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ELIANA CORDOVA • Rachel Fisher Michael Nebgen • Madison Totten

Dive into the strategic marketing plan for ChapStick aiming to boost market share among natural lip care products by targeting married women with children and adults aged 18-34. The media objectives involve encouraging trial among new customers and raising product awareness within the target demographic. The plan includes utilizing TV, print, digital, and local media channels based on audience data insights and consumption habits.

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ELIANA CORDOVA • Rachel Fisher Michael Nebgen • Madison Totten

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  1. ELIANA CORDOVA • Rachel Fisher Michael Nebgen • Madison Totten

  2. Who Is ChapStick? • 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

  3. Lip Care Competition • Lip balm/cold medications • Abreva - $56 million • Burt’s Bees - $17.6 million • Carmex - $15 million • Blistex - $13.3 million • ChapStick - $11.2 million • ChapStick Classic - $9.6 million • ChapStick Lip Moisturizer - $6.3 million 3

  4. Recent marketing efforts • R/GA – “Interpublic Group digital agency that’s the gold standard of interactive shops.” • Nike, Verizon, Nokia, Taco Bell, Walmart, MasterCard, Pepsi & ChapStick • Dear Mr. President, Examples6 • ChapStick All Natural released 2 months after Eco Lips products in 2003 7 • 2002: SPF-35 targeting 18-30, turned to mobile marketing agency 12snap 8

  5. Current ChapStickConsumers • County Size: 29.6% live in County Size B • Marital Status: 55% of ChapStick users are married • Age: 18% of people 18-24 use ChapStick & are 23% more likely to buy. 21% of the product’s users are between 35-44 • 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 $75-150K

  6. Current ChapStickConsumers

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

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

  9. 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

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

  11. 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 ChapStick sales (Oct.-Mar.) • Highlight the Ultra line in stepping schedule to widen customer base & feature products in the brand family

  12. Flowchart

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

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

  15. Print Consideration Set • National Magazines: Large Circulation

  16. 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 %)

  17. Digital Consideration Set • Social Media -Facebook -Twitter

  18. 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 purchase1 • 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 purchase2 1-2 AdenHepburn, 2010

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

  20. 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)

  21. Rationale • Based on MRI data, the media mix chosen will ensure our current customer will be likely to interact with our ChapStick message. • Using digital platforms and unique local media, ChapStick 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

  22. Metrics & Measurement Thank YOU. • 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

  23. References 1. Hepburn, Aden (2010). Infographic: Facebook vs Twitter Demographics. Retrieved from http://www.digitalbuzzblog.com/infographic-facebook-vs-twitter-demographics-2010-2011/ 2. Mintel Oxygen Reports (2009). Retrieved fhttp://www.mintel.com/press-centre/press-releases/343/what-women-want-mintel-identifies-which-beauty-products-women-wont-trade-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, 25-26. 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. ChapStick sheds dated image with SMS campaign. (2002). Marketing, (00253650), 30. Retrieved from EBSCOhost.

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