1 Who Is Chap Stick Owned by

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Who Is Chap. Stick? Owned by Pfizer, the #1 global pharmaceutical company Lip treatment market valued at $534 million Market experiences seasonal spikes between October & March 89% of women and 47% of men use lip balm, women may own up to 5 lip care products (using each for a different purpose) 3, 4, 5 2

Lip Care Competition Lip balm/cold medications 1. 2. 3. 4. 5. Abreva - $56 million Burt’s Bees - $17. 6 million Carmex - $15 million Blistex - $13. 3 million Chap. Stick - $11. 2 million 1. Chap. Stick Classic - $9. 6 million 2. Chap. Stick Lip Moisturizer - $6. 3 million 3 3

Recent marketing efforts R/GA – “Interpublic Group digital agency that’s the gold standard of interactive shops. ” ◦ Nike, Verizon, Nokia, Taco Bell, Walmart, Master. Card, Pepsi & Chap. Stick Dear Mr. President, Examples Chap. Stick All Natural released 2 months after Eco Lips products in 2003 2002: SPF-35 targeting 18 -30, turned to mobile marketing agency 12 snap 6 7 8 4

Current Chap. Stick Consumers Education: 44% did not attend college. 15. 7% of college graduates use the product & are 5% more likely to buy the product Children: 69% of users have children younger than 17 Household Income: 29. 8% of users have income of $75 -150 K County Size: Marital Status: Age: in County Size B 29. 6% live 55% of Chap. Stick users are married 18% of people 18 -24 use Chap. Stick & are 23% more likely to buy. 21% of the product’s users are between 35 -44 5

Current Chap. Stick Consumers 6

Business Objective Increase market share by 10% among natural lip care products. 7

Strategic Target Married women with children Adults 18 -34 HH income in the range of $75 -150 K 8

Target Insight & Connections Idea A mom’s life is always on the go, with tons of jobs to be done. She still wants to pamper herself and not take all day or spend lots of money to do it. “Many women have a deep emotional tie to their appearance, so cosmetics are a non-negotiable. These women may trade down on other purchases or forgo expensive vacations, but they will still treat themselves to small, feel-good luxuries like make-up and beauty products. ” 1 Product assortment Price Convenience (availability of product) 1 -Mintel Oxygen Reports, 2009 9

Media Objectives Pursue an offensive strategy encouraging trial among new customers Increase awareness of the product family among new and current customers 10

Media Strategies Point out competition in media with opportunities for expanding into a new customer base ◦ Lipstick ◦ Lip gloss ◦ Lip balms Pulsing media calendar with peaks coinciding with peak Chap. Stick sales (Oct. -Mar. ) Highlight the Ultra line in stepping schedule to widen customer base & feature products in the brand family 11

Flowchart 12

Television Consideration Set Network Prime Time (: 30) Cable (: 30) 13

Based On MRI: 78% of our Strategic Target watch Cable TV Programming -37% -36% -34% watch ABC TBS MTV Food Network 14

Print Consideration Set National Magazines: Large Circulation 15

Based On MRI: Criteria Weight: Circulation, Coverage, Frequency, Clutter and Subscription % Publications -Better Homes and Gardens (Circulation over 7 million) -Reader’s Digest (97% Subscription %) -People Magazine (High frequency: weekly publication) -Good Housekeeping (Low clutter w/ 92% subscription %) 16

Digital Consideration Set Social Media -Facebook -Twitter 17

Based On 2010 Research Of the 500 million total Facebook users women make up 54% 52% of Facebook users are within the 18 -34 age bracket 51% follow a brand on Facebook that they will purchase 1 Of the 106 million Twitter users women make up 52% 43% of Twitter users are within the 18 -34 age bracket 61% follow a brand on Twitter that they will purchase 2 1 -2 Aden Hepburn, 2010 18

Local Media Consideration Set FM Radio Local Newspapers Geo Targeted Magazines OOH: Transit OOH: Billboard 19

Based On MRI: Our Strategic Target is most likely to listen to the radio: ◦ On Weekdays between 3 p. m. - 7 p. m. ◦ On Weekends between 10 a. m. – 3 p. m. This group has a media quintile index of 135 in which they are considered as medium-light users of newspapers (pick up and read the newspaper a few of times throughout the week) This group has an media quintile index of 108 in Outdoor in which they are heavy consumers ◦ (OOH billboards and transit should reach this group successfully) 20

Rationale Based on MRI data, the media mix chosen will ensure our current customer will be likely to interact with our Chap. Stick message. Using digital platforms and unique local media, Chap. Stick can influence WOM and impulse purchases Choosing to pursue a staggered schedule for both local and national campaigns should result in greater reach among our target 21

Metrics & Measurement Sales figures Interaction on digital platforms Stronger presence in social media Impressions Magazine insert redemption Web traffic & online sample requests Surveys in locally targeted markets pre- and post-campaign 22

References 1. Hepburn, Aden (2010). Infographic: Facebook vs Twitter Demographics. Retrieved from http: //www. digitalbuzzblog. com/infographic-facebook-vs-twitter-demographics-20102011/ 2. Mintel Oxygen Reports (2009). Retrieved fhttp: //www. mintel. com/press-centre/pressreleases/343/what-women-want-mintel-identifies-which-beauty-products-women-wonttrade-down-onrom 3. Lip Service for Manly Men. (2010). WWD: Women’s Wear Daily, 200(11), 8 -1. Retrieved from EBSCOhost. 4. Johnsen, M. (2007, July 23). Natural lines add higher rings to lip care. Drug Store News, 2526. Retrieved from EBSCOhost. 5. Johnsen, M. (2009, November 16). Focus on beauty helps lip balms shimmer on shelf. Drug Store News, 27 -28. Retrieved from EBSCOhost. 6. Morrissey, B. (2010). R/GA. Brandweek, 51(4), 24 -30. Retrieved from EBSCOhost. 7. Tarnowski, J. (2004). Nature’s lip service. Progressive Grocer, 83(3), 54. Retrieved from EBSCOhost. 8. Chap. Stick sheds dated image with SMS campaign. (2002). Marketing, (00253650), 30. Retrieved from EBSCOhost. 23