Video Clip
ChapStick
Pfizer Consumer Healthcare
By: Lisa Moore, Steven Siebert, Kelsey Johnson,
Cherise Boyce, and Staci Garcia
History of ChapStick
• 1800’s-Charles Browne Fleet creates first lip
balm
• 1900’s-Charles wraps lip balm in tin foil to sell
• 1910’s-John Morton buys ChapStick brand for
only five dollars
• 1930’s-Frank Wright, Jr. creates first ChapStick
logo
• 1970’s-ChapStick is used to conceal hidden
microphones during Watergate scandal
• 2009-ChapStick joins Facebook
Target Market
Primary Target Market
• Young females
• Ages 12-25
• On the go
Other Target Markets
• Kids
• Older Women
Hierarchy of Needs
• Social Needs: Esteem
• Safety Needs: Protection
Product Strategy Plan
• Competitive Situations
▫ Online
▫ In Store
Differentiation & Positioning
Differentiation
Positioning
• Why Chapstick beats out
competitors?
• Multiple Varieties
• Design
• Features and Function
•
•
•
•
versus
Customer View of Chapstick?
Wider Variety
Price
Medicinal Value
Place/Distribution Strategy
Place Objectives
• Convenience Product
• Maturity Stage
Channel of Distribution
• Indirect
Type of Channel
• Contractual
Place/Distribution Strategy
Continued
Roles of Middlemen
• Specialize in trade
• Reduces need for working capital
• Helps to anticipate customer needs
Middlemen
• Retailers
Promotion Plans
• In Market Maturity Stage
• Reminds customers about
benefits
• Sells Internationally:
Australia, Canada, Mexico,
New Zealand, Columbia, Italy,
Pakistan, South Korea, Spain,
Sweden, Argentina, and the
United Kingdom
“Be remembered for your kisses”
Promotion Plans
• Mass Selling
• Advertising
▫
▫
▫
▫
▫
Magazines
Store Displays
Internet Placement
Events
Website and Facebook
• Publicity
• Brand Loyalty
Price Strategy
• Status-Quo Oriented
▫ Strive to meet competition prices
▫ Companies they compete against
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

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Burt’s Bees
Nivea
Blistex
Carmex
Price Strategy
• Skimming Price Policy
▫ Newer versions have a
slightly higher price than
original versions
• Discounts, bulk prices,
and coupons are used
▫ Coupons for $1.00 off are
used to help promote newer
versions
Trivia Questions
1) What strange material does chapstick contain?
a) Tree Bark
b)Aluminum
c)Petroleum
d) Tree Sap
2) What animal’s fat is contained in chapstick?
a) Fish
b)Whale
c) Pig
d) Lamb
3) What is the shelf life of chapstick?
a) 3 years
b)5 years
c)6 years
d)10 years