledge pool continuously flowing and open to new ideas, must be done also for social marketing causes. Strategies should be open to innovations especially in response to technology. The stakeholders must always be up to date with what the consumers demand and what the competitors bring to their plates. Branding is not only for commercial products: social marketing causes should also adopt this principle by making a powerful name or motto that would be highly suggestive or symbolic of its vision and cause. It should be able to represent. The ubiquity of products sold is also very important. For social marketing, in addition to infiltrating mass media technology, the importance of other institutions in promoting social causes should not be taken for granted. Examples of these are the family, schools, and churches. The utilization of these units of the community is crucial to the success of strategies. In addition, partnership with tried and tested brands can help in reaching out to a larger market of consumers. Jollibee’s 5F’s can also be applied to social marketing in the same manner. Its application can be specifically linked to social marketing strategies for children. The child friendliness of the promotional materials and the advocates themselves, and the inherent fun factor of the social marketing strategy are very important in attracting potential customers. This is the particular selling point of marketing strategies targeted to children. However, whatever strategy used must maintain its flavor. Incorporating the element of fun must not conceal the real message and cause of the message or marketing strategy. The importance of flexibility or innovativeness was already mentioned. Lastly, in almost all marketing strategies for children, most especially the ones involving social causes, the family should be given utmost consideration. The message should not only cater to the child but also, to the whole family, since a child’s primary and most important influence, and also the screener and protector, is still its immediate family. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 25 SOCIAL MARKETING OF PUBLIC HEALTH Health is man’s most important commodity, so application of concepts learned in commercial and social marketing should be duly applied to market health concepts. Usually, there are three goals when marketing public health ideas: (1) To promote lifestyle change, (2) To affect changes to the social and economic conditions of the society, and lastly, (3) To affect changes to health policies. Public health focuses on prevention as the most important intervention strategy. It is also linked with government and public policy, with the philosophy of social justice, or issues of equity or equality among the different societal groups, as its central pillar. The marketing of positive health behavioral changes is usually made difficult, not only among the third-world countries but also in the most modernized countries, by the insufficient capacity of the public health practitioners brought about by some factors. First, the emphasis of their role in advocacy is inadequate. Public health practitioners also lack the skills or the expertise in social advocacies. Lastly, there is an inherently insufficient number of training programs for the public health practitioners in relation to health education and advocacy programs. Thus, the importance of social marketing public health principles and ideas must be related and ingrained most especially to the different levels of health units. Despite the aforementioned limitations, some Public Health programs especially designed and marketed to children have been widely successful in their own ways: In the year 1992, then-Health Secretary Juan Flavier launched the “Yosi Kadiri” (youth slang for ‘disgusting cigarettes) campaign. It negated the selling strategy of cigarette companies which is giving a ‘hip and cool’ image to the smokers. Vast media involvement, coupled with nationwide community programs, made the campaign a nationwide sensation, and definitely, a great success for a few years especially among the children and young adults. However, the program gradually lost its appearance over the years because of lack of funds to continue the mass campaign. However, the advocacy went on through other means and forms: There were the Youth Congress and nationwide advocacy celebrations such as the Celebration of Lung Month and the No Smoking Day. The most significant effect of this campaign, however, is the gain of support of various legislators that proposed several tobacco control policies in the Congress. By 2001, the STOP (Stop Tobacco and Other Products) for Health bill, which contained a blueprint for tobacco control strategies, was submitted. By 2003, Republic Act 9211 or the Tobacco Control Act was passed and implemented. Recently, the Sin Tax Bill for tobacco products was passed. Truly, the significance of social marketing strategies in attracting attention from the policy-makers cannot be undermined. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 26 The VERB campaign of the Center for Disease Control and Prevention can also be cited as an example of a social marketing campaign on the field of public health that has experienced great success. With the public health problems caused by the sedentary lifestyle suffered by a large percentage of American children, the CDC launched this campaign. It aims for an increase in physical activity among the tweens, or children between the ages of nine and thirteen. As usual, the parents and schoolteachers are the secondary audiences for the kids, as they are also important influences for the children. They marketed physical activity as cool and fun especially if done with friends and family. Their messages were much more on “Kids do exercise!”, rather than the don’ts (in example, it is bad to watch television or play video games all day) or other modes of perceptibly demarketing other values. Diverse methods were used: First and most importantly is the advertising done using mass media. Schools were also penetrated with their efforts, through introduction of sports and other recreational activities. Community-based strategies were also implemented, through advertisements on the streets and establishment of recreational centers in the communities. They also teamed up with companies, such as Disney. Through evaluation of the efforts in a study, the awareness and the physical activity of the kids have significantly increased. However, the insufficient funds and support also caused the program to stop its activities. The Choose Health Project in Italy provides another good example of a social marketing strategy. This project aims to prevent obesity and promote Healthy Lifestyle through the massive availability of vending machines which offer more nutritional choices for the consumers. Instead of candies, junk foods, and soda, the vending machines offer fruit snacks, sandwiches, water, yogurts, and other low-calorie beverages. As part of their strategy, the healthy products from vending machines were priced less than those sold in snack bars. The machines also contain educational and promotional posters on them to reinforce the health message. These were made available primarily in schools, and later on, in hospitals, offices, and other major public places. This was done through the partnership of the Local Health Unit and the Buonristoro Vending Group. The project was deemed successful, as it caused a significant change in the preference and attitude of students and workers, alike, towards healthier options. FINAL THOUGHTS: Because of inherent characteristics of children, they are an excellent target for various marketing programs, whether on the field of commercial marketing or with social marketing, especially with public health advocacies. Research and development has paved the way for formulating vastly successful marketing strategies of commercial companies. Through the indepth analysis and application of these marketing strategies, public health ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 27 advocacy campaigns could be carried out more efficiently. Some marketing strategies, like the marketing mix, brand-based, and partnership methods, could be similarly used by the social marketers. However, since social marketing sells behavior, there are also differences, so modification of these strategies based on the differences should be analyzed and done accordingly. The development of training programs for health professionals especially those on the public sector, on advocacy and health promotion is now needed and should be prioritized. A number of social marketing projects primarily targeted to children and public health have been launched. Their effects have been enjoyed by its consumers around the world. The people and the government must also be wary of the marketing strategies done and their effects on the children beyond the consumer context. The parents’ contribution to the effects of these is paramount: their presence and active participation to the child’s daily activities and development is an absolute necessity. The government should have a systematic procedure for the screening of advertisements, especially those shown in the television. The marketers should practice responsible marketing, as it is also for their own good. Consumer backlash could result to the fall of their product sales. The children as a market have the largest potential – for the market of commercial products and social advocacies. They are also the most vulnerable. Taking care that they develop to be responsible and sociallyrelevant consumers should be the primary goal. This should not just be a responsibility of just the marketers – this is a concerted effort of all the stakeholders and members of the community. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 28 Works Cited: “A History of the Walt Disney Company.” D23 Disney.go.com. Web. 26 May 2012. Acuff, Daniel and Robert Reiher. What Kids Buy: The Psychology of Marketing to Kids. Simon and Schuster: 1 May 1999. Print. Advertising Board of the Philippines. AdBoard Advertising Code of Ethics & Manual. n.p. Mar 2000. Print. American Academy of Pediatrics: Committee on Communications. “Children, Adolescents, and Advertising.” Pediatrics Vol. 95 No. 2: 1 Feb, 1995. 295-7. Web. 27 May 2012. American Academy of Pediatrics: Committee on Public Education. “Children, Adolescents and Television. Pediatrics 107:2. 1 Feb 2001. 423-26. Web. 27 May 2012. Blanke, D. Douglas and Vera de Costa e Silva. Tobacco Control Legislation: An Introductory Guide. World Health Organization:2004. 180-3. Print. Budd, Mike and Max H. Kisch. Rethinking Disney: Private Control, Public Dimensions. Wesleyan University Press: 14 Nov 2005. Print. Cairns, Georgina, Kathryn Angus and Gerard Hastings. The Extent, Nature and Effects of Food Promotion to Children: A Review of the Evidence to December 2008. World Health Organization: Dec 2009. Web. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 29 Cheng,Hong, Philip Kotler and Nancy Lee. Social Marketing Public Health: Global Trends and Success Stories. Jones and Bartlett Publishers, LLC: 2011. Print. Christian, Michelle and Gary Gereffi. “Global Marketing and Distribution of Fast-Food.” Pediatric Obesity: Etiology, Pathogenesis, and Treatment. NY:Springer Publishing: 2010. 439-49. Web. Compaine, Benjamin M. and Douglas Gomery. Who Owns the Media?: Competition and Concentration in the Mass Media Industry. Routledge: 1 June 2000. 575. Print. Cooper, Lou. “Brand Loyalty Starts From a Very Early Age.” Marketing Week. 10 June 2010. Web. 27 May 2011. “Disney Consumer Products: Marketing Nutrition to Children.” n.p. http://blog.a-pluss.com/wp-content/uploads/apluss.com/2011/02/disney-consumer-products.pdf. Web. 27 May 2012 Dodgson, Mark, David M. Gann, Ammon Salter. The Management of Technological Innovation: Strategy and Practice. Oxford University Press. 7 Feb 2008. 274. Print. Evans, W. Douglas. “Social Marketing Campaigns and Children’s Media Use.” Future Child. 2008. Web. “FTC Complaint Against Campaign for Baby Einstein, a Brainy Baby, Commercial-Free & BabyFirstTV. Childhood. http://www.commercialfreechildhood.org/babyvideos/ftccomplaint.htm Web. 27 May 2012. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 30 Gillespie, Kate, Jean Pierre Jeannet and H. David Hennessey. Global Marketing. Cengage Learning: 1 Feb 2010. 86-7. Print. Giroux, Henry A. and Grace Pollock. The Mouse That Roared: Disney and the End of Innocence. Rowman & Littlefield Publishers, Inc, 1999. Print. “History of Adboard.” Advertising Board of the Philippines. Adboard.com.ph. n.d. Web. 27 May 2012. Jollibee Foods Corporation. History of Jollibee. Jollibee.com.ph. Jollibee Foods Corporation: 2012. Web. 27 May 2012. “Jollibee: Fast-Food, the Filipino Way.” Case Studies Collection. IBS Center for Management Research: 2003. n.p. Web. 27 May 2012. Kaur, Pavleen and Raghbir Singh. “Need for Parental Control and Mediation in Food Advertising to Children: A Review of Previous Research.” Information Management and Business Review. N.p. Vol. 3 No. 3: 1717. Sep 2011. Web. “Kids’ Health and Nutrition.” 2008 Corporate Responsibility Report. The Walt Disney Company. n.d. Web. 27 May 2012. Kiess, Wieland. Obesity in Childhood and Adolescence. Karger Publishers: 2004. 93-9. Print. Kleinfelder, Philipp. American Influence on Filipino Food Culture – A Case Study. GRIN Verlag: 28 Nov 2005. Print. Kundanis, Rose M. Children, Teens, Families, and Mass Media: The Millenial Generation. Taylor & Francis. 1 Jul 2003. Lee, Renato. “A Psychographic Study on Filipino Children’s Behavior as Consumers and as an Emerging Primary Market.” ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 31 Marshall, David. Understanding Children as Consumers. SAGE Publications Ltd, 30 Apr 2010. Print. McDermott, Laura, Martine Stead and Gerard Hastings. “A Marketing Strategy to Review the Effects of Food Promotion to Children.” Social Marketing:Why Should the Devil Have All the Best Tunes? ButterworthHeinemann: 2007. Print. McNeal, James U. “Children as Consumers of Commercial and Social Products” Pan American Health Organization: Oct 1998. Web. Mittal, Sujata. Children and Media. Gyan Books. 1 Jan 2005. Print. Orenstein, Peggy. “What’s Wrong With Cinderella?” The New York Times Magazine. 24 Dec 2006. n.pag. Web. 27 May 2012. Pinksky, Mark I. The Gospel According to Disney: Faith, Trust, and Pixie Dust. Westminster John Knox Press: 2004. Print. “Promoting Healthy Lifestyles.” 2010 Corporate Citizenship Report. The Walt Disney Company. Web. 27 May 2012. Robinson, Thomas N., Melissa Nichols Saphir, Helena Kraemer, Ann Varady, and K. Farish Haydel. “Effects of Reducing Television Viewing of Children’s Requests for Toys: A Randomized Controlled Trial.” Developmental and Behavioral Pediatrics. Lipincott Williams & Wilkins, Inc: 2001. Vol. 22 No. 3. 179-83. Web. SEC Form 17-C Press Release. Jollibee Foods Corporation. 16 Feb 2012. Web. Shimp, Terence A. Advertising, Promotion, and Other Aspects of Integrated Marketing Communications. Cengage Learning: 26 Dec 2008. 111-22. Print. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 32 Siegel, Michael and Lynne Doner Lotenberg. Marketing Public Health: Strategies to Promote Social Change.” Jones & Bartlett Learning: 2007. “Stepping Up for a Brighter Future.” Jollibee Foundation Annual Report 2011. n.p. http://www.jollibeefoundation.org/images/jf_docs/2011-jf- annual-report.pdf. Web. 27 May 2012. Tan, George. Success Secrets: Real-Life Stories to Inspire and Motivate. World Scientific. 30 June 2008. 74-5 Print. “The Baby Einstein Story.” The Baby Einstein Company, LLC. Babyeinstein.com. n.d. Web. 27 May 2012. “Up in Smoke: Disney Bans Cigarettes.” ABC Good Morning America. 27 Jul 2007. Abcnews.go.com. Web. 27 May 2012. Wan Abdul Manan Wan Muda. “Globalization of Fatness: Cultural, Social, and Economic Perception of Obesity in Southeast Asia.” Reflections on the Human Condition: Change, Conflict and Modernity; The Work of the 2004/2005 API Fellows. The Nippon Foundation. (2007): 161-74 Web. Welch, Lawrence S., Gabriel R.G. Benito, Bent Petersen. Foreign Operation Methods: Theory, Analysis, Strategy. Edward Elgar Publishing: 2007. 84-5. Print. “What’s Wrong With Being a Princess?” ABC Good Morning America. 22 Apr 2007. Abcnews.go.com. Web. 27 May 2012. Wilcox, Brian L., Dale Kunkel, Joanne Cantor, Peter Dowrick, Susan Linn, and Edward Palmer. “Report of the APA Task Force on Advertising and Children.” American Psychological Association. Feb. 2004. Web. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 33 Wilkins, Lee and Clifford G. Christians. The Handbook of Mass Media Ethics. Taylor & Francis: 21 Jul 2008. 328-31. Print. Wong, Dave. “Battling Against a Brand: Local Talent Versus Big Name Brands.” Branding. n.p. April 2007. Web. 27 May 2012. Wong, Faye, Marian Huhman, Lori Asbury, Rosemary Bretthauer-Mueller, Susan McCarthy, Paula Londe, and Carrie Heitzler. “VERB – A Social Marketing Campaign to Increase Physical Activity Among Youth.” Preventing Chronic Disease: July 2004; 1(3): A10. Web. 27 May 2012. Yu, Hyunjae. “Parental Communication Style’s Impact on Children’s Attitudes Toward Obesity and Food Advertising. Journal of Consumer Affairs. N.p. Vol. 45 Issue 1: 1 Mar 2011. Web. Ziv, Nina. “Digital and Wireless Innovation at the Walt Disney Company.” Polytechnic University: Institute for Technology & Enterprise. April 2003. Web. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 34 Annex 1 Kids a Big Chunk of Consumer market – De La Salle Study Children all over the world have been observed to have become powerful, money-wielding consumers. This development somehow ushered in a phenomenon referred by to Gerald Schoenfeld, a marketing psychologist, as “kidfluence.” And Filipino children today, representing a substantial segment of the consumer market, have been found to buy products based on their sensory judgments on their experiences with people and other social institutions, and not necessarily on their thinking processes. These are the highlights of the findings of the study entitled “A Psychographic Study on Filipino Children’s Behavior as Consumers and as an Emerging Primary Market” conducted by Renato Lee former Assistant Professor of the Marketing Management Department of DLSU. The study was done to determine the factors that influence the buying habits of Filipino children in selected sites in Metro Manila. Lee employed a combination of research techniques: Observation (i.e., during board games, of shopping center behavior, of taste tests), focus group discussion, picture drawing technique and survey among parents and children to specifically determine the latter’s concept of the marketplace, the factors affecting their choice of products, their buying patterns, the socialization agents that influence their buying behavior, their responses to new products and services, their media habits and reactions to advertising promotion and packaging, and their influence on their parents’ purchases. The proponent likewise attempted to establish the different personalities of these children including their economic behavior. His study indicates that parents are surrogate for children in marketing research. This means that parents are the best source of information regarding their children’s economic behavior, influence on parental decision to purchase a product, and media habits (i.e. when and to what extent children watch television, listen to the radio, and read magazines and billboards). Parents likewise provide valuable and more reliable information for estimating product usage. Another interesting finding is that a larger portion of the children’s personal money are spent on toys, and sweet stuff which include candies, gum, frozen desserts, fresh pastries, cookies, fresh fruit, nad carbonated juice and flavored drinks. This particular finding, according to Lee, appears to suggest a value change – that children are more conscious now about fitness since they now spend on fruits. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 35 The researcher also noted a difference between where the children actually spend their money, and where they want it spent. In general, “children like and prefer stores that (a) are children friendly; (b) their parents prefer; and (c) stock their desired products in large quantities.” Thus, says Lee, a store that greets children provides gifts (eg balloons, cookies) for them, and has shopping facilitators (eg scaled down shopping carts, eye-level displays) are most likely to attract children and make “good impressions on them… that may last a lifetime.” Children also tend to like what their parents like – partly to please their parents, and partly because it appears to provide them with a sound criterion. Also evident from the findings is that Filipino children “love conspicuous products that meet their need to be identified (with certain others) and dissociated (from certain others). This need appears to be satisfied by clothing items, including shoes. Thus, noted Lee, parents who in the past made most of the purchases for their kids in this category are now too busy working and are increasingly relinquishing the responsibility to their children. Children were also found to recall advertising messages better than adults. This may be due to the observation that children watch television more and pay more attention to ads (especially the catchy one) than adults. TV commercials that are humorous, fast-paced, musical, or endorsed by a celebrity or a cartoon character are the ones that children find attractive. However , as to their willingness to buy products endorsed by these commercials, it was found that they will buy only those items which they can afford. Thus, products requiring lower cash outlay such as junk foods, chocolates, and the candies appear to be the most popular among the kids. Family members, peers, other adults (eg teachers, yaya/maid, relatives), broadcast and print media nad movies were perceived by children to be the factors that influence their buying habits. Listing down the children’s choice of products is in the order of priority Lee came up with food, toys, clothes, and school supplies. In the light of his findings, Lee offers several recommendations. A major recommendation is that extensive marketing research be done by companies to determine children’s responses to new products and services considering a more realistic environment (eg where the role of parents, the store setting, and competitive products are present), their responses to marketing communications, the brands or companies that are retained in their memories, and the extent to which children influence their parents’ purchases. Such an extensive research is expected to likewise help measure the children’s economic behavior. Manila Standard: Saturday, 20 Jan 1996. Page 8. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 36 Annex 2 Children Influence Buying Pattern, Poll Says. By: Riza T. Olchondra Filipino children have taken control—of their digital lives, at least—and can influence the purchasing patterns of their guardians, according to the New Generations 2012 survey of Cartoon Network. “We found that Filipino children are clear about what they want and don’t want,” says Duncan Morris, vice president for research and market development for Turner International Asia Pacific Ltd. The Turner group’s portfolio includes Cartoon Network. Morris says Filipino children have firm preferences on what gadgets they like to use, what TV shows they like to watch, and what activities they want to do. In terms of access to gadgets, the Internet and related technology, Filipino children are ahead of their peers in more developed countries in Asia-Pacific, according to the survey. In short, they love using gadgets, whether they are borrowed, hand-me-down or their own. No wonder parents are considering buying computers, mobile phones and tablet computers in the next 12 months, as shown in the survey results. Guardians may also find it assuring that the survey shows Filipino children crave physical activities (going to theme parks, sports and dancing, among others) about as much as virtual ones—at least according to the survey, Morris says. “The findings show young Pinoys not only have the know-how in the digital space, but increasingly have the tools to consume and experience media across multiple platforms—from TV to PC, from their tablet to phone,” Morris says. The survey shows that two-thirds of children (aged 7 to 14) in the Philippines own a mobile phone, which is more than their counterparts in Australia and Taiwan. There also has been a 71-percent leap in Philippine ownership levels since 2009, says a recent study by Cartoon Network on children’s lifestyles. According to the study, current ownership levels are at 65 percent. This positions the next generation of Filipinos as one of the most connected in the whole of Asia-Pacific. More than half of the children surveyed from urban centers across the Philippines now live in Internet-enabled homes, which is a 66-percent jump since the last time the study was conducted three years ago. Those that do not have Internet at home gain access outside, say, in Internet cafes. Filipino children are also adept at switching between screens and devices. Over a third (38 percent) watch TV on a flat-panel screen; 54 percent have access to a digital camera; and 20 percent have a smartphone within reach. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 37 The latest gadget to break into the market since the last study is the tablet and, already, 16 percent of homes have one. The Internet is an increasingly large virtual playground for Filipino kids, with 82 percent of those living in homes with a computer going online every week. Gaming continues to be the top Internet pastime with 58 percent of Internet users playing games daily. Catching up quickly in popularity are social networking sites, with 52 percent of kids surveyed logging on every day. Even as mobile and device ownership surges, television continues to claim top spot as the favorite medium among young Filipinos. In an average week, 99 percent of kids claimed to have watched TV, 76 percent accessed the Internet, 40 percent listened to the radio, 13 percent read newspapers, and 9 percent read magazines. The New Generations 2012 study was based on face-to-face, in-home interviews with 1,000 randomly selected children from Metro Manila, Metro Cebu and Metro Davao, across socio-economic classes A, B, C and D. Metro Manila respondents made up 80 percent of the sample, Metro Cebu, 10 percent, and Metro Davao, 10 percent. Source: Philippine Daily Inquirer, 24 May 2012 ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 38 Annex 3: Stages of Consumer Behavior Development STAGE SUMMARY MEDIAN AGE SIGNIFICANT OUTCOMES Observing First visit to a commercial source of satisfying goods and services 2 mos. Requesting Asking for a product when in its presence by gesturing, pointing, words. 2 yrs First impressions of marketplace through colors, shapes, sounds, smells, textures First receipt of satisfying products from a commercial source. Selecting Independently retrieving products from shelves, fixtures, 3.5 yrs First receipt of satisfying objects from a commercial source through own physical efforts. Copurchasing First purchase of a desired product with parental assistance 5.5 yrs First experience with the exchange process in which money is given for products. Solo purchasing Performing entire purchase act independently 8 yrs Completed the first purchase of a desired product without any assistance. PRODUCTS INVOLVED (%) None STORES INVOLVED (%) Cereal (47%) Sweet snacks (30%) Toys (21%) Supermarket (76%) Mass merchant (11%) Toy store (7%) Mall (3%) Supermarket (56%) Mass merchant (23%) Toy store (11%) Mall (7%) Cereal (35%) Toys (28%) Sweet and salty snacks (30%) Books (6%) Clothing (5%) Toys (54%) Sweet and salty snacks (24%) Gift items (8%) Clothing (5%) Cereal (5%) Sweet and salty snacks (53%) Toys (19%) Table food (12%) Clothing (7%) Supermarket (78%) Mass merchant (9%) Mass merchant (43%) Toy store (20%) Supermarket (19%) Convenience store (10%) Mall (6%) Convenience store (50%) Supermarket (14%) Mall (12%) Mass merchant (11%) Toy store (8%) Source: McNeal, James U. “Children as Consumers of Commercial and Social Products.” Pan American Health Organization: Oct 1998 p.16 ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 39 Annex 4 ARTICLE III STANDARDS FOR THE PROTECTION OF CHILDREN Section 1. PRESENTATION A. Advertisements and promotional activities for proprietary drugs, medicines, devices, and treatments should not be directed to children. B. Advertisements should not encourage children to take drugs and medicines without the supervision of a responsible adult. C. Advertisements should not encourage reckless, improper, or antisocial behavior and should no show children in activities that would normally not be allowed by responsible adults for reasons of safety or propriety. D. Advertisements shoud not undermine children’s enjoyment of present possessions. Section 2. ADVERTISEMENTS DIRECTED AT CHILDREN A. Exploitation of children is prohibited. B. Advertisements directed primarily at the children should not exploit their natural credulity. C. Alcoholic brand names, logos, or trademarks must not be used on children’s clothing, toys, games or other materials intended ofr use primarily by persons under the legal purchase age. D. Advertisements meant for children should not contain indelicate references to infirmities or scenes depicting physical and mental cruelty. In general, advertisements for children should not show irresponsible, violent or reprehensible acts/practices in a manner that may lead children to interpret or adopt them as normal or acceptable social behavior. E. Advertisements directed at children shall in no way mislead children as to the product’s performance and usefulness. F. Advertisements shall not encourage children to purchase products or services to support the television, radio, or cable television program. Section 3. USE OF CHILDREN IN ADVERTISEMENTS A. The use of children in advertisements must conform to the requirements of the Department of Labor and Employment. B. Children shall not be presented as being in contact with, or demonstrating product, recognized as potentially dangerous to them. Advertising materials depicting or describing acts that would likely tend to harm children is prohibited. C. No child shall be used, directly or indirectly, in advertisements of gambling, gaming institutions or games of chance. Source: Advertising Board of the Philippines. AdBoard Advertising Code of Ethics & Manual. n.p. Mar 2000 ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 40 Annex 5: Major Recent Social Marketing Campaigns Campaign Topic Area 1% Or Less 1% Milk Consumption 5-4-3-2-1 Go! 5-A Day for Better Health Florida TRUTH Jalan Sesama KNOW AIDS HIV / loveLife Massachusetts anti-tobacco campaign Parents Speak Up Salama stand The TV Boss Trust truth VERB: It’s What You Do Research Design Observational Location Nutrition and physical activity promotion Fruit and vegetable consumption Tobacco countermarketing Experimental Chicago Observational United States of America Quasiexperimental Florida Educational entertainment HIV / AIDS awareness and prevention HIV / AIDS awareness and prevention Tobacco countermarketing None Indonesia Observational United States of America Young adults Observational South Africa Quasiexperimental Massachusetts Reproductive Health HIV/AIDS awareness and prevention Tobacco countermarketing Experimental United States of America Tanzania Quasiexperimental Ohio Children’s media use HIV / AIDS awareness and prevention Tobacco countermarketing Observational Observational United States of America Kenya Adolescents and young adults Adolescents (prevention) and adults (cessations) Parents and families Adolescents and young adults Adolescents and young adults Parents Quasiexperimental United States of America Physical activity promotion Quasiexperimental United States of America Observational California Target Audience Adults, Parents, and Families Parents and families Adults, parents, and families Adolescents and young adults Youth Adolescents and young adults Adolescents and young adults Preadolescent children Source: Evans, W. Douglas. “Social Marketing Campaigns and Children’s Media Use.” Future Child. 2008. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 41 ANNEX 6: DOH-Yosi Kadiri Grand Gawad for Outstanding Public information Program 1994 Gawad Oscar M. Florendo Public Relations Organization of the Philippines Rationale The prevalence of smoking and its detrimental effect on the health of smokers and non-smokers have alarmed government authorities. It is in this context that Yosi Kadiri Information and Education Anti-Smoking Campaign has been conceptualized and implemented. The Program Yosi Kadiri Campaign aims to reduce the prevalence of smoking among the youth in the 7 to 19 age bracket from 22.7% in 1987 to at least 12% by the end of 1997. Its audience includes non-smoking male and female children and teenagers with emphasis on the 12 to 16 age group. Generally the campaign appeals to everyone across the strata of society from the rich enclave of Ayala Alabang to the depressed area of Smokey Mountain down to Butuan and Basilan City. The Strategy A mascot called Yosi Kadiri is the Campaign’s spokesman together with a media network composed of outdoor signs, commercial center signages, television, call/home radio, newspapers, magazines, school organs, comic books, and premium items. The campaign hopes to change the predisposition and predecision to go into the habit of smoking at a certain age at a certain time. Valuable advantages conveyed by the strategy revolve on the following: 1. The young generation of clean, happy and active young people, the new culture, and the new breed of trendsetters are non-smokers. 2. Not smoking is the fashion. Being a non-smoker is being “in” 3. Being a non-smoker is not being ostracized by society or being rejected by peers. Results The campaign has created a consciousness on non-smoking. Schools, certain public areas and even office buildings have been declared No Smoking areas by their respective authorities. Source: Public Relations Organization of the The Philippines: Best Practices. http://ww2.aijc.com.ph/PCCF/knowldege/best/bestpractices-archive-prop.htm ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 42 Annex 7: 'Yosi Kadiri' smoked out, QuitsS in MANILA, Philippines. Yosi Kadiri has puffed his last. Meet QuitsS, the dancing and bouncing mascot that debuted this week as the clean-cut symbol of the new Quit Smoking Support (QuitsS) program, a workplace-based project batting for a holistic approach to kicking the habit among employees. Blue-eyed QuitsS jump-started on Tuesday evening, the three-year engagement between its creator, the corporate foundation Philippine Business for Social Progress (PBSP), and nine companies for a customized anti-smoking program. QuitsS is the flip side of the tarred monster known as Yosi Kadiri that puffed its way into public consciousness in the '90s. While ashen Yosi prompted yucks, QuitsS prided itself as the nicotine-free mascot next door, smiling inside his giant red Q of a body topped with a white cap and brandishing a cracked cigarette stick. QuitsS image is expected to grace companies where the program will be implemented until December 2010, when they aim to see full-fledged quitters on their payroll. All options harnessed "Smoking programs that we've seen in workplaces are limited to advocacy, but this time, we would like to harness all options available for employees to succeed in quitting smoking," said QuitsS program manager Eric Camacho. "This is not about imposing but rather of choice. If they choose to quit, will they go cold turkey or need the aid of acupuncture, for instance? Then we will help companies form a support system based on the needs of their employees," he told the Philippine Daily Inquirer (parent company of INQUIRER.net). The program will take "participatory, evidence-based approaches that lead to desired behavioral change among smokers," said PBSP. A core group that includes a company's human resource officers, in-office doctors and nurses will undergo training to serve as the program's frontline implementers, said Camacho. Participating companies are Philippine Batteries Inc., Philippine Recyclers' Inc., AMKOR Technologies, NANOX Philippines, Hayakawa Electronics, ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 43 Hayakawa Component Technology, ON Semiconductor, Central Azucarera Don Pedro Inc. and the University of Santo Tomas. Contribution to wellness The program is supported by the Department of Labor and Employment's Occupational Safety and Health Center. "Our company believes that our human resources is our most important resource and we are responsible for their wellness. This innovative program is another opportunity for us to contribute to the wellness of our employees," said Central Azucarera's Rafael Francisco. Launched on Earth Day, the program, funded in support of the Pfizer Foundation, is pegged on proven counterproductive effects of smoking in the workplace and its ill effects on health and the environment. "If an average smoker smokes 10 to 15 sticks a day and it takes three to five minutes to finish one stick, imagine how much time a smoker loses. And it causes a lot of diseases ... once an employee gets sick, he or she goes absent," said Dr. Alfonso Villaroman of the Philippine College of Addiction Medicine. Where freedom ends Citing cases of lung cancer among nonsmokers because of second-hand smoke, PCAM's Dr. Jildma Balotro also said: "The freedom to smoke ends when the right of the nonsmoker begins." PBSP said that smoking could cause "increased early retirement due to ill health, higher annual health-care costs for smokers and higher health insurance costs, higher life insurance premiums, higher [office] maintenance and cleaning costs, and higher costs of fire damage, explosions and other accidents related to smoking." Jingle coming soon Camacho said PBSP, whose membership does not include any tobacco company, would provide technical assistance to the pilot companies in formulating programs suited to the needs of their employees. PBSP also launched the QuitsS jingle, a Tagalog danceable tune written by renowned singer-songwriter Noel Cabangon set to be aired in the coming weeks. Source: Quismond, Tarra. Philippine Daily Inquirer. 25 April 2008. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 44 Annex 8: Without Funds, VERB Program Became Past Tense. Its message and look were clever, hyper, even edgy -- the perfect appeal to the tweeners who were its target. Yes, tweeners, the 9- to 13-year-olds stuck between young children and true teenagers. A group whose rate of overweight and obesity has almost quadrupled since 1974, not just because of too many french fries but because of too many couch potatoes. The Verb campaign, as in "VERB -- It's what you do," was supposed to get them up and moving. The national program, created by the Centers for Disease Control and Prevention, was ordered up by Congress as a social marketing campaign to increase physical activity. Lawmakers invested heavily, with $125 million in start-up funds in 2001, because everyone said this had to be different to succeed. No preachy or facts-heavy delivery; no random, late-night publicservice announcements. Instead, Verb used paid advertising, highly focused marketing, community promotions and megastar role models (rapper Bow Wow, pro quarterback Donovan McNabb and singer-actress Miley Cyrus) to brand its cool, can-do message. "We very much worked at understanding kids from kids' point of view," said Faye Wong, who directed the program. By the second year, evaluations showed that the program was making a marked difference. Millions of children were aware of the campaign, with substantial numbers choosing to be much more active. Supporters expected Verb's impact to grow exponentially. Except Congress cut the funding and summarily ended the program. A few passionate proponents simply could not get their colleagues to pay enough attention. The last ads aired in late 2006. "It's a piece of history now," said Jeffrey P. Koplan, former CDC director and now vice president for global health at Emory University. "If you did that with a vaccine, that would be public health malpractice." Source: Levine, Susan. Washington Post. 19 May, 2008. http://www.washingtonpost.com/wpdyn/content/article/2008/05/09/AR2008050900526.html ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 45 Annex 9: Tug of War in Food Marketing to Children THE Federal Trade Commission issued a report Tuesday detailing the pervasiveness of food marketing to children, and a coalition of food companies responded with its own report arguing they had made progress on the issue by self-policing. The F.T.C.’s report was conducted as part of a Congressional inquiry into rising childhood obesity rates. It found that food companies had spent $1.6 billion to market their products to children and teenagers in 2006. Makers of carbonated beverages spent the most on marketing to children and teenagers, followed by fast-food restaurants and producers of breakfast cereals. And the major advertising platform was television. The food companies’ report, also released Tuesday, detailed the progress made by a coalition of 14 major food companies, including Coca-Cola and Kellogg, that was formed in 2006 to fend off government regulation. Members of the coalition, called the Children’s Food and Beverage Advertising Initiative and run by the Council of Better Business Bureaus, pledge either to stop aiming ads at children or to promote only what the council calls “better-for-you products” in ads directed at children. The F.T.C. seemed to applaud the progress that the coalition had made. “The committee’s primary recommendation is all food and beverage companies adopt and adhere to” nutritional standards for products marketed to children, said Lydia Parnes, director of the agency’s Bureau of Consumer Protection, at a news conference in Washington. She said that joining the coalition would be “a useful first step” for companies. But critics of the self-regulatory approach said they were troubled by the lack of industrywide definitions on what advertising to children entailed and on what “better” food meant. “In the Better Business Bureau program, the companies themselves determine what is better food, the companies themselves determine what is children’s advertising. The companies determine all these things; there’s not even a real uniformity in what these decisions are,” said Robert Kesten, the executive director of the Center for Screen-Time Awareness, a Washingtonbased group that aims to limit media influence. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 46 The business bureau’s report showed that companies’ pledges had resulted in slight modifications to the products they sell to children and how they sell those products. The Campbell Soup Company, for example, has stopped featuring Chicken Noodle Soup on its Web sites directed at children. Chicken and Stars, Healthy Request Chicken Noodle and reduced-sodium Chicken Noodle, all of which meet Campbell’s nutritional standards for children, can be featured, however. Cadbury Adams has stopped marketing Bubblicious gum to children, said a spokeswoman, Luisa Girotto. Kellogg’s has reformulated several products, including the cold cereals Apple Jacks, Froot Loops and Corn Pops, so that they meet the company’s declared nutrition requirements for children, a Kellogg’s spokeswoman said. And Burger King started offering a new Kids Meal, featuring macaroni and cheese, that meets its nutritional criteria. (Its children’s menu continues to feature a double hamburger, however, with 420 calories and 22 grams of fat.) The business bureau’s report covered changes made in the last half of 2007. The timeline for meeting the pledges varied. Campbell Soup, Coca-Cola, Hershey, Kraft Foods, Mars and Unilever were to put their programs fully into effect by the last half of 2007, while Burger King, Cadbury Adams, General Mills, Kellogg, McDonald’s, and PepsiCo will only start adopting their programs in that period. ConAgra Foods and Nestlé only recently joined the coalition. The F.T.C. report was based on internal data from 2006 that 44 food and drink companies and fast-food restaurants were ordered to provide. Among the findings: About $870 million in marketing spending was directed at children under 12, while $1 billion was directed at teenagers (those figures include $300 million worth of marketing that was aimed at both groups). Still, the agency’s estimate of $1.6 billion being spent on marketing to children and teenagers was far below where other estimates had been, notably the $10 billion figure that the Institute of Medicine has been using. (The F.T.C. said it excluded nonfood marketing and advertising that it did not see as aimed at children, like coupons.) Because the companies’ efforts did not get under way until 2007, none of the shifts the report detailed were reflected in the agency’s numbers. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 47 In the report issued by the business bureau, companies’ commitments vary widely. Each company defined for itself what “better for you” meant. Kraft has decided its crackers have to have fewer than 100 calories and 290 milligrams of sodium in a serving, while ConAgra said its canned pasta had to have fewer than 350 calories and 750 milligrams of sodium. The companies were also able to define for themselves what advertising directed at children meant. Coca-Cola and Cadbury Adams, for example, consider a commercial whose audience is composed 50 percent or more of children under 12 to be marketing to children. Mars’s definition is stricter: a children’s audience is one that is composed 25 percent or more of children under 12. The bureau gave some examples of companies faltering. Campbell and Unilever, for example, had promised to advertise only better-for-you products to children. But both had neglected to remove products on Web sites aimed at children that did not meet their nutrition guidelines. Both companies have since fixed the problem, the bureau said. Elaine D. Kolish, the director of the companies’ effort, said the different standards were reasonable. “This is self-regulation to begin with and we think that this marketplace, competition-driven approach actually is really good for consumers and for children under 12,” she said. “This way, more companies can participate because they have some flexibility in setting the standards that takes into account what kind of foods they sell.” Of course, even if companies do cut down on their marketing to children, it does not mean that children will stop seeing the advertisements or eating the products. Prime-time programming generally does not meet any of the companies’ criteria for child-focused programming, but more than two million children regularly watch “American Idol,” for example, where Coca-Cola is a major sponsor. (“ ‘American Idol’ is family entertainment. It is not programming primarily directed at children under 12,” a Coca-Cola spokeswoman, Diana Garza Ciarlante, said in an e-mail message.) And one easy solution for companies is to take products that have been marketed to children and start marketing them to mothers. Kellogg’s has been trying to reformulate its Pop-Tarts, for example, but has not succeeded in creating a better-for-you version. By the end of the year, “if we can’t do it, we will shift the target for that product to adults, whether it’s ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012 AIM-X-XX-XXXX-XX Marketing to Children 48 moms or whomever makes sense,” said a Kellogg’s spokeswoman, Kris Charles. That is unlikely to satisfy critics. “It’s the marketing industry policing itself, and as is shown over and over and over again, that’s problematic,” said Susan Linn, director of the Campaign for a Commercial-Free Childhood. Source: Clifford, Stephanie. The New York Times. 30 July 2008. ___________________________________________________________________________ AIM Dr. Stephen Zuellig Center for Asian Business Transformation Copyright 2012