SXP OChilds obesity retailer

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Understanding the Retailer’s View of Obesity: Opportunities to Maximize Products, Packaging, & Promotion: 

Understanding the Retailer’s View of Obesity: Opportunities to Maximize Products, Packaging, andamp; Promotion Nancy Childs, Ph.D. Professor of Food Marketing March 25, 2007

Saint Joseph’s University Philadelphia, PA: 

Saint Joseph’s University Philadelphia, PA Department of Food Marketing Erivan K. Haub School of Business

Slide3: 

SJU May 2004

Slide4: 


March 8, 2007: 

March 8, 2007

Slide6: 

Forthcoming: SJU Food Industry Summit Business Insights on obesity issues as strategic opportunity 2007

Slide7: 

Linda CarterHolman

Acknowledgements: 

Acknowledgements Original Research Qualitative Research Asif Aftab Quantitative Research Mallik Sundhram Center for Food Marketing: R. Ciaudelli, R. Higgins, R. Kochersperger CDC grant funded 2005-2006

Obesity top issue in food industry: 

Obesity top issue in food industry International attention Attention focused on food manufacturers and foodservice Food Retailers not central to discussion What are retailers doing?

Obesity top issue in food industry: 

Obesity top issue in food industry International attention

Qualitative Research: 

Qualitative Research In depth analysis of 30 major food retailers in US and UK to identify activities addressing obesity, especially for children

Slide12: 

Front Image for visual purposes only – not true information

Slide13: 

Back Image for visual purposes only – not true information

Slide14: 

Great Stuff Treats We know kids have treats, so we have made ones which are better for them Treats (eg. 25% less fat or sugar/ baked vs fried) : confect, cakes, biscuits, pudds/ desserts, crisps/ snacks. breakfast bars, milkshake drinks, pizzas, ‘fast food’ style meals

Retailer Frame Established: 

Retailer Frame Established Positive responses and action steps NOT obesity Weight Loss or Weight Management Health and Wellness Children All-Family

Retailer Frame Established: 

Retailer Frame Established Positive responses and action steps NOT obesity Weight Loss or Weight Management Health and Wellness Children All-Family

Qualitative Research: 

Qualitative Research In depth analysis of 30 major food retailers in US and UK to identify activities addressing obesity, especially for children Categorized Best Practices: Product Selection Merchandising and Promotion Education Vocabulary is health and wellness

Quantitative Research: 

Quantitative Research e-survey of food retailers targeted to senior management and consumer affairs divisions Conducted Feb – March 2006 Participants constituted 40% of grocery ACV excluding Wal-Mart Supercenters Mixture of large and small establishments

Quantitative Research: 

Quantitative Research Two sections to survey: Attitudes towards childhood obesity Marketing activities presently pursued to address childhood obesity and intend to pursue by 2007

Retailers’ Indirect Interest in H & W: 

Retailers’ Indirect Interest in H andamp; W Ranked by order of importance as a key issue: (1 = most important) Food Safety andamp; Security 2.5 Developing Private Label Products 3.3 Increasing Cost of Fringe Benefits 3.4 New Government Regulations (e.g.SOX) 3.6 Growth of Health andamp; Wellness Concepts 3.6 Implementing Data Synchronization Sys. 4.1

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N.Childs

Retailers’ Direct Interest in Child Obesity: 

Retailers’ Direct Interest in Child Obesity Retailers see childhood obesity as an industry problem that is lasting and impacting business Retailers see this as a manufacturer’s problem

Slide23: 

N.Childs Major industry Issue Increased local attention Lasting health concern Impacts business Exaggerated health concern Impacts mfgers more

Top Retailer Activities for Health & Wellness for Children (2006 & 2007): 

Top Retailer Activities for Health andamp; Wellness for Children (2006 andamp; 2007) Product Promo andamp; Merch Education

Product Selection:: 

Product Selection: ♥ Authorize branded products for children with a healthier profile ♥ Develop private label products focused on healthier foods for all-family or children ♥ Introduce portion-controlled, packaged foods

Product Selection: 

Product Selection Create separate categories or segments for healthier foods for children ♥ ♥ Increase convenience for fresh fruits and vegetables

Slide27: 

Product Selection – High Activity N.Childs

Merchandising and Promotion:: 

Merchandising and Promotion: Shelf markers flagging healthier products for kids

Merchandising and Promotion:: 

Merchandising and Promotion: Package logos denoting healthier products Special displays of healthier products for kids

Merchandising and Promotion:: 

Merchandising and Promotion: ♥ Cross merchandising healthier product combos – salsas, dips, layers, mixes, drinks ♥ Price promotions for healthier products Loyalty card activity promoting healthier products for kids

Merchandising and Promotion:: 

Merchandising and Promotion: Integrated marketing directly to children on healthy eating (eg. website, POP, fliers, advergaming) Incentives or premiums for purchasing healthier products, for participating in nutrition or physical education activities

Merchandising and Promotion:: 

Merchandising and Promotion: In-store or promotional entertainment for kids with a healthy lifestyle message (eg. mascot or event) ♥ Product sampling of healthier foods for children – introduce a healthy combo

Retailtainment: 

Retailtainment Produce for Better Health, DreamWorks and Wal-Mart SuperCenters and Neighborhood Markets Quarterly Family Health Promotion 'Madagascar' characters – eat color everyday Produce for Better Health, Universal Studios and Wal-Mart SuperCenters and Neighborhood Markets Curious George movie launch – Get curious about health

Curious George:: 

Curious George: 'Curious George' Get curious about health Produce for Better Health, Universal Studios and Wal-Mart SuperCenters and Neighborhood Markets Exposure: 10 mil. in 1st qtr 2006 Target: children 2-8 Promotions: POP, display, sampling, healthy recipes and coupons, Message: Monkey see, monkey do for healthy eating Sponsors: many

Produce for Better Health Series: 

Produce for Better Health Series Seven events since 2004: Shrek, Charlie Brown, Fantastic Four, Madagascar, etc. All family health, fun, positive nutrition messages, personal impact Nutritional activities: books (decoding), growth charts, etc. Award winning

Merchandising and Promotion:: 

Merchandising and Promotion: ♥ Sponsoring an activity based event (walk-a-thons, skateboarding, etc.) Joint promotion with manufacturer Limited or no displays of high fat or high calorie foods at checkout

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Merchandising andamp; Promotion – Less Activity N.Childs

Education:: 

Education: ♥ Educational nutrition tours for groups ♥ Nutrition information for teachers ♥ Web and print information on nutrition or weight management

Education:: 

Education: Menu planning or cooking classes for children (eg. homemade lunches) On site nutritionist or home economist BMI checks and health educ. for children

Education: 

Education In-store child activity area Messages calories balance activity

Slide41: 

Education – Less Activity N.Childs

Opportunities to Partner with Retailers: 

Opportunities to Partner with Retailers Portion control, cross merchandising, and balance messages Package logos of moderation and snack use, and educational messaging Supporting appropriate retailer health and wellness efforts, esp physical activity, and education efforts

Opportunities to Partner with Retailers: 

Opportunities to Partner with Retailers Retailer private label – ingredient opportunity and contract manufacturer Need help speaking to the issue Emphasizing calories out Retailtainment

Snacking Opportunities: 

Snacking Opportunities Snack positioning Snack portions Snack flavors Snack locations Snacking combinations Snack integration into health andamp; wellness events – menu planning, tours, activities, web, curriculum Be supportive with samples and coupons Know what your retailer is doing.

Retailers’ role: 

Retailers’ role Significant room to influence purchase with partners or with initiatives As manufacturers scale back advertising the purchase decision moves to the shelf Advertising dollars will move in-store, how to control? Retailers needs to recognize they’re both part of the problem and the solution

Slide46: 

Understanding and leveraging retailer interest in health and wellness will have a triple advantage: For brands For retailers For consumers

A research application for a snack manufacturer…: 

A research application for a snack manufacturer…

Children and Snacking: 

Children and Snacking How do retailer responses mesh with children and snacking? What do we know? What opportunities might exist with retailers? Need a sophisticated approach

Snacking Occasions: 

Snacking Occasions Snacking is not 'in-between' it’s all the time Average child under age 18 eats snacks about 530 times per year Children snack 23% more than adults. (NPD Group’s SnackTrack, June 2005)

What Children Think is “Healthy”: 

What Children Think is 'Healthy' Some foods, eg. granola bars, seen as 'good for you' Low calories (vague) Low fat (vague) Mentions vitamins and minerals Cheese and meat products Fruit in any form including artificial LITTLE CONCERN for calories, sugar, salt, artificial flavors, portion size

Children’s Snacking Behaviors: 

Children’s Snacking Behaviors Children have more control over snacks vs. meals Children often try new snacks away from home Hunger is a trigger, but not all hunger is alike Emotional vs. Physical hunger occasions trigger different snack preferences

Hunger and Snacking : 

Hunger and Snacking KidsFoodTrends, Prepared Foods, December 2005

Hunger and Snacking : 

Hunger and Snacking KidsFoodTrends, Prepared Foods, December 2005

Responsible Marketing to Children: 

Responsible Marketing to Children Educate children on snack habits Label snack products for snack occasion Emphasis portion size Moderate snacking occasions Promote balancing calories and energy Mesh with retailer preferences…

Opportunities with retailers: 

Opportunities with retailers Responsible Marketing Educate about snacking Label for snack occasion Portion size Moderate snacking Balance calories andamp; activity Retailer Preference

Opportunities with retailers: 

Opportunities with retailers Responsible Marketing Educate about snacking Label for snack occasion Portion size Moderate snacking Balance calories andamp; activity Retailer Preference Product Selection: Authorize healthier products Portion control pkging Increased convenience for fruits andamp; veg

Opportunities with retailers: 

Opportunities with retailers Responsible Marketing Educate about snacking Label for snack occasion Portion size Moderate snacking Balance calories andamp; activity Retailer Preference Merch andamp; Promotion: Cross-merchandising Activity events Integrated marketing Price promotion of healthier products Retailtainment for healthy lifestyle

Opportunities with retailers: 

Opportunities with retailers Responsible Marketing Educate about snacking Label for snack occasion Portion size Moderate snacking Balance calories andamp; activity Retailer Preference Education: Educational tours Web and print info Teacher info Messages to balance calories and activity

Slide59: 

Lots of opportunities and approaches Understanding and leveraging retailer interest in health and wellness will have a triple advantage: For brands For retailers For consumers

Slide60: 

Thank you nchilds@sju.edu