Transcript KIDS INSIGHTS

Marketing To Kids: Being Effective And
Responsible
Food & Drink Innovation Network – 15th November, 2006
Daniel Bone, Senior Consumer Insight Analyst
Datamonitor
© Datamonitor
Agenda and key takeout
Effective marketing involves a ‘layered’ approach that
creates ‘duel appeal’ for parents and kids alike
KIDS INSIGHT
• Children & Tweens declining in number
• Heavy consumers of sugary foods,
getting heavier and lacking key nutrients
• ‘Consumer socialization’ is occurring
earlier than ever
• Influenced by a media-orientated
lifestyle, their peers and the ‘cool factor’
• Value food and drink products that are
unique, fun and explorative
© Datamonitor
PARENTAL INSIGHT
• Huge role to play in the ‘consumer
socialization’ process
• Trying to eat more healthily and this
will have a knock-on effect
• Sceptical audience
• Freshness and nutritional information
are important factors for consumers of
parenting age
• Lacking time
KIDS INSIGHTS
Kids are declining in number
No. of 5-13 year olds (millions)
45
35
2001
2006
30
2011
40
-6%
-4%
25
20
15
10
-8%
•
The number of 5-9 year old
children in the UK will decline
from 3.9 million in 2001 to 3.2
million in 2011
•
The number of 10-13 year
old Tweens will decline from
3.1 million to 2.8 million over
the same time period
•
Trends are playing out across
Europe but the decline is
steepest in the UK
-13%
-15%
-10%
Children
Tweens
Overall
Children
Tweens
Overall
UK
UK
UK
EU 15
EU 15
EU 15
5
0
© Datamonitor
IMPLICATION: smaller
market size – even
more important to get it
right!!
KIDS INSIGHTS
Heavy consumers of sugary-snacky foods
•
Heavy consumers of food products
associated with fun, indulgence
and unhealthy formulations
Number of snack occasions per person per year, 2005
EU
900
US
•
•
In 2005, European Children
consumed over 8% more
confectionery, ice cream and
savory snacks in value terms per
capita compared to the population
average (Datamonitor Consumer
Graphics)
In 2005, European Tweens also
over-consumed in the same
categories, but by more than 20%
(Datamonitor Consumer Graphics)
Number of occasions per person per year
850
800
750
700
650
600
550
500
0 to 5
•
Frequency of eating is also
noteworthy
© Datamonitor
6 to 13
14 to 24
25 to 34
35 to 49
50 to 64
65+
Source: Datamonitor’s New Consumer Insight series
KIDS INSIGHTS
…and getting heavier
•
Childhood obesity worldwide has more than doubled in the last 20 years with many
Kids’ diets containing more fat, sugar and salt than recommended (International
Obesity Taskforce)
•
32% of UK kids were overweight or obese in 2005
•
Children are 'drinking' almost five litres of cooking oil every year as a result of their
pack-a-day crisp habit (The British Heart Foundation, 2006)
•
Average weight increasing due to the combine effects of unhealthy eating habits and
decreasing physical activity
•
The media has been notably vociferous about issues relating to kids’ health, and in
particular the part played by food manufacturers and marketers
IMPLICATION: a genuine behavioural shift especially as kids and
parents respond to campaigns challenging existing habits
© Datamonitor
KIDS INSIGHTS
Diets lacking key nutrients
•
One in five kids currently skips breakfast (Office for National Statistics). Vital nutrients missed, if
breakfast is skipped, are not made up for during the rest of the day
•
Earlier this year calcium was cited as the nutrient most lacking in kids' diets today by 84% of the
674 members of the New York State Dietetic Association (NYSDA)
•
30% of boys and only 10% of girls were achieving the recommended daily intake (RDI) of calcium
(Pediatrics – US Journal)
•
Threat of osteoporosis in later life by not getting enough calcium
•
Recommend that more milk, cheese and yogurt products targeting kids would be one way to
address the deficiency
IMPLICATION: the need to promote ‘positive nutrition’ – what’s added to
products will be just as important as what has been removed
© Datamonitor
KIDS INSIGHTS
Not very nutritionally savvy
•
What’s in a chip? 36% of UK 8-14 year-olds could not correctly identify the main
ingredient as potato, despite chips being a firm (British Heart Foundation, 2005)
•
A need to re-connect kids with the food chain…
•
Get them thinking about what is in their food and how they can make healthier BUT
equally tasty choices
•
Engage children in understanding why certain foods are less healthy than others, and
encourage them to become interested in what's on their plate
•
Must communicate to children in their language and sparking their curiosity
IMPLICATION: educational efforts need to be all
encompassing – parents and kids
© Datamonitor
KIDS INSIGHTS
‘Consumer socialization’ is occurring earlier than ever
•
KGOY: Kids Growing Up Young – including as consumers
6 MONTHS: babies are forming mental images of corporate logos and mascots
3 YEARS: making direct requests for specific name brand
5 YEARS: can meaningfully distinguish television advertising from regular television
7-8 YEARS: become aware of advertising's persuasive intent, more than its
informational intent
9 YEARS: developed an understanding of the symbolic nature of brand meaning
11 YEARS: articulate a detailed critical understanding of advertising and its intentions
Source: British Food Journal, Journal of Consumer Marketing
•
Greater role in household decision making and making more independent purchases at
earlier ages
IMPLICATION: high potential to capture their imagination with the
right product and communication approach
© Datamonitor
KIDS INSIGHTS
‘Consumer socialization’ manifests as pester power
•
Children average a purchase-influence attempt every 2 minutes when shopping with their parents
•
60% of UK parents sampled agreed that they “give in to children’s demands in the supermarket
when they want food products” (The British Food Journal, Turner et al., 2006)
PESTER TACTICS
DRIVERS
Rising incomes
Parental guilt
More dual income families;
Average incomes rising;
More spent on children
Less time spent with children;
Guilty parents indulge their
children more
Gaining favor
Children play divorcees
against each other
Media power
Unprecedented levels of
advertising and marketing
aimed at kids
Rewards
Pester power
Jobs around the house;
Economizing parents’ time
Need to fit in
Feeling of intense pressure to
fit in and bolster their sense of
self-esteem
RATIONAL
• Stating that a food is their
preferred food
• Expressing opinions on foods
•
EMOTIONAL
• Begging or being unnaturally
nice or affectionate to parents
• Using deals (if you buy this for
me, then I’ll do this for you)
MEDIATING FACTORS
• Product involvement – pester power is higher when the child is the primary product user
• Family income - family income and children’s influence are related positively
• Age - influence increases with age while requests’ frequency decreases with the child’s age
© Datamonitor
KIDS INSIGHTS
Influenced by a media-orientated lifestyle
•
The range of things competing for kids’ attention has snowballed
•
Internet and mobile phone usage growing and at an earlier age
•
The ‘connected generation’ – have grown up in a world surrounded by technology
•
Technology fulfils kids’ entertainment, educational and social needs
•
2 to 11-year-olds spend around 17 hours watching TV each week in the UK
•
“With the same level of exposure, kids are three times more likely to remember that
they have seen a brand advertised on TV than adults” (Lindstrom, Brandchild, 2003)
IMPLICATION: with all these things competing for their attention engaging
their interest is going to be more difficult in the future
© Datamonitor
KIDS INSIGHTS
Influenced by peers and the ‘cool factor’
•
Once children enter school they are increasingly influenced by peers
•
Behaviour is highly influenced by the desire of friendship, for acceptance and belonging
•
Children are looking for products as vehicles that can make them belong to other kids
•
SYMBOLIC MEANING OF BRANDS: worn as tribal badges to show their peer group
affiliation and to provide them with ‘playground currency’
•
Brandchild research showed that close to half the world’s 8-14 year old population state
that the clothes they wear describe who they are and define social status (Lindstrom,
2003).
•
Is it possible to link messages about health eating with fashion?
IMPLICATION: Kids will screen all forms of product attributes and
communication cues and judge it against their criteria of cool. MAKE IT
HIP TO BE HEALTHY!
© Datamonitor
KIDS INSIGHTS
Kids respond to specific attributes and cues differently
•
Primary colours, organized and regulated patterns, soft words with gentle y-endings
(happy, pretty, jammy, jolly, etc.) all encode 4-5 year-old products (Journal of
Consumer Marketing, 2003, McNeal and Ji)
•
Seven-year-olds are into the strong colours, and rebellious chaotic designs that
signify their growing independence (Journal of Consumer Marketing, 2003)
•
Impactful visuals in packaging are very important for recognition for children of all
ages
•
The cool factor again: Datamonitor research has shown the packaging is the most
important factor – aside from word of mouth – influencing perceptions of cool
•
BUT younger Children more likely than older ones to exhibit some sort of physical
involvement with packaging beyond the functional contact required to pick up a
package and place it in the shopping basket (Journal of Consumer Marketing, 2003)
IMPLICATION: Packaging cues are important to providing the “wow
factor” for kids
© Datamonitor
KIDS INSIGHTS
They value food and drink products that are unique, fun
and explorative
© Datamonitor
•
Interaction helps to accelerate the
development of brand
relationships that would otherwise
take years to develop
•
Incorporating these principles into
health-orientated product
marketing will be important for
future success
•
Healthy products perceived to be
lacking ‘fun’ credentials
•
Formulating products against
these principles of fun will help
develop successful products
KIDS INSIGHTS
Some product examples…
© Datamonitor
PARENTAL INSIGHT
Parents have a huge role to play in the ‘consumer
socialization’ process
•
“Parents play the dominant influence role until the child reaches adolescence,
when peers become the favored source of information” (The Journal of Consumer
Marketing, Dotson and Hyatt, 2005)
•
Key agents in shaping early food attitudes. 9 out of 10 children cite their parents
as their most important source of believable information on food and healthy
eating (Kellogg's Family Health Study, 2005)
•
If adults give children encouragement and incentives, they can begin to taste food
they have previously rejected (The British Food Journal, Horne et al.,1998)
Implication: parents need to be at the centre of any initiative that seeks to
promote better nutrition for children
© Datamonitor
PARENTAL INSIGHT
Consumers of parenting age are trying to eat more
healthily and this will have a knock-on effect…
Consumer survey: the extent that European and US 25-49 year olds
took ‘active steps to eat more healthily’ over the previous year,
by country
The same
Slightly more
Much more
Almost half (47%) of UK
mums worry that their
children aren't eating a
healthy, balanced diet
according to Kellogg’s
UK research published
ahead of National
Breakfast Week in 2005
•
Deeply concerned with
additives, sugar and salt
Total More
France
34.4%
42.6%
20.8%
63.4%
Germany
40.1%
39.4%
15.5%
54.9%
Italy
30.8%
40.1%
23.5%
63.7%
Neth.
38.5%
37.5%
21.6%
59.1%
Spain
23.7%
43.4%
28.5%
71.8%
Sweden
31.0%
40.7%
20.3%
61.0%
UK
17.0%
47.5%
31.3%
78.9%
US
29.6%
36.3%
28.6%
64.9%
Overall
30.9%
40.4%
23.9%
64.3%
Source: Datamonitor Consumer Survey, July 2006
© Datamonitor
•
PARENTAL INSIGHT
But they are sceptical too…
• Parents are concerned about misleading health claims made for
foods targeted at children (Food Standards Agency, 2001)
• 82% of European and US consumers overall ‘agreed’ or ‘strongly
agreed’ that, “product claims made by food and drink products are
often exaggerated or unproven”. 1 in 4 ‘strongly agreed’ (Dec 05)
• Less than half of UK consumers consider the nutritional claims
made by food and drink players to be trustworthy (Oct 04)
• Even less (37%) consider that health-boosting claims made by food
and drink players are trustworthy
• Need to overcome this scepticism to get parental buy-in
© Datamonitor
Source: Datamonitor Consumer Surveys (2004-2006)
PARENTAL INSIGHT
Leverage the product attributes and communication
cues that consumers perceive as trustworthy
Question: How influential are the following in
(re)gaining consumers’ trust…?
Previous experiences of consuming the product
Endorsement from professional bodies
Whether the brand is well known/ has a good reputation
Endorsement by professional experts e.g. Doctors
A good track record in business ethics
A clear understanding of the product benefits
The use of natural/organic ingredients
Clear, effective labelling
Source: Datamonitor Consumer and Industry Opinion Survey, Dec 2005
© Datamonitor
This Argentinean cereal
bar was developed
jointly with Cesni
training center on child
nutrition. Each 25g bar is
said to be a good source
of vitamins, iron, zinc,
and calcium, is targeted
at children
PARENTAL INSIGHT
Freshness and information is an important factor
for consumers of parenting age
Consumer survey: How important ‘eating fresh foods and drinks’
is to 25-49 year olds, by country
Important
Very Important
Total Important
UK
39.6%
48.7%
88.3%
US
37.4%
49.3%
86.7%
Overall
41.0%
48.3%
89.2%
Consumer survey: the extent that 25-49 year olds ‘used nutritional
information on product packaging to make choices’ in 2006, by
country
UK
38%
24%
63%
US
29%
27%
55%
IMPLICATION: task for
the industry is to make
it easier for parents
and their kids to make
informed healthy
Overall
30%
20%
50%
choices
Slightly more
Much more
Total More
Source: Datamonitor Consumer Survey, 2006
© Datamonitor
PARENTAL INSIGHT
Parents are also deprived of time
•
According to a 2004 survey by parenting website raisingkids.co.uk, the traditional
ritual of gathering around the table at dinner time to talk to one another is now
only practiced by a small minority of families with the increasing demands on
parents' and children's time a significant factor
•
Last week a Vodafone survey revealed that the majority of UK families spend an
average of 17mins, 24s together every day
•
The main 'disconnector' is work, blamed by 7 in 10 for preventing more contact
with family
•
Families end up eating “unhealthy food” because of time pressures and not
involving children in the cooking process
IMPLICATION: Develop strategies that attempt to bridge the gap between
children and parents
© Datamonitor
New innovation and concepts still need to
make family life easier
Bulk custom dinner
buying is a sub-trend of
bulk-buying schemes
popular in the US.
Consumers prepare,
pack and label their own
family dinners to last for
the next 2 weeks.
Convenience solutions
are increasingly at the
core of consumers meal
preparation decisions.
© Datamonitor
CONCLUSIONS
Understand parents and kids’ needs
Kids are actually
declining in
number and
family dynamics
are changing
Profitable
opportunities exist
for products that
are fun, healthy
and tasty
© Datamonitor
Health has become
a vital but sceptical
issue. Make trust
building a big part of
the marketing effort
Effective marketing
involves a ‘layered’
approach that creates
‘duel appeal’ for
parents and kids alike
Kids are
influenced by a
range of factors
and these change
as they age
Appealing to kids
and parents may
require separate
communication
strategies
Parents need
help: nutritional
information and
time saving
product solutions
are sought
Thanks for your attention
Email: [email protected]
© Datamonitor
References
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Datamonitor (2002) Tweenagers
Datamonitor (2003) Children’s Consumption Occasions and Behaviors
Datamonitor (2005) Profiting and Building From Consumer Trust
Datamonitor (2005) Evolution of Global Consumer Trends
Datamonitor (2006) Capitalizing on Natural & Fresh Food & Drink Trends
Datamonitor (2006) Capitalizing On New Breakfast, Lunch & Dinner Consumption Patterns
Datamonitor (2006) Marketing To Kids: How To Be Effective And Responsible
Dotson, M.J. and Hyatt, E. M. (2005) Major influence factors in children’s consumer socialization, Journal of Consumer
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© Datamonitor