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: Richard.Robinson@mbarkoncreative.com. 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. 3 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). 4 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. 7 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. 8 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. 11 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. 12 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. 13 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% 14 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. 15 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 Resources A Century of ChapStick (2012). Facebook.com. Retrieved from http://www.facebook.com/#!/ChapStick/skp=app_11007063052_ Adkins, J. Lip Balm with SPF. Retrieved from http://skincare.about.com/od/sunkissedglow/tp/6-Lip-Balms-with-SPF-.htm Age and Sex Composition; 2010. (2011). US Census Bureau. Retrieved from http://www.census.gov/prod/cen2010/briefs/c2010 Airport Advertising in 100 Cities. Blue Line Media. Retrieved from http://www.bluelinemedia.com/airport-advertising Ashworth, W. (2010). Invest in the Lip Balm Portfolio. Investopedia. Retrieved from http://stocks.investopedia.com/stock-analysis/2010/invest-in-the-lip-balm-portfoliopfe-ul-hain-clx-ltd1005.aspx Burt’s Bee Official Website (2012). Retrieved from http://www.burtsbees.com/ Bus Advertising and Bus Stop Advertising. (2012). Blue Line Media. 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(2009). Pfizer Weds Wyeth. Forbes.com. Retrieved from http://www.forbes.com/2009/01/26/pfizer-wyeth-obama-oped cx_hm_0127miller.html Mintel Reports. (2009). Medicated Skincare Products. Retrieved from http://academic.mintel.com.ezaccess.libraries.psu.edu/sinatra/oxygen_academic/sea rch_results/show&/display/id=393639/display/id=459724?select_section=459737 Mintel Reports. (2011c). Social Dynamics of 18-24-year-olds-US. Retrieved from http://academic.mintel.com.ezaccess.libraries.psu.edu/sinatra/oxygen_academic/sea rch_results/show&/display/id=542947/display/id=602714#hit1 Mintel Reports. (2011a). Social Networking-US. Retrieved from http://academic.mintel.com.ezaccess.libraries.psu.edu/sinatra/oxygen_academic/sea rch_results/show&/display/id=543389/display/id=592983#hit1 Mintel Reports. (2011b). Sun Protection and Sunless Tanners. Retrieved from http://academic.mintel.com.ezaccess.libraries.psu.edu/sinatra/oxygen_academic/sea rch_results/show&/display/id=542954/display/id=601535?select_section=601536 Mizell, L. (2004). Music Preferences in the US. Retrieved from http://www.scribd.com/doc/16203729/Usa-Music-Preferences Morgan, David. (2012). TV Has A Growing Reach Problem. Advertising Age. Retrieved from http://adage.com/article/digitalnext/tv-put-mass-mass-media-anymore/232988/ Our Commitment. (2012). Burt’s Bees.com Retrieved from http://www.burtsbees.com/c/commitment/ Parente, D. (2006). Advertising Campaign Strategies. (4th Ed.). Mason, OH: Thompson South-Western. 45 Pfizer About. (2012). Pfizer. Retrieved from http://www.pfizer.com/about/ Pfizer Financial Report. (2010). Retrieved from http://www.pfizer.com/files/annualreport/2010/financial/financial2010.pdf Pfizer Reports Fourth-Quarter and Full-Year 2011 Results. (2012). Pfizer. Retrieved from http://www.pfizer.com/files/investors/presentations/q4performance_013112.pdf Preventing Skin Cancer. (2012). Skin Cancer Foundation. Retrieved from http://www.skincancer.org/prevention/sun-protection/preventionguidelines/preventingskin-cancer Pulliam, T. (2011). ChapStick. Retrieved from http://www.thompulliam.com/ChapStick/ Radio Grabs the Ears of Key Demographics in Spring 2010. (2010). Nielsen Wire. Retrieved from http://blog.nielsen.com/nielsenwire/media_entertainment/radio-grabs-the-earsof-key-demographics-in-spring-2010/ Skin Cancer Foundation Official Website. (2012). Retrieved from http://www.skincancer.org/ Smith, A. (2012). Twitter Update 2011. Pew Research Center Publications. Retrieved from http://pewresearch.org/pubs/2007/twitter-users-cell-phone-2011-demographics Snyder, S. (2011). Brand Name Pharmaceutical Manufacturing in the US (IBISWorld Industry Report32541a). Retrieved from IBISWorld database http://clients.ibisworld.com/industryus/default.aspx?indid=487 Subway Advertising in 25 Cities. (2012). Blue Line Media. Retrieved from http://www.bluelinemedia.com/subway-advertising Tarnowski, J. (2004). Nature’s lip service. Progressive Grocer, 83(3), 54-54. Retrieved from http://search.proquest.com/docview/220937404?accountid=13158 Taxi Advertising in 100 Cities. (2012). Blue Line Media. Retrieved from http://www.bluelinemedia.com/taxi-advertising#description Taxi Advertising- The Most Popular Form of Vehicle Advertising. (2012). Marketing Minefield. Retrieved from http://www.marketingminefield.co.uk/taxi-advertising/ 46 Top 25 Celebrity Spokespeople of All-Time. Daily Finance. (2012). Daily Finance. Retrieved from http://www.dailyfinance.com/photos/top-25-celebrity-spokespeople/3655693/ Walsh, R. (2010, October 1). A History of Pfizer. Pharmaphorum. 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Retrieved from http://www.womenshealthmag.com/mediakit 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