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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

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Lip balm/cold medications1. Abreva - $56 million2. Burt’s Bees - $17.6 million3. Carmex - $15 million4. Blistex - $13.3 million5. ChapStick - $11.2 million

1. ChapStick Classic - $9.6 million2. ChapStick Lip Moisturizer - $6.3 million 3

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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, Examples 6

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

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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

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

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

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

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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)

91-Mintel Oxygen Reports, 2009

Pursue an offensive strategy encouraging trial among new customers

Increase awareness of the product family among

new and current customers

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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

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Network Prime Time (:30)

Cable (:30)

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78% of our Strategic Target watch Cable TV

Programming-37% watch ABC-37% watch TBS-36% watch MTV-34% watch Food Network

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National Magazines: Large Circulation

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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 %)

Social Media-Facebook -Twitter

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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 Aden Hepburn, 2010

FM Radio

Local Newspapers

Geo Targeted Magazines

OOH: Transit

OOH: Billboard

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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)

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

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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

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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.