Responsible Marketing

J. Ke‘ala SegundoMKTG6000 – Marketing for Managers

Conscious Capitalism

Growing trend to capture market share via promoting a good cause

According to 2006 Millennial Cause Study: 69% of Millennials will consider a company’s social

and environmental commitment when choosing where to shop

89% of Millennials likely to switch brands as a result of non-association with good cause

Marketing Shifts

Food and beverage marketing to children and adolescents has taken a recent shift Marketing may have an especially powerful impact

on what food and beverages children consume Promotion for food and beverages permeate the

daily lives of children and adolescents

Responsible Marketing

Includes providing product ingredient and nutrition information

Encouraging sensible, balanced diet and active lifestyle decisions

Supporting tasteful, truthful and responsible advertising and marketing

Responsible Marketing Initiatives

Active Healthy Living

Advertising and Marketing to Children Policy Creating accurate, age-appropriate advertising

Global Nutrition Labeling Policy Nutrition labeling and nutrition information on all

product packages

Coca Cola’s Responsibility

Social responsibility, consumer education Provides consumer education through

packaging containing information on calorie contents and other nutrition information

Other projects supported to address global obesity epidemic and promote a healthy lifestyle

Active Healthy Living

One of seven core areas aimed towards making a positive difference in the world Low- and no- calorie products Smaller portion sizes Nutrition labeling Support for activity programs

Marketing to Children Policy

Coca Cola’s Advertising and Marketing to Children Policy No advertising directly at audiences consisting more

than 35% children under age 12 No brands’ marketing in TV, radio and print

programming made specifically for children Encompassed global school beverage guidelines Established Children’s Review Process to help guide

policy Will publish compliance findings within corporate

sustainability report

Nutrition Labeling Policy

Providing parents and caregivers with necessary tools to make informed choices for their children Easy-to-access nutrition information on product

labels and online▪ Nutrition Connection site on Coca Cola’s website ▪ Educational information▪ Refreshment quizzes▪ Videos and podcasts▪ Links to additional helpful resources

Portion control sizes

Products and Programs

To help address iron-deficiency anemia and malnutrition in children in the Philippines NutriJuiceTM – an orange juice fortified with iron,

zinc, lysine and vitamins A and C Approximately 30,000 children have benefited

from consuming this product To promote health and wellness education

“Apuntate a Jugar” (Sign Up to Play) – program in Latin America

Coca Cola Statistics

Company Investment In Active Healthy Living Programs ($MM)

2006 2007 2008

3

6

9

Number of low- and no- calorie beverage products in portfolio

2005 2006 2007 2008

475

575

700

750

Coca Cola Strategy

Build on fundamental strengths in marketing and innovation

Drive increased efficiency and effectiveness Generate new energy through core brands

that focus on health and wellness

Who is Coca-Cola?

The world’s largest distributor of non-alcoholic beverages

The world’s most recognized family of brands 500 beverage brands 3,300+ beverages 200+ countries where products are sold

PepsiCo’s Initiatives

Encourage people to make informed choices and live healthier Display calorie count and key nutrients on food and

beverage products by 2012 Advertise to children under 12 only products that

meet our global science-based nutrition standards Eliminate the direct sale of full-sugar soft drinks in

primary and secondary schools at the globe by 2012 Increase range of foods and beverages that offer

solutions for managing calories, like portion sizes

Nutrition Labeling Policy

In U.S., will display total calorie counts on products in line with U.S. Food and Drug Administration (FDA) guidance and regulations

Through European Union, introduced nutrition labeling which includes calorie counts on all products

Marketing to Children

Adopted worldwide voluntary commitment to only advertise products that meet specific nutrition criteria to children under age 12

Applies to TV, print or internet directed towards audience consisting 50% or more of children under age 12

Products and Programs

Aims to help school offer wider range of low calorie and nutritious beverages to students

Eliminates direct sale of full-calorie soft drinks to elementary and secondary school students

Reducing sugars and fats in portfolio offerings to reduce calories per serving and offering portion- and calorie- control options for several products

Marketing Principles

Marketing strategies should be driven not only by growth, but by sustainable growth i.e., Increasing bottom line and market share and

also by social well-being and responsibility Promote the art of effectiveness and

efficiency simultaneously i.e., Doing things right and doing the right thing

References

Food and Beverage Marketing to Children and Adolescents: What Changes are Needed to Promote Healthy Eating Habits?, A Research Brief, Oct. 2008 - http://www.rwjf.org/files/research/20081103herfoodmarketing.pdf

The Coca-Cola Company, Our Strategy, http://www.thecoca-colacompany.com/careers/our_strategy.html

Lloyd, Tracey, Coca Cola releases 2009 sustainability Review – Global Beverage Producer Addresses Impacts of Business Operations, Nov. 16, 2009, http://www.suite101.com/content/coca-cola-releases-2009-sustainability-review-a170218

PepsiCo 2009 Annual Report, http://www.pepsico.com/annual09/human_sustainability.html

Responsible Marketing & Advertising, PepsiCo - http://www.pepsico.com/Purpose/Human-Sustainability/Responsible-Marketing.html

References

The Coca-Cola Company 2008-2009 Performance Highlights, http://www.thecoca-colacompany.com/citizenship/pdf/SR08_PerfHigh_I_II.pdf

The Coca-Cola Company, Nutrition Labels, www.nutritionlabeling.thecoca-colacompany.com

The Coca-Cola Performance Highlights By Year, http://www.thecoca-colacompany.com/citizenship/pdf/SR08_PerfHigh_Year_III_IV.pdf

The Coca-Cola Company, Responsible Marketing, www.responsiblemarketing.thecoca-colacompany.com