Marketing unhealthy brands–an analysis of SKU pricing, pack size and promotion strategies that increase harmful product consumption

Abstract

Unhealthy product marketing drives non-communicable disease, and more research into the strategies that increase unhealthy product consumption is essential to improve regulation and disease prevention. This study’s retail audits captured point-of-sale stock-keeping unit (SKU) price, pack and promotional details for leading brands across unhealthy product categories, including high-sugar junk food and drinks, alcohol, and tobacco, as well as a comparison sample of non-harmful products. Analysis and per-unit price-promotion differences across SKUs identified commonalities in unhealthy product brand strategies including dynamic price promotion and volume discounting, which was more prevalent for unhealthy compared with non-harmful brands. Interpreting findings in relation to consumer psychology and marketing theory exposed a widespread strategy specifically designed to encourage heightened consumption by punishing smaller SKU purchases with significantly higher per-unit prices, while rewarding larger SKU purchase with lower prices. Policy recommendations, including controlling unregulated price-promotion variables, are discussed along with this study's limitations and future research directions.