Additional Marketing Responses to a Tax on Sugar-Sweetened Beverages; Comment on “Understanding Marketing Responses to a Tax on Sugary Drinks: A Qualitative Interview Study in the United Kingdom, 2019”

Document Type : Commentary

Authors

1 Monash Business School, Monash University, Caulfield East, VIC, Australia

2 The University of Sydney Business School, The University of Sydney, Sydney, NSW, Australia

3 School of Public Health, University of Queensland, Herston, QLD, Australia

Abstract

Marketing responses to sugar-sweetened beverage (SSB) taxes are understudied in the literature. Previous research has been limited to examining price and advertising, in particular promotions responses. Forde et al advocate for a focus on exploring a range of marketing responses to a SSB tax, with an emphasis on the marketing mix (price, promotion, product, and place). Their qualitative findings from the United Kingdom focus mostly on possible product and price decisions, with limited discussion of place and promotions decisions. We argue that the proposed marketing mix decisions may be used to avoid or side-step a SSB tax and that their likelihood of adoption may be dependent upon additional factors besides brand strength, reputation, and portfolio size highlighted by Forde and colleagues, such as organizational capabilities, industry competition, and brand positioning. We recommend future research examine the importance of consumer behaviour in developing marketing programs and in response to the marketing mix levers pulled by industry.

Keywords


  1. Forde H, Penney TL, White M, Levy L, Greaves F, Adams J. Understanding marketing responses to a tax on sugary drinks: a qualitative interview study in the United Kingdom, 2019. Int J Health Policy Manag. 2022. doi:34172/ijhpm.2022.5465
  2. Euromonitor International. Global Soft Drinks in 2022: Alternative Approaches to Sugar Reduction. https://www.euromonitor.com/global-soft-drinks-in-2022-alternative-approaches-to-sugar-reduction/report. Accessed August 18, 2022. Published 2022.
  3. Euromonitor International. Soft Drinks in the United Kingdom. https://www.euromonitor.com/soft-drinks-in-the-united-kingdom/report. Accessed August 8, 2022. Published 2021.
  4. Schindler RM. The real lesson of new coke: the value of focus groups for predicting the effects of social influence. Mark Res. 1992;4(4):22.
  5. Lacy-Nichols J, Scrinis G, Carey R. The evolution of Coca-Cola Australia’s soft drink reformulation strategy 2003-2017: a thematic analysis of corporate documents. Food Policy. 2020;90:101793. doi:1016/j.foodpol.2019.101793
  6. Euromonitor International. Soft Drinks Packaging in the United Kingdom. https://www.euromonitor.com/soft-drinks-packaging-in-the-united-kingdom/report. Accessed August 8, 2022. Published 2022.
  7. Stacey N, Mudara C, Ng SW, van Walbeek C, Hofman K, Edoka I. Sugar-based beverage taxes and beverage prices: evidence from South Africa's Health Promotion Levy. Soc Sci Med. 2019;238:112465. doi:1016/j.socscimed.2019.112465
  8. Kotler P. Marketing Management. 11th ed. Upper Saddle River: Prentice-Hall; 2003.
  9. Crawford CM. A new positioning typology. J Prod Innov Manage. 1985;2(4):243-253. doi:1111/1540-5885.240243
  10. Keller KL. Conceptualizing, measuring, and managing customer-based brand equity. J Mark. 1993;57(1):1-22. doi:1177/002224299305700101
  11. Kotler P, Burton S, Deans K, Brown L, Armstrong G. Marketing. 9th ed. Frenches Forest, Australia: Pearson; 2013.
  12. Cawley J, Frisvold D, Hill A, Jones D. The impact of the Philadelphia beverage tax on purchases and consumption by adults and children. J Health Econ. 2019;67:102225. doi:1016/j.jhealeco.2019.102225
  13. Skafida V, Chambers S. Positive association between sugar consumption and dental decay prevalence independent of oral hygiene in pre-school children: a longitudinal prospective study. J Public Health (Oxf). 2018;40(3):e275-e283. doi:1093/pubmed/fdx184
  14. Valizadeh P, Ng SW. Would a national sugar-sweetened beverage tax in the United States be well targeted? Am J Agric Econ. 2021;103(3):961-986. doi:1111/ajae.12190
  15. Dillard JP, Kim J, Li SS. Anti-sugar-sweetened beverage messages elicit reactance: effects on attitudes and policy preferences. J Health Commun. 2018;23(8):703-711. doi:1080/10810730.2018.1511012