WHO review – advertising section - draft
DESK RESEARCH TO EXAMINE THE INFLUENCE OF MARKETING AND ADVERTISING BY THE ALCOHOL INDUSTRY ON YOUNG PEOPLE’S ALCOHOL CONSUMPTION
Research prepared for the World Health Organization by the
Centre for Social Marketing at the University of Strathclyde
Emma Cooke, Gerard Hastings and Susan Anderson
March 2002
Acknowledgements
For acquisition and translation of international data: Jill Bain, Marina Biniari, Liliana Carcamo and Ingrid Kajzer.
For comments on the final draft: Anne Marie MacKintosh
For administrative support: Kathryn Angus and Aileen Paton.
CONTENTS
Page No
1.0 INTRODUCTION 1
2.0 MANAGEMENT SUMMARY 2
3.0 METHODOLOGY 4
4.0 RESULTS 7
4.1 Advertising 7
4.1.1 Econometric Studies 7
4.1.2 Consumer Studies 11
4.2 Other Forms of Marketing 15
4.3 Developing and Transitional Countries 21
REFERENCES 25
1.0 INTRODUCTION
At the World Health Organization Ministerial Conference on Young People and Alcohol in Stockholm (February 2001) considerable concern was expressed about the nature and pervasiveness of advertising and marketing by the alcohol industry. Explicit examples were shown of alcohol promotion exploiting the themes of sexual, sporting and lifestyle success, often in direct violation of advertising codes. Furthermore, many of the advertising examples displayed images of excessive consumption. In addition, the Conference noted that marketing stretches beyond the realms of billboards, magazine pages and television screens. The retail outlet, the price charged, packaging and even the alcohol product itself are all open to marketing manipulation.
This review was commissioned to examine what, if any, research evidence exists that this advertising and marketing activity influences the amount or pattern of young people’s drinking. Much of this research has focussed on advertising and been conducted in developed countries, but particular efforts have been made to look at marketing as a whole and cover non-English sources and, in particular, evidence from developing and transitional countries.
2.0 MANAGEMENT SUMMARY
This literature review examines the research evidence about the effects, if any, of alcohol advertising and marketing on the amount and/or pattern of young people’s drinking. Material was gathered from electronic databases, organisations with an interest in alcohol (including the industry) and international academics. It is divided into three groups, focussing on: i) alcohol advertising; ii) wider marketing; and iii) developing and transitional societies.
Two predominant themes emerged. First, the issues involved are complex and characterised by ingrained vested interest. This makes cause and effect relationships extremely difficult to disentangle. Second, there are large gaps in the research evidence, particularly when the focus moves beyond advertising, and beyond developed countries.
Despite these difficulties, a number of important conclusions can be drawn from the literature:
• The majority of econometric studies, which examine the relationship between overall levels of alcohol consumption (typically in terms of sales) and overall levels of advertising (typically in terms of expenditure) have found little or no effect. However, there are significant flaws in much of this work. Also, and importantly for this review, because they deal in aggregates, these studies provide no insight into the behaviours of young people.
• Consumer studies examining the effects of alcohol advertising on the individual, have focussed on the young and are, therefore, of greater value. Many of these studies, in particular more recent work involving sophisticated methodologies, point to a link between advertising and young people’s drinking behaviours. In essence, the more aware, familiar and appreciative young people are of alcohol advertising, the more likely they are to drink both now and in the future. Importantly, however, these studies also begin to reveal the complexity of the issue, with the interaction of consumer choice, advertising effect and marketing opportunism creating powerful dynamics. It is probable that a two way relationship exists between advertising and drinking: advertising will encourage targeted consumers to drink, and drinking will encourage attention to advertising by those consumers.
• Marketing, however, is much more than advertising and the review examined the impact of five other promotional tools (new product development, pricing, distribution, sponsorship and new media campaigns) on young people’s drinking. The evidence base is very limited, but there are worrying signs. For example, new product development has been linked with increased and more problematic underage drinking; price promotions have the potential to increase consumption and new media are extremely attractive to the young but currently are the subject of minimal regulation.
• The concern regarding such marketing activities increases when it is noted that these techniques are not used in isolation, but as part of an integrated mix, which includes conventional advertising, and is carefully designed and targeted to meet the needs of particular customer groups. It is clear from a number of the studies that young people are a prime such group.
• The marketing techniques which have raised concerns in the West, and in some cases been shown by research to have a negative impact on young people, are clearly evident in developing and transitional nations. Their impact in these markets is likely to be increased by a lack of regulation, their disproportionately young populations and the allure of Western imagery and products.
Disentangling the relationship between alcohol marketing and young people’s drinking is extremely difficult. Complex and powerful dynamics exist and vested interest clouds the debate. It is also clear that there are many gaps in the literature, and much more research is needed. Nonetheless, there is evidence that advertising is at least reinforcing drinking among the young, and that more direct marketing efforts, such as new product development and promotional pricing schemes, are connected with increased and problematic consumption. Certainly, there is enough evidence to refute the alcohol industry claim that their marketing does no more than encourage brand switching.
3.0 METHODOLOGY
Material was collected from four sources:
• Electronic databases.
• Key informants and organisations with an interest in alcohol studies.
• The business press and the alcohol industry.
• Charities and academics with an interest in developing and transitional countries.
Electronic Databases
A systematic search of electronic databases and information services was conducted to identify key academic and published research papers. The following electronic databases were used:
|Electronic Databases |Brief Description |
|PsychINFO |International articles / chapters in books |
|Biological & Medical sciences |Various databases including Medline and Pub Med |
|Embase |Medical sciences and international articles |
|ISI Social Science Citation Index / Web of Science |International articles and book reviews |
|Social Sciences Index |English language articles |
|Ingenta |Global research gateway |
|IBSS |Economics, politics and sociology articles and book reviews |
|Emerald |Journal articles and management reviews |
|Sociological Abstracts |Journal articles, conference papers, books and dissertations |
These databases have been systematically searched using the following search terms:
|Alcohol |Advertising |Young people |
|Marketing |Promotion |Adolescents |
|Product design |New product development |Packaging |
|Drinks industry |Sponsorship |Communications |
|Price |Targeting |Internet |
|Venue | | |
Priority was given to articles in peer reviewed academic journals published since 1980, but earlier key papers were also included.
Key Informants and Organisations
Contact was made with organisations and other experts working in the alcohol field. This provided access to sources of literature that electronic databases may not detect and to, as yet, unpublished reports. In addition, the online databases of relevant organisations were searched for relevant publications. Key contacts and sources of information included:
|Organisations and Web-sites |
|HEBS: Health Promotion Library Scotland |
| |
|WHO Library Database |
| |
|Marin Institute for the Prevention of Alcohol and Other Drug Problems |
| |
|Centre for Health Economics, University of York |
| |
|National Institute on Alcohol Abuse and Alcoholism (NIAAA) |
| |
|Eurocare - Advocacy for the Prevention of Alcohol Related Harm in Europe
|The Centre for Science in the Public Interest |
| |
Business Press and Industry Sources
Given the emerging nature of this area of study, alcohol industry sources were consulted for information on new product launches, promotional campaigns and other activities.
|Alcohol Industry Web-sites and Business News Sources | |
| |Brief Description |
|Just |“online portal for drinks industry professionals around the world” |
| | |
|BBC news online |Global news site, updated every minute |
| | |
|World Advertising Research Centre |Advertising and Marketing Knowledge database |
| | |
|Reuters |International news source, with an emphasis on business and finance |
| | |
|Datamonitor |Business information company |
| | |
|Mad.co.uk |An on-line resource for marketing, media, new media, design and advertising |
| |professionals featuring content from a number of practitioner journals |
|The Amsterdam Group |European alcohol industry organisation with a focus on the prevention of alcohol |
| |misuse |
|Alcohol companies’ own corporate sites |Range of corporate and brand specific sites, both national and global |
Charities and International Academics
In order to tap into alcohol marketing activity in developing and transitional countries, contact was made with a network of researchers and global charitable organisations.
Research network: marketing academics from European, developing and transitional countries were recruited to search, translate and report on alcohol marketing activity in their respective country. This included searches of non-English academic and ‘grey’ literature. Informal discussions with researchers also provided insight into the cultural context of alcohol marketing in various parts of the world.
Charities: large, global charitable organisations, such as Oxfam and Save the Children, were contacted for any information they may have on young people and alcohol. In particular, they were asked to provide information on countries that have not been a common focus for academic research.
Limitations
The review has two principal limitations. First a lack of resources prevented the use of some industry sources. Detailed market analyses and strategy documents are produced by a number of commercial agencies (eg. Canadean, Datamonitor, Euromonitor, Keynote), but these are extremely expensive to purchase. Second, in low and middle income countries, search engines, and the related information technology, are limited, so material is difficult to find and retrieve.
4.0 RESULTS
The review is divided into three sections. The first looks at alcohol advertising; the second examines other forms of marketing including new product development, pricing, sponsorship and the use of new media and the third focuses on transitional and developing nations.
4.1 Advertising
Research into the influence of alcohol advertising on consumption has taken two forms: econometric studies, which involve a statistical examination of the relationship between overall levels of alcohol consumption (typically in terms of sales) and overall levels of advertising (typically in terms of expenditure), and consumer studies which examine how people’s drinking knowledge, attitudes and behaviour vary with their exposure to alcohol advertising.
4.1.1 Econometric Studies
(i) Key findings
With some exceptions, these provide little evidence for any link between overall levels of alcohol advertising and alcohol consumption, but perennial methodological weaknesses make it difficult to draw reliable conclusions.
Bourgeois and Barnes’ (1979) study of alcohol consumption and alcohol advertising in Canada found that uncontrollable variables, such as income and average number of hours worked per week, had a far stronger influence on per-capita consumption, than controllable marketing variables, such as price or advertising expenditure. They did, however, find a significant and positive relationship between the level of print advertising and per-capita consumption of beer, although these results were reversed for spirits.
As with many econometric studies, this one is weakened by gaps in the advertising data: only regional (as opposed to provincial) figures were available (Smart 1988). Bourgeois and Barnes describe in some detail, the difficulties they encountered in attempting to obtain accurate advertising expenditure data, and ultimately conclude that:
“…many factors influence alcohol consumption levels. It is, obviously, impossible to point to any single variable as the sole, or even the major cause of increases in alcohol consumption.”
(Bourgeois and Barnes 1979, p28)
Later studies appear to provide support for Bourgeois and Barnes’ (1979) position that alcohol advertising is not a key influencing factor in relation to aggregate alcohol consumption. McGuinness (1980) found a small positive relationship between spirits advertising and aggregate consumption, but no effect for advertising for other alcohol products. His work suggests that price and the number of licensed premises are more important determinants of the demand for alcohol. Sturgess’ (1982) study utilised statistical models to examine the relationship between total consumption and advertising in the United Kingdom from 1969 to 1980. In his review of the existing literature, Sturgess criticised earlier work (which had examined the general relationship between advertising and consumption, rather than looking at alcohol specifically) for failing to use statistical methods capable of identifying the direction of causality. He then carried out his own analysis of data from the UK and found no evidence that total alcohol consumption was influenced by total advertising expenditure.
These papers were not the only econometric studies of UK data carried out during this period. Martyn Duffy (1982) used aggregate time series data to examine the relationship between consumption and advertising and found no evidence to support the view that the total level of advertising influenced the total level of consumption. In 1983, he published further work which examined various factors impacting on the demand for alcoholic drinks in the UK from 1963 to 1978. This study found very small significant effects of total advertising on the aggregate demand for beer and spirits, and no effect for wine. In later work, Duffy (1989) used an estimated econometric model of alcoholic drink demand to examine the factors which had contributed to the growth in demand for alcoholic beverages. He found the effect of advertising to be “barely measurable” and of no value when compared to the overall influence of income. In a later re-examination of this work (Duffy 1990) he concluded that: “...the effects of advertising on total drink demand are always minute...” (p255). Latterly, in an attempt to improve on earlier studies, Duffy (1991) examined the effects of alcohol advertising in a system wide context, utilising quarterly, as opposed to annual, data. Once again his findings did not support the view that advertising influences aggregate alcohol consumption. However, he stressed that more accurate findings could only be obtained if the alcohol industry released comprehensive data on their advertising and promotional activities in all media.
Adopting a wider geographical emphasis, Calfee and Scheraga (1994) carried out an econometric study of the alcoholic drinks markets of Germany, Sweden, France, the Netherlands and the UK. Similar to the earlier UK studies, their findings suggest that advertising has no influence on consumption. Indeed, they state “the lack of significant effect from advertising was striking” (p303). Lee and Tremblay (1992) examined the impact of advertising on the demand for beer in the US and concluded that their findings provided no support for the view that alcohol advertising influences beer consumption. They found other variables such as price, to be the most important determinants of demand. Later studies also found advertising to be of limited significance in terms of total consumption or demand. (Blake and Nied 1997, Nelson 1999, Larivière et al 2000).
In contrast to the findings of earlier work, Johnson (1985) employed an alternative statistical approach and produced results indicating a significant effect of wine advertising on generic demand, but no equivalent effect from spirits advertising. The author draws attention to the fact that both his methods and results differ from those of other researchers, and argues, in a similar vein to other researchers, that this inconsistency means that:
“No definitive statement can be made as to the effect of advertising on individual alcoholic beverage classes on the demand for alcohol in the UK.”
(Johnson 1985, p24)
Perhaps unwittingly, Selvanathan (1989) reinforces Johnson’s view. He re-examined his results using a different demand equation for the alcoholic beverages group, and reversed his findings – finding no relationship between advertising and consumption. However he adopts an unusual model of advertising effect, which assumes that it fully depreciates in the minds of consumers within one year, discounting any longer term or cultural influence.
Henry Saffer’s (1996) work further complicates the picture. He criticised the methods used in earlier studies, particularly the incompleteness of advertising data and the assumptions made about how advertising works. In the latter area he argues that advertising expenditure is prone to the law of diminishing returns, and that ‘the continued addition of advertising messages eventually will lead to smaller and smaller increments of consumption.’ (Ibid, p268)
In his own study (Saffer 1997), advertising data consisted of quarterly, local level figures obtained from two independent data collection companies, and he utilises the theory of ‘advertising response function’ to allow for diminishing advertising returns. His measure of consumption is the level of motor vehicle fatality, as upwards of 40% of these are alcohol related. He concludes that, although price was a more significant variable, ‘…alcohol advertising is found to be a contributing factor in the high level of motor vehicle fatalities in the United States’ (Ibid, p440).
Gius (1996) adopted a different approach to the problem, and examined the impact of brand level advertising. The paper is difficult to follow, but his hypothesis seems to be that if advertising is increasing overall consumption, as opposed to just causing brand switching, then greater demand for brand A, as a result of additional advertising for brand A, should not come at the expense of sales for brand B. In other words, the net effect is a combined increase in sales for A and B. Although Gius’ claims that his findings support the brand switching argument, in fact his principle conclusion is that:
‘It was found that own-brand advertising has a significant and positive effect on own-brand demand, while rival-brand advertising has an insignificant effect on own-brand demand.’
(ibid, p75)
This suggests that, all else being equal, advertising for brand A will result in a net increase in demand.
Econometric studies have also been conducted in situations where advertising has been banned, or previous bans have been relaxed. In theory, these should clarify the picture, as they provide a potentially powerful natural experiment. In practice, however, as Harrison and Godfrey (1989) point out, they are problematic because such bans are typically incomplete, tend to attract a lot of media attention which may counteract the disappearance of advertising and will be undermined by the transference of industry promotional budgets to other marketing activity (see Section 4.2). Perhaps inevitably, therefore, the results of studies of alcohol advertising bans are inconsistent.
Smart and Cutler (1976) examined the impact of a fourteen month ban on alcohol advertising in British Columbia, using consumption data from two Canadian provinces. They did not find any changes in alcohol consumption following the introduction or the later removal of the ban. Later work by Ogborne and Smart (1980) involved a study of a beer advertising ban in the Canadian province of Manitoba. Wine and spirits advertising was not subject to the same restrictions, and beer advertising which originated outwith Manitoba was also not controlled. The results of the study suggest that the ban had no effect, as beer consumption rose considerably in both Manitoba and the control province of Alberta.
Makowsky and Whitehead (1991) studied the lifting of a 58 year ban on the advertising of alcohol in Saskatchewan in Canada in 1983. They examined monthly sales data for beer, wine and spirits from 1981 to 1987. The results suggested a substitution effect between beer and spirits, with beer consumption increasing and spirits consumption decreasing; however, there was no increase in overall sales of alcohol in Saskatchewan between 1981 and 1987.
Alternative conclusions come from the work of Saffer (1991) who carried out a time-series study of advertising bans in 17 OECD nations. His work suggests that countries with bans have lower levels of alcohol consumption and lower levels of motor vehicle fatalities. Young (1993), in an alcohol industry supported study, disputes the direction of causality, arguing that lower consumption rates may reflect a social climate where advertising bans are more likely.
Saffer (2000) responded by updating his study using time-series data from 20 countries over 26 years. Similar results were obtained to those in his first study, and Saffer concludes that alcohol advertising bans do decrease alcohol consumption.
Literature reviews have also been carried out to assess the potential impact of alcohol advertising bans. Ambler (1996) reviews both theory and literature relating to the potential relationship between alcohol advertising and alcohol misuse and concludes that banning the former is unlikely to cause reductions in the latter. Bang (1998) reviews econometric literature to consider the potential effects of the liquor industry’s lifting of the US voluntary ban on broadcast advertising in 1996. He concludes that the evidence suggests that total alcohol consumption will not increase, but that an examination of the unfolding situation will provide valuable additional evidence.
(ii) What conclusions can be drawn from econometric studies?
The majority of the work in this area suggests that alcohol advertising has no effect (or a minimal effect, when compared to other variables) on aggregate alcohol consumption. For this reason, this body of research is popular amongst advertising and alcohol industry representatives, who draw on it to support their own agendas (e.g. Waterson 1989, Shoup and Dobday 1990, Mitchell 1994).
However, some studies, especially those by Saffer, have shown a link between advertising and consumption. Furthermore econometric studies have been heavily criticised. The principle problem is that they are dependent on the construction of a complex equation that accurately models an extremely sophisticated social phenomenon. In reality these models have a number of major flaws (Atkin 1987, Smart 1988, Godfrey 1989, Harrison and Godfrey 1989, Aitken and Hastings 1992, Saffer 1996, US Department Of Health And Human Services 2000):
• Data on key variables, most notably advertising expenditure, are missing.
• Advertising spend is assumed to be an accurate marker of advertising effectiveness; in fact the work of Strickland (1982a) suggests that both the medium and the creative theme of advertising are important variables.
• Models of advertising effect are naïve, ignoring recent research which shows that consumers are actively involved in the communication process (Hastings 1990, Casswell 1995) and indeed that alcohol advertising which is built on this premise is more effective (Casswell and Zhang 1998, Wu, Shwu-Ing 2001).
• Complications such as feedback – the potential reciprocity of advertising and consumption levels – and advertising wear-out are frequently ignored.
• Beyond crude consumption levels, little insight is provided into consumers’ drinking knowledge, attitudes and behaviour.
Even more seriously for this review, which is concerned about the impact of alcohol marketing on young people, they tell us nothing about the behaviour of sub-groups within the total alcohol market. This market contains a vast array of product offerings which are targeted at distinct groups of consumers (such as young people), with greatly varying levels of advertising support. Arguably, the slight and inconsistent influence of alcohol advertising on population level consumption, reported in many econometric studies, actually reflects an averaging of minimal influences on older established drinkers and larger effects on immature, younger drinkers (Aitken and Hastings 1992). This argument becomes more convincing when it is remembered that youth brands, such as Bacardi Breezer, are given a disproportionate amount of advertising support.
Not until the data is disaggregated, and it is possible to analyse the alcohol consumption figures for young people alone, and relate these to the amount of advertising being targeted at them, will econometric studies help resolve the argument. Until this data becomes available, the best option is to use the sort of methods the industry employs to evaluate the effectiveness of its own advertising: consumer studies. These studies “use the individual as the unit of analysis” (Aitken et al 1988, p1400) and attempt to examine or predict the responses of young people to alcohol advertising.
4.1.2 Consumer Studies
(i) Key findings
A study by Strickland (1982b) involving American teenagers revealed a relatively complex picture. He did not find any direct linkage between exposure to advertising and consumption levels, however, his work does suggest that ‘orientation towards advertising’, (the extent of identification with models portrayed in adverts and how adverts shape their normative expectations about drinking and its associated behaviours) may facilitate advertising influence. Strickland stresses however, that while statistically significant results were found for these two advertising orientations, the magnitude of the effect is very small.
Later work by Strickland (1984) involved a co relational survey of 772 twelve to sixteen year old drinkers in the US. He based his measure of advertising exposure on data taken from self-reported television programme viewing, which was weighted for the number of alcohol adverts occurring during the programmes. Data was also collected on a variety of drinking variables. Strickland found that exposure to advertising had ‘meagre’ effects on his participants’ levels of consumption. Adlaf and Kohn (1989) reanalysed Strickland’s (1984) work, after testing several alternative statistical models, to find one which fitted his data. Like Strickland, they found alcohol advertising exposure to have an extremely small impact on alcohol consumption, particularly when compared to the effects of peer drinking.
Atkin (1987, 1990) levels several criticisms at Strickland’s original 1984 study, which also have implications for Adlaf and Kohn’s (1989) work. Most importantly, he questions the validity of his measure of advertising exposure, and the fact that the research is limited to television advertising.
Atkin, Hocking and Block (1984) undertook a study to examine potential relationships between naturalistic exposure to alcohol advertising and the consumption of alcohol amongst a sample of American teenagers. They used a co relational survey design and collected data on a range of alcohol advertising exposure variables, additional factors which may impact on drinking behaviour (such as parental and peer influence and church attendance) and alcohol consumption. Using regression analyses they were able to demonstrate that there were significant relationships between young people’s exposure to alcohol advertisements (on television and in magazines) and their drinking behaviour. Their second key finding was that young participants who reported high levels of exposure to alcohol adverts, but did not yet drink, were more likely to expect to do so in the future. They do suggest however, that there is a need for caution before causal inferences are drawn from their findings:
“Two key issues restricting definitive conclusions are spuriousness and direction of causality.”
(Atkin et al 1984, p165)
Grube and Wallack (1994) carried out a study in the US which examined the possibility of a reciprocal relationship between awareness of (not just exposure to, as in previous studies) alcohol advertising, and drinking knowledge, beliefs and intentions. They used structured interviews and a self-administered questionnaire to collect data, which was examined using a structural equation model. Their findings suggest that level of awareness of beer advertising is linked to greater knowledge of beer brands and slogans, increasingly positive beliefs about drinking and higher intentions to drink as an adult.
Wyllie et al (1998a,b), used the same methodology with both 10 to 17 and 18 to 29 year-olds, collecting data on exposure to, and liking of, alcohol advertising and drinking behaviour and expectations. In both cases, structural equation models were used to interpret the data, with the findings suggesting:
“…tentative support for the theory-based hypothesis that positive responses to beer advertisements increased the frequency of current drinking and expected future drinking.”
(Wyllie et al 1998a, abstract)
Stronger evidence for the impact of alcohol advertising on consumption comes from longitudinal cohort studies carried out in New Zealand. Connolly et al (1994) examined the relationship between recall of alcohol related mass-media communications at ages 13 and 15, and alcohol consumption at the age of 18. They consistently found that young men who had a higher recall of alcohol advertising at the age of 15 consumed larger volumes of beer at the age of 18. They found no effects linking advertising with wine or spirits consumption, and negative relationships between women’s recall of alcohol portrayed in the media and their beer consumption.
Casswell and Zhang (1998) carried out a further longitudinal study with the purpose of testing a hypothetical model of the influence of degree of liking for alcohol advertising and beer brand allegiance on beer consumption and self-reports of drinking related aggression. Their sample consisted of a cohort of young adults, who were surveyed at the age of 18 and again at 21 using a computer based questionnaire and a one to one supplementary interview. The findings indicate a significant relationship between beer brand allegiance and liking of alcohol advertisements at age 18 with beer consumption at the age of 21. Liking for advertising at age 18 did not appear to influence consumption at age 18, however, brand allegiance at this age appeared to have some effect on consumption patterns reported at the same time. The researchers also found their predicted relationship between beer consumption and participants’ experiences of drinking related aggression to be significant.
Two qualitative studies carried out in the UK provide interesting insights into children’s perceptions of, and responses to, alcohol advertisements (Aitken, Leather and Scott 1988, Aitken, Eadie, Leathar, McNeill and Scott 1988). The first study used focus group discussions with children aged from 10 to 16. Separate groups were held for each year of age and covered issues concerned with advertising in general and more specifically, the advertising of alcohol. The researchers found that liking of alcohol adverts and their prominence in the discussions increased with age. (Similar results are reported in a quantitative study by Austin and Knaus 2000.) They also found a “developmental trend” (Aitken, Leather and Scott 1988, abstract) in the children’s ability to detect symbolism and interpret complex imagery contained within alcohol advertisements. They conclude that many of the characteristics of alcohol adverts which are designed to appeal to young adults are also highly appealing to young teenagers.
The second study (Aitken, Eadie, Leathar, McNeill and Scott 1988) draws stronger conclusions, suggesting that alcohol advertising on television is reinforcing under-age drinking. This study consisted of a series of individual in-depth interviews conducted with children aged from 10 to 17. The results show that the vast majority of the children had a high level of awareness of television based alcohol advertising campaigns and that they found these campaigns to be appealing. The study also revealed distinct differences between under-age drinkers and non-drinkers: the former enjoyed alcohol advertising more, and were better at recognising the brand imagery contained within it. The authors argue that this shows that underage drinkers derive greater benefits from alcohol advertising than their non-drinking peers, and this in turn acts as a reinforcing mechanism for their drinking (Aitken, Eadie, Leathar, McNeill and Scott 1988, Aitken 1989a).
(ii) What conclusions can be drawn from consumer studies?
Overall, these studies – especially the more sophisticated recent ones – do suggest a link between advertising and young people’s drinking. In essence, the more aware, familiar and appreciative young people are of alcohol advertising, the more likely they are to drink both now and in the future.
However, these studies also begin to reveal the complexity of the issue, with the interaction of consumer choice, advertising effect and marketing opportunism creating powerful dynamics. For example, in Connolly et al’s 1994 study, it seems that young men who like beer and consume it with enthusiasm, are particularly aware and appreciative of beer advertising and are most likely to be targeted by beer advertisers. It is plausible to assume that the link between young men’s awareness of alcohol advertising and their beer consumption is causally related in both directions: their liking for beer will draw them to beer advertising and beer advertising will reinforce their liking for beer. Furthermore, the latter effect will be enhanced by the creative and media buying skills of the alcohol industry. The reverse is true for young women. They are not inclined to drink beer and advertising is unlikely to persuade them to do so; as a result the industry will be much less inclined to use their skills to target them.
On balance, however, the studies do suggest that, amongst other dynamics, advertising does encourage young people to drink. This conclusion is supported by a key informants study (Thomson et al 1991) carried out in New Zealand. The participants included advertising agency creative directors, market researchers and communication / education experts, and 69% of them believed that alcohol advertising on television and radio would encourage 13 – 17 year olds to drink.
Consumer studies also begin to force the agenda beyond advertising by introducing the issue of branding (Casswell and Zhang 1998, Aitken, Eadie, Leathar, McNeill and Scott 1988, Aitken 1989a). Branding is an enormously important construct in commercial marketing that adds powerful emotional associations to the physical product. In many markets, especially those comprising young people, it is a key dimension of the marketer’s offering. As a result brand names like Budweiser and Marlboro have acquired enormous value.
Advertising is only one of the marketing tools that are used to develop and manage brands. McBride and Mosher (1985) quote August Busch III, the then head of Anheuser-Busch brewing company, describing ‘total marketing’ where:
“Advertising is joined by sales promotion, merchandising, field sales, sales training and sports programming, enabling us to market not only on a national plane, but also at the grass roots level.”
(August Busch III, quoted in McBride and Mosher 1985, p143)
4.2 Other Forms of Marketing
The WHO Global Status Report on Alcohol and Young People (Jernigan 2001) emphasises the growing trend for marketing expenditure to shift away from traditional forms of direct advertising in the print and broadcast media (known as ‘above-the-line’ activity), to ‘below-the-line’ activity, such as sponsorship, competitions and special promotions. The report estimates that in 1993 in the US, around 75% of marketing expenditure went below-the-line.
This broad communications activity is just part of the overall marketing effort, which also uses new product development, packaging, pricing and distribution to deliver profitability through maximum consumer satisfaction. All these efforts coalesce in the brand and are increasingly informed by strategic vision. Marketers don’t just want to sell product, they want to build relationships.
The question for this review is whether or not this marketing activity influences the level and pattern of young people’s drinking.
New Product Development
Goldberg et al (1994) examined the introduction of the newly developed ‘wine coolers’ (highly sweetened pre-mixed alcoholic drinks) into the US market. Their sample of teenagers (aged from 12 to 18) and, in particular, the younger and female respondents, indicated that wine coolers were their drink of choice; both during initial onset of drinking behaviour and at the time the study took place.
In the UK, McKeganey et al (1996) surveyed school children in Dundee aged between 12 and 15 years. They found that by the age of 14, more than 50% of the sample had been drunk at least once and that ‘designer drinks’ (fruit flavoured wines and strong white ciders) were the products most likely to be linked to intoxication. Similar findings were reported in another UK study by Hughes et al (1997), who report that attitudes towards designer drinks varied with age, with popularity peaking before the age of 16. The drinks were felt to meet their needs for alcoholic strength, cheapness, appealing flavours and ease of consumption. The study also found consumption of these products to be associated with drunkenness and hazardous behaviour.
Barnard and Forsyth (1998) carried out a study to examine the popularity of another product innovation, ‘alcopops’ (sweetened alcoholic carbonates), amongst a sample of 14-15 year old Scottish schoolchildren. They found them to be popular, but not associated with drunkenness. This may reflect the higher price and lower alcohol content of ‘alcopops’ compared directly with designer drinks.
Romanus (2000) studied the impact of alcopops and sweet ciders on the Swedish youth market. These products came to Sweden in 1996 following Sweden’s membership of the European Union, when European Law forced the retailing monopoly, Systembolaget, to stock them. Data from two surveys of young Swedes indicates that the new products rapidly penetrated the youth market and partly accounted for an increase in consumption amongst 16 to 24 year olds. In addition, the surveys suggest that alcopops and sweet ciders had a big impact on younger children. They accounted for between a half and two thirds of the recorded increase in alcohol consumption by 15 to 16 year olds from 1996 to 1999, and contributed to an earlier age of onset of drinking amongst the youngest age groups surveyed (12-13 year olds).
Lastly, Jackson et al (2000) chart the development of product innovations in the UK alcohol market and demonstrate how two products are perfectly suited to the needs of distinct age groups within the youth market (including those underage). The article (like that of Brain 2000) also demonstrates how the alcohol industry has moved with changes in youth culture, introducing heavily branded products to meet the needs of fashion conscious young people and other products to compete directly with the market for illicit drugs. The websites of two similar products (Lava in the US: and Aftershock in the UK ) illustrate the point. The slogan for Lava is “Some shots have an afterglow. This one’s got an aftermath.”
In summary, research does suggest that new product development by the alcohol industry is having an impact on young people’s drinking. Drinks have been created which directly meet the needs of various segments of the youth market, and are very popular with them – sometimes more so than with adult drinkers. In addition, there is evidence that consumption of these products is associated with increased drunkenness and dangerous behaviour.
Price
A number of the econometric studies examining the effect of advertising on consumption have also examined the impact of price (Duffy 1983, Lee and Tremblay 1992, Calfee and Sheraga 1994, Saffer 1997). In the majority of cases, price was found to have a greater overall influence than advertising. Some studies have focussed specifically on the effect of pricing or price advertising, both on the population in general and young people specifically. Godrey (1997) reviews economic research on alcohol pricing and concludes that: “There is considerable evidence that prices affect both levels of consumption and problem rates” (p40). Similar conclusions are drawn in an earlier review by Österberg (1995).
Wilcox (1985) carried out an econometric study examining off-premise sales of beer following the introduction of restrictions on price advertising in Michigan. He found no significant effect. However his study suffers from the problems of similar studies discussed above, and, specifically, tells us little about the behaviour of young people.
Coate and Grossman (1988) offer a more valuable insight. Their study used data from a national health survey in the US to examine the impact of alcoholic beverage pricing on young people’s drinking. Their results indicated that the frequency of the consumption of beer among youths is inversely related to the real price of beer, and that the greatest effects are with heavier drinkers:
“..the fractions of youths who consume beer fairly frequently (one to three times a week) and frequently (four to seven times a week) fall more in absolute or percentage terms than the fraction of infrequent drinkers when price or the drinking age rises.”
(Coate and Grossman 1988, p170)
Lockhart et al (1993) conducted an anonymous survey of US high school students after federal excise taxes on alcohol were raised in 1991. Their findings suggest that higher alcohol prices could lead to lower alcohol consumption by young people. They also found that awareness of price increases rose as students’ involvement with alcohol increased. The authors also warn of the potential for substitution effects, where price increases would see young people switching to cheaper alternative products or brands. Such an effect was seen in the Swedish population, when in 1992 the national alcohol retail monopoly adjusted the taxes on alcohol in state retail stores, according to its absolute alcohol content. Consumers reacted to the change in prices by purchasing cheaper alternatives (Ponicki et al 1997).
In summary, research suggests that the pricing of alcoholic beverages is an important influence on young people’s drinking, both in terms of how much and what they consume. This is not particularly surprising given the fact that many young people have limited financial resources, and that the alcohol industry makes active use of this element of its marketing mix. Hughes et al’s (1997) study shows that young people value the cheapness of designer drinks, and ‘happy hours’ and special price promotions are becoming a frequent occurrence in bars and nightclubs popular with young people (Cooke et al 2001). Despite these concerns, policies to raise the price of alcohol predictably receive little public support (Hawks 1993).
The Drinking Venue
The drinking venue and its role in influencing drinking behaviours, particularly in terms of on-site promotional activity has been somewhat neglected in alcohol research (Mills 1987, Christie et al 2001). However, there are a number of studies from across the globe that have examined responsible beverage service (eg. Single and Tocher 1992, Hing and Molyneux 1997, Andréasson et al 2000), though they do not focus on young people in particular. In addition, McGuinness’ econometric study (1980) showed a strong link between the number of outlets and increased consumption.
Drinking in pubs and nightclubs is prevalent in many cultures. Concerns have been raised by some researchers about the nature and pervasiveness of certain types of bar promotions, such as “Beat the Clock” specials, “buy one get one free” happy hours, “any coin any drink”, “ladies nights” and “penny beers” (Erenberg and Hacker 1997, Christie et al 2001, Cooke et al 2001). In the United Kingdom, the National Association for the Care and Rehabilitation of Offenders (Nacro) recently spotlighted its concerns regarding the issues and problems connected with happy hours and associated drinks promotions in licensed premises. Representatives of Nacro stressed the opinion that such promotional activities lead to rapid drinking which can evolve into bouts of extreme binge drinking and, in the worst cases, violence (BBC news online, June 2001).
A two part study by Christie et al (2001) is the only published study to investigate the influence of bar-sponsored drinks promotions. Findings from this research suggest that such promotions will have an impact on consumers’ intentions, attitudes and alcohol consumption-related expectations, at both a personal and a broader level. The authors point out that predictably, the promoted lower alcohol prices tended to result in more positive attitudes and ultimately the belief that increased consumption would take place. These findings are important as they draw attention to an area of considerable concern, where further research is clearly needed.
Sponsorship
Commercial sponsorship has expanded greatly since the 1980’s, led by the tobacco industry, but with the alcohol industry in second place (Meenaghan 1991, Meerabeau et al 1991). As a result, alcohol sponsorship has become common across the world in all the key areas of youth culture: music, sport, dance, film and television (see Figure 1).
Figure 1: Examples of Alcohol Sponsorship Activity
|Company |Sponsored Event |Country |
|Athinaiki Zithopiia (Athenian Brewery S.A.) |Athens 2004 Olympic Games |Greece |
|Steinlager |All Blacks |New Zealand |
| |() | |
|Amstel |UEFA Champion’s League |Europe |
| |() | |
|McDowell brands |Football events and teams, and the Derby |India |
| |( |
| |) | |
|Bailey’s |‘Sex and the City’ |UK |
|Anheuser-Busch |Olympic Games and the United States’ three |USA |
| |Olympic Training Centres (Van Komen 2000) | |
|Smirnoff Vodka |Night-club events and linked radio shows which |Global |
| |are branded as ‘The Smirnoff Experience’ | |
| |() | |
Sponsorship brings a number of potential benefits to the sponsor. It can provide a means of avoiding regulation on above the line advertising (Meerabeau et al 1991). It is an inexpensive form of advertising which can easily reach favoured market segments (Jernigan 2001 points out that young men are both the keenest sports fans and the heaviest drinkers), and these consumers are less critical of it than traditional forms of advertising (Revke 2000). One reason for this, Meenaghan (1991) argues, is that consumers appreciate the benefits coming to the sponsored activity. Sponsorship of large international sports events also allows a company’s brand to cross borders into countries where alcohol marketing may be severely restricted or even banned.
However, perhaps the greatest benefit of sponsorship is that it allows manufacturers to establish the credentials of their product and endow it with an image of prestige, backed by association with powerful role models. Revke (2000) quotes the International Marketing Director for Ballentine’s Finest, talking about an event developed for that particular brand which involved extreme sports combined with music concerts involving famous international bands and DJs:
“We know the youth of today are inspired by music, sport and modern technology and with the Ballantine’s Urban Highs we are able to offer them an event which appeals to them at all these levels.”
(Richard Glowar, quoted in Revke 2000, p44)
Research on the effects of sponsorship is limited, and much more is needed. The findings of one study (which did not focus specifically on alcohol), suggest that sponsorship produces higher levels of awareness than advertising amongst both users and non-users of the brand being examined, however this increased awareness alone did not produce a trial or an increased rate of consumption (Hoek et al 1997). Work in New Zealand has examined the response of boys aged 9 -14 (Wyllie et al 1989) and young men aged 15 - 30 (Wyllie et al 1991) to a pair of alcohol advertisements, one of which portrayed Steinlager’s sponsorship of the All Blacks rugby team. For the sample of boys, association of the sports sponsorship advertisement with alcohol was lower than that for the second advert, a corporate advertisement. The findings did however show that the All Blacks were clearly heroes of the young participants, and that this linked the ad with the desirable tough and masculine image that forms a dominant part of the traditional male identity in New Zealand.
New Media
In the developed world, young people are the biggest users of the internet and advancing mobile phone technology (Marketing Week 1998). In addition, they are well aware of the latest developments and are attracted to the new and innovative (New Media Age 1998). In this way, new technology has not only been enthusiastically adopted by individuals, but also become a part of the shared experience of youth culture. The alcohol industry has been quick to grasp the resulting marketing opportunity.
Sophisticated web sites have been created by drinks companies all over the world for their popular brands; including Bacardi, Guinness, Budweiser, Castle, Stolichnaya, Amstel and Smirnoff. These use the latest technology to produce interactive arenas with impressive graphics and eye-catching animation. Two points are immediately apparent to anyone who visits these sites: firstly, their sophistication suggests that a great deal of money has been spent on their development; secondly their content is designed to tap into key aspects of youth culture. Computer games; competitions; profiles of forthcoming sponsored events such as parties, fashion shows and sporting contests and e-cards are all common features. Visitors to sites can also sign up for newsletters (which give details of competitions, promotions and updated features on the web sites, such as new games) allowing the companies to amass data bases of those who visit their sites. Figure 2 gives an illustration of how Budweiser harnessed both new media and their customer data base in their ‘Whassup?!’ campaign.
Figure 2
| |
|Budweiser’s Whassup?! campaign is an example of what new media can achieve. Budweiser used a database of mobile phone numbers of customers|
|in its key target market and text messaged them with details of its latest TV advertisement. After the advert was shown, Budweiser then |
|text messaged the advert’s catchphrase “Whassup” to each of the phones hoping that this would then be passed on by the receivers to their |
|friends (Precision Marketing 2000). This campaign was fully supported on the Internet where a web site offered a variety of interactive |
|activities, including further opportunities to forward the catchphrase and messages from the adverts' featured characters to friends using |
|email and mobile phone text messages (SMS) (this technique is known as viral marketing[1] and involves the consumer spreading the message |
|on behalf of the company). The whole campaign was a phenomenal success and the core catchphrase has been adopted into the popular slang of |
|many languages (Chowdri 2001). This example highlights the fact that something which is in essence very simple can be extremely appealing |
|and catchy. |
There is some evidence from the writings of marketing practitioners that campaigns such as Whassup?! have been a phenomenal success, however, there is currently little independent research examining the usage and impact of these new marketing activities on drinking behaviours and beliefs, particularly amongst the young.
The Center for Media Education (1998), a US non-profit organisation, has monitored and analysed the content of corporate alcohol sites on the Internet. Of the 77 sites examined, 62% contained content which the researchers believed would be appealing to youth (eg. cartoons, personalities, music, contests, interactive games and chat rooms). The authors of the report point out that high volumes and combinations of such content can encourage children and young people to stay on a site for long periods of time and to return frequently. This is one way in which the alcohol companies can build a relationship with young consumers and potential consumers. Indeed at an eBeverage Conference in New York the programme for industry executives included:
“Creating compelling website content to enhance customers’ online experience.”
“Leveraging the Internet to optimize business to business-to-business and customer relationships.”
(Glaser 2001, On-line article)
Furthermore, website controls are virtually non-existent, and although most declare that the user must be of legal drinking age it is unlikely to be a serious deterrent (Cooke et al 2001) and regulation of all new media is likely to be extremely difficult (Abramson 1995).
There is clearly a need for far more research in this area.
What conclusions can be drawn about other forms of marketing?
Marketing is much more than advertising, and this section has examined the impact of five other marketing tools (new product development, pricing, distribution, sponsorship and new media campaigns) on young people’s drinking. The evidence base is even less well developed than for advertising, but there are worrying signs. For example, new product development has been linked with increased and more problematic underage drinking; price promotions have the potential to increase consumption and new media are extremely attractive to the young but are currently the subject of minimal regulation. The concern increases when it is noted that these techniques are not used in isolation, but as part of an integrated mix, which includes conventional advertising, and is carefully designed and targeted to meet the needs of particular customer groups. It is clear from a number of the studies that young people are a prime such group.
4.3 Developing and Transitional Countries
Introduction
The previous sections have focussed on alcohol marketing in the developed world. This, however, reflects a lack of systematic research and monitoring in developing and transitional nations, not an absence of alcohol marketing. In reality, these economies do offer significant commercial opportunities and descriptive data is available to show that techniques such as advertising, sponsorship and the new media are being actively used by alcohol companies to exploit them. Aitken (1989b) draws attention to increasing alcohol consumption in a number of developing countries, coupled with the key concern that sectors of the population who previously did not drink (in particular women and young people) are beginning to do so. There is clearly a need for research to examine whether the marketing activities described below are in any way linked to these changing consumption patterns.
Important Markets for the Alcohol Industry
Increasing competition in Western nations has led the alcohol industry to seek markets elsewhere (Simpura 1995). A number of factors make the markets of the developing and transitional nations attractive. The countries in Eastern Europe have existing drinking patterns and cultural traditions oriented towards fairly high levels of alcohol consumption on a par with many western European nations (Simpura 1995). Many of the developing nations have far younger populations than their Western counterparts - in Zimbabwe for example, almost half the population is under the age of 15 (Jernigan 1997) – and as noted earlier young males are typically the most enthusiastic consumers of alcohol. Finally, the sheer size of the populations in countries like China and India make them extremely attractive, particularly, as the tobacco industry has shown, because they are very susceptible to western products, images and lifestyles.
Prevalence of Alcohol Marketing
Advertising
In Africa, breweries tend to be extremely powerful, controlling considerable wealth and influence. These resources have been used to target advertising campaigns at the youth market, some of which contain false information, such as claims about the health benefits of alcohol (Gureje 2000). Gureje points out that though the effects of drinking by young Africans have not yet been adequately studied, there is little doubt that alcohol consumption is a significant contributor to the high incidence of accidental death. Jernigan (1997) also draws attention to advertising for a particular brand of beer in Zimbabwe which subtly highlights the strength of the product.
In Russia, spirits advertising is banned, but beer (not considered by law to be an alcoholic drink) is advertised freely in all media (Rybak and Temkin 2000). The Russian beer market continues to grow rapidly, and global companies are ensuring that they gain a foothold. Heineken, for example, has just acquired Russia’s fourth largest brewer, Bravo International (just- 2002). In Poland, all advertising of alcohol was banned in 1985, however, since 1989 alcohol advertisements have been prolific both in the streets and in the press (Świaţkiewicz 1997). Kompania Piworska (one of the largest corporations in the Polish beer industry) produced a report on the marketing of alcoholic beverages to the youth market. The concluding remark on this report is that there is no clear evidence that there is a link between advertising and increases in alcohol consumption (kp.pl).
In Asia, the industry exploits traditional festivals, makes blatant use of sexual overtones in alcohol advertising by turning women into sex objects, and in some cases actively promotes heavy drinking (Assunta 2000).
“A Tuborg beer print advert had a man boasting how in one night he had 7 gins, 6 brandys, one AK-47, one Tombstone and two shots of whisky.”
(Assunta 2000, p22)
Very few countries in Latin America have regulatory frameworks to address the issue of alcohol advertising. Costa Rica and Venezuela are two countries with specific legislation, nonetheless, alcohol advertising dominates Costa Rica’s mass media (Dixon 2000).
New Product Development
In Mexico estimates have been made that around 11% of the urban population aged 12 – 18 years consume products such as wine coolers, prepared cocktails and canned mixtures of rum and coca-cola (Medina-Mora et al 2001). New product development also features in Asia, with Western brands such as Hooch and Two Dogs entering the market, alongside local creations such as India’s UB Group’s malt-based cola flavoured “Spike” (Assunta 2000).
In Poland, two brands of flavoured coolers (lemon and cola) and fruit-flavoured Redd’s beer have recently been introduced to the market. The coolers are sold in cans like soft drinks and it is not immediately apparent that they contain beer. Although they are not overtly targeted at the young, their marketing strategy does suggest this is the intended target, particularly as they are promoted on television by Cezary Pazura, a popular actor among young people (Cooke et al 2001 from information provided by Jacek Moskalewicz and Katarzyna Dąbrowska).
Sponsorship
In 2001 the Polish company Kompania Piworska initiated and took part in a campaign entitled “Don’t sell alcohol to teenagers” collaborating with the local police and local government in Poznan, arguing that a key problem in Poland is the lack of rigorous control of young people’s access to alcohol. Nonetheless, the company’s brands have been the proud sponsors of the Polish National Olympic Team (for Sydney 2000), the Polish National Football Team and Ice-hockey events (kp.pl).
In Africa, beer companies also sponsor popular sports, in an attempt to further glamourise alcohol consumption in the eyes of young people (Gureje 2000). In Asia, sponsorship is a common means of introducing brand names to young people, with sports, films and rock concerts all being targets (Assunta 2000). Similar patterns can be found in Russia, with the country’s biggest beer brand Baltika (baltika.ru) sponsoring a wide range of sporting activities, as well as having a long standing relationship with the popular radio station – Radio Baltika.
Budweiser recently announced it’s sponsorship of Manchester United Football Club, a deal which its vice president of global media and sports marketing says will:
“Allow us to promote our brand to millions of Manchester United fans in dozens of international markets across Europe, Asia and Latin America.”
(Tony Ponturo - Dec 21st, 2001
)
New Media
New media are also being exploited. The Asian alcohol market has colourful websites such as Bacardi’s “Bat Club” in India and Carlsberg Malaysia (Jernigan 1997) which encourages users to sign up and become ‘Carlsberg Clubbers’. The latter promotion blatantly aims to increase consumption:
“You'll be treated to nights of surprises and mystery gifts. Come up to our parties as we move around the coolest, hippest hangouts in town.
Heaps of goodies await you at each party especially if you are a Carlsberg Clubber. Privileges include an opportunity to top up Carlsberg points with every beer purchase when you party with us. The more Carlsberg you enjoy, the more points you get. Membership does have its privileges!
At the same time, the Carlsberg Glam Girls will be moving around in our parties to take photos of you and your mates chilling out. These photos will be posted for our Challenge where you'll stand a chance to be our weekly winners and be rewarded with more Carlsberg points!
So what are you waiting for? Let's get rolling with the happening people who will show you a good time!”
(Text lifted from Carlsberg Malaysia website,
on 7/02/2002)
The use of new technology also extends to mobile phones, with one Indian site offering to send consumers updates of bar promotions to their WAP enabled mobiles ().
Simple observation suggests that websites for Eastern European and some African based brands focus on the quality of the brand and the history of the company, rather than imagery with an obvious appeal to the young (eg. baltika.ru ).
What conclusions can be drawn about developing and transitional countries?
The marketing techniques which have raised concerns in the West, and in some cases been shown by research to have a negative impact on young people, are clearly evident in developing and transitional nations. Their impact in these markets is likely to be increased by a lack of regulation, their disproportionately young populations and the allure of Western imagery and products.
There is currently no systematic research to allay or confirm these concerns; such work is clearly needed.
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[1] “Viral marketing describes any strategy that encourages individuals to pass on a marketing message to others, creating the potential for exponential growth in the message's exposure and influence.” Dr Ralph F. Wilson, E-Commerce Consultant, Web Marketing Today, Issue 70, February 1, 2000
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