International Health Policy Program -Thailand Nongnuch Jaichuen Food and Nutrition Policy for Health Promotion Program International Health Policy Program (IHPP) Food and non alcoholic Beverage Industry and its marketing practices to Thai children

International Health Policy Program -Thailand 2 Outline Introduction Objective Methodology Result Conclusion Recommendations Limitations

International Health Policy Program -Thailand 3 Introduction Marketing is a most important activity of Food and beverage industry, especially in modern times Food marketing affects children’s diets and health through various complex accumulative and dynamic mechanisms and factors Understanding of the food and beverage industry and its marketing techniques to children is an important knowledge to guide policies addressing health and nutrition problems

International Health Policy Program -Thailand 4 Objective To understand more on the food and beverage industry operator and their marketing practices Methodology To review 50 highest profit food and beverage companies, including principle goals, mindsets and networking, marketing strategies, practices and relevance of existing regulations.

International Health Policy Program -Thailand 5 Methodology (cont.) Searching scope & tools – Technical publications – Databases and online information resources – Web sites of government ministries, non-governmental organizations and industry organizations – Published books and reports – Online newspaper database – the Google search engine – Laws and regulations Time frame

International Health Policy Program -Thailand Result 1: company 6

International Health Policy Program -Thailand 7 Result 1 Food and beverages industries in Thailand are increasingly globalised and having complex business structure. – Multinational company – Relatives – Shareholder – joint committee – Partner – Investment – Multi dimension

International Health Policy Program -Thailand Result 1: vision vs mindset 8

International Health Policy Program -Thailand Result 1 VISION – Organization/ company leader – Products quality goods – Manufacture innovative and high technology – Marketing brand – Consumer health – Society social responsibility 9

International Health Policy Program -Thailand 10 Result 1 The ultimatum goal of these businesses is to create the most commercial benefit and advantage. Company A vision: to be a creative leader of Japanese food and beverage for the quality of the new generation life. Annual report “As the chairman of the board, a committee of the company, and the board executive determine and dedicate to direct the financial growth of this company in parallel with the flourish in the food and beverage and also increase the growth in revenue and profits of this company.... and try to maintain the financial stability of the company, continuous share the profit for shareholders adequately.” Source: Annual report of company A, 2012.

International Health Policy Program -Thailand 11 Result 1 The principle mindset emphasize on business and shareholder. Vision Quality goods Consumers’ health Social Responsibility Mindset ProfitsShareholders Sustainable business

International Health Policy Program -Thailand Result 2: marketing 12

International Health Policy Program -Thailand 13 Result 2 Increasing significance of integrated marketing communication (IMC) – Advertisement (above-the-line through classic media, and below- the-line through new media) – Public relationship – Personal selling – Sale promotion – Direct marketing – Event marketing Goals of IMC are use many marketing strategies in order to brand loyalty and purchasing behavior.

International Health Policy Program -Thailand Effect of accumulative IMC 14 Marketing strategy: IMC Purchasing behavior Diet Outcomes Result 2 Marketing practices Advertise ment PR Event Personal selling Sale promotion Direct Persuade Image Brand loyalty Intermediate mechanisms Decision making

International Health Policy Program -Thailand Result 3: regulations 15

International Health Policy Program -Thailand 16 Result 3 The advertising and promotion of food to children are regulated by many soft and hard mechanisms, some are specific to children and youth, as well as self-regulatory codes. Current regulations focus on – Health claim >> impact on nutrition (obesity & nutrition & NCD) – classic above-the-line media (unregulated / unfettered new media ) Content concerning on long term health impacts (obesity & Nutrition & NCD) are relatively weak, such as mandatory warning messages (not on exposure and content of advertising)

International Health Policy Program -Thailand Conclusion Food and beverages industries in Thailand are in more and more complex structure, but still hold the core goal which is to make the most commercial benefit to them and their partners IMC was the tool and used in order to both directly and indirectly reach children and youth. Nonexistence of regulations, outdated contents and legal loopholes provide opportunity for the industry to freely advertise 17

International Health Policy Program -Thailand Recommendations Review existing regulations to identify gaps for develop/strengthen regulations Develop and strengthen cooperation with various sectors at both central and local levels for effective regulations Promote appropriate engagement of stakeholders, including the contribution of the F&B industry, as the manufacturer, distributor and retail sellers of food, to prevent any undesirable public impact from and regulation compliance of their marketing practices Monitoring situations on marketing and its impact 18

International Health Policy Program -Thailand Limitations Time frame Database for search Secondary limited by only publicly accessible 19

International Health Policy Program -Thailand 20