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 family
Products:
CARMEX SKIN CARE
The 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 PLUS
This 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 their
lip 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 favorable
Previous 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 shows
and 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 what
consumers are looking for in chap stick
•Inform consumers on their green packaging with Carmex jar and expand on other
sustainable 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 of
freight 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 from
competitors
•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: 25-29
Outdoors 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-E
Several 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 8
Positioning based on product attributes:
multiple uses for those who live an active, outdoor lifestyle
Carmex 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 repair
and restore your driest, roughest skin.
•Try it on hands, heels, cracked or chafed skin,
elbows and cuticles.
•Petrolatum, Lanolin, Beeswax, Cetyl Esters, Mineral
Oil, Cocoa Butter, Fragrance, Camphor, Menthol,
Salicylic Acid, Vanillin.
• $5.99
BURT’S BEES HAND AND FOOT LOTIONS
• Foot crème- made with coconut oil and natural
ingredients, revives and rejuvenates dry feet
•Hand crème- Made with Aloe Vera and Vitamin E to
moisurize. Used for moisturizing
•Moisturizes, smoothes, and softens.
•$9.00
11. Our mission is to sell products that contribute to our customer and
their everyday lifestyle, while representing the company that was
established 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 SPF
15 and Vitamin E in addition to several ingredients that aid in the
protection from all types of elements.
14. • Goal of advertisement: make people aware of product benefits as
compared 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 Health
magazine for more information on how our product protects your
skin)
•Cost-effective
•Can’t be turned off or put down
•Control over ad space
1.) Bulletins/transit in subway stations
2.) Taxi Cabs
3.) Highway billboards
4.) Bus Stops “street furniture”
5.) Pharmacy:
Approximately two-thirds of consumers’ purchase decisions are
made in the store. Impulse categories have an 80 percent rate.
15. •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 experiences
with our product and how it protected their skin from UV rays
16. Social Media
•Informs consumers of a promotional offer
as well as creates awareness, interest, and
favorable attitudes toward the brand. It’s
also a way to offer contests:
For every 100thperson to post
#IloveCarmex on Twitter will receive a free
Carmex basket containing products and be
entered to win camping gear package
When we reach one million likes on
Facebook we will fly you and a friend out to
Colorado to meet Shaun White and receive
a personal snowboarding lesson
•Medium Vehicles: Twitter, Facebook,
17. •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 phone
For a low-involvement item.
Let the customer know where they can purchase the product, including
online
Would rather inform or educate our customer of the benefits they can
receive 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.
18. 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
19. •Use sales promotion to increase integrated marketing
communications
•To receive the rebate on the package, the customer must go to the
Carmex website involving them with the brand.
•The website engages the customer in the brand by having contests or
quizzes that will draw attention to the advertising campaign.
•Rebates also help create new users and encourage brand switching or
repeat purchase behavior.
20. •Sweepstakes, games, and contests are a great way to
attract buzz and attention.
•Sweepstakes Example: Enter to win the ultimate
outdoor sweepstakes and WIN an all expense paid
trip to Belize including a day of kayaking, rock
climbing and of course relaxation for one week.
•Contest Example: Submit a photograph of you and
your favorite outdoor adventure and the winner will
be featured in our next ad with their photograph. Tell
us why you chose Carmex for lip protection
21. •Warehouse clubs such as Sam’s and Costco will have sample
booths that carry various Carmex products such as the Carmex
lip balm, moisturizing lotion, and healing cream.
•Free samples will be given out to customers in the store, along
with coupons for Carmex products.
•Trained employees that are knowledgeable of the Carmex
background will inform consumers of the benefits from using
the product.
•Surveys will also be distributed to get the opinion of the
customers on what they feel the company should improve
about each of the products.
22. FOR IMMEDIATE RELEASE:
Carmex Releases New Outdoor Campaign
Franklin, Wisconsin- May 8, 2012- Increased competition is the main reason why Carmex is launching a
new campaign said CEO Eric Woelbing. The family run company has decided to hire a new advertising
agency to introduce a new marketing strategy to the public. Carmex is an iconic brand that wants to focus
on its affordable prices compared to its competition. The repositioning of the company is a relatively new
concept 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 advantages
offered by the Carmex product line. Carmex offers a skin care line that heals, soothes, and moisturizes dry
skin in addition to lip protection in a variety of flavors and sizes. The premium lip care provides intense
moisturizing benefits from Vitamin E, aloe, shea butter, and avocado butter as well as SPF 15. These are
just 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 to
raise awareness to the public. Billboards, bus stops, taxi cabs, pharmacies, magazine ads, and social media
are 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 products
for over 75 years. The new campaign hopes to build awareness and result in an increase in sales over the
next decade.
Carma Laboratories, Inc.
5801 West Airways Avenue
Franklin, Wisconsin 53132
U.S.A.
Phone: 414-421-7707
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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