Marketing ‘Junk’ Foods to Children

Details

Case Code : CLMC-003
Publication date : 2005
Subject : Marketing Communications
Industry : FMCG
Length : 04 Pages
Price : Rs. 100

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Key words:

Junk Foods, Anti-Obesity regulations, McDonald’s, Kraft Foods, PepsiCo, Sponsorship, Kool-Aid, American Association of Advertising Agencies, Fast Food, World Health Organization

Note

1: This caselet is intended for use only in class discussions.
2: More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.

 

Abstract:

The caselet highlights the concerns of the US Government over the rising obesity levels among children due to excess consumption of ‘junk’ foods. It describes the various promotional methods followed by fast food and cola companies like McDonald’s, Kraft Foods Inc, Coca-Cola, and PepsiCo, to promote their products to children. The caselet also describes the efforts made by different groups to counter this problem and the regulations passed by the US Government to curb such practices. Finally, the caselet covers the different measures taken by these companies to maintain their corporate image and at the same time influence the level of ‘junk’ food consumption among school children.

Issues:   » Impact of regulatory environment on marketing communications strategy   » Children as targets of 'junk' food advertising   » Self-regulation as a means to counter the proposed ban on 'junk' food advertising to children   » Anti-obesity regulations in the US Introduction The US government has begun to put in place an ‘Obesity Prevention and Treatment Bill’ while two of the biggest states, California and Texas, are taking measures to ban snacks and soft drinks from school cafeterias. Reports from the US government and organizations like the Center for Science in the Public Interest (CSPI) reveal that an alarming proportion of the US population is overweight.

Statistics show that nearly 10 percent of preschoolers are obese. Besides, obesity rates among elementary school children have increased by three times since the 1970s. The primary reason for this disturbing situation is considered to be the consumption of ‘junk food’ that contains high sugar and fat content. Health officials warn that the obesity levels will lead to a crisis, with hospitals being flooded with patients of diabetes, high blood pressure, and other related diseases. Such startling revelations have led to different groups raising their voices against the junk food producers who target children in their advertisement campaigns....

Questions for Discussion:

1. What are the reasons for companies targeting children in their advertisement campaigns? Is it ethical on the part of the companies to do so?

2. In light of the recent US government findings regarding obesity in children, what in your opinion is good for companies – self-regulation or government regulations? Give reasons to support your answer.