Subject:Advertising campaigns led to increase in child obesity In response to critic about targeting children under 12 in advertising unhealthy food which lead to the increase of childhood obesity, Kraft announced not to advertise products like Kool-Aid beverages, Oreo and Chips Ahoy cookies to children under 12 last month. We also have formed a lobbying group with General Mills and Kellogg to prevent the government from regulating food marketing to children. We need to put the focus back on our customers and communicate with them about our positions toward our advertising targeting young children.Background Allegations against Kraft that its advertisements of unhealthy foods to children led to the increase in child obesity in 2003.
A Kraft executive publicly commented “We didn’t want to give up the power of marketing to kids”. Recent advertising campaigns criticisms included: promoting unhealthy foods with fun children’s games, backing out from reducing portion size and commercials encouraged sloppy lifestyle. McDonald’s was sued because of its children focus advertising which promoted over consumption. Kraft decided to cut advertising to children, but also formed lobbying group with General Mills and Kellogg to against government regulation on food marketing to children.Discussion Dr.
Ellen Wartella, Dean of the College of Communication at the University of Texas, was one of the major critics against Kraft’s advertising practice toward children. In addition to the executive using the word “power” when describing our ability to market, it further hurts our Reputation Quotient. We currently ranked 50th. This negatively affect Kraft’s image which can decrease sales revenue.
Study from the Institute of Medicine (IOM) shows that Kraft’s advertising toward children has strong influence in leading children an unhealthy lifestyle without sufficient promotion of healthy diets. No public policy is in place to encourage marketers to promote healthy lifestyle to children. If Congress starts to regulate food marketing to children, it can impact our ability to promote products, the cost of marketing will increase significantly as we need to hire more lawyers to screen our advertising in compliance to the law. The public, especially parents, may perceive us as a company that does not care about ethics but maximizing profits.McDonald’s class-action lawsuit can serve as a benchmark for any similar cases that follows.
If Kraft ever get sued because of our advertising practice toward children, the loss can be in multi-million dollars.We have lost an estimated $75 million profit due to the effort to cut advertising on Kool-Aid, Oreo and Chips Ahoy. We cannot afford the government to regulate how we market to children as much more losses will occur.Recommendations Create a YouTube channel to educate children about healthy lifestyle.
Using characters we already have created on different food products to promote short cartoons to teach children how to choose a balance diet, exercise daily and other healthy lifestyle choices. Hire consultants like Dr. Ellen Wartella, who is already involved in our Worldwide Health & Wellness Advisory Council and Institute of Medicine, to give us advice on our messages to children on the cartoons. Work with Children’s Unit of the National Advertising Division CouncilDevelop a better screening process on our advertising particularly the ones gear toward children.
McDonald’s uses the standard from the Children’s Unit of the National Advertising Division Council in addition to other internal screening mechanism. I think we should consider similar methods. Sponsor middle schools’ health education in areas with high rate of child obesityMarketing and advertising departments can create tools and programs as well as using the YouTube channel to help teachers in educating children of how to live and maintain a healthy lifestyle. Issue a press release to addressWe have decided to cut advertising to promote unhealthy foods to children.
This may send a wrong message to parents that we have done something wrong. I have issued a press release to announce the launch of the Kraft’s YouTube channel that parents can watch different cartoon episodes with their children to gain different knowledge and practices in developing a healthy lifestyle without sacrificing yummy snacks like Oreo or Chips Ahoy. Continue to Lobby against any food marketing to children regulationsJoining forces with General Mills and Kellogg to convince the government that the industry can self-regulate with high standard of advertising practice. Government involvement is unnecessary but interfering free market.
