The Aspects of Advertising Process of Unhealthy Food in Hong Kong - Research Paper Example

BUSINESS RESEARCH PROJECT – MARKETING of the of Table of Contents Table of Contents 2 Introduction: 3 Influenceof Unhealthy food on consumer choices: 4 Influence of bans and restrictions on consumer behaviour: 6 Bans on advertising promoting unlikely consumer behaviour: 8 Practical Rationale 9 Further exploration of Topic: 11 References: 15 Bibliography: 21 Introduction: The beginning of the 21st century has accelerated the process of business evolution all over the world. Technological growth and competition are the primary drivers for business growth in the contemporary scenario (Ballantyne & Varey, 2009). New strategies are being formulated and implemented in order to develop the core competencies of business and gain a competitive advantage. The promotional processes implemented by the business process are targeted for influencing the business consumer decision making process and increase consumer awareness for the concerned brands (Bronner & Neijens, 2006). This business research report focuses on the aspects of advertising process of unhealthy food in Hong Kong and to examine the justification of their censorship. The topic of the research also intends to compare the process of advertising of unhealthy food between UK and Hong Kong. In order to focus on the specific variables of the topic the researcher has segmented the research matter into two sub-questions given below: Topic: An examination of the impact of unhealthy food advertising in Hong Kong, comparing to the U.K. experience, and recommending whether censorship of such advertising can be justified. How does unhealthy food advertising influence the general public in terms of their preferences, health and lifestyle? Do bans or restrictions on advertising affect people’s behaviour and does it make undesirable behaviour more likely? Fast-food industry is one of the fastest growing industries in the global business segment. Accelerated life style based on increasing demands and need of the people have reduced the time for personal maintenance of the global population (Bronner & Neijens, 2006). Cigliano et al. (2008) observed that fast food consumption is often criticized by health and food regulatory authorities all over the world because of their unorthodox methods for food production and processing. The business report will analyze the influence of the advertisement practices of unhealthy food items on the consumer behaviour and perceptions. The research also intends to evaluate the impact of these advertisements on the social health and growth. The change in the consumer behaviour in context of promotion based decision will be evaluated in order to assess the gravity of the overall situation. Influence of Unhealthy food on consumer choices: Selection of advertising means and mediums used by the business firms are mostly based on the ability to reach the target consumer group and their influence to create market awareness (Smith, 2008). Considering the case of Hong Kong, the fast-food or junk industry of the country is famous all over the globe. Miletic (2009) observed that Hong Kong has a fast life style in comparison to other global economic and financial hubs; this has reduced the time of the people for personal hygiene and maintenance. People have to manage their time within their personal needs and their professional functions, which has allowed the fast food industry to develop its market. For instance, Café De Coral is one of the largest operators of fast food in China Mainland and Hong Kong with over 40 stores situated at different locations. Mr. Hui Tung Wah, non-executive director of Cafe De Coral stated that fast food is the need of the hour and they provide nutritious and clean food to their customers (Hong Kong Economy Research, 2014). Cheng et al. (2007) questioned the definition of unhealthy food in an overall perspective; Cheng et al. (2007) also stated that, the definitions of unhealthy food mostly reflect the presence of ingredients necessary to make a food nutritious or the absence of some ingredients to make the food safer. However, based on the differences in the requirement of body the influence of food also changes. Cigliano et al. (2008) added that, considering junk food as unhealthy is mostly based on the processing of the food in the fast food joints. It can be gathered that food making process and its maintenance is the key in reducing the unhealthy effects of junk food. Focusing on the advertising influence of unhealthy food, majority of the advertisements of junk food are directed towards the children. One of the health advisors of Health Authority Hong Kong stated that, “the spicy and tasty food does trigger the taste buds but it also sets into motion a steady process of slow poisoning” (Adams, 2014). Smith & Foxcroft (2009) studied that, children who are accustomed to fast food from an early age face health issues when they reach the age of 40-45. Adams (2014) added that, unhealthy food habits have also influenced the life styles of the people all over the world. For instance, Australia is experiencing an increased number of people suffering from obesity. As mentioned in the Sacks & Mialon (2014), obesity has outpaced tobacco as leading health risks. Junk food has also generated other promotional sources such as global social and sports events. The FIFA World Cup 2014 is hard evidence of this fact. Adams (2014) mentioned that, during the FIFA 2014 World Cup, the junk food sales in Brazil reached the mark of $1.7 billion (approx). The use of events marketing by promoting the global events and occurrences is an excellent way to reflect the brand of the services and also attracts the target consumers. This shows that, advertisement of unhealthy food products is creating a huge change in the behaviour of the people. In Hong Kong, the rate of consumption of junk food has also boosted in the last decade with the growth of its business sector. The rate of obese population in Hong Kong has also increased in the last 5 years (Alcohol Concern, 2014). Considering the above findings, it can be observed that the most crucial outcome of unhealthy food advertising is the change in the eating and drinking habits of the people. Apart from it, the growth in the number of obese people around the world is also a crucial factor that is hampering the social wellbeing. On the other hand, Hong Kong leads the charts in context of junk food consumption. Communications Authority (2012) mentioned that, people are really attracted towards the easy way of living which encourages the fast food industry in making their promotional processes. Most of the time, it can be noted, that fast food promotions try to generate word of mouth marketing with the support of their service delivery process deriving a larger market place for themselves. Influence of bans and restrictions on consumer behaviour: Quinn (2014) highlighted that; people are attracted mostly towards what they are restricted to do. This has been proved time and again in the evolution of human history. In context of the advertising, the impact of bans and regulations on the target customers has been reversely influential (Bruce, 2014). For instance, the bans on tobacco product promotions has had a negative influence on the consumers as the sale of tobacco products has only increased over the years. Similarly, in case of junk food promotion, the consumers have grown more likely towards the service, rather than being concerned about their health. British Heart Foundation (2011) explained that, curiosity plays a very crucial part in the human decision making process, most of the regulatory norms are not transparent for the normal consumers. This makes the consumers attracted towards junk food and thus, it can be observed that the bans put on the promotional activities of the junk food is acting in a reverse manner rather than achieving the desired results. Chorley (2013) added that as the effects of junk food are not immediate it acts as a motivating factor for the consumers to adapt to unhealthy consumables. Recently, world renowned fast food company McDonalds had to remove some items from their menu in Hong Kong as it was revealed that their meat supplier sells stale meat (Independent, 2014). This is the key evidence regarding the unhealthy conditions of fast food. However, based on the above analysis it can be stated that, the expected outcome of this situation is likely to generate more demand for the items that have been removed from the menu of McDonalds, Hong Kong. The influence of this incident has brought in limelight other big fast food companies such as YUM and Starbucks (Independent, 2014). The health and regulatory bodies of Hong Kong such as Centre for Food Safety has developed code for advertisements of food products. The code states that the fast food organizations cannot advertise any products that can cause physical, mental or moral harm to the children. Moreover, the code also objects to advertisements that can take advantage of the loyal sense of the children. Based on these codes, the advertisements of the junk food industry cannot be presented to their consumers. However, comparing the advertising process of junk food in Hong Kong and other Asia Pacific countries such as Malaysia, or Indonesia with the junk food advertisements in the UK, it can be observed that the target customers vary. In UK most of the people are accustomed to eat fast food and thus the junk food firms have a larger target market (Sustainweb, 2014). The British Heart Foundation (BHF) stated that, restrictions on junk food advertisements are not effective for reducing the junk food intake by the children (Taste for Health-Liverpool, 2014). BHF also developed the policy that, in order to safeguard the children from the advertisements of the Junk Food industry, all promotional activities of unhealthy consumables should be aired only after the 9pm watershed. The process of creating a regulatory body for monitoring the junk food influence on the global population is being conducted by WHO, however, as stated earlier the effect of restrictions or bans on advertisements are not influencing the customer perception or decision making process. Bans on advertising promoting unlikely consumer behaviour: Consumer behaviours deviate with the changes in their surroundings (Barclay, 2012). The necessity of the adapting to the external environment often acts as a major influencer for people which drives them towards the ongoing trends (European Heart Network, 2005). This statement reflects the scenario of junk food consumers, where people are increasingly adapting to a faster lifestyle which has many negative health effects. The influence of the promotional activities of junk food segments is mainly targeted towards the children and youths in Hong Kong, whereas in the UK the advertisements reflect gatherings and reunions (BBC, 2011). The difference in the advertisement concepts is also based on the expectations of the consumers. The ban on these advertisements only acts as a barrier for the consumer to achieve that entertainment as shown in the commercials of junk food. According to Change4Health (2014), 85% of the decisions made by the consumers are influenced by the promotional activities of the business houses. It can be stated that, the buying decisions of the consumers are not intentional or necessarily based on their needs. Centre for Food Safety (2012) opined that, restrictions or barriers often tend to develop a curious nature among the people which will result in negligence towards the established norms. In the contemporary scenario, most of the consumers are aware of the effect of junk food on their health but their persistence nature of consuming it reflects high levels of optimism biasness. Corporate Watch (2014) highlighted that, the thought of something bad happening is always related to other persons and not on self. This aspect encourages the consumers to resume their daily habits and ignore the future risks. Even the steps taken by the Government and other regulatory bodies are considered as barriers and criticized by the customers. For instance, the Government of China took the initiative of cross checking the meat products being supplied to the fast food market and highlighted the sale of stale meat across almost 600 fast food outlets including big brands such as McDonalds, KFC and Pizza Hut (Reuters, 2014). Based on this, the fast sales have dropped in China mainland and Hong Kong in the last 2 months. It can be observed that the consumers are aware of the influence of unhealthy food items. Hong Kong Health Food Association (2009) emphasized that, Chinese customers are scared of food scandals but tend to move on with time and the sales curve starts moving upward again for the junk food sellers. In case of UK, the fast food industry is more concentrated which allows the customers easy access to ready to eat meals. As mentioned earlier, the NHS and BHF are trying to develop restrictions on the process of the junk food industry, however, it seems that the bans and restrictions on unhealthy food advertisements only acts as a motivation for the target customers to continue their consumption of junk foods. Practical Rationale The promotional activities of business houses are targeted to influence the purchase decisions of the consumers. Anderson and Cunningham (2008) observed that business houses are trying to integrate their business process with the thinking of the customers which will help them understand the decision making process of the customers. Bearden and Teel (2007) opined that, most of the advertisings or promotional activities are often neglected by the consumers as they are not connected with the products or services being promoted. In the case of the junk food, most of the advertisements only shows the process of making food, the taste of the food, but does not inform the viewers regarding the contents of the food and its impact on the consumers. Mohr (2008) stated that, there should be a connection between the consumers and the promotional methods in order to engage the customers with the products and services. Weinberg and Gottwald (2006) explained that advertising process of the junk food segment has a crucial advantage as they are promoting a necessity item. Mohr (2008) noted that, the junk food segment develops their promotional activities for very specific consumer segments. They try to attract a small segment of their target consumer group during the initial promotional process and then based on their service, try to initiate word of mouth marketing. Tsai, Liang and Liu (2007) opined that, most of the junk food firms try to promote their services with the help of discounted marketing for attracting price conceived consumers. The Hong Kong junk food industry promotes mainly with the help of banners and kiosks in order to reach a larger consumer. However, this does not help in targeting specific consumer groups and is rather focused on mass consumers. Consumers International (2008) noticed that in Hong Kong, the presence of junk food segment has an extensive network across the business hubs and the market places. The physical evidence is another factor that influences the consumer decision. Kim (2008) explained that, use of physical evidence to influence consumer perception is a complex process which can result in promoting the competitor firms. However, from the consumer perspective the promotional activities of junk food must be attractive. Dholakia (2008) observed that, attraction and engagement of consumers are the key aspects in the promotional process of the unhealthy food that urges the consumers to ignore the safety concerns. Tsai, Liang and Liu (2007) emphasized that, junk food advertisements try to create a halo effect with their presentation so that customers tend to ignore the other aspect of services. Lo, Stalcu and Lee (2010) argued that, the success or efficiency of the advertising process of unhealthy food is based on the existing optimism bias among the consumers regarding their health. People are not ready to believe that junk food can hamper their health inspite of knowing the medical facts. The junk food sector takes advantage of this situation and develops attractive promos or ads that will influence the consumer perception and form a favourable consumer decision. Studies made by Corstjens and Lal (2008) and Boulding et al. (2010) highlights that most of the junk food advertising targets the children and the youths. As lifestyle is changing, people are trying to adapt to the changes by amending their daily choices. This has created an open space for the junk food companies to influence consumer perception and develop brand value of the firms. In the United Kingdom, the development of the fast food industry is more rapid in comparison to that of Hong Kong. The influence or connection of advertisements of junk food with the culture of the people is another factor that initiates consumer attraction. People tend to relate to things that they are comfortable with and junk food has transformed into an inherent feature of the Western culture increasing the impact of junk food advertisements on the consumers. Further exploration of Topic: The development of study focuses on the promotional activities and their influence on the consumers. The researcher has selected the unhealthy food segment for analyzing the consumer decision making as it will reflect the potential of the advertising process as consumers are aware of the threats possessed by unhealthy food consumption but continue purchasing unhealthy food products and services. Some of the key aspects in the study from the consumers’ perspective are, the consumer decision making, consumer perception, brand value, optimism bias and from the perspective of the junk food industry the legal regulations, ethical business process, information in promotion, etc. These are some of the most influencing factors that are associated with the process of decision making. The below given table reflects some of the academic articles referred by the researcher for conducting this study: Authors Journals Article Name Contribution Year of Publication Cigliano, J., Georgiadis, M., Pleasance, D. & Whalley, S. The McKinsey Quarterly The price of loyalty The article reflects the influence of advertisements on the consumer buying behavior. The study is based on quantitative data collected from a large number of samples to assess the consumer perspective and its relation with advertisement process. 2008 Grayson, K. & Ambler, T. Journal of Marketing Research The dark side of long-term relationships in marketing services. The research is based on the negative effects of advertising process on the consumers and the organizations. It also presents evidence for highlighting the unethical consumer relationship building with improper promotional activities. 2008 Anderson, W. & Cunningham, W.H. Journal of Marketing The socially conscious consumer The article focuses on the factors that can influence the consumer behaviour and the different types of consumers present in the market 2008 Bronner, F. & Neijens, P. International Journal of Market Research Audience experiences of media context and embedded advertising: A comparison of eight media This article is based on the aspects of media that are being used for marketing and the comparison between the different types of media. 2006 Lim, K. & OCass, A. Journal of Product & Brand Management Consumer brand classifications: An assessment of culture-of-origin versus country-of-origin The impact of culture and country-of-origin factor in the consumer purchase behaviour and their decision making process has been highlighted in the article. 2009 Lo, A.S., Stalcup, L.D. & Lee, A. E International Journal of Contemporary Hospitality Management Customer relationship management for hotels in Hong Kong The specific focus on the Hong Kong market and the process implemented by Hong Kong restaurants for developing consumer relationships are the key features of the paper. 2010 Shove, E. & Pantzar, M. (2008) Journal of Consumer Culture Consumers, producers, practices: Understanding the Invention and Reinvention of Nordic Walking The research is based on a different perspective and reflects how customer awareness can be generated in the target market The research will also include other informative materials such as media reports, online articles and research works. The researcher will also try to include the psychological aspects of building consumer relationships and influencing consumer decisions. Proper methodology will be developed in order to pursue and answer the research questions of the study. References: Adams, J. (2014) Cutting children’s exposure to unhealthy food advertisements. Economic and Social Research Council. Retrieved from: http://www.esrc.ac.uk/_images/briefing-unhealthy-ads_tcm8-24202.pdf Alcohol Concern (2014) Alcohol advertising regulation that balances commercial and public interest. Retrieved at: http://www.alcoholconcern.org.uk/assets/files/Publications/2013/stick_to_the_facts_report.pdf Anderson, W. & Cunningham, W.H. (2008) The socially conscious consumer, Journal of Marketing, 36, 23-31. Ballantyne, D. & Varey, R. J. (2009) Creating value-in-use through marketing interaction: the exchange logic of relating, communicating and knowing. Marketing Theory, 6(3), 335-348 Barclay, C. (2012). Food Advertising on Television. House of Commons. BBC (2011). Food firms ‘market to children online’. Retrieved from: http://www.bbc.co.uk/news/health-16217306 Bearden, W. O. & Teel, J. E. (2007) "Selected Determinants of Consumer Satisfaction and Complaint Reports," Journal of Marketing Research, 20, 21-28. Blattberg, R. C., Malthouse, E. C. &Neslin, S. A. (2009) Customer Lifetime Value: Empirical Generalizations and Some Conceptual Questions. Journal of Interactive Marketing, 23(2), 157-168. Boulding, W., Staelin, R., Ehret, M. & Johnston, W. J. (2010) A customer relationship management roadmap: what is known, potential pitfalls, and where to go. Journal of Marketing, 69(4), 155–66 British Heart Foundation (2011). The 21st century gingerbread house: How companies are marketing junk food to children online. Children’s Food Campaign. Bronner, F. & Neijens, P. (2006) Audience experiences of media context and embedded advertising: A comparison of eight media. International Journal of Market Research, 48(1), 81-100. Bruce, A. (2014). Children’s TV Promotes bad diets, says study. Retrieved from: http://www.foodnavigator.com/Science-Nutrition/Children-s-TV-promotes-bad-diets-says-study Centre for Food Safety. (2012). Food and drugs (composition and labelling) regulations. Retrieved from http://www.cfs.gov.hk/english/food_leg/food_leg_cl.html#R4A Change4Health (2014). Diet, physical activity and health: Hong Kong Situation. Retrieved from: http://www.change4health.gov.hk/filemanager/common/image/strategic_framework/action_plan/action_plan_2_e.pdf Cheng, H., Mueller, B., Welfemeyer, J. T., & Rada, J. (2007). Content of food advertisements on children’s television program in China and the United States: A cross-cultural comparison. A paper presented at the American Academy of Advertising 2007 Asia-Pacific Conference, Beijing, May 30 to June 2. Chorley, M. (2013). Junk food at checkouts under fire as new health minister says she wants to stop parents being pestered by children. Retrieved from: http://www.dailymail.co.uk/news/article-2479785/Junk-food-WILL-banned-checkouts.html Cigliano, J., Georgiadis, M., Pleasance, D. & Whalley, S. (2008) The price of loyalty. The McKinsey Quarterly (4), 68-77. Consumers International (2008) The Junk Food Trap. Retrieved from: http://www.consumersinternational.org/media/540310/junk_food_trap.pdf Corporate Watch (2014). Corporate Watch : Nestlé SA : Corporate Crimes. Retrieved from: http://www.corporatewatch.org.uk/content/corporate-watch-nestl%C3%A9-sa-corporate-crimes Corstjens, M. & Lal, R. (2008) Building store loyalty through store brands. Journal of Marketing Research, 37 281-291. Dholakia, N. (2008) Global e-commerce and online marketing: watching the evolution. 7th ed. CIMA: Derby. European Heart Network (2005). The marketing of unhealthy food to children in Europe. Retrieved from: http://www.epha.org/IMG/pdf/English.pdf Hong Kong Economy Research (2014) Processed Food and Beverages Industry in Hong Kong. Retrieved from: http://hong-kong-economy-research.hktdc.com/business-news/article/Hong-Kong-Industry-Profiles/Processed-Food-and-Beverages-Industry-in-Hong-Kong/hkip/en/1/1X000000/1X006S3L.htm Hong Kong Health Food Association (2009). The separation of health food from food. 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DH wants new Responsibility Deal measures to tackle unhealthy food promotions. Retrieved from: http://www.thegrocer.co.uk/home/topics/dh-wants-new-deal-to-tackle-unhealthy-food-promotions/353654.article Reuters (2014) China probes food businesses; Hong Kong bans imports in meat safety scare. Retrieved from: http://www.reuters.com/article/2014/07/24/us-china-food-idUSKBN0FS00120140724 Sacks, G. & Mialon, M. (2014). A World Cup of opportunities for junk food companies. Retrieved from: http://theconversation.com/a-world-cup-of-opportunities-for-junk-food-companies-28854 Seaman, P & Ikegwuonu, T. (2010) Drinking to belong: Understanding young adults’ alcohol use within social networks, York: Joseph Rowntree Foundation. Smith, L. & Foxcroft, D. (2009) Drinking in the UK: An Exploration of Trends. York: Joseph Rowntree Foundation. Smith, R. (2008). Cartoon characters promote unhealthy food to children. 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