Justine Fitch, Clare Wilson, Michelle Quinde, Shelsea Patton

ot sun. Chafing winds. Frigid temperatures. Furnace-dry air.

More than just a lip balm!

•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 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 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.

•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.”

•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

•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 productsReduced plastic use by 70,000 pounds each yearThat 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.

• 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

• Men and women who live an active lifestyle outdoors- Psychographic Segmentation

• Age range: 18-65Physical activity helps reduce health problems and diseases which elder people faceBased on product reviews specific target age range: 25-29

Outdoors activities:•Sports•Camping•Hiking•Rock Climbing•Fishing•Shopping•Biking•Canoeing

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 ProtectionSeveral of our product varieties include SPF 15 sunscreen to help protect your lips from the sun’s damaging rays. It’s effective protection you

can wear every day.

Vitamin-EWith a little help from vitamin E and aloe, Carmex

Moisture Plus™ lip balm helps nourish and moisturize lips

•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

Positioning 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

Does Burt’s Bees have SPF?•NOT ALL OF THEIR PRODUCT• Only SPF 8

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

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.

• 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 stations2.) Taxi Cabs3.) Highway billboards4.) 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.

•General consumer magazinesHealth lifestyle- Men’s and Women’s HealthBeauty- 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

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 packageWhen 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,

•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, 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.

•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

Coupons Coupons Coupons!

•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.

•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

•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.

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 AvenueFranklin, Wisconsin 53132U.S.A.Phone: 414-421-7707 ###

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