In a bid to tackle childhood obesity, the Government announced the introduction of a sugar tax last year that is expected to come into force in 2018. This was welcome news for health campaigners, but marketers in this industry are likely to have found it more of a challenge, having to consider profits whilst also responding to Government and consumer demands when it comes to food. With the food industry coming under ever-greater media and public scrutiny, how can marketers get this balance right?
We know that sugar has become a high-profile battleground. A Government report suggested sugar consumption was a dietary concern for more than half of UK adults in 2015. Many consumers, led by the power of celebrity chefs, the media and diet trends, are increasingly reducing or avoiding sugar. There is also a rise in those who are choosing to reduce their meat consumption and looking to a more ‘flexitarian’ way of life, where they eat meat very infrequently. Additionally, the annual Waitrose Food Report 2016, found that 71% of consumers say that eating healthily and looking after themselves is part of who they are. It is safe to say consumer food habits are shifting.
Marketers need to recognise and help drive these changes and trends, and ensure their strategy meets consumer demand. Getting this right is about embracing change rather than being on the back foot, and there needs to be close collaboration between the production and marketing teams, so that they can work cohesively to produce products their customers really want. It is essential that the development teams are liaising with their marketing colleagues continually, so the new products and innovations are directly aligned with customer insights. This is a tangible example of how fundamental professional marketing is to any business, but particularly in this sector, and particularly now.
There is clear evidence that marketers have already begun to respond to these changes in the range of products and experiences they offer. For example, the global catering company Compass Group is well positioned to take a lead on offering healthy food choices. Their approach is about sticking to strict guidelines on calories, salt and sugar – serving up food that tastes good as well as being intrinsically good for people. We’ve also seen others, such as Mars Food with their Dolmio brand, take the lead on being frank and honest with their customers about the levels of salt and sugar in their products, and recommending that consumers should not be eating them on a daily basis.
This level of openness and transparency is something that we’ll see more of in 2017, and is something that consumers will respect in the long run. After all, despite a shift in consumer consciousness, previous research from CIM into food labelling found that 51% of consumers think nutritional information is hard to understand, and there was still some confusion over the traffic light system used on packaging. We found consumers look to marketers to help guide their purchasing decisions, so this is where marketers can genuinely support and educate the consumer.
There are different marketing approaches which need to be taken for different companies or brands. This will depend on their target market and audience and, of course, it will be easier for some products more than others. In particular there will need to be strategies for vulnerable audiences, such as children and the elderly, which might differ from marketing that targets an average adult audience.
Outside of the food itself, marketers in this sector need to consider other elements that increasingly matter to consumers. The battle against food waste, packaging and food hygiene is growing too. Consumers are not only interested in their own wellbeing, but also sustainability in general. We’ve already seen some brands championing these issues through bespoke campaigns, and looking to lead the charge in some of these areas. Creating an ethical element to a company’s marketing approach is also key to ensuring marketers are responding to the consumer demand. Self-regulation is always preferable, and a voluntary way forward will ultimately protect and enhance the reputation of brands and inspire trust with customers that may well result in increased customer loyalty.
Marketers have a responsibility to the consumer to be open and transparent about their products and practices, but they are also in a position where they can influence, educate and support consumers to make the right decisions. Having the sugar tax on the horizon will inevitably force change and bring its challenges to marketers. However, it’s a movement that will also help to create health-conscious and sustainable marketing strategies for the future. Good marketing allows consumers to make informed purchasing decisions – empowering them and giving them confidence while building and maintaining trust in the brand.
By Chris Daly, chief executive at the Chartered Institute of Marketing (CIM)
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