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ChapStickPfizer 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 & PositioningDifferentiation Positioning

• Why Chapstick beats out competitors?

• Multiple Varieties• Design• Features and Function

• Customer View of Chapstick?

• Wider Variety • Price• Medicinal Value

versus

Place/Distribution Strategy

Place Objectives•Convenience Product•Maturity StageChannel of Distribution•IndirectType of Channel•Contractual

Roles of Middlemen•Specialize in trade•Reduces need for working capital•Helps to anticipate customer needsMiddlemen•Retailers

Place/Distribution Strategy Continued

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 Questions1) What strange material does chapstick contain? a) Tree Bark

b)Aluminumc)Petroleumd) Tree Sap

2) What animal’s fat is contained in chapstick?a) Fishb)Whalec) Pigd) Lamb

3) What is the shelf life of chapstick?a) 3 years b)5 years c)6 years d)10 years