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ChapStick

Pfizer Consumer Healthcare By: Lisa Moore, Steven Siebert, Kelsey Johnson, Cherise Boyce, and Staci Garcia

History of ChapStick • • • • • • 1800’s-Charles Browne Fleet creates first lip balm 1900’s-Charles wraps lip balm in tin foil to sell 1910’s-John Morton buys ChapStick brand for only five dollars 1930’s-Frank Wright, Jr. creates first ChapStick logo 1970’s-ChapStick is used to conceal hidden microphones during Watergate scandal 2009-ChapStick joins Facebook

Target Market • • Primary Target Market • Young females Ages 12-25 On the go Other Target Markets • Kids • Older Women

Hierarchy of Needs • Social Needs: Esteem • Safety Needs: Protection

Product Strategy Plan • Competitive Situations ▫ Online ▫ In Store

Differentiation & Positioning • • •

Differentiation

• Why Chapstick beats out competitors?

Multiple Varieties Design Features and Function

Positioning

• • • • Customer View of Chapstick?

Wider Variety Price Medicinal Value versus

Place/Distribution Strategy Place Objectives • Convenience Product • Maturity Stage Channel of Distribution • Indirect Type of Channel • Contractual

Place/Distribution Strategy Continued • • Roles of Middlemen • Specialize in trade Reduces need for working capital Helps to anticipate customer needs Middlemen • Retailers

Promotion Plans • • • In Market Maturity Stage Reminds customers about benefits Sells Internationally: Australia, Canada, Mexico, New Zealand, Columbia, Italy, Pakistan, South Korea, Spain, Sweden, Argentina, and the United Kingdom “Be remembered for your kisses”

Promotion Plans • • • • Mass Selling Advertising ▫ Magazines ▫ Store Displays ▫ Internet Placement ▫ Events ▫ Website and Facebook Publicity Brand Loyalty

Price Strategy • Status-Quo Oriented ▫ Strive to meet competition prices ▫ Companies they compete against     Burt’s Bees Nivea Blistex Carmex

Price Strategy • • Skimming Price Policy ▫ Newer versions have a slightly higher price than original versions Discounts, bulk prices, and coupons are used ▫ Coupons for $1.00 off are used to help promote newer versions

Trivia Questions 1) 2) What strange material does chapstick contain?

a) Tree Bark b)Aluminum c)Petroleum d) Tree Sap What animal’s fat is contained in chapstick?

a) Fish b)Whale c) Pig d) Lamb 3) What is the shelf life of chapstick?

a) 3 years b)5 years c)6 years d)10 years