Carmex Repositioning

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This is a reposition of the Carmex brand for marketing communications completed with 3 other group members

This is a reposition of the Carmex brand for marketing communications completed with 3 other group members

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  • Using as an antiseptic for minor cuts, burns and insect bites Relieving the itch of athlete ’s foot Drying out pimples for faster healing Softening cuticles Smoothing elbows and knees

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  • 1. Justine Fitch, Clare Wilson, Michelle Quinde, Shelsea Patton More than just a lip balm! ot sun. Chafing winds. Frigid temperatures. Furnace-dry air.
  • 2. •Carmex lip balm was invented in 1937 by Alfred Woelbing, on the family stovetop•Carma Labs employs about 100 people and is still owned and operated by the familyProducts:CARMEX SKIN CAREThe Carmex Skin Care Line is here with a new solution to heal, soothe and moisturize dry skin.Healing Lotion and Healing Cream both have a non-greasy feel with a light, pleasant scent.CARMEX MOISTURE PLUSThis ultra hydrating lip balm is now available with a hint of tint.….and many more!Active ingredients: Octinoxate and Oxybenzone, two sunscreen agents found in many of theirlip balm products to protect against the sun•Other ingredients: Petrolatum, Lanolin, Beeswax, Cetyl Esters, Mineral Oil, Cocoa Butter,Fragrance, Camphor, Menthol, Salicylic Acid, Vanillin.
  • 3. •Lip balms contain SPF 15 •Price point (affordable)- $1.99 chapstick, $2.99 tinted lip color •Carmex Healing Lotion contain aloe and vitamin E •Variety of flavors: Strawberry, Vanilla, Lime, Cherry, Peppermint • For more than 10 years running, Carmex has been the most pharmacist-recommended lip balm • Ranks number one in a national survey of over-the-counter lip balm products by Pharmacy Times magazine. •Family owned business for over 75 years •Product awareness– yellow and red packaging •Success through: doctor recommendations and the image of the brand’s heritage in the minds of consumers.“People sort of think it’s like blue jeans or something else,” Woelbing said. “It’s almost like an iconic product.”
  • 4. •Old-fashioned approach by printing prices directly onto containers.• Low advertising- mostly word-of-mouth• Lack of variety in overall product category: lip care and lotions•Lack of creativity•Strong fragrance is not always favorablePrevious ad in a subway station
  • 5. •Gain more market share by advertising in magazines, online- coupons, billboards:Times Square, outdoors•Gain partnerships with more television stations to feature their product during showsand commercials•Expand the sales force because industry sales continue to grow•Expand with new lines of lip balms for men, women and children.•Expand product line for new flavors•Customer surveys supplied from retailers like Walmart, Target, CVS on whatconsumers are looking for in chap stick•Inform consumers on their green packaging with Carmex jar and expand on othersustainable practices in their productsReduced plastic use by 70,000 pounds each yearThat annual reduction of 35 tons of plastic also means that they’re saving 35 tons offreight from being shipped which means less fuel will be used.
  • 6. • Competitors- ChapStick, Blistex, Burt’s Bees•3rd largest selling lip balm•Stronger advertising, sales campaigns and product updates fromcompetitors•Nivea, Olay, Curel, Aveeno, Gold Bond Ultimate, St. Ives-moisturizing and healing lotions
  • 7. • Men and women who live an active lifestyle outdoors- Psychographic Segmentation • Age range: 18-65 Physical activity helps reduce health problems and diseases which elder people face Based on product reviews specific target age range: 25-29Outdoors activities:•Sports•Camping•Hiking•Rock Climbing•Fishing•Shopping•Biking•Canoeing
  • 8. Reasoning: • Carmex has SPF 15 • Some people fail to protect sensitive parts of their body such as their ears and lips from the sun. • Just as likely to burn, as well as develop cancer with increased exposure. • If you’re planning to spend the day skiing or boarding the slopes during the winter, or water skiing on a lake during the summer, it’s important that you select the appropriate sunscreen for all parts of your body • Lips are particularly at risk for getting sunburns and developing lip cancer.  each year over 3,500 new cases of lip cancer are diagnosed, and many of these are a result of too much exposure to the sun with too little protection. Sun Protection Vitamin-ESeveral of our product varieties include SPF 15 With a little help from vitamin E and aloe, Carmex sunscreen to help protect your lips from the Moisture Plus™ lip balm helps nourish and sun’s damaging rays. It’s effective protection moisturize lips you can wear every day.
  • 9. •Affordable as compared to competitor Burt’s Bees Lip Balm•One stick of Burt’s Bees costs on average $3.00•One stick of Carmex costs on average $1.69-1.89 Does Burt’s Bees have SPF? •NOT ALL OF THEIR PRODUCT • Only SPF 8Positioning based on product attributes:multiple uses for those who live an active, outdoor lifestyleCarmex can protect against these activities:•Use as an antiseptic for minor cuts, burns, and insect bites•Relieving the itch out of athlete’s foot•Helps smooth elbows and knees•Helps treat cold sores
  • 10. CARMEX ORIGINAL HEALING OINTMENT•New thick, concentrated formula that will help repairand restore your driest, roughest skin.•Try it on hands, heels, cracked or chafed skin,elbows and cuticles.•Petrolatum, Lanolin, Beeswax, Cetyl Esters, MineralOil, Cocoa Butter, Fragrance, Camphor, Menthol,Salicylic Acid, Vanillin.• $5.99BURT’S BEES HAND AND FOOT LOTIONS• Foot crème- made with coconut oil and naturalingredients, revives and rejuvenates dry feet•Hand crème- Made with Aloe Vera and Vitamin E tomoisurize. Used for moisturizing•Moisturizes, smoothes, and softens.•$9.00
  • 11. Our mission is to sell products that contribute to our customer andtheir everyday lifestyle, while representing the company that wasestablished 75 years ago . We want to build personal relationships with our customers through selling unique products. Carmex offers a wide variety of lip protection and skin care offering SPF15 and Vitamin E in addition to several ingredients that aid in the protection from all types of elements.
  • 12. • Goal of advertisement: make people aware of product benefits ascompared to their competitors (ex. Burt’s Bees)•Outdoor Advertising is still effective even with online ads• Constant visual reminders- product is being reinforced•Reinforces other forms of advertising (ex. Read in Men’s Healthmagazine for more information on how our product protects yourskin)•Cost-effective•Can’t be turned off or put down•Control over ad space1.) Bulletins/transit in subway stations2.) Taxi Cabs3.) Highway billboards4.) Bus Stops “street furniture”5.) Pharmacy:Approximately two-thirds of consumers’ purchase decisions aremade in the store. Impulse categories have an 80 percent rate.
  • 13. •General consumer magazinesHealth lifestyle- Men’s and Women’s HealthBeauty- Allure: geared toward younger demographic•Niche Magazines (outdoor lifestyles)- Outside, Climbing, Golf, Ski, Snowboarding•¾ consumers choose to read magazines even if they can find the information online•51% of U.S. consumers interested in User-generated content: ex. read about experienceswith our product and how it protected their skin from UV rays
  • 14. Social Media•Informs consumers of a promotional offeras well as creates awareness, interest, andfavorable attitudes toward the brand. It’salso a way to offer contests:For every 100thperson to post#IloveCarmex on Twitter will receive a freeCarmex basket containing products and beentered to win camping gear packageWhen we reach one million likes onFacebook we will fly you and a friend out toColorado to meet Shaun White and receivea personal snowboarding lesson•Medium Vehicles: Twitter, Facebook,
  • 15. •Control, coverage, reach, response, impact•Flyers: 1-2 times per year because they are expensive.We do not want to pressure our customers by calling them on the phoneFor a low-involvement item.Let the customer know where they can purchase the product, includingonlineWould rather inform or educate our customer of the benefits they canreceive by using the products.•Sales letters: 1-2 times per year•Online Direct Response- drugstore.com, cvs.com, samclub.com,walgreens.com because these are our biggest retailers.
  • 16. Coupons Coupons Coupons! •Developing a new sales promotion will encourage customers to buy the Carmex brand, thus creating a stronger relationship with current customers and attracting new customers. •Reminding the customer of a promotional offer in an ad can break through the clutter that is prevalent in the market. •Coupons in free-standing inserts, magazine ads •Premiums: purchase one chap stick get one free for a limited time only • Studies have shown that readership scores are higher for print ads with coupons than for ads without them
  • 17. •Use sales promotion to increase integrated marketingcommunications•To receive the rebate on the package, the customer must go to theCarmex website involving them with the brand.•The website engages the customer in the brand by having contests orquizzes that will draw attention to the advertising campaign.•Rebates also help create new users and encourage brand switching orrepeat purchase behavior.
  • 18. •Sweepstakes, games, and contests are a great way toattract buzz and attention.•Sweepstakes Example: Enter to win the ultimateoutdoor sweepstakes and WIN an all expense paidtrip to Belize including a day of kayaking, rockclimbing and of course relaxation for one week.•Contest Example: Submit a photograph of you andyour favorite outdoor adventure and the winner willbe featured in our next ad with their photograph. Tellus why you chose Carmex for lip protection
  • 19. •Warehouse clubs such as Sam’s and Costco will have samplebooths that carry various Carmex products such as the Carmexlip balm, moisturizing lotion, and healing cream.•Free samples will be given out to customers in the store, alongwith coupons for Carmex products.•Trained employees that are knowledgeable of the Carmexbackground will inform consumers of the benefits from usingthe product.•Surveys will also be distributed to get the opinion of thecustomers on what they feel the company should improveabout each of the products.
  • 20. FOR IMMEDIATE RELEASE:Carmex Releases New Outdoor CampaignFranklin, Wisconsin- May 8, 2012- Increased competition is the main reason why Carmex is launching anew campaign said CEO Eric Woelbing. The family run company has decided to hire a new advertisingagency to introduce a new marketing strategy to the public. Carmex is an iconic brand that wants to focuson its affordable prices compared to its competition. The repositioning of the company is a relatively newconcept as they have relied primarily on a “word-of-mouth” strategy for over 75 years.The new campaign targets those who live an outdoor active lifestyle and showcases the many advantagesoffered by the Carmex product line. Carmex offers a skin care line that heals, soothes, and moisturizes dryskin in addition to lip protection in a variety of flavors and sizes. The premium lip care provides intensemoisturizing benefits from Vitamin E, aloe, shea butter, and avocado butter as well as SPF 15. These arejust some of the few advantages that Carmex emphasizes in their new campaign against their competitors.A company that is not known for previously advertising is now reaching out to different medium vehicles toraise awareness to the public. Billboards, bus stops, taxi cabs, pharmacies, magazine ads, and social mediaare all places the public will be exposed to the new campaign.Carmex Lip balm was invented in 1937 by Alfred Woelbing and has continued to offer successful productsfor over 75 years. The new campaign hopes to build awareness and result in an increase in sales over thenext decade.Carma Laboratories, Inc.5801 West Airways AvenueFranklin, Wisconsin 53132U.S.A.Phone: 414-421-7707###
  • 21. Sources:http://www.bestsunscreenshop.com/best-spf-lip-balm-for-sportshttp://cracked-lips.com/types-of-lip-balmhttp://www.streetdirectory.com/travel_guide/27371/medical_conditions/5_easy_tips_to_protect_yourself_against_dry_skhttp://libproxy.fitsuny.edu:2118/ps/i.do?&id=GALE|A271050818&v=2.1&u=fitsuny&it=r&p=ITOF&sw=whttp://libproxy.fitsuny.edu:2118/ps/i.do?&id=GALE|A235287984&v=2.1&u=fitsuny&it=r&p=ITOF&sw=whttp://libproxy.fitsuny.edu:2118/ps/i.do?&id=GALE|A233220271&v=2.1&u=fitsuny&it=r&p=ITOF&sw=whttp://www.managementparadise.com/forums/marketing-management/210531-marketing-strategy-carma-laboratories-inchttp://wombuzz.blogspot.com/2006/04/carmex-will-no-longer-just-rely-on.htmlhttp://wombuzz.blogspot.com/2006/04/carmex-will-no-longer-just-rely-on.htmlhttp://www.msnbc.msn.com/id/12069073#.T4t2N4KpW9thttp://www.bolinmarketing.com/news/detail/bolin-marketing-launches-carmex%E2%80%99s-largest-national-integrated-http://www.makeupalley.com/product/showreview.asp/page=5/pagesize=20/ItemID=17764/AgeRange=3/http://www.burtsbees.com/natural-products/lips-lip-balms/sun-protecting-lip-balm-spf-8.htmlhttp://www.who.int/dietphysicalactivity/factsheet_adults/en/index.htmlhttp://www.wisegeek.com/how-effective-is-outdoor-advertising.htmhttp://adage.com/article/mediaworks/reads-magazines/119539/