Advertising Campaign for ChapStick

121 Carnegie Building
University Park, PA16803
508-898-9885
www.mbarkoncreative.com
Mr. Charles Mohs
Chief Marketing Officer
Pfizer Consumer Healthcare
235 East 42nd Street
New York, NY 10017
April 30, 2012
Dear Mr. Mohs:
Thank you for entrusting Mbark Creative Solutions with the new campaign for
ChapStick. We are excited to work with you and to take your celebrated brand in a
new creative direction.
Enclosed, you will find complete recommendations for the ChapStick campaign. It
includes: a situation analysis, discussion of the target audience, recommended
campaign goals, a media plan, and complete creative executions. Statistical
analyses supporting the recommendations can be found in the appendices.
If you have any questions or concerns, please contact me directly by email:
[email protected]. Everyone at Mbark Creative Solutions is
eager to embark on this exciting campaign, and we hope to hear from you soon.
Sincerely,
Richard Robinson
Senior Account Manager
Table of Contents
3…… Executive Summary
4…… Introduction and Product
Overview
4…… Situation Analysis
Company Analysis
Brand Analysis
Competitive Analysis
Market Analysis
10…..Target Audience
Current Observations
Target Audience
Recommendation
Summary of Secondary
Research
12….. SWOT
13….. Primary Research
Overview
Primary Research
Problems: Target Audience
Opportunities: Target
Audience
18….. Campaign Objectives
Marketing Goals
Communication Goals
Campaign Budget
20….. Recommended Media
Reach + Frequency Goals
Campaign Timeline
Spot Markets
Selected Media
Promotional Strategy
Media Issues
Media Not Recommended
33….. Creative Execution
Creative Strategy
Creative Executions
39….. Benchmarking and
Contingency Planning
Campaign Benchmarks
Contingency Plan
42….. Summary
43….. Resources
48….. Appendices
Executive Summary
ChapStick, the original lip balm brand, has been soothing and protecting lips for over 100
years. With 11 product lines and a variety of flavors, ChapStick has something to offer for any
consumer with dry or chapping lips, and its iconic brand name has made it the best-selling
brand of lip balm in the world. In fact, the brand is so well known that its name now represents
the entire industry (Mbark Survey, 2012).
Despite its position as a market leader, ChapStick has had to overcome much adversity as of
late. The growing demand for organic products and beauty-enhancing lip balms has allowed
brands like Burt’s Bees and Blistex to gain market share. Furthermore, ChapStick’s position as
a genericized trademark has eroded its brand equity, and recent marketing efforts have not
been well received.
Mbark Creative Solutions aims to differentiate ChapStick with an Integrated Marketing
Campaign aimed at men and women aged 18-49. This target audience is recommended based
upon primary, secondary, and subjective research conducted by Mbark, which suggests that
teens, young adults, and middle-aged adults desire the benefits of ChapStick products but do
not recognize ChapStick as the premier lip balm brand.
The campaign objective is to increase ChapStick’s market share 2% by increasing sales of Lip
Shield 365, which boasts an industry leading SPF 50+. Primary research by Mbark Creative
Solutions has shown that sun protection is the foremost buying criteria among the
recommended target audience, and ChapStick has a competitive advantage because Lip
Shield 365 provides better protection than any competing product.
In an effort to reach targeted consumers on their terms, the campaign will expand ChapStick’s
presence on social media through further use of Facebook, YouTube, and the implementation
of a Twitter account. ChapStick’s message will be reinforced through traditional media and a
variety of sponsored events, including a nationwide tour hosted by the Skin Cancer Foundation.
Altogether, these media will allow ChapStick to reach 70% of the recommended target 4.1
times each month.
Advertisements will teach consumers that Lip Shield 365 is essential for safe outdoor activity.
As a result, the product’s revenue, market share, and brand equity will increase, and ChapStick
will be positioned as the leading brand for adults that value SPF and healthy lips.
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Introduction and Product Overview
A part of Pfizer Consumer Healthcare, ChapStick is the oldest and one of the most widely
recognized brands in the lip balm industry. Its eleven distinct product lines, one of which
features an industry high of SPF 50+, are used by people worldwide to soothe, treat, and
protect their lips. Though it has become a “brandnomer” for all products in the lip balm
industry, ChapStick remains a successful brand that deserves its own identity and a unique
selling proposition (Pulliam, 2011).
Situation Analysis
Company Analysis
Overview of Pfizer
Charles Pfizer and Company was founded in Brooklyn, NY in 1849 (Walsh, 2010). Born of
a partnership between Charles Pfizer, a chemist, and Charles Erhart, a confectioner, the
company experienced quick success by selling pharmaceuticals that tasted like toffee. Over
the next 150 years, it expanded its operations to include: pharmaceuticals, pesticides,
industrial chemicals, pharmacological products, and consumer products (Walsh, 2010).
Pfizer has experienced a number of mergers and acquisitions since the company’s
inception. In recent years, noteworthy acquisitions have included Wyeth, King
Pharmaceuticals, Ferrosan Consumer Health, and Excaliard Pharmaceuticals (Walsh,
2010).
Today, Pfizer operates in two segments. The Biopharmaceutical segment includes the:
Primary Care, Specialty Care, Oncology, Established Product, and Emerging Markets
divisions. The Diversified segment consists of Consumer Healthcare, Animal Health, and
Nutritional Products divisions (Pfizer Reports, 2012). The Consumer Healthcare division
contains products that typical consumers are most familiar with, such as non-prescription
drugs, vitamins, and personal care items (Pfizer Reports, 2012). Some of Pfizer’s most
popular brands, which include ChapStick, Dimetapp, Robitussin, and Advil, are found in this
division (Pfizer Reports, 2012).
The largest pharmaceutical company in the world, Pfizer is the market leader; it recorded
16% market share and revenues of $67.4 billion during 2011 (Pfizer Reports, 2012). Pfizer’s
competitors include Johnson & Johnson, Merck, GlaxoSmithKline, and Bristol-Myers Squibb
(Synder, 2011).
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Pfizer strives to set the standard for quality, safety and value in the discovery, development
and manufacturing of medicines for people and animals (About Pfizer, 2012). Pfizer also
works across developed and emerging markets to advance wellness, prevention, treatments
and cures that challenge the most feared diseases. While collaborating with health care
providers, governments, and local communities, Pfizer strives to support and expand
access to reliable, affordable health care around the world (About Pfizer, 2012).
Brand Analysis
ChapStick Brand Summary
Since Charles Fleet sold the rights to ChapStick in 1912, the brand has been acquired and
subsequently marketed by a number of companies. It became part of Pfizer’s Consumer
Healthcare division in 2009, when Pfizer bought the brand’s previous owner, Wyeth, for $68
billion (Miller, 2009).
ChapStick markets eleven distinct product lines: Classics, Moisturizer, Lip Shield 365,
Medicated, Flava-Craze, Ultra 30, Overnight, Peppermint, Naturals, True Shimmer, and
Fresh Effects. While all ChapStick products include moisturizer, some provide additional
benefits such as high SPF, gloss, organic properties, or unique flavors. The best-selling
ChapStick products are Moisturizer, Classics Cherry and Classics Original (ChapStick
Official Website, 2012).
Marketing History
In the late 1970s, ChapStick debuted the brand’s most memorable advertising campaign, a
series of television commercials featuring Suzy Chaffee. Chaffee, who called herself “Suzy
ChapStick” in the commercials, was an Olympic skier, and the commercials emphasized her
athletic abilities (Ettus, 2011). The “Suzy ChapStick” campaign ran for several years and
was so well-known that Chaffee became a national celebrity (Top 25 Celebrity
Spokespeople, 2012).
ChapStick revived the strategy it implemented within the “Suzy ChapStick” campaign in
1997, when commercials featuring another famous skier, Picaboo Street, began to air. Ice
skater Dorothy Hamill also acted as ChapStick’s spokesperson for a time. By focusing its
advertisements on well-known female athletes, ChapStick developed a reputation as a
brand for active women (Ettus, 2011).
That reputation was put at risk in 2011. In October, ChapStick launched an online print ad
that featured a woman bending over the couch and copy that read, “Where do lost
5
ChapSticks go?”. The woman’s tight jeans and awkward positioning emphasized the shape
of her legs and hindquarters. Some consumers perceived the graphic as sexist, and they
proceeded to post negative comments in blogs or on ChapStick’s Facebook page (Diaz,
2012). ChapStick responded to the unfavorable criticism by deleting the comments on its
wall, which only angered fans more.
As negative feelings towards the brand spread on social media, ChapStick removed the
image and issued an apology on its Facebook page, stating:
We see that not everyone likes our new ad, and please know that we certainly didn’t
mean to offend anyone! Our fans and their voices are at the heart of our new
advertising campaign, but we know we don’t always get it right. We’ve removed the
image and will share a newer ad soon!” (ChapStick Facebook Page, 2011).
Company representatives later claimed that they only removed offensive posts in
compliance with Facebook’s guidelines against crude, menacing, or harassing comments,
but many consumers felt that ChapStick’s apology issued blame to consumers rather than
taking responsibility the image (Diaz, 2012).
The event undermined ChapStick’s previous advertising efforts, which had sought to
empower women through the use of female athletes. Some people believed that the
Facebook debacle erased any impact that the “Suzy ChapStick” campaign and subsequent
campaigns had (Ettus, 2011). It cannot be estimated what sort of impact, if any, the event
had on sales of ChapStick, but the brand was certainly left with no clear direction in its
advertising.
Media Spending
In 2011, ChapStick’s media budget totaled $4,356,200 (Appendix B, Figure D).
Approximately $1,600,000 each was spent on internet display ads and national print
advertisements, and the remaining budget was devoted to national radio spots (Appendix B,
Figure D). The Lip Shield 365 product was especially prominent in advertisements;
$387,000 was spent to promote this product alone (Appendix B, Figure D). It is interesting to
note that ChapStick did not include television in its media mix, considering its most famous
past advertisements were televised.
Competitive Analysis
Competitive brands within the lip balm industry include: ChapStick, Blistex, Burt’s Bees, and
Carmex. Most products are sold in cylindrical sticks, which can be applied to the lips very
similarly to lipstick. Others come in tubes or jars and must be applied with the use of a
6
finger. Additionally, there is a variety of off-brand competitors within the market, but detailed
information about these is unavailable.
ChapStick
ChapStick is the market leader in the lip balm industry, recording $85,000,000 in sales and
21% market share in 2008 (Mintel, 2009). The brand’s product line is among the most
extensive in the industry; ChapStick offers more than eleven product lines (ChapStick
Official Website, 2012). Aside from its original formula, ChapStick offers specialty products
that boast additional benefits such as: organic properties, glossy texture, candy-like flavors,
and increased SPF. ChapStick’s Lip Shield 365 has the highest SPF available in the
category, but sales data for this product is unavailable.
Blistex
Blistex has been the second most popular brand of lip balm since the 1990s (Ashworth,
2010). In 2008, it had sales of $53,000,000 and captured 13% of industry sales (Mintel,
2009). Blistex, like ChapStick, offers a wide variety of lip balm products, but it is most well
known for its medicated offerings.
Burt’s Bees
Burt’s Bees, a marketer of naturally made personal-care products, produces a line of
organic lip balms that come in many flavors. Unlike ChapStick and Blistex, all of Burt’s Bees
products are produced organically and tout a natural look and feel (Our Commitment, 2012).
Burt’s Bees lip balms are available in jars, as well as the traditional stick form. In 2008,
Burt’s Bees lip balms grossed $34,000,000 and accounted for 9% of total industry sales
(Mintel, 2009).
Carmex
Carmex lip balms are available in stick, tube, and jar forms. Though Carmex offers
medicated lip balms in a variety of flavors, its product line is not as extensive as that of
ChapStick or Blistex. In 2008, Carmex controlled 8% of the lip balm market and had sales of
$32,000,000 (Mintel, 2009).
Others
Other competitors in the market include numerous off-brand lip balms that are marketed as
store brands in drug and convenience stores. Little information is available about these
products, but it is common knowledge that such brands typically compete on price.
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Indirect competition consists of lip glosses, lipsticks, and skin moisturizers, which moisturize
lips but don’t provide the same medicinal and preventative properties as lip balm. Vaseline
Petroleum Jelly is a notable example among these. Cold sore medications, among which
Abreva is most popular, also compete for lip-care sales; Abreva had the second highest
revenue of any lip-care product in 2008 (Mintel, 2009). Altogether, Abreva accounted for
approximately 20% of industry sales in 2008, while off-brand lip balms and other products
accounted for 29% (Mintel, 2009).
Market Analysis
History of the Market Place
Lip balm is a product that protects, moisturizes, medicates, softens, or otherwise soothes
lips that have become dry and damaged. More simply put, it prevents and treats an ailment
known as “chapped lips.” Many people use lip balm for treatment alone, but others regularly
use the product as a form of prevention (Mbark Survey, 2012).
Lip balm became commercially available late in the Nineteenth Century, when Dr. Charles
B. Fleet created the first balm at his apothecary in Virginia (A Century of ChapStick, 2012).
Fleet wrapped his creation in cylindrical tubes of foil and marketed it to locals as a medical
ointment, which he called ChapStick (A Century of ChapStick, 2012). In 1912, the rights to
ChapStick were purchased by John Morton, who began to produce the product on an
industrial scale (A Century of ChapStick, 2012). Since that time, lip balm has developed a
global market with several large brands and numerous off-brand competitors.
Lip balm generated $401,600,000 in sales in 2008 (Johnsen, 2009). In recent years, the
industry has seen very slow growth, but new opportunities have arisen for organically
produced products (Johnsen, 2009). A growing preference for brands that position
themselves as “beauty enhancing” has also become evident (Johnsen, 2009).
Uncontrollable Factors
Climate and weather patterns create uncontrollable conditions that can affect the sales of lip
balm. Lips are more likely to chap and dry during extreme weather, so times of extreme
cold, heat, wind, or low humidity may lead to increases in demand (Goins, 2010).
Conversely, moderate weather conditions might have a negative impact on sales of lip
balm. Therefore, weather conditions are an uncontrollable factor that must be accounted for.
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Economic conditions may also affect purchasing decisions. Though most lip moisturizing
products have low price-points, consumers with little disposable income may consider lip
balm an unnecessary purchase. Lip balm, because of its small size and the way in which it
is marketed, is normally an impulse buy, and sales are likely to decrease if consumers’
impulses are curbed by economic hardships (Tarnowski, 2004).
Future Trends
Organic non-food products grossed $1.97 billion in 2010, increasing nearly 10% over the
previous year (Industry Statistics, 2011), and the cultural shift towards natural products has
led to a growing preference for lip balms that use organic ingredients (Johnsen, 2009).
”Consumers have grown more environmentally conscious and are on the lookout for Earth
friendly HBC items. Seeing this, lip care manufacturers are developing products to address
both [lip care and organic] needs (Tarnowski, 2004).”
The team at Mbark Creative Solutions (Mbark) believes that Burt’s Bees has a decided
edge in marketing organic lip balms; the brand has built a strong reputation based upon its
commitment to producing 100% natural products (Our Commitment, 2012). ChapStick
markets only a small line of organic products, and the other major brands offer no organic
products. According to Michael Johnsen, a notable pharmaceutical writer, the growing
demand for organic lip balm creates a great opportunity for brands that are able to capitalize
(Johnsen, 2009).
Another emerging trend is the desire for lip balms that are cosmetically and aesthetically
appealing (Johnsen, 2009). As a result, brands have increasingly marketed products that
feature beauty-enhancing qualities. In 2009, Nivea’s Kiss of Moisture, ChapStick’s True
Shimmer, and Blistex’s Deep Renewal-- all positioned as beauty enhancing lip balms-increased sales by an average of 1,501% (Johnsen, 2009). Additionally, cosmetics
companies have begun introducing their own moisturizing lip products. For example,
Maybelline now offers “Baby Lips,” a cosmetic lip balm that comes in a variety of different
tints and flavors (Maybelline Official Website, 2012). With demand for cosmetic lip balms
skyrocketing, brands are clamoring to appeal to a young, female audience and to position
themselves as the beauty-enhancing brand of lip moisturizers.
Additionally, Mbark noted that a growing concern for sun protection has developed among
consumers, and products that feature protection against UVA/UVB rays have become
increasingly in demand. In 2011, the sun care market generated $735 million in revenue, an
increase of over 7% from 2010 (Mintel, 2011b). Furthermore, primary research conducted
by Mbark revealed that sun protection was the most sought after attribute in lip balm among
adults 18-49 (Mbark Survey, 2012). This can be attributed to a public that is more educated
9
about the dangers of sun damage, such as skin cancer and premature aging (Mintel,
2011b).
Unique Selling Proposition
Mbark recommends that ChapStick differentiate itself by advertising the Lip Shield 365
product in this campaign. The chosen product features SPF 50+, whereas competing
products only offer, at most, SPF 30. Thus, ChapStick is the brand that offers the most
powerful sun protection, which is a prominent factor in the target audience’s purchasing
decision (Mbark Survey, 2012). Because sun protection is needed everyday, not just when
most people think to wear it, Lip Shield 365 should be used whenever the consumer spends
time outside (Skin Cancer Foundation 2012).
Target Audience
In choosing a recommended target audience for ChapStick, Mbark utilized both subjective
and objective approaches. Subjective observations were drawn from the content of
ChapStick’s website, social media, and personal observations, while objective data was
mined from Simmons OneView, Mintel Reports, and primary research.
Current Observations
An examination of ChapStick’s online presence suggests that the brand is currently
targeting a younger audience; this seems evident through the use of bright colors, social
media, and references to extreme sports. ChapStick encourages website visitors to visit
their social pages on Facebook and YouTube, where they can “be heard.” The brand
recently hosted a YouTube competition in which fans were encouraged to share their love of
ChapStick through a creative video, and the winning entry was created by a group of young
people singing. All graphics on the website feature young, trendy models of all races and
colors. Furthermore, the brand’s cross-promotional activities with Xbox and the television
show “Glee” are prominently displayed on ChapStick’s official website. Everything about the
ChapStick website hints towards a focus on vibrant, edgy, and fun teens and young adults.
Target Audience Recommendation
Based on the primary and secondary research, Mbark recommends that ChapStick expand
its target audience to men and women aged 18-49 in this campaign.
According to data from Simmons OneView, 18-49 year-olds represent 56% of the United
States population (Appendix B, Figure H). Targeting this group will allow ChapStick to
10
continue marketing towards young adults while increasing sales among an older
demographic. The findings detailed below indicate that young adults and middle-aged
people use similar media and desire similar attributes from lip balm, so ChapStick can target
both groups using an undifferentiated strategy.
Summary of Secondary Research
Demographics and Psychographics
Mbark believes that the suggested target audience will be highly motivated by an appeal
that is associated with high SPF and sun protection. First, a report about attitudes and
usage of sun protection states that “Respondents aged 18-44 are the most likely to report
using sunscreen/suncare/sunless tanners, as younger and middle-aged consumers are
more likely to spend extended periods in the sun and be educated about the dangers of sun
exposure (Mintel, 2011b).” The same article shows that approximately 50% of respondents
aged 18+ use sunscreen of SPF 30-50, as opposed to a lower level of sun protection, or
none at all (Mintel, 2011b).
Mbark’s survey findings support the claims made in the Mintel article. Specifically, it was
found that sun protection is one of the most important factors consumers value when
making lip balm purchasing decisions, regardless of age (Mbark Survey, 2012).
Since 70% of adult internet users are active on social networks, Mbark recommends that
ChapStick use more social media tactics to reach their target audience (Mintel 2011c).
According to an article by Mintel Reports, “94% of social networkers surveyed use
Facebook, and 81% check in at least weekly” (Mintel 2011a).
Although Facebook is the dominant social media platform, Twitter is gaining market share
with 200 million active users (Mintel, 2011a). Although these statistics are for all internet
users over the age of 18, the social media trends are generally higher for those young
adults aged 18-24 (Mintel, 2011a).
Product Use Rates
No data on ChapStick or lip balm was available in Simmons OneView, so information was
gleaned from available data within the “lip gloss” and “moisturizer” industries. According to
Simmons, the index figures of 18-24 year-old females using lip gloss, as well as applying it
14+ times per week, are 170 and 173 respectively (Appendix B, Figure E). This suggests
that this age group places a high value on lip care. In fact, they are approximately 70%
more likely than the average American to purchase a lip care product and apply more than
twice daily. There was no available data for males regarding lip care.
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Data from the moisturizer industry showed that men and women under the age of 25 were
less likely than the average consumer to use moisturizer (Appendix B, Figures F and G).
Mbark believes that this is due to the anti-aging properties of moisturizing lotions, which
may be more appealing to older consumers and are less relevant within the lip balm
industry.
SWOT
Strengths
 ChapStick is the original lip balm brand.
 ChapStick has the most recognizable brand name in the industry among the
recommended target audience (Mbark Survey, 2012).
 ChapStick’s Lip Shield 365 features SPF 50+, a higher SPF than any competing
products.
Weaknesses
 Currently, ChapStick does not have a core brand image recognizable by its
consumers (Mbark Survey, 2012).
 Because ChapStick is considered a generic trademark, it is often not differentiated
from other lip balms (Mbark Survey, 2012).
 Lip balm is typically a low involvement product.
 ChapStick is considered as generic and boring by some consumers (Mbark Survey,
2012).
Opportunities
 ChapStick markets the product with the highest SPF in the industry, which is
important to consumers in the recommended target audience (Mbark Survey, 2012).
 Promoting Lip Shield 365 may enhance ChapStick’s brand equity by differentiating
the brand from competitors.
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Threats
 Because lip balm is generally a low involvement product, consumers may not
respond to ChapStick’s campaign and remain indifferent about their lip balm
purchases.
 Burt’s Bees has a competitive advantage over ChapStick in the growing organic lip
balm category.
Primary Research
Overview
In addition to secondary research, Mbark conducted primary research to gain a better
understanding of ChapStick’s recommended target audience and their lifestyle habits.
Specifically, a survey was conducted to identify:
 The primary users of lip balm
 The primary users of ChapStick brand products
 The primary reasons consumers buy lip balm
 The attributes consumers look for in lip balm products
 The lifestyle habits of lip balm users
Design
From March 3-March 17, 2012, Mbark conducted five-minute telephone surveys that
consisted of 28 questions. The surveys consisted primarily of Likert-Scale and Ordinal
questions, which explored respondent’s opinions and preferences regarding lip balm. There
were also two open-ended questions, and the survey ended by collecting simple
demographic data. See Appendix A, Figure G for a complete copy of the survey.
Participants
To gather survey data, Mbark recruited 50 adults—21 males and 29 females—whose age
ranged from 18-49. The participants were selected from five regions across the United
States. 76% of respondents lived in the Northeast, 12% in the South, 10% in the West, and
the remaining 2% resided in the Midwest.
Five members of Mbark Creative Solutions were referred a group of 8 to 12 participants to
call, yielding a total of 50 total respondents.
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Results of Primary Research
Support of Target Audience Recommendation
Mbark’s primary research supported the validity of the recommended target audience and
provided greater insight on the purchasing behavior of adults aged 18-49.
First, the research supported Mbark’s recommendation that both men and women be
targeted; no significant difference between genders was found in consumers’ likelihood to
purchase ChapStick in the next 30 days (Appendix A, Figure A). Furthermore, men and
women showed no statistical difference in their liking of the brand (Appendix A, Figure A).
The primary research also supported Mbark’s recommendation to target 18-49 years olds
without differentiating by age. No significant differences were reported in relation to
respondent’s age and their lip balm usage. This was tested by splitting the respondents into
two age groups--18-30 and 31-49--and testing for significant differences among groups
(Appendix A, Figure B).
The findings show that ChapStick has become
the generic name for any lip balm product. When
respondents were asked to name the
category/type of product and not a particular
brand (See: Question 1, Appendix A, Figure G),
92% responded ChapStick, and only 8%
responded lip balm. This information proves that
individuals are aware of the brand name;
however, they use it to refer to all lip balm. While
this can be viewed as a problem for ChapStick, it
also presents an opportunity to increase
Brand Preference
Soft Lips
2%
Carmex
8%
Other
14%
Burt's
Bees
28%
ChapStick
44%
Blistex
4%
Figure 1
consumers’ brand loyalty to a level of brand
preference or even brand insistence. According to Donald Parente, a goal of brand
awareness is to move brands to “a point at which the brand name is the first word that
comes to the consumer’s mind when the product is mentioned” (Parente, 2006). ChapStick
has seemingly achieved this, but the brand is not fully utilizing its position as a
“brandnomer.”
Additionally, the survey gauged ChapStick’s popularity among consumers and found that
the brand is highly familiar among the recommended target audience. First, 92% of
respondents acknowledged they bought a ChapStick brand product in the past. Also, 44%
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of respondents said that ChapStick is the brand of lip balm they are most likely to buy
(Figure 1). It is important to note that 44% of respondents say they’re most likely to buy
ChapStick, but the brand’s market share is only 21%. These statistics suggest that a large
number of consumers recognize ChapStick as the dominant name in the market, but not all
of these consumers are actually purchasing ChapStick.
Importance of Selected Buying Criteria
The survey Mbark conducted provides a greater understanding of the recommended
target’s motivations and desires when purchasing lip balm. The respondents were asked a
series of questions that unearthed which product attributes they look for when purchasing lip
balm. They were also asked to rate the importance of certain benefits offered by lip balm.
As seen in Figure 2, when participants ranked the importance of sun protection on a scale
of 1-5, the mean was 4.04, and the standard deviation was .807 (Appendix A, Figure E).
This was the highest mean out of all attributes and had the smallest standard deviation. This
finding suggests that, in the minds of adults 18-49, SPF is the most important attribute of lip
balm; it is even more important than factors like organic ingredients or flavor. The small
standard deviation proves that there is a small range of disparity, and a large number of
participants fall into the categories “strongly agree” and “agree”. Thus, Mbark’s primary
research supports the validity of using SPF as the basis of a USP.
Importance of Selected Attributes When Purchasing Lip Balm
5
4
3
4.04
SD=.807
2
3.58
SD=1.295
2.94
SD=1.168
2.76
SD=1.271
2.6
SD=1.111
Flavor
Cheapest
1
2.27
SD=.956
1.98
SD=1.204
0
SPF
Brand Loyalty
Organic
Ingredients
First Lip Balm
They See
Color/Gloss
Figure 2
It can also be seen in Figure 2 that brand loyalty was the second most important purchasing
factor among respondents. However, the high standard deviation of this data suggests that
the loyalty towards a certain brand is not as universal as a desire for SPF. Based on this
finding, Mbark recommends ChapStick creates advertisements that persuade consumers to
choose ChapStick each time they purchase lip balm.
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Despite the recent trend towards natural/organic products, the data shows an equal
distribution of respondents seeking organic ingredients and those not seeking organic
ingredients. Even when the sample was split by age and gender, there was no significance
in the importance of organic ingredients (Mbark Survey, 2012). In light of these findings,
Mbark does not suggest that this campaign emphasize organic products/attributes.
Additionally, Mbark concludes that flavor and cosmetic benefits are relatively unpopular
reasons to buy lip balm. On average, female respondents ranked importance of cosmetic
benefits at a mean of 2.52, and they gave flavor a mean rating of 3.21 (Appendix A, Figure
A). These ratings show that women value prevention, treatment, and SPF more than flavor
and cosmetic properties. Furthermore, men rated flavor and cosmetic benefits as being
even less important than women did; the total ratings of flavor and cosmetic benefits were
both below 2 (Figure 3). Based on these findings, Mbark does not recommend that
ChapStick advertise products on the basis of taste or cosmetic benefits.
The survey also provided insight on the
primary reasons that consumers
purchase lip balm. As seen in Figure 3,
the most important reasons consumers
use lip balm are: to prevent dry or
chapped lips, to treat dry or chapped
lips, and to prevent sun damage or
sunburn. This information further
supports Mbark’s assertion that damage
prevention and sun protection are
primary reasons that consumers use lip
balm.
Reasons to Buy Lip Balm
5
4.72
4.66
3.78
4
3
1.9
1.7
Flavor
Cosmetic
Benefits
2
1
0
Prevention Treatment
Prevent
Sun
Damage or
Sunburn
Figure 3
Problems, Opportunities, and Trends Identified
Additionally, the primary research provided insight into when consumers use lip balm most,
how often they purchase lip balm, and how strongly a desire for SPF correlates with
approval of ChapStick as a brand. Armed with this information, Mbark is better able to craft
a campaign that will capitalize on all opportunities in the market while minimizing certain
problems faced by the brand/category.
Figure 4 displays the seasons during which targeted consumers are most likely to use lip
balm. When asked which season they used lip balm most often, 54% of respondents said
winter (Figure 4). This finding supports Mbark’s recommendation to conduct spot market
advertising during the winter months, which will allow the brand to capitalize on increased
16
demand. Of the remaining respondents, most claimed that they use lip balm the same all
year round. Only 5% of the sample regularly uses lip balm in the summer (Figure 4).
Despite this finding, Mbark still recommends that ChapStick advertise heavily in the summer
because it is the greatest opportunity for promoting the SPF benefits of the brand. This will
be explained in further detail in the Media Strategy section of this plan.
Lip Balm Use By Season
60%
50%
40%
30%
20%
10%
0%
Winter
All Year
Summer
Spring
Fall
Figure 4
Survey data revealed a key problem that ChapStick faces. When participants were asked
how likely they were to buy lip balm in the next 30 days, 48% said they were “very unlikely,”
and only 18% said they were “very likely” (Appendix A, Figure G). Furthermore, 66% of
respondents said they buy lip balm only “rarely” or “occasionally” (Appendix A, Figure G).
Together, these findings suggest that lip balm has a long purchase cycle and is bought
somewhat infrequently by the recommended target market.
Finally, calculating the correlation between consumers’ desire for SPF products and their
impression of ChapStick revealed a positive relationship. The Pearson’s R= 0.253 and the p
value= 0.077 (Mbark Survey, 2012). This means that consumers liking of ChapStick
increases as their desire for SPF increases. Therefore, ChapStick has an excellent
opportunity to position itself as the brand that best protects lips from the sun.
Opportunities with Target Audience
●
●
●
Adults aged 18-49 value sun protection more than any other attribute when
purchasing lip balm, and ChapStick can position itself as the sun protection leader.
Promoting Lip Shield 365 may allow ChapStick to distinguish itself as a leading
brand rather than a generic “brandnomer.”
The recommended target audience includes a wide age range that ChapStick hasn’t
entirely explored.
17
Problems with Target Audience
 Only 50% of surveyed people claimed “like it” or “love it” when asked their feelings
toward ChapStick (Mbark Survey, 2012).
 When asked: “What is the first thing that comes to mind when you think of
ChapStick?” many people’s responses suggested that ChapStick is bland, boring, or
old fashioned (Mbark Survey, 2012).
Campaign Objectives
Marketing Goals
Mbark recommends that ChapStick aim to increase market share among adults 18-49 by
2% between June 2012- June 2013. At a median price of $1.89, ChapStick must sell
4,462,222 units of Lip Shield 365 to reach this goal.
According to the most recent census data, the population of the recommended target
audience is approximately 135,500,000 (Age and Sex, 2011). Thus, ChapStick will increase
market share by 1% if it persuades 3.3% of the target population to purchase one additional
tube of ChapStick during the life of the campaign.
Achieving the marketing goal will result in additional revenues of $8,433,600, which is
$1,933,600 more than the campaign investment. This yields a Return On Investment (ROI)
of 130%. Furthermore, if the campaign successfully turns new customers into loyal brand
advocates the ROI will be amplified throughout the lifetime of the consumer.
Communication Goals
The first communication goal of the upcoming campaign is to teach consumers that
ChapStick’s Lip Shield 365 will effectively protect lips from sun exposure because it has the
highest SPF available in a lip balm. It also aims to remind consumers that sun exposure can
affect them on a daily basis—not just on extremely hot or sunny days.
Upon realizing the need for SPF protection and realizing that ChapStick offers the most
powerful sun protection available, consumers should buy Lip Shield 365. As this point, two
objectives should be met.
First, the consumer should begin to think of ChapStick as a unique brand with its own
strengths and attributes.
18
Altogether, these communication goals create a hybrid of the Traditional Learning Model
and the Low Involvement Model of audience response; this new model features a cognitivecognitive-behavioral-affective pattern.
Cognitively, consumers will recognize their need for sun protection for their lips and they will
learn that Lip Shield 365 offers the highest SPF in the category. Behaviorally, they will buy
the product over competing products. Affectively, the consumer should make a connection
with the brand that will lead them to purchase the product again. After using the product, the
consumer should build enough trust in the brand to purchase it again, making an emotional
connection, however faint, with this traditionally low involvement product.
Campaign Budget
As previously mentioned, ChapStick spent $4,356,200 on advertising in 2011 (Appendix B,
Figure D). Mbark recommends ChapStick increase the annual budget to $6,500,000
between June 2012-June 2013, allowing the brand to advertise more aggressively. With
$6,500,000, ChapStick will be able to launch a campaign that: increases sales of Lip Shield
365, reinvigorates the brand’s image, and promotes brand loyalty.
Mbark’s primary research shows that, while many people recognize ChapStick’s name, they
do not have a strong image of the brand’s identity (Mbark Survey, 2012). To change this,
ChapStick must reach consumers more frequently. Increasing the budget will allow
ChapStick to improve the number and quality of its advertisements, which will allow the
brand to forge a new identity among adults aged 18-49.
Mbark recommends that ChapStick allocate 60%, approximately $3,900,000, of its total
budget to media, 30%, approximately $1,900,000, to promotions and the remaining 10%,
approximately $650,000, to the contingency fund. Figure 5 presents a visual breakdown of
this allocation.
19
Budget Allocations
Contingency
10%
Media,
60%
Promotions
30%
Contingency
Promotions
Media
Figure 5
Recommended Media Strategy
Reach and Frequency Goals
Because ChapStick is a low cost product in a low involvement market, Mbark recommends
that the focus of the campaign should be more on frequency than reach. To achieve the
communication goals of the campaign, which include teaching consumers about Lip Shield
365 and differentiating ChapStick from competitors, the audience must be exposed to the
advertisements many times.
Mbark suggests that ChapStick plan to optimize frequency due to the following factors:
 This campaign is new and features new communication goals and messages.
 The campaign aims to teach consumers something new about ChapStick and its
products, specifically Lip Shield 365.
● There are many competitors in the lip balm category.
● Lip balm is a low involvement product in a low interest category.
Using the Ostrow Model, Mbark estimated that the ideal frequency for this campaign is
about 4.1 impressions per month (Appendix B, Figure I). This means that the campaign has
to reach each target member an average of 4.1 times per month.
The overall goal of the campaign is to maintain a reach of 70% of the target audience
throughout the year. During the pulsing months of December, January, February, June,
July, and August, reach should increase to 80% for the spot markets and 75% for national
audience.
20
Campaign Timeline
Mbark recommends that this campaign run from June 1, 2012- June 1, 2013. Starting the
campaign in June will allow Mbark to build significant awareness of the campaign during the
summer, when SPF is the most necessary. It will also give ChapStick several months to
build reach and frequency before the crucial winter months.
Mbark proposes that this campaign use a pulsing media schedule with advertisements
running more heavily in the winter (December-February) and summer (June-August). The
rationale behind pulsing December through February was drawn from Mbark’s primary
research, which shows that consumers tend to use lip balm most often in the winter. The
recommendation is also supported by industry data, which reveals that “57% of all sales in
the lip care category occur between October and March” (Johnsen, 2009).
The rationale behind pulsing in the summer is based on primary research data revealing
that SPF is the most sought after attribute when purchasing lip balm (Mbark Survey, 2012).
Because sun exposure is most dangerous during summer months (Garcia, 2011),
ChapStick’s Lip Shield 365 may be able to increase sales during the summer by
emphasizing its abilities to prevent sun damage.
A portion of 18-49 year-olds tend to use lip balm all year, so a pulsing schedule will allow
ChapStick to maintain consistent levels of awareness and sales throughout the year.
21
Spot Markets
Mbark recommends ChapStick target four spot markets with typically cool climates: Boston,
Chicago, Denver, and New York City; and three spot markets with typically warm climates:
Houston, Los Angeles, and Miami. These markets were chosen based on Simmons
OneView data that shows high index numbers for people within the recommended target
audience being a large proportion of these selected cities (Appendix B, Figures B and C).
Also these markets represent cities in both especially hot and cold climates, in which
residents may be more likely to need the preventative and treatment aspects of ChapStick
products. Additionally, Mbark wants to make sure that ChapStick remains present in the
minds of consumers nationally, all year round.
Selected Media
Radio
Mbark recommends that
40% of the media budget
($1,560,000) be invested
in radio. This medium is an
affordable way to reach
the target audience due to
its immediate delivery, low
cost, mobility, and ability to
reach consumers when
they are travelling
(Parente, 2006). Radio will
be used only in spot
markets because of
budget limitations.
Media Budget Allocations
Digital/Soc.
Media, 2%
Radio
Transit, 25%
Radio, 40%
Internet
Transit
Internet,
33%
Digital/Social Media
Figure 6
Traditional radio is still the chosen audio platform among the recommended target audience
(Mintel, 2011d). In 2011, 69% of people in the targeted demographic listened to radio
weekly, and 43% listened to radio daily (Mintel, 2011d). Furthermore, Nielson reports that
listeners age 25-54 are the “sweet spot” for radio; they reportedly listened to radio over 24
hours each week, on average (Radio, 2010). In 2010, radio reached 93% of 18-34 year
olds and 95% of 25-54 year olds (Radio, 2010).
22
Radio Vehicles
Mbark suggests that advertisements run on local radio stations that play Top 40, Pop, or
Classic Rock. According to a 2002 Survey of Public Participation in the Arts, these are the
most popular genres of music among the recommended target audience (Mizzell, 2004).
Classic Rock stations that could be utilized include, but are not limited to:
 Big 105.9 (Miami)
 Q 104.3 (New York)
 93.7 The Arrow (Houston)
 95.1 The Fox (Boston)
Top 40 and Pop radio stations may include:
 Z100 (New York)
 KIIS FM 103.5 (Los Angeles)
 Y100 (Miami)
Specifically, radio programs that play on the chosen stations during morning drive-time
(6am-9am) and afternoon (12am-5pm) should be targeted. According to Ad Age, 20% of 1829 year olds listen to the radio during the morning drive, and 34% listen during the afternoon
(Carmichael, 2011). Among 30-49 year olds, 30% of the population can be reached by
radio each morning (Carmichael, 2011).
Transit
Mbark recommends that 25% of the media budget ($975,000) be invested in transit
advertisements at: bus stops, taxis, beaches, ski slopes, and subway stations. These
locations will allow ChapStick to build reach and frequency among the recommended target
audience. It will also allow the brand to reach consumers at times when they are likely to
desire lip balm.
According to The Arbitron Outdoor Study, Americans are spending more time out of the
home, driving in cars, and walking in cities than ever before (CBS Outdoor, 2012). This
means that Americans are exposed to outdoor advertising in greater numbers and for longer
periods of time; 90% of United States residents age 18 or older being exposed to outdoor
advertising each day (CBS Outdoor, 2011). Transit advertising helps develop top-of-mind
awareness due to continuous exposure and multiple impressions.
Furthermore, transit advertising will reach the recommended target audience while they are
outside, when the use of Lip Shield 365 is necessary. Airports, buses, subways, and taxis
will allow ChapStick to communicate with the target audience as they travel to and from
23
outdoor destinations. Ski resorts and beaches will create contact points with consumers in
the midst of outdoor activities. Transit ads should be used in colder spot markets during the
winter and warm spot markets during summer.
Beaches
Mbark recommends that ChapStick place outdoor posters at beaches, boardwalks, and
other ocean-side destinations. This allows ChapStick to target consumers who are exposed
to the sun for an extended period, so people who see these ads have a genuine need for
the product.
Mbark has targeted 3-6 beaches near Los Angeles and Miami, two of the recommended
spot markets. A detailed listing of these locations can be found on page 33, in the Locations
section of this paper.
Ski Slopes
Mbark recommends advertising at ski slopes in the Denver spot market using two methods:
on rack displays and in the lift-line corral. Chosen ski destinations are specified on page 3233, in the Locations section of this paper.
Rack Displays
Rack displays are placed on snowboard and ski racks where riders place their equipment
when not in use. These racks are outside the main ski lodges in high traffic locations. The
displays are large and double-sided, making the advertisement visible from either direction
and from a distance (Media Platforms, 2012). Rack displays produce multiple impressions
because skiers take many breaks throughout the day (Media Platforms, 2012).
Lift-Line Corral Displays
Lift-line corrals are places where riders have to wait in the line for the ski lift. This is an
ultimate location for advertising at ski resorts because riders generally have to wait 5-15
minutes each time they ride the ski lift (Media Platforms, 2012). Also, riders make multiple
trips up the lift during the day. Lift-line corral displays deliver high-quality impressions and
high frequency (Media Platforms, 2012).
Public Transportation
Bus Interior
Bus cards are small poster-like advertisements that are placed inside buses above the
windows. They are highly visible to passengers traveling on the bus, and they capture the
attention of a captive audience that spends an average of 30 minutes on the bus during
each ride (Bus Advertising, 2012).
24
Bus card advertising is a chosen vehicle at each targeted spot market. On average, they
cost $35 per card and run for one month (Bus Advertising, 2012).
Benches
Advertisements can be placed on bus benches where members of the recommended target
audience wait for the bus. The ads should be run at all of the selected spot markets,
preferably near outdoor destinations. The benches are visible to drivers, bus riders, and
passing pedestrians, and each unit costs approx. $75/month (Bus Advertising, 2012).
Subways
As with buses, advertisements can be placed on and within subway trains. Ads can also be
placed in the subway stations. Subway ads reach consumers in a captive setting, where the
ads cannot be ignored (Subway Advertising, 2012).
Car cards are placed in subway cars and reach consumers as they are riding on the
subway, increasing exposure to the ads as people commute on the subway (CBS Outdoor,
2012). Another format is backlit dioramas that are placed in subway stations and visible to
riders as they wait for their train (Subway Advertising, 2012). Mbark recommends that
ChapStick place ads on whichever format provides a lower cost-per-thousand impressions
(CPM). This decision should be made on a city-by-city basis.
In addition, ChapStick should advertise on subway turnstiles. These advertisements can
simply look like large ChapStick tubes due to the cylindrical shape of the turnstiles.
Taxis
Mbark recommends that ChapStick advertise on taxi top placards in New York City and
Chicago. This vehicle provides high visibility among the recommended target audience at a
low cost. The taxi advertisements will be simple and eye-catching with a focus on the SPF
50+ benefits of Lip Shield 365. Taxi top advertisements can be purchased for one month at
a cost of $200 (Taxi Advertising, 2012).
Airports
Mbark recommends that ChapStick advertise at inbound Gates/ Terminals in large airports
within the suggested spot markets. This will allow the brand to target adults aged 18-49 who
are vacationing. Mbark believes that vacationers are likely to spend time at beaches, on ski
slopes, and touring the city, which increases their chance of sun exposure. Contacting these
people at the start of their vacations may persuade them to protect their lips during outdoor
activities.
25
Backlit dioramas at Gates/Terminals cost $1,500- $8,500 each month (Airport Advertising,
2012). Though more expensive than the other transit vehicles, airport ads are suggested
because they produce far more impressions and allow for more targeted advertising.
Chosen Spot Locations
Boston, MA
Location
Boston-Logan Airport
MBTA Buses
MBTA Subways
Destination Type
Transportation
Transportation
Transportation
Dist. from City
Within City
Within City
Within City
Vehicle
Backlit Diorama
Bus Card/ Bench
Subway Cards/
Turnstiles
Destination Type
Beach
Transportation
Transportation
Transportation
Dist. from City
Within City
Within City
Within City
Within City
Vehicle
Benches
Bus Card/ Bench
Subway Cards
Backlit Diorama
Destination Type
Ski Resort
Ski Resort
Ski Resort
Ski Resort
Transportation
Dist. from City
90 miles
35 miles
45 miles
53 miles
Within city
Vehicle
Ski Rack/ Corral
Ski Rack/ Corral
Ski Rack/ Corral
Ski Rack/ Corral
Backlit Diorama
Location
New York Rail Beach Package
MTA Buses
MTA Subway
Destination Type
Transportation
Transportation
Transportation
Dist. from City
Within City
Within City
Within City
Taxi Cabs
Transportation
Within City
Vehicle
Subway Cards
Bus Card/ Bench
Subway Cards/
Turnstiles
Taxi Tops
Location
SplashTown, USA
Moody Gardens
MTA Subway
Destination Type
Amusement Park
Amusement Park
Transportation
Dist. from City
20 miles
Within City
Within City
MTA Buses
Transportation
Within City
Chicago, IL
Location
Lake Michigan Waterfront
CTA Buses
CTA Subway
O’Hare International Airport
Denver, CO
Location
Arapahoe Basin
Echo Mountain
Eldora Mountain
Loveland Ski Resort
Denver International Airport
New York, NY
Houston, TX
Vehicle
Bench
Bus Card/ Bench
Subway Cards/
Turnstiles
Bus Cards
26
Los Angeles, CA
Location
Venice Beach
Hermosa Beach
Manhattan Beach
Six Flags LA- Shuttle/Buses
Disney Land Shuttle/Buses
Los Angeles International
Destination Type
Beach
Beach
Beach
Transportation to
Amusement Park(s)
Transportation
Dist. from City
6 miles
7 miles
7 miles
39 miles
35 miles
Within City
Vehicle
Beach Diorama
Beach Diorama
Beach Diorama
Bus Cards
Bus Cards
Backlit Diorama
Destination Type
Beach
Beach
Beach
Transportation
Transportation
Transportation
Dist. from City
<10 miles
<10 miles
<10 miles
Within City
Within City
Within City
Vehicle
Beach Diorama
Beach Diorama
Beach Diorama
Backlit Diorama
Bus Card/ Bench
Subway Cards/
Turnstiles
Miami, FL
Location
Miami Beach
South Beach
Virginia Key Beach
Miami International Airport
Metrobus
Metrorail
Digital/Social Media
Mbark recommends that 2% of the media
budget ($78,000) is allocated to digital and
social media. Most research suggests that
social media are used by a young demographic,
but digital and social media have become
increasingly popular among older adults as well
(Madden & Zickuhr, 2011). While individuals in
the 18-29 age segment are still the heaviest
users of social media, with 83% using social
networking sites, adults ages 30-49 are closing
the gap (Madden & Zickuhr, 2011). Social media
are now used by 70% of people in the older-half
of the recommended target audience (Figure 7).
Figure 7
Digital media are the most cost-effective way
for ChapStick to reach targeted consumers on a frequent basis. Mbark suggests that
$78,000 be allocated to social media. $10,000 of this will be used to build a digital
application for mobile phones. $30,000 will be used to purchase advertisements on Twitter,
and the remaining budget will be used to expand ChapStick’s social media team.
27
Mbark recommends that ChapStick be active on Twitter, Facebook, and YouTube.
Twitter
Mbark recommends that
ChapStick create a Twitter
account because fans are
eager to connect with the
brand on this platform even
though it does not currently
have a Twitter account. A
Twitter search for the term
“ChapStick” returns
thousands of entries about
the product or brand. Most
of the comments were
highly in favor of the
product, and a common
sentiment seemed to be
the disappointment of
losing or forgetting their
ChapStick. Some sample
tweets that
mention ChapStick can be
seen in Figure 8.
Figure 8
Additionally, Twitter will allow
ChapStick to build a relationship with consumers who “tweet” about the brand even if they
are not tweeting at ChapStick directly. Twitter has 175,000,000 registered users (Goligan,
2011), and a substantial portion of the suggested target audience is using Twitter at a
growing rate (Smith, 2012). By creating an official Twitter account, ChapStick will be able to
build and maintain strong relationships by “tweeting” back at users.
The ChapStick Twitter page will be used to inform followers about coupons, promotions,
and information surrounding events sponsored by ChapStick. Twitter is an affordable way to
spread buzz about the pickup beach volleyball games, ski and snowboard competitions, surf
competitions, and skin cancer awareness events at which ChapStick will be present. In
addition to these events, ChapStick will be able to report daily to its followers about the
“Road to Healthy Skin Tour” and the tour bus route so they will be able to attend.
28
In order to gain a large amount of followers, Mbark recommends that ChapStick invest
$30,000 in gaining a promoted account on Twitter. Promoted accounts appear on the side
of targeted people’s pages, where Twitter suggests “who to follow.” ChapStick will remain
atop targeted user’s Twitter accounts for a period of time, and the brand will not pay for this
exposure unless the targeted person “follows” ChapStick. The average cost of gaining one
follower through is $3.25 (Twitter), which means ChapStick is guaranteed 8,000 followers
for its $30,000 investment. These followers will then be available for ChapStick to reach
constantly through this vehicle (Twitter, 2012). To gain additional followers at a cheaper
cost, Mbark recommends that ChapStick further its relationship with the Skin Cancer
Foundation and offer to donate 10 cents to the cause for every new follower ChapStick
gains during the first two weeks of June.
Facebook
ChapStick is already active on Facebook and boasts 3,200,000+ “likes” on its Facebook
page (ChapStick Fan Page, 2012). Mbark recommends that ChapStick use its Facebook
page to disseminate information about Lip Shield 365 and the importance of SPF. This
should be done in a fun, entertaining way that encourages interaction.
Facebook presents an opportunity for ChapStick to engage consumers in a personal and
interactive manner. Facebook also allows for consumers to share their opinions with the
brand directly.
YouTube
ChapStick currently has a YouTube channel that it uses to run contests and share
information. Recently, ChapStick ran a contest that required contestants to create a song
about ChapStick and submit a music video. Mbark recommends that ChapStick continue
using YouTube in this manner.
It is also recommended that a second YouTube channel be created specifically for Lip
Shield 365. The second YouTube channel would focus on promoting sun-safety and skin
protection. It should also highlight ChapStick events and the brand’s connection to The
Road to Healthy Skin Tour by posting video updates. See the “Promotions and
Sponsorships” section of this paper for more information on the aforementioned events.
Internet
Mbark recommends that 31% of the media budget ($1,150,000) be devoted to national
Internet advertisements. The recommendation is made for three reasons.
29
First, the Internet provides interactivity. It can engage consumers by allowing them to
control how much they see, hear, or read. This interactivity can lead to an emotional
connection between consumer and brand (Parente, 2006). Second, the Internet has
selectivity; the millions of websites online allow marketers to target consumers with high
accuracy (Parente, 2006). With online advertising, ChapStick can choose websites that
target the recommended audience only, resulting in a more efficient use of funds and more
targeted messages. Lastly, the Internet has accountability, meaning that the effectiveness of
the online ads can be tracked often and easily (Parente, 2006).
ChapStick could benefit from the use of banner ads, search ads, and content website
sponsorship.
Search Ads
Search advertising allows marketers to target only consumers that have already
demonstrated desire for a product. Using Google AdWords, ChapStick should target
consumers that have searched online for products related to sun protection. Targeted
keywords may include: facial sunscreen, sun protection, preventing sunburn, sun block,
etc…
Web Content Sponsorship
The third recommended method is sponsored content on websites. Brands that sponsor
content benefit from the credibility of that content’s source; they also position themselves as
being relevant to the subject-matter of the content (Parente, 2006). ChapStick can position
itself as an essential part of skin-health and outdoor activities by sponsoring content related
to these subjects.
Banner Ads
Banner ads will emphasize the health and safety benefits of Lip Shield 365, and they will be
placed on health websites, online health magazines, and health blogs. Banner ads should
also be placed on websites related to various outdoor activities that might lead to extended
sun-exposure. The figure below displays targeted websites and their estimated number of
unique monthly visitors, if available. See Figure 10.
Domain
Yahoo! Health
WebMd
MedicineNet
Men’s Health
Women’s Health
URL
www.health.yahoo.net
www.webmd.com
www.medicinenet.com
www.menshealth.com
www.womenshealthmag.com
Unique Monthly Visitors
21,500,0001
19,500,0001
10,500,0001
7,600,0002
2,300,0003
30
Domain
NY Times Well Blog
Powder Magazine
Snowboarder Mag.
Surfing Magazine
Outside Magazine
Backpacker Magazine
Figure 9
URL
well.blogs.nytimes.com
www.powdermag.com
www.snowboardermag.com
www.surfingmagazine.com
www.outsidemagazine.com
www.backpacker.com
1Cited
Unique Monthly Visitors
from (Top, 2012), 2Cited from (Men’s Health, 2012), 3Cited from (Women’s Health, 2012)
Promotional Strategy
Event Sponsorship
The Skin Cancer Foundation
To remind consumers that Lip Shield 365 protects users from harmful sunrays, Mbark
recommends that ChapStick partner with the Skin Cancer Foundation (SCF). “The Skin
Cancer Foundation is the only international organization devoted solely to education,
prevention, detection, and treatment of the world’s most common cancer (Skin Cancer
Foundation, 2012).”
Each year, the SCF launches the Road to Healthy Skin Tour, which travels across the
country offering free screenings for skin cancer. The tour also spreads awareness and
educates people about the disease. For $10,000, ChapStick can become a member of the
tour’s corporate council; this would the brand to position itself as instrumental in preventing
cancer.
Aside from sponsoring the Road to Healthy Skin Tour, ChapStick should give the tour’s
participants coupons, informative brochures, and Lip Shield 365 samples. This type of
experiential marketing will encourage consumers who are conscious of their skin-health to
protect themselves by using Lip Shield 365.
Outdoor Events
Mbark recommends that ChapStick plan and implement smaller promotional events at
beaches, parks, and other outdoor areas within the targeted spot markets. By targeting
consumers who are engaging in outdoor activity, ChapStick can build the connection
between sun-exposure and Lip Shield 365.
31
The events should be small, fun, and interactive. They could include beach volleyball
tournaments, ski promotions, or any other outdoor sport. The events would likely attract the
younger and more active segments of the suggested target audience. ChapStick would
build brand awareness by handing out samples, coupons and other promotions during the
competition.
Social Media Contests
As mentioned in Digital/Social Media section of this proposal, Mbark recommends that
ChapStick use its social media presence to engage consumers by hosting simple contests
on Facebook, Twitter, and YouTube. The contests should require consumers to interact with
ChapStick in some way, and they should be viral in nature, meaning that they should
encourage consumers to spread awareness among their friends. The prizes and overhead
required to manage these contests will be financed by the promotional budget.
Media Issues
Competitive Advertising Patterns
Due to insufficient information about the advertising patterns of competitors in the lip balm
industry, ChapStick may not be aware when a competing brand is coming out with a new
advertising campaign. Also, ChapStick may have no way of knowing when another brand
plans to introduce a similar high SPF product before or during its campaign cycle.
Budget Constraints
ChapStick’s $6,500,000 budget may not be sufficient to achieve the reach and frequency
goals necessary to be effective. Additionally, some media that Mbark has suggested are
more expensive than others. The allocated budget may not cover all of the advertisements
that ChapStick may want to run. More definite media planning must be completed in the
future, once Mbark’s recommended budget and media mix are approved.
Media Not Recommended
Print
Due to budget limitations, Mbark does not recommend that ChapStick use print media.
Magazines, newspapers, and other print media are costly (Parente, 2006), and they are no
more popular among adults 18-49 than the media recommended above (Carmichael, 2011).
ChapStick can capture print media’s audience in a more cost-effective way by targeting
online magazines. Indeed, many of the print vehicles that are popular among the target
32
audience—publications like Men’s Health and Women’s Health-- have been targeted in their
online format instead.
Television
Television has a growing audience-fragmentation problem, and television commercials now
deliver less reach even though viewership is at an all-time high (Morgan, 2012). “Most
heavy multi-week national campaigns are lucky to reach 60% of viewers in their target
audience (Morgan, 2012).” There is also a frequency imbalance. According to both Nielsen
data and Simulmedia’s viewing database, 20% of all viewers receive 60-80% of most
national impressions (Morgan, 2012).
Given the recommended budget, it would be difficult to reach a significant portion of the
target audience at the desired frequency level. Furthermore, production costs for television
commercials are more expensive than for any other medium. For these reasons, television
is not a recommended medium for this campaign.
Creative Strategy and Execution
Creative Strategy
Mbark recommends that ChapStick use a creative strategy that appeals to both the
cognitive and affective aspects of a consumer’s purchasing decision. The campaign aims to
teach consumer’s about a new benefit of ChapStick—its ability to protect lips from sun
damage—so a cognitive approach is definitely necessary. However, the campaign also
aims to develop brand loyalty and to eliminate perception of ChapStick as being generic or
bland. Achieving such a goal will require cognitive appeals as well.
To teach consumer’s that ChapStick’s Lip Shield 365 provides superior sun protection for
lips, two cognitive steps must be taken. First, consumers must be convinced that their lips
are in need of sun protection and can easily be protected. For this to occur, advertisements
will posit that ChapStick is as essential to bodily protection as sun block, a helmet, gloves,
or any other protective gear. Thus, creative executions might display ChapStick in close
correlation to such items.
Next, consumers must be taught to purchase Lip Shield 365 over competing products
because it offers superior protection. This will be achieved by highlighting the fat that Lip
Shield 365, with SPF 50+, contains the strongest sun protection ingredients available in
commercial lip balms.
33
To instill loyalty and a livelier brand image, ChapStick should create advertisements that are
fun and relatable to the recommended target audience. In spot markets, transit
advertisements will directly relate to the hobbies/activities of those viewing them. For
example, advertisements near ski resorts in Denver will connect Lip Shield 365 to skiing and
advertisements near beaches in Southern areas will relate Lip Shield 365 to the beach. This
will potentially teach consumers that ChapStick should be used whenever the activity shown
is being done. It will also create a friendlier brand image for ChapStick by relating the brand
to people’s favorite activities.
Continuity of Creative Elements
The advertisements in the recommended creative executions are united by the concept of
“full protection” against outside forces that can cause bodily harm. Mbark asserts that in
most day-to-day activities consumers take certain steps to ensure they are fully protected
from external forces. Whether it be wearing a hat to protect a head from the cold or
sunglasses to shield eyes from the sun, certain steps for comfort/protection are commonly
taken without any real thought; they are nearly automatic. Lips, however, are rarely
protected by such practices.
The uniting principle that guides this campaign is the idea that consumers aren’t “fully
protected” because they’ve been neglecting to care for their lips. Each execution positions
Lip Shield 365 as an essential tool for remaining protected from the weather/natural forces
by associating it with other products that are used for similar purposes. Educational copy is
included to strengthen the connections and alert audiences that they should use Lip Shield
365 regularly.
Primary Research in Relation to Message Strategy
Primary research confirmed that adults 18-49 were very interested in purchasing lip balm
that offered superior protection from the sun. As previously mentioned, a positive
relationship exists between a consumer’s desire for SPF and their liking of ChapStick. This
means that the more consumers are looking for SPF, the more they like ChapStick. This is
important because it shows that people are looking for SPF and they like ChapStick, but
now they must be taught that ChapStick has the product with the highest SPF in the
category. This is one of the reasons that Mbark is suggesting an informative message
strategy for this campaign. Additionally, the primary research showed that brand loyalty was
important to consumers. This means that ChapStick needs to create a trendy yet healthy
brand personality that consumers will want to remain loyal to, through this campaign.
34
Creative Executions
Transit Advertisements
35
36
Banner Ads
Package Redesign
Mbark believes the current packaging for Lip Shield 365 is antiquated, cluttered, and
unfocused. On current packaging, the SPF 50+ designation is relegated to a small, hardly
visible portion of the overall product. Mbark suggests ChapStick redesign the package to
highlight the SPF 50+ benefit. Furthermore, it is recommended that the package be given
brighter colors and a less crowded layout. Altogether, these changes will communicate the
idea that Lip Shield 365 provides excellent sun protection while making ChapStick appear
more fun, lively, and modern. A mock rendition of the new packaging is seen below.
37
Mobile Application
The “ChapStick Protection Package” is a mobile application created to position Lip Shield
365 as an essential tool for staying “totally protected” while enjoying outdoor activities.
When users download the app, they can browse an extensive list of outdoor activities such
as hiking, camping, biking, skiing, etc…
Selecting an activity takes the user to an individualized checklist, which lists all the gear and
apparel essential to safely competing the activity. At the bottom of each checklist,
ChapStick’s Lip Shield 365 is listed.
Not only does the mobile application reinforce the communication goals of the campaign, it
provides a useful tool for people within the recommended target audience. Through the
“ChapStick Protection Package” consumers will interact with the ChapStick brand and gain
something of value for their loyalty. The application will be available for download on
ChapStick’s official website and official Facebook page. A promotional video for the app will
be viewable on YouTube.
38
Radio Commercial
The :30 radio spot for ChapStick will run in all spot markets during the morning hours. It
mimics the well-known emergency broadcast soundtracks that often play during times of
extreme weather. The announcer speaks slowly in a dull, robotic drone as he warns the
audience about the impending danger to their lips. A mock script of the commercial is
included below.
Sound Effect: (1-2 seconds of emergency broadcast beeping)
Announcer: (In a slow, robotic voice) Warning! This is the ChapStick Emergency Lipcare
system. Your lips are in grave danger.
Announcer: Today’s UV Index is (insert current UV index). Please be warned: exposure to
the sun can harm your lips.
Announcer: It is important that you are fully protected from the sun. Please protect your lips
with ChapStick Lip Shield 365. At this time, Lip Shield 365 is essential to your safety.
Announcer: Remain calm. With SPF 50+, the strongest available sun protection, Lip Shield
365 will protect your lips from sun damage. Do not fear.
Announcer: Help is available! Visit ChapStick.com to protect yourself today. Remain fully
protected, use Lip Shield 365! Thank you.
Sound Effect: (1 second of emergency broadcast beeping)
Benchmarking and Contingency Planning
Of the $6,500,000 campaign budget, Mbark has suggested that 10% ($650,000) be saved
for contingency. This excess cash will be used if unforeseen challenges or opportunities
arise during the 1-year campaign period.
Campaign Benchmarks
Mbark recommends that ChapStick measure the success of its advertising efforts at regular
intervals. Doing so will ensure that changes are made if the campaign is not on pace to
achieve its stated objectives. Since both marketing and communications goals have been
39
identified, numerous benchmarking activities will be needed so that the progress of every
goal can be measured.
Timing of Benchmarks
Mbark recommends that campaign progress be benchmarked 3 times throughout the
campaign: September 1, 2012, November 30, 2012, and March 1, 2012. Together with the
pre-campaign research, these benchmarking points will provide a comprehensive summary
of the recommended target market before and after each period of increased activity.
Comparing pre-campaign metrics to metrics compiled on September 1, 2012 will allow
ChapStick to track changes in revenue, brand awareness, and brand loyalty due to the
summer pulse in advertising. Similarly, comparing metrics from November 2012 to metrics
from March 2013 will allow ChapStick to measure changes from the winter pulse. Data
collection should begin 5-10 business days in advance so that the results can be presented
and analyzed on the given dates.
Benchmarking Practices
The campaign objectives consist of a marketing goal measured in market share and
communications goals measured in consumer perception. Benchmarking practices must be
varied so that all goals are measured. Financial benchmarks must be used to measure
growth in sales and market share relative to the marketing goal, and consumers’ mindsets
must be analyzed to benchmark the communication goals.
Financial Benchmarks
The financial benchmarking activities will require analysis of revenue and unit sales. By
measuring these metrics at the specified times, ChapStick will know whether it is on pace to
reach the campaign’s stated objectives. Relative to last year’s metrics, the brand should
yield an additional:
 580,000 unit sales and $1,096,368 revenue by September 1, 2012
 937,100 unit sales and $1,771,056 revenue by November 30, 2012
 3,882,000 unit sales and $7,337,232 revenue by March 1, 2012
The rationale behind these benchmarks can be seen in Appendix C, Figure B.
Communication Benchmarks
Benchmarking practices for communication goals must be more qualitative than for
marketing goals because consumer thoughts and opinions must be measured. ChapStick
must rely on consumer feedback to accurately gauge how the recommended target
40
audience feels about ChapStick. Specifically, brand loyalty, perception, and awareness
must be known.
Mbark recommends that ChapStick use social media and customer surveys to track the
progress of communication goals:
Facebook
 Qualitatively analyze comments on ChapStick’s Facebook page
 Record the numbers of “likes” and “shares”
 Track number of profile views
Twitter
 Record new followers and retweets
 Analyze the content of hashtagged tweets
YouTube
 Track the number of subscribers
 Qualitatively analyze the comments that are made on videos
 Record how many videos are being sent in
Surveys
 Two samples of equal size: one from spot markets and one from national markets
 Surveys will be similar to those given before campaign, but they will be more focused
on measuring attitude changes towards ChapStick.
Contingency Plan
Creating a contingency plan is necessary because it is important to plan for uncontrollable
factors and unmet goals so that changes can be implemented quickly when needed. Mbark
believes that it is necessary to complete a plan of action in case sales and brand image
development goals not be where expected.
The September benchmarking point may be too early in the campaign to see any
measurable difference in sales or consumer opinion, and the March benchmarking point will
be too late to implement major changes. Therefore, the November benchmarking point will
likely be when ChapStick makes a decision regarding its contingency plan.
If financial goals are not being met, ChapStick should use the contingency budget to
purchase more radio and transit GRPs in the spot markets, thereby increasing reach,
frequency, and sales.
41
If sales and brand image awareness numbers are not adequate in November, Mbark
suggests that the contingency budget be invested in social media and other promotions.
Doing so will increase points of contact with the consumer and create more opportunities to
forge emotional connections between the target audience and the brand.
Summary
ChapStick has been a brand leader in the lip balm industry for many years. However, due to
the rising trends of organic ingredients, competitors such as Burt’s Bees have been steadily
increasing their market share. Additionally, ChapStick has become the generic name for all
lip balm products, and therefore, interchangeable with competing brands. In light of these
issues, ChapStick must work towards differentiating itself among other brands in the
category.
With the highest SPF in the industry, ChapStick’s Lip Shield 365 presents an excellent
opportunity for ChapStick to increase market share, achieve brand differentiation, and
promote consumer loyalty.
Mbark Creative Solutions has created an Integrated Marketing Campaign that will achieve
these possibilities by positioning Lip Shield 365 as the leading sun protection lip balm in the
industry. In doing so, ChapStick will prove to consumers that it is not generic; it is the
world’s leading lip balm brand. The advertisements in this campaign will teach adults aged
18-49 that ChapStick products, especially Lip Shield 365, are essential to enjoying healthy,
protected lips.
42
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47
Appendix A
Figure A
T-Test Grouping Variable Gender
Group Statistics
How often they buy
"I always buy same brand"
"I always buy organic balm"
"I always buy cheapest balm"
"I always buy first balm I see"
"I always buy a flavored balm"
"I always buy colored/glossy"
"I always buy SPF balm"
Importance of chapped prevention
Importance of chapped treatment
Importance of cosmetic benefits
Importance of flavor
Importance of SPF
How much they like ChapStick
"I spend time on Winter Sports"
"I spend time on appearance"
Gender of respondent
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
1 Male
2 Female
N
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
21
29
Mean
2.38
3.03
3.95
3.31
2.48
3.28
2.8571
2.6207
2.6190
2.1724
2.14
3.21
1.24
2.52
3.95
4.10
4.76
4.69
4.57
4.72
1.05
2.17
1.52
2.17
3.76
3.79
3.48
3.24
3.48
2.24
2.71
2.79
Std. Deviation
1.322
.981
1.117
1.365
1.078
1.131
.79282
.86246
.86465
.46820
1.108
1.207
.625
1.243
.921
.724
.700
.541
.746
.528
.218
1.256
.981
1.167
1.338
1.320
.750
1.244
1.078
1.215
1.189
1.013
Std. Error Mean
.288
.182
.244
.254
.235
.210
.17301
.16016
.18868
.08694
.242
.224
.136
.231
.201
.135
.153
.101
.163
.098
.048
.233
.214
.217
.292
.245
.164
.231
.235
.226
.260
.188
48
Independent Samples Test
Levene's Test for Equality of Variances
F
Sig.
2.621
.112
How often they buy
Equal variances assumed
Equal variances not assumed
"I always buy same brand"
Equal variances assumed
Equal variances not assumed
3.549
.066
"I always buy organic balm"
Equal variances assumed
Equal variances not assumed
.090
.765
"I always buy cheapest balm"
Equal variances assumed
Equal variances not assumed
.359
.552
"I always buy first balm I see"
Equal variances assumed
Equal variances not assumed
20.785
.000
"I always buy a flavored balm"
Equal variances assumed
Equal variances not assumed
.933
.339
"I always buy colored/glossy"
Equal variances assumed
Equal variances not assumed
15.582
.000
"I always buy SPF balm"
Equal variances assumed
Equal variances not assumed
.111
.741
Importance of chapped prevention
Equal variances assumed
Equal variances not assumed
.115
.736
Importance of chapped treatment
Equal variances assumed
Equal variances not assumed
1.952
.169
Importance of cosmetic benefits
Equal variances assumed
Equal variances not assumed
39.295
.000
Importance of flavor
Equal variances assumed
Equal variances not assumed
2.516
.119
Importance of SPF
Equal variances assumed
Equal variances not assumed
.121
.730
How much they like ChapStick
Equal variances assumed
Equal variances not assumed
4.745
.034
"I spend time on Winter Sports"
Equal variances assumed
Equal variances not assumed
.187
.667
"I spend time on appearance"
Equal variances assumed
Equal variances not assumed
.784
.380
49
Independent Samples Test
How often they buy
"I always buy same brand"
"I always buy organic balm"
"I always buy cheapest
balm"
"I always buy first balm I
see"
"I always buy a flavored
balm"
"I always buy
colored/glossy"
"I always buy SPF balm"
Importance of chapped
prevention
Importance of chapped
treatment
Importance of cosmetic
benefits
Importance of flavor
Importance of SPF
How much they like CS
"I spend time on Winter
Sports"
"I spend time on
appearance"
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
t
-2.008
-1.915
t-test for Equality of Means
Mean
df
Sig. (2-tailed)
Difference
48
.050
-.654
35.149
.064
-.654
1.767
1.825
48
47.214
.084
.074
.642
.642
.363
.352
-2.517
-2.536
48
44.422
.015
.015
-.800
-.800
.318
.315
.989
1.003
48
45.236
.327
.321
.23645
.23645
.23901
.23576
2.352
2.150
48
28.478
.023
.040
.44663
.44663
.18993
.20775
-3.183
-3.227
48
45.249
.003
.002
-1.064
-1.064
.334
.330
-4.329
-4.772
48
43.536
.000
.000
-1.279
-1.279
.295
.268
-.649
-.625
48
36.682
.519
.536
-.151
-.151
.233
.242
.412
.395
48
36.211
.682
.695
.072
.072
.176
.183
-.849
-.803
48
33.917
.400
.427
-.153
-.153
.180
.190
-4.050
-4.727
48
30.311
.000
.000
-1.125
-1.125
.278
.238
-2.070
-2.129
48
46.855
.044
.039
-.649
-.649
.313
.305
-.082
-.082
48
42.894
.935
.935
-.031
-.031
.380
.381
.769
.830
48
46.689
.446
.411
.235
.235
.305
.283
3.716
3.789
48
45.944
.001
.000
1.235
1.235
.332
.326
-.252
-.246
48
38.885
.802
.807
-.079
-.079
.312
.321
Std. Error
Difference
.325
.341
Independent Samples Test
t-test for Equality of Means
95% Confidence Interval of the Difference
Lower
Upper
50
How often they buy
"I always buy same brand"
"I always buy organic balm"
"I always buy cheapest balm"
"I always buy first balm I see"
"I always buy a flavored balm"
"I always buy colored/glossy"
"I always buy SPF balm"
Importance of chapped prevention
Importance of chapped treatment
Importance of cosmetic benefits
Importance of flavor
Importance of SPF
How much they like ChapStick
"I spend time on Winter Sports"
"I spend time on appearance"
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
-1.308
-1.346
-.088
-.065
-1.439
-1.435
-.24412
-.23832
.06475
.02140
-1.736
-1.728
-1.873
-1.820
-.619
-.641
-.281
-.299
-.515
-.539
-1.683
-1.611
-1.278
-1.261
-.796
-.800
-.379
-.335
.567
.579
-.707
-.727
.001
.039
1.372
1.350
-.161
-.164
.71702
.71123
.82852
.87187
-.392
-.400
-.685
-.739
.317
.339
.425
.443
.209
.234
-.566
-.639
-.019
-.036
.734
.738
.849
.804
1.903
1.891
.549
.570
Figure B
T-Test Grouping Variable Age
Group Statistics
How often they buy
"I always buy same brand"
"I always buy organic balm"
"I always buy cheapest balm"
"I always buy first balm I see"
"I always buy a flavored balm"
"I always buy colored/glossy"
"I always buy SPF balm"
Importance of chapped prevention
Age Groups
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
N
34
16
34
16
34
16
34
16
34
16
34
16
34
16
34
16
34
16
Mean
2.88
2.50
3.59
3.56
3.06
2.69
2.7353
2.6875
2.4118
2.2500
2.76
2.75
2.15
1.63
4.00
4.13
4.79
4.56
Std. Deviation
1.066
1.366
1.184
1.548
1.153
1.195
.86371
.79320
.74336
.57735
1.281
1.291
1.234
1.088
.696
1.025
.479
.814
Std. Error Mean
.183
.342
.203
.387
.198
.299
.14812
.19830
.12749
.14434
.220
.323
.212
.272
.119
.256
.082
.203
51
Importance of chapped treatment
Importance of cosmetic benefits
Importance of flavor
Importance of SPF
How much they like ChapStick
"I spend time on Winter Sports"
"I spend time on appearance"
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
1.00
2.00
34
16
34
16
34
16
34
16
34
16
34
16
34
16
4.76
4.44
1.79
1.50
1.94
1.81
3.74
3.88
3.18
3.69
2.88
2.50
2.88
2.50
.496
.814
1.122
1.095
1.099
1.223
1.333
1.310
1.086
.946
1.297
1.317
.946
1.317
.085
.203
.192
.274
.189
.306
.229
.328
.186
.237
.222
.329
.162
.329
Independent Samples Test
Levene's Test for Equality of Variances
F
Sig.
2.414
.127
How often they buy
Equal variances assumed
Equal variances not assumed
"I always buy same brand"
Equal variances assumed
Equal variances not assumed
3.701
.060
"I always buy organic balm"
Equal variances assumed
Equal variances not assumed
.017
.897
"I always buy cheapest balm"
Equal variances assumed
Equal variances not assumed
.147
.703
"I always buy first balm I see"
Equal variances assumed
Equal variances not assumed
2.552
.117
"I always buy a flavored balm"
Equal variances assumed
Equal variances not assumed
.732
.396
"I always buy colored/glossy"
Equal variances assumed
Equal variances not assumed
3.290
.076
"I always buy SPF balm"
Equal variances assumed
Equal variances not assumed
1.635
.207
Importance of chapped prevention
Equal variances assumed
Equal variances not assumed
4.614
.037
Importance of chapped treatment
Equal variances assumed
Equal variances not assumed
5.082
.029
Importance of cosmetic benefits
Equal variances assumed
Equal variances not assumed
.849
.361
Importance of flavor
Equal variances assumed
Equal variances not assumed
.019
.892
Importance of SPF
Equal variances assumed
Equal variances not assumed
.417
.522
How much they like CS
Equal variances assumed
Equal variances not assumed
.172
.680
"I spend time on Winter Sports"
Equal variances assumed
Equal variances not assumed
.130
.720
"I spend time on appearance"
Equal variances assumed
Equal variances not assumed
5.192
.027
52
Independent Samples Test
How often they buy
"I always buy same brand"
"I always buy organic balm"
"I always buy cheapest
balm"
"I always buy first balm I
see"
"I always buy a flavored
balm"
"I always buy
colored/glossy"
"I always buy SPF balm"
Importance of chapped
prevention
Importance of chapped
treatment
Importance of cosmetic
benefits
Importance of flavor
Importance of SPF
How much they like
ChapStick
"I spend time on Winter
Sports"
"I spend time on
appearance"
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
Equal variances assumed
Equal variances not
assumed
t
1.079
.987
t-test for Equality of Means
Mean
df
Sig. (2-tailed)
Difference
48
.286
.382
23.940
.334
.382
Std. Error
Difference
.354
.387
.065
.059
48
23.580
.949
.954
.026
.026
.397
.437
1.050
1.036
48
28.526
.299
.309
.371
.371
.354
.358
.187
.193
48
31.895
.852
.848
.04779
.04779
.25536
.24752
.767
.840
48
37.233
.447
.406
.16176
.16176
.21093
.19258
.038
.038
48
29.256
.970
.970
.015
.015
.389
.390
1.447
1.515
48
33.147
.155
.139
.522
.522
.361
.345
-.507
-.442
48
21.760
.615
.663
-.125
-.125
.247
.283
1.265
1.056
48
20.037
.212
.304
.232
.232
.183
.219
1.760
1.484
48
20.417
.085
.153
.327
.327
.186
.221
.871
.879
48
30.134
.388
.387
.294
.294
.338
.335
.372
.358
48
26.813
.711
.723
.129
.129
.345
.359
-.348
-.350
48
29.938
.730
.729
-.140
-.140
.402
.399
-1.614
-1.697
48
33.508
.113
.099
-.511
-.511
.317
.301
.968
.962
48
29.077
.338
.344
.382
.382
.395
.397
1.173
1.042
48
22.568
.247
.308
.382
.382
.326
.367
Independent Samples Test
t-test for Equality of Means
95% Confidence Interval of the Difference
Lower
Upper
53
How often they buy
"I always buy same brand"
"I always buy organic balm"
"I always buy cheapest balm"
"I always buy first balm I see"
"I always buy a flavored balm"
"I always buy colored/glossy"
"I always buy SPF balm"
Importance of chapped prevention
Importance of chapped treatment
Importance of cosmetic benefits
Importance of flavor
Importance of SPF
How much they like ChapStick
"I spend time on Winter Sports"
"I spend time on appearance"
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
Equal variances assumed
Equal variances not assumed
-.330
-.417
-.772
-.877
-.340
-.362
-.46565
-.45644
-.26234
-.22835
-.768
-.783
-.204
-.179
-.621
-.712
-.136
-.226
-.047
-.132
-.385
-.389
-.566
-.609
-.948
-.955
-1.148
-1.123
-.412
-.430
-.273
-.378
1.095
1.182
.823
.928
1.082
1.105
.56123
.55203
.58587
.55188
.797
.813
1.248
1.223
.371
.462
.600
.689
.701
.787
.973
.978
.823
.866
.668
.676
.126
.101
1.177
1.195
1.038
1.142
Figure C
Total Means
Report
Mean
N
Std. Deviation
Mean
N
Std. Deviation
BuyingFreq How
Balm30 Likelihood
often they buy
to buy next 30 days
2.76
2.34
50
50
1.170
1.586
BalmFirst "I always
buy first balm I see"
3.94
50
.956
BalmLoyalty "I
BalmOrganic "I
always buy same
always buy organic BalmPrice "I always
brand"
balm"
buy cheapest balm"
3.58
2.94
3.52
50
50
50
1.295
1.168
1.111
Report
BalmFlavor "I
BalmGloss "I
Prevention
always buy a
always buy
BalmSPF "I always
Importance of
flavored balm"
colored/glossy"
buy SPF balm"
chapped prevention
2.76
1.98
4.04
4.72
50
50
50
50
1.271
1.204
.807
.607
54
Mean
N
Std. Deviation
Report
Cosmetic
Importance of
Flavor Importance
cosmetic benefits
of flavor
1.70
1.90
50
50
1.111
1.129
Treatment
Importance of
chapped treatment
4.66
50
.626
SPF Importance of
SPF
3.78
50
1.314
ChapStick30
Likelihood to buy
CS next 30 days
1.70
50
1.249
Report
Mean
N
Std. Deviation
CSLiking How
Sports "I spend time
much they like CS
on Winter Sports"
3.34
2.76
50
50
1.062
1.302
Appearance "I
spend time on
appearance"
2.76
50
1.080
Figure D
Sample Frequencies
Gender of respondent
Valid
1 Male
2 Female
Total
Frequency
21
29
50
Percent
42.0
58.0
100.0
Valid Percent
Cumulative Percent
42.0
42.0
58.0
100.0
100.0
Location of Respondent
Valid
1 Northeast
2 Midwest
3 West
4 South
Total
Frequency
38
1
5
6
50
Percent
76.0
2.0
10.0
12.0
100.0
Valid Percent
Cumulative Percent
76.0
76.0
2.0
78.0
10.0
88.0
12.0
100.0
100.0
Figure E
Frequencies – Attributes
"I always buy same brand"
Frequency
Valid
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Total
3
9
11
10
17
50+
Percent
6.0
18.0
22.0
20.0
34.0
100.0
Valid Percent
Cumulative Percent
6.0
6.0
18.0
24.0
22.0
46.0
20.0
66.0
34.0
100.0
100.0
55
"I always buy organic balm"
Frequency
Valid
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Total
6
13
13
14
4
50
Percent
12.0
26.0
26.0
28.0
8.0
100.0
Valid Percent
Cumulative Percent
12.0
12.0
26.0
38.0
26.0
64.0
28.0
92.0
8.0
100.0
100.0
"I always buy a flavored balm"
Valid
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Total
Frequency
10
14
7
16
3
50+
Percent
20.0
28.0
14.0
32.0
6.0
100.0
Valid Percent
Cumulative Percent
20.0
20.0
28.0
48.0
14.0
62.0
32.0
94.0
6.0
100.0
100.0
"I always buy colored/glossy"
Valid
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Total
Frequency
26
7
11
4
2
50+
Percent
52.0
14.0
22.0
8.0
4.0
100.0
Valid Percent
Cumulative Percent
52.0
52.0
14.0
66.0
22.0
88.0
8.0
96.0
4.0
100.0
100.0
"I always buy SPF balm"
Frequency
Valid
1 Strongly Disagree
2 Disagree
3 Neutral
4 Agree
5 Strongly Agree
Total
1
1
6
29
13
50+
Percent
2.0
2.0
12.0
58.0
26.0
100.0
Valid Percent
Cumulative Percent
2.0
2.0
2.0
4.0
12.0
16.0
58.0
74.0
26.0
100.0
100.0
"I always buy first balm I see"
Valid
2.00 Agree
3.00 Neutral
4.00 Disagree
Total
Frequency
38
6
6
50+
Percent
76.0
12.0
12.0
100.0
Valid Percent
Cumulative Percent
76.0
76.0
12.0
88.0
12.0
100.0
100.0
56
"I always buy cheapest balm"
Valid
2.00 Agree
3.00 Neutral
4.00 Disagree
5.00 Strongly Disagree
Total
Frequency
25
15
9
1
50+
Percent
50+.0
30.0
18.0
2.0
100.0
Valid Percent
Cumulative Percent
50+.0
50+.0
30.0
80.0
18.0
98.0
2.0
100.0
100.0
Figure F
Frequencies – Reasons to Purchas Lip Balm
Importance of chapped lip prevention
Frequency
Valid
2 unimportant
3 neutral
4 important
5 very important
Total
1
1
9
39
50+
Percent
2.0
2.0
18.0
78.0
100.0
Valid Percent
Cumulative Percent
2.0
2.0
2.0
4.0
18.0
22.0
78.0
100.0
100.0
Importance of chapped lip treatment
Frequency
Valid
2 unimportant
3 neutral
4 important
5 very important
Total
1
1
12
36
50+
Percent
2.0
2.0
24.0
72.0
100.0
Valid Percent
Cumulative Percent
2.0
2.0
2.0
4.0
24.0
28.0
72.0
100.0
100.0
Importance of cosmetic benefits
Valid
1 very unimportant
2 unimportant
3 neutral
4 important
5 very important
Total
Frequency
32
7
7
2
2
50+
Percent
64.0
14.0
14.0
4.0
4.0
100.0
Valid Percent
Cumulative Percent
64.0
64.0
14.0
78.0
14.0
92.0
4.0
96.0
4.0
100.0
100.0
Importance of flavor
Valid
1 very unimportant
2 unimportant
3 neutral
4 important
5 important
Total
Frequency
25
13
5
6
1
50+
Percent
50+.0
26.0
10.0
12.0
2.0
100.0
Valid Percent
Cumulative Percent
50+.0
50+.0
26.0
76.0
10.0
86.0
12.0
98.0
2.0
100.0
100.0
57
Importance of SPF
Frequency
Valid
1 very unimportant
2 unimportant
3 neutral
4 important
5 very important
Total
6
1
10
14
19
50+
Percent
12.0
2.0
20.0
28.0
38.0
100.0
Valid Percent
Cumulative Percent
12.0
12.0
2.0
14.0
20.0
34.0
28.0
62.0
38.0
100.0
100.0
Figure G
Frequencies
How often they buy lip balm
Frequency
Valid
1 Never
2 Rarely
3 Occasionally
4 Frequently
5 All the time
Total
6
17
16
5
6
50+
Percent
12.0
34.0
32.0
10.0
12.0
100.0
Valid Percent
Cumulative Percent
12.0
12.0
34.0
46.0
32.0
78.0
10.0
88.0
12.0
100.0
100.0
What brand they prefer
Valid
1 ChapStick
2 Blistex
4 Burt's Bees
5 Carmex
6 Soft Lips
7 Other
Total
Frequency
22
2
14
4
1
7
50+
Percent
44.0
4.0
28.0
8.0
2.0
14.0
100.0
Valid Percent
Cumulative Percent
44.0
44.0
4.0
48.0
28.0
76.0
8.0
84.0
2.0
86.0
14.0
100.0
100.0
Season they buy lip balm most
Valid
1 Winter
2 Summer
3 Spring
5 All Year
Total
Frequency
27
2
2
19
50+
Percent
54.0
4.0
4.0
38.0
100.0
Valid Percent
Cumulative Percent
54.0
54.0
4.0
58.0
4.0
62.0
38.0
100.0
100.0
What they call lip balm
Valid
1 ChapStick
2 Lip Balm
Total
Frequency
46
4
50+
Percent
92.0
8.0
100.0
Valid Percent
Cumulative Percent
92.0
92.0
8.0
100.0
100.0
58
Have they ever bought ChapStick?
Frequency
Valid
1 no
2 yes
Total
4
46
50+
Percent
8.0
92.0
100.0
Valid Percent
Cumulative Percent
8.0
8.0
92.0
100.0
100.0
Likelihood to buy lip balm in next 30 days
Valid
1 very unlikely
2 unlikely
3 neutral
4 likely
5 very likely
Total
Frequency
24
8
4
5
9
50+
Percent
48.0
16.0
8.0
10.0
18.0
100.0
Valid Percent
Cumulative Percent
48.0
48.0
16.0
64.0
8.0
72.0
10.0
82.0
18.0
100.0
100.0
General Impression of ChapStick
Frequency
Valid
1 Hate
2 Dislike
3 Indifferent
4 Like
5 Love
Total
4
5
16
20
5
50+
Percent
8.0
10.0
32.0
40.0
10.0
100.0
Valid Percent
Cumulative Percent
8.0
8.0
10.0
18.0
32.0
50+.0
40.0
90.0
10.0
100.0
100.0
59
Figure H
MBARK Creative Solutions Survey, March 2012
Hello! My name is ___________ and I am conducting this research as part of a group project for one of my
Penn State communication classes. The purpose of this survey is to learn more about the buying criteria
and target audience associated with popular personal care products. All answers received from this survey
will be kept confidential and your phone number will be erased from this data following this phone call.
Additionally, you are free to skip any question you do not feel comfortable answering at any time.
Before we begin, can you please confirm that you are at least 18 years of age?
Would you be willing to take five to ten minute to answer our short survey?
If yes: Thank you, let’s continue.
If no: Okay, thanks anyway. Have a nice day.
I am going to start by asking you a couple of questions regarding your interpretation of a personal care
product.
1. It’s a typical winter day and a person realizes their lips are chapped, what would you call the type
of product most people would put on their lips?
Thank you. The next series of questions is going to discuss your usage of lip balm. Lip balm can be
categorized as any type of product that is used to moisturize your lips.
2. Out of the following choices, how often do you buy lip balm?
a. Never
b. Rarely
c. Occasionally
d. Frequently
e. Very frequently
3. If you were to buy a brand of lip balm, what brand would you be most likely to buy?
4. On a scale of 1-5, how likely are you to buy lip balm in the next 30 days? 1 being very unlikely and
5 being very likely
1
2
3
4
5
5. Which season do you tend to use lip balm the most? (check off with yes no according to answer)
a. Winter
b. Spring
c. Summer
d. Fall
e. Use the same all year round
Please rate the extent to which you agree or disagree with the following statements by responding with:
strongly disagree, disagree, indifferent, agree, or strongly agree
6. When shopping for lip balm I always purchase the same brand.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
60
7. When shopping for lip balm I look for products made with natural ingredients.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
8. When shopping for lip balm I purchase the cheapest available product.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
9. When shopping for lip balm I purchase the first product I see.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
10. When shopping for lip balm I seek out specific flavors.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
11. When shopping for lip balm I look for a product that will add color or gloss to my lips.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
12. When shopping for lip balm I look for a product that will protect my lips from the sun.
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
I am now going to ask you a series of questions regarding reasons why you would buy lip balm
Please rate how important the following reasons are as to why you would purchase lip balm on a scale of
1-5, 1 being very unimportant and 5 being very important.
13. To prevent dry or chapped lips
1
2
3
4
5
14. To treat dry or chapped lips
1
2
3
5
4
15. For a cosmetic value (to make your lips appear glossy or colored)
1
2
3
4
5
16. For the flavor
1
2
3
4
17. To prevent sun damage or sunburn
1
2
3
4
5
5
18. Are there any other reasons you would use lip balm that were not previously mentioned?
I am now going to ask you a series of questions related to your use of the brand ChapStick.
19. Have you ever bought a ChapStick brand product?
61
20. On a scale of 1-5, how likely are you to buy the brand ChapStick in the next 30 day?
1 means very unlikely and 5 means very likely
1
2
3
4
5
21. What is your general impression of the brand ChapStick out of the following options:
a. Love it
b. Like it
c. Indifferent
d. Don’t like it
e. Strongly dislike it
22. What is the first thing that comes to mind when you think of the brand ChapStick?
We’re almost done. Can you please rate the extent to which you agree or disagree with the following
statements with: strongly disagree, disagree, indifferent, agree, or strongly agree
23. I regularly engage in winter sports activities
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
24. Putting time into my personal appearance is one of the most important parts of my day
1=strongly disagree 2=disagree 3=indifferent
4=agree
5=strongly agree
Lastly, I am now going to ask you a couple of questions about yourself.
25. On average, how many hours per day do you spend using social media?
26. What is your age?
27. Are you a male or female?
28. What city and state do you currently live in?
Thank you so much for taking the time to complete our survey. We really appreciate your responses. If you
have any further questions, comments or concerns you may contact our communications professor Susan
Strohm at 814-863-0535. Thank you again. Goodbye.
62
Figure I
Primary Research Contact Sheet
Mike
Brian
Brian
Jared
Joshua
Sami
Jocelyn
John
Chelsea
Billy
Stacey
Joe
Barbara
Barry
John
Lauren
Eric
Kristin
Liz
Laura
Marissa
Greg
Richard
Lorna
Lauren
S
W
M
M
S
M
K
R
R
H
C
K
L
R
B
B
J
M
D
K
V
V
R
R
A
774-413-2936
484-716-7923
925-324-9579
215-622-5223
908-208-1746
516-270-4472
724-882-4773
412-913-1100
610-761-2979
845-641-6565
516-361-2864
516-628-0304
908-581-0909
973-723-5196
508-875-4362
508-875-4362
814-308-3398
267-229-2758
267-997-2479
908-268-5822
774-291-9159
774-291-9159
215-860-0386
215-260-5318
973-229-1317
Jodi
Aaron
Caroline
Paul
Ben
Vanessa
Lotem
Robbie
Rachel
Alyssa
Rachel
Sarah
Nadine
Alyssa
Christine
Tony
Ermis
Kahena
Lily
Kevin
Christina
Laura
Bob
Scotty
Catherine
C
S
V
M
B
S
P
V
Y
G
R
B
R
G
G
C
C
J
K
S
C
H
H
W
C
508-380-8439
914-473-8916
508-596-6257
508-843-0501
508-740-6949
925-285-7694
818-300-7744
508-277-7891
267-255-3077
973-809-6568
614-506-5055
617-448-0016
610-955-7144
973-809-6568
610-639-7079
917-733-3099
516-628-1508
508-740-4232
617-312-0362
814-574-8483
518-229-7719
215-260-5318
610-999-1224
315-796-0623.
717-304-0190
63
Appendix B
Figure A
Consumers Life Style Habits Regarding Health- Simmons OneView
Figure B
Female National Spot Market- Simmons OneView
64
Figure C
Male National Spot Market- Simmons OneView
Figure D
ChapStick Media Mix 2011- Ad$pender Data
65
Figure E
Female Use of Lip Gloss by Week -Simmons OneView
66
Figure F
Male Use of Moisturizing Lotion/Cream-Simmons OneView
Figure G
Female Use of Moisturizing Lotion/Cream -Simmons OneView
67
Figure H
Percent of Target in U.S Population-Simmons OneView
Figure I
Ostrow Model
Established brand
High brand share
High brand loyalty
Long purchase cycle
Less frequent usage
Low share of voice
-0.2
-0.1
-0.1
0.1
0.2
0.2
Low message complexity
High message uniqueness
Continuing campaign
Product focused message
Low message variety
High wear out
Large advertising units
Low clutter
Favorable editorial setting
High audience attentiveness
Continuous scheduling
Few media vehicles
High repeat exposure media
-0.1
-0.1
0.2
0.1
0.1
-0.1
0.1
0.2
0.1
0.2
0.2
0.1
-0.1
New brand
Low brand share
Low brand loyalty
Short purchase cycle
High frequent usage
High share of voice
Beat Competition
High message complexity
Less message uniqueness
New campaign
Image focused message
High message variety
Low wear out
Small advertising units
High clutter
Neutral editorial setting
Low audience attentiveness
Pulse or flight scheduling
More media used
Low repeat exposure media
68
Appendix C
Figure A
Calculations Related to Marketing Goal
The median price of Lip Shield 365 was found by comparing prices from 5 large retailers,
which were listed on the ChapStick website. The retailers were: WalMart, Kmart,
Walgreens, RiteAid, Drugstore.com, and Amazon.com. These retailers’ prices for one tube of
Lip Shield 365 were: $1.88, $1.99, $2.49, $1.89, $1.89, and $1.49 respectively. These prices
yield a median of $1.89, a mode of $1.89, and a mean of $1.93.
$401,600,000
x
1.015
=
$421,680,000
(Total Market Value- 2008) (Compound Annual Growth Rate- 2008-2012**)
(Est. Market Value- 2012)
$421,680,000
x
=
$88,852,800
$421,680,000
x
=
$96,986,400
(Est. Market Value- 2012)
(Est. Market Value- 2012)
21%
(Current market share)
23%
(Revenue at current market share)
(Goal market share)
$96,986,400
-
$88,852,800
(Revenue @ goal market share)
=
(Revenue at goal market share) (Revenue at current market share)
$8,433,600
/
(Goal revenue increase)
4,462,222
(Goal unit increase)
$1.89
=
(Revenue/unit)
/
$8,433,600
(Goal revenue increase)
4,462,222
(Goal unit increase)
135,515,233
(Target Population)
=
0.0329
(% population needed to reach goal)
**1% industry growth rate was assumed
69
Figure B
Return On Investment Calculations
$8,433,600
-
$8,433,600
/
(Goal revenue increase)
(Goal revenue increase)
$6,500,000
=
$1,933,600
$6,500,000
=
1.297
(Campaign Budget)
(Campaign Budget)
(Campaign Profit)
(% ROI)
Figure C
Benchmarking Calculations
Rationale behind these goals (put in appendix):
Percent of consumers who buy ChapStick each season (from Figure 4 in paper)
Winter= 58%
Fall= 0%
Summer= 5%
Spring=5%
All-year=32%
By September 1, 2012:
5% sales from summer + (32% sales from All-year x ¼ year) = 13% of total sales
13% x 4,462,222 unit sales = 580,000 unit sales ----------- 13% x $8,433,600 = $1,096,368
By November 30, 2012:
5% sales from summer + 0% sales from fall + (32% sales from All-year x ¼ year) = 21% of total
sales
21% x 4,462,222 unit sales = 937,100 unit sales ----------- 21% x $8,433,600 = $1,771,056
By March 1, 2013:
5% sales from summer + 58% sales from winter + (32% sales from All-yaer x ¾ year) = 87% of
total sales
87% x 4,462,222 unit sales = 3,882,200 unit sales –------13% x $8,433,600 = $1,096,368 = $7,337,232
70