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___________________________________________________________________________
2016/SOM3/CTI/SEM/004
Jointly Promoting Advertising Self-Regulation in China
Submitted by: Mars
Seminar on Sharing Good Practices and Experiences on Advertising Self-Regulation
Among APEC Economies Lima, Peru
22-23 August 2016
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Judy Zhang
Jointly Promoting Advertising Self-Regulation in China
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Content
Overview of self-regulation in Asia and China
Leading food company with a unique DNA
Driving responsible advertising in China
8/23/2016
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Overview of self-regulation in Asia
• Asia is not homogenous, spanning from Istanbul to Tokyo, Siberia to Port Moresby• Advertising standards look very different across the continent: no one-size-fits-all• An increasing interest in self regulatory and co-regulatory industry-led advertising
standards
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
The status of self-regulation in Asia
Most advanced systems of advertising standards
Developing systems of advertising standards
Limited industry involvement in advertising standards
Advertising Standards Council of India (ASCI)
Japan Advertising Review Organization (JARO)
Advertising Standards Council of the Philippines
Advertising Standards Advisory of Malaysia
Advertising Standards Authority of Singapore
Updated Advertising Law encourages industry self-
regulation
Advertising Association runs a Board of Ethics to set common standards
Mandate from Law on Advertising 2012 to develop an
Advertising Appraisal Council and an industry code of conduct
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
•India: The Advertising Standards Council of India (ASCI) is recognised by law and has MoU’s with government agencies. It has been the first port of call to deal with consumer/competitor complaints since 1985.
•The Philippines: The Advertising Standards Council of the Philippines is a highly respected body and has pre-screened ad copy for over 30 years.
•Malaysia: The Advertising Standards Advisory of Malaysia was established in 1977.
•Singapore: The Advertising Standards Authority of Singapore is an advisory council under the auspices of the Consumers Association (CASE).
•Japan: The Japan Advertising Review Organization (JARO) handles complaints and inquiries from consumers, competitors and other sectors and was founded in 1974.
More developed systems of ad standards
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
•China: 2015 advertising law encourages the development of industry self-regulation.
•Vietnam: Law on Advertising from 2012 mandates the development of an Advertising Appraisal Council and an industry code of conduct.
•Thailand: Advertising Association of Thailand runs a Board of Ethics to set common standards.
Developing systems of in Asia
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
•Cambodia•Indonesia•Laos•Pakistan•South Korea•Sri Lanka•Taiwan•Etc.
Nascent systems/limited industry involvement in ad standards
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Case Study: China
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The ‘New Normal’ & Rule of Law
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From high speed growth to a medium-to-high one From quantity and speed to quality and efficiency From investment driven to innovation driven Create a business environment that is international, market-oriented and ruled by law
Changing and complicated regulatory environment
Since 2014, Over 300 newly-issued or amended laws, regulations and rules like the Consumer Right Protection Law, Advertising Law and Food Safety Law.
Rule of Law
The New Normal
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Amendment Journey of Advertising Law
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1994 2009 2014 2015
The Advertising Lawwas issued by President of China, taking effect in 1995
The Draft Amendment was drafted by SAIC and submitted to the Sate Council
1st & 2nd Review of the Draft Amendment by NPC
3rd Review by NPC and issued by President of China, taking effect on September 1st , 2015
SAIC: State Administration for Industry & Commerce
NPC: National People’s Congress
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Comprehensive Advertising Regulation System in China
Advertising Law
FoodAdvertising Regulation
OnlineAdvertising Regulation
Medical Apparatus Advertising Regulation
Medical Treatment Advertising Regulation
MedicineAdvertising Regulation
Veterinary Drug
Advertising Regulation
Agricultural Chemical
Advertising Regulation
Real Estate Advertising Regulation
Advertising Language Regulation
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
The enforcement – by AICs
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SAIC
Provincial AICs
City-level AICs
County-level AICs
Lower-level AIC Stations
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China’s new Advertising Law calls for industry self-regulation
Article 7Advertising industry organizations shall, inaccordance with the provisions of the laws,regulations and associations’ charters,formulate industry standards, strengthenindustry self-regulation, promote theadvertising industry development, andguide their members to engage in advertisingactivities in accordance with the law and boostthe ethical integrity of the industry
- CHINA’S ADVERTISING LAW
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Regulation Self-regulation
Government supervision and industry self-regulation in China
Lower-level AIC Stations
County-level AICs
City-level AICs
Provincial & Municipal AICs
SAIC
SAIC: State Administration for Industry and CommerceAIC: Administration for Industry and Commerce
China Advertising Association (CAA)
China Association of National Advertisers (CANA)
International Chamber of Commerce China (ICC China)
Advertising in China
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
• ICC China Marketing & Advertising Committee
• CANA’s Responsible Marketing Committee
• APEC Advertising Standards Forum
• Global Advertisers Week Responsible Marketing Declaration
Industry efforts in advocating and promoting self-regulation
2016
2015
2014
2011
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Content
Overview of self-regulation in Asia and China
Leading food company with a unique DNA
Driving responsible advertising in China
8/23/2016
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Leading Food Company with Unique DNA
“The company’s objective is the
manufacture and distribution of food
products in such manner as to promote a
mutuality of services and benefits among all
stakeholders.”
– Forrest E. Mars, Sr. 1947
Our Founding Principles
We put our Five Principles into action in our
interactions and operations –generating genuine, mutual
benefits for people, pets and the planet
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Our Responsible Marketing Core Principles
Launched in 2007, the Global Mars Marketing Code for Food, Chocolate, Confections and Gum led global advocacy and commitment • Children under 12 should not
be marketed to
• Gatekeepers are central to our approach to responsible marketing
• We shall support consumers to make informed choices about our products and their lifestyles
• We do not use nutrition criteria to guide our marketing across media channels
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
MMC Training and Governance at Mars
All Mars associates understand and implement MMC• Add MMC as Mars New associates essential training content• Integrate MMC training in Mars functional colleague training
• 100% MMC license acquirement for all marketing associates• 100% MMC license acquirement for all communication and media agencies
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These are some of the areas where we have led the industry in responsible marketing
Mars Marketing Code
In 2007, we were the first to not advertise in media where >25% of the audience are children under 12 years old.
We have reduced saturated fat in our portfolio and are setting new targets for further reduction.
SaFa Reduction250 kcal per portionIn 2010, we committed to only develop single serving sizes of less than 250 kcal.
We are the first company to commit to using GDA labelling on our food and confectionary products (excluding gum) worldwide.
GDA Labelling
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Mars Marketing Code - long history with track record
2007200720002000 20132013 2014201420122012
Mars actively involved in trade
associations, creating robust self-regulatory
approaches
First company to launch a marketing code and lead the
industry in not marketing to children < 12
Received an A-rating by the CSPI for not marketing to
children
Our ATNI rating
significantly driven by the
Code
Launched code’s third iteration -industry leading
positions
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Content
Overview of self-regulation in Asia and China
Leading food company with a unique DNA
Driving responsible advertising in China
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
One of the biggest corporations in China
Wrigley
ChocolateDrinks
Petcare
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© COPYRIGHT 2011 MARS INCORPORATED | CONFIDENTIAL
Driving responsible advertising in China
True, legal and ethical
Pursues the concept of harmonious development of people, nature, economy and society
Benefits the company in terms of brand building, market penetration, and perceived innovation
Sculpts positive corporate image, strengthens corporate reputation and market competitiveness
© COPYRIGHT 2014 MARS INCORPORATED | CONFIDENTIAL
Mars public footprint in China
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2008200819901990 2016201620102010
China Development ForumBeijing Asian Games Expo 2010 ShanghaiBeijing Olympic Games
20142014
Boao Forum For Asia
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Marketing responsibly to consumers in China
100% of Mars
related brands in China have GDA labelling
99.8% of our chocolate or
confectionary products met the 250 calories per
portion
25% sodium
reduction from
2007-2012
100% of Mars brands
in China compliant with 25% threshold
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
Environmental protection logo displayed on all packaging of Wrigley gum products28
High standards in Mars products
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Jointly driving a responsible advertising environment
Commitment to Consumers and SocietyProvide safe and quality products with innovation
Commitment to Consumers and SocietyProvide safe and quality products with innovation
Drive Industry Growth and promote industry development thru responsible advertising
Drive Industry Growth and promote industry development thru responsible advertising
Work with Government and Associations to advance advertising environment
Work with Government and Associations to advance advertising environment
Responsibility Mutuality Freedom
© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL30
How can you support us?
Please join us on 22 October 2016 in Hainan for the International Seminar on Responsible Advertising with
a launch of an industry pledge on advertising self-regulation during the China Advertising Festival
Boosting international good practice sharing on responsible advertising to support self-regulation environment building in China
8/23/2016
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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL
THANK YOU