Kirak Sohn, Kimberley Rushton, Adrienne Henk, Lauren Sancho, Gabrielle Favret

TABLE OF CONTENTS Executive Summary...... 1

Situational Analysis...... 2 Marketing Problem Product/Brand Analysis Competitor Analysis Advertising Expenditure Analysis Product Life Cycle

Marketing Strategy...... 8 SWOT Analysis Marketing Objectives and Advertising Objectives Target Selection

Media Objectives, Strategies, and Tactics...... 16 Media Objective Overall Target Coverage Overall Media Budget Regionality, Seasonality, Weighting and Scheduling

Media Selection...... 19 Media Quintile Analysis Advertising Objective Budget Constraints Media Selection Media Mix Advertising Flowchart

Creative Strategy...... 25

Promotion Strategy and IMC Efforts...... 27

Copy Test...... 29

Executive Summary Executive Summary Marketing Problem Burt’s Bees has only been around since 1984, but they have made an impact on the market in that short time. They have a unique product, but have not reached the maturity stage. They currently need to expand their reach to obtain more customers and increase brand awareness. Burt’s Bees marketing problem is that they need to figure out how to effectively reach their target audience and improve mar- ket shares.

Marketing and Advertising Objectives Burt’s Bees marketing objective is to increase product sales and the market shares overall in one year. The advertising objectives state to increase brand awareness to all women nationwide by increasing reach. We also want to maintain the existing loyalty to the Burt’s Bees lip balm brand through social media and word-of-mouth. We will expand media outlets and create brand ambassadors allowing them to customize their products and connect with the brand. These marketing and advertising objectives will increase overall awareness of Burt’s Bees lip balm through our strategies. Media Objectives We plan on reaching 80% of our target audience through various media. We also plan on having an av- erage frequency of 3-4 per month. Our audience will see our advertisements through social media the most, but will still be reached through traditional advertising.

Creative Strategy Our advertising will be very clean, and very fresh. Our slogan is “Bee Natural, Bee Yourself.” The head- line will be accompanied by a healthy and happy young woman’s face. This format will be used for all magazine, internet, and traditional outdoor advertising. We will also be advertising in non-traditional ways. On subways, in bus shelters, and in shopping malls we will have live plants and flowers growing behind the glass. We will include the Burt’s Bees slogan and logo. This will be a fresh and noticeable alternative to an outdoor advertisement. We will also rely heavily on social media to raise brand aware- ness.

IMC Efforts We will continue Burt’s Bees Public Relations campaign. We will also sponsor environmentally con- scious festivals, and we will have a booth at each festival we sponsor to give away our products. We will also do various giveaways to loyal customers, and we will allow them to personalize the products to connect with the brand. We will also continue their cause-related marketing, and will advertise their sustainability.

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Situational Analysis

Marketing Problem Burt’s Bees has been in the market since 1984. Their biggest struggle is that their primary compet- itor, Chapstick, has become the household name for lip balm. Burt’s Bees natural products have steadily grown to compete with other natural beauty product brands including Chapstick. Burt’s Bees has an upper hand in presenting audiences with a more unique natural product. However, their advertising is not heavily budgeted. Burt’s Bees spends a small amount of $370,800 as opposed to Chapstick’s budget of $3,538,000. Burt’s Bees has not effectively reached audiences to increase sales. They have relied on word-of-mouth marketing and small campaigns thus preventing the brand from reaching its ultimate advertising potential. Although natural lip balm sales have increased over the years, Burt’s Bees has not peaked as the most popu- reach their target audience and improve market shares. lar in this product category. Burt’s Bees marketing problem is that they need to figure out how to effectively Product/Brand Analysis Burt’s Bees offers a variety of products from lip balm to baby care in over 30,000 locations. Their

$250 million. Clorox bought Burt’s Bees in 2007 for $925 million. They have expanded from simply selling candlessales have to sellinggrown overfrom 30 $20,000 different their products. first year Their (1984) most to popular $8 million products in 1998. are Intheir 2007 lip theirbalms. sales reached

About 45.2% of the Burt’s Bees market share is lip balm. This makes up the majority of the Burt’s Bees market share followed by foot care. The sales of natural care products have been steadily increasing since 2006. The fact that Burt’s Bees is a natural product is definitely beneficial to their brand (see Figure 1A). The Brand development index for Burt’s Bees is highest in the Northeast with the index resulting the Midwest, and an index of 117 in the West. Lip Balm is a well-used product throughout the country. The of 118. The BDI for Burt’s Bees is lowest in the South resulting in an index of 74. It has an index of 112 in category development for our target audience is highest in the Northeast (index of 108) and the Midwest (index of 105). The CDI in the West is 94, and is also 94 in the South. Retail Sales of Natural Care Products (in billions of dollars)

Figure 1A 2

Situational Analysis Direct Competitor Analysis Burt’s Bees is one of the top selling lip balm brands in competition with Chapstick, Carmex and Blistex. In Market Share Reporter, Burt’s Bees has 6.6% sales, which is equal with Chapstick (seen in Figure 1B). However, Chapstick solely sells lip balm. If you account for Burt’s Bees other product lines, their lip balm market share is actually 2.805%. If you compare this to Chapstick, we can see that Chap- stick is the brand leader.

Chapstick is primary competition for Burt’s Bees, as seen in Figure 2A. Their brand development index is the highest in the northeast with 146 and easily dominates the market because of the high cat- egory development index for lip balm. The high BDI and CDI result in market potential for Chapstick that could maintain their leading brand position.

Carmex is another primary competitor for Burt’s Bees. Their brand development index is highest in the Midwest with 156 and is successful in different regions than both Burt’s Bees and Chapstick. Car- mex is high competition for Burt’s Bees considering that the CDI is above the average in the Midwest. Blistex is a primary competitor for Burt’s Bees. Their brand development index is highest in the Northeast with 157, which is 57% above the average. Blistex is also a successful brand in the Midwest with an index of 107. Blistex has a brand development index that is below average in the south and the west. Blistex is most successful where the category index for lip balm is the highest therefore making them high competition for Burt’s Bees.

Market Share Burt’s Bees 6.6 % Chapstick Classic 6.6% Carmex 6.4% Blistex 6.1% Figure 1B

Leading Lip Balm Brands’ BDI

Region Chapstick Carmex Blistex Burt’s Bees Northeast 146 31 157 118 Midwest 83 156 107 112 West 101 66 88 117 South 92 113 82 74 Figure 2A

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Situational Analysis Indirect Competitor Analysis Burt’s Bees’ indirect competitors are Tom’s of Maine, Nature’s Sunshine and Procter & Gamble.

Tom’s of Maine is a natural body and oral care company. They have products that address body and oral care such as soap, antiperspirant and deodorant, mouthwash, dental floss, toothbrushes and toothpaste (as seen below). Tom’s of Maine,” believes in products that are safe, effective and made of natural ingredients.” They are owned by Colgate-Palmolive and the products are slightly less expensive than Burt’s Bees. Their company focuses on the needs of human beings and the benefits of using natural ingredients in their products similar to Burt’s Bees through the manufacturing and packaging process.

Nature’s Sunshine promotes wellness and health remedies through their all-natural supple- ments. Community involved and naturally driven, Nature’s Sunshine can be found in 30 countries, represented by around 600,000 distributors. Although Nature’s Sunshine products are natural, they do not product beauty care. In the realm of competition they should be used to target those who are buying natural supplements because they are most likely the audience that would buy Burt’s Bees products.

Procter & Gamble brings consumers 50 of the most well known household names. They market in more than 180 countries and focus on providing products of great quality. They market brands such as Herbal Essences, Cover girl, Head and Shoulders, Olay, Ivory, Secret and Crest. These products, although they are not naturally driven as Burt’s Bees, are well known in the health and beauty market. P&G supports many products that are parallel to those of Burt’s Bees including lip care, shampoo, body wash and other beauty products.

4 Situational Analysis Advertising Expenditure Analysis

Media Expenditures Burt’s Bees spends a small amount of money on advertising, as seen in Figure 3A. Their entire budget is spent on magazine advertisements. Out of the direct competitors, Burt’s Bees still has the smallest budget for magazine advertisements. Chapstick has the largest budget, followed by Blistex and Carmex. Carmex’s budget is over double that of Burt’s Bees. However, this does not show us how much is being spent in social media. Burt’s Bees uses social media more than traditional advertising, so we must take that into consideration.

Media Expenditures -- Lip Balm January - December 2008 ($000)

Brand Total Magazine Network TV Spot TV Syndication Cable TV Burt’s Bees 370.8 370.8 0.0 0.0 0.0 0.0 Blistex 2,033.9 0.0 583.8 23.9 1,191.8 234.3 Carmex 829.6 829.6 0.0 0.0 0.0 0.0 Chapstick 3,538.0 0.0 1,104.3 23.1 1,352.8 668.7 Total 6,772.3 1,200.4 1,688.1 47 2,544.6 903 Figure 3A

Share of Voice Burt’s Bees only has 5.48% share of voice, while Chapstick has 52.24% (as seen in Figure 3B). In magazines, where Burt’s Bees’ entire budget lies, they only have a 30.89% share of voice. Carmex has 69.11% of the same category. However, Carmex is the only other competitor who advertises in maga- zines. The only other category Burt’s Bees would be able to dominate in with their small budget is Spot TV.

Share of Voice -- Lip Balm January - December 2008 (%)

Brand Total Magazine Network TV Spot TV Syndication Cable TV Burt’s Bees 5.48 30.89 0.0 0.0 0.0 0.0 Blistex 30.03 0.0 34.58 50.85 46.84 25.95 Carmex 12.25 69.11 0.0 0.0 0.0 0.0 Chapstick 52.24 0.0 65.42 49.15 53.16 74.05 Total 100 100 100 100 100 100 Figure 3B

5 Situational Analysis Advertising Expenditure Analysis

Media Mix While Burt’s Bees and Carmex are placing 100% of their ad budget in magazines, Blistex and Chapstick are trying to reach their audience through different kinds of television ads (as seen in Figure 3C). The most money is being spent on Syndication, even though both Carmex’s and Burt’s Bees entire budgets are in magazines; this demonstrates the large budget needed to maintain a presence on televi- sion. The companies that have smaller budgets stay away from television in general.

Media Mix -- Lip Balm January - December 2008 (%)

Brand Total Magazine Network TV Spot TV Syndication Cable TV Burt’s Bees 100 100 0.0 0.0 0.0 0.0 Blistex 100 0.0 28.70 1.18 58.60 11.52 Carmex 100 100 0.0 0.0 0.0 0.0 Chapstick 100 0.0 31.21 .65 38.23 18.90 Total 100 17.73 24.93 0.69 37.57 13.33 Figure 3C

6 Situational Analysis Product Life Cycle The product life cycle consists of four stages: introduction, growth, maturity, and decline. Their introduction stage started with the company in 1984 when they solely made candles. They started a manufacturing plant in 1993 when their candles took off. They began automating production in this new plant. They entered the personal care industry at the same time in 1993. Their introduction stage continued when they moved their headquarters to North Carolina in the same year. Their early growth stage began in 1998 when they had sales in excess of $8 million. They had more than 100 products and were being sold in more than 4,000 different outlets. In 1999 they began a website that allowed them to distribute nationally. Their current growth stage began in late 2007 when they were bought out by Clorox for $925 million. Sales topped $250 million this year, and products were sold in 30,000 outlets.

The advertising goal of this stage is reach. At this stage, they should attempt to increase market size and interest. They should develop new markets, and advertise their popular products frequently. They have developed into different markets; their Baby Bees line is rapidly growing. They launched their Naturally Ageless line, as well as a line of lip glosses in 2008. They are also increasing frequency for their popular lip balms through magazine advertisements. Burt’s Bees could continue expanding and developing new lines, as natural products are becoming increasingly popular and the audience is becoming more receptive to natural ingredients.

The revenue gained from natural products has grown from $6.06 billion in 2006 to $10.21 billion in 2012, and will continue to grow. Burt’s Bees is a leading brand in the Natural Personal Care segment, which earns $6.4 billion annually. This is a fast-growing industry as consumers look to purchase more natural products. Natural and sustainable trends will ensure the long-term growth of this product.

7 Marketing Strategy SWOT Analysis--Burt’s Bees Strengths Burt’s Bees creates products that are 99-100% natural, far exceeding the requirements to be considered all-natural. They have been pursuing an all-natural formula for their personal care products since 1993. They have been defining natural standards with ethical boards, and have been extremely involved in encouraging other brands to become all natural. They strive to improve their formula ev- eryday, and have a goal of becoming 100% natural. Their ingredients are very high quality, and the entire company is extremely concerned for the consumer’s well-being. They promote making healthy decisions past their own brand, and encourage consumers to recycle whenever possible. They seem to genuinely care for their audience, and continue to give back to their most loyal customers. Burt’s Bees is extremely environmentally conscious, and they strive to have zero waste and 100% recyclable pack- aging by the year 2020. They are extremely transparent with their customers, and show them the inner workings of the company.

Weaknesses Burt’s Bees has one manufacturing location in North Carolina, which makes distribution diffi- cult. Their manufacturing is not automatic, which cuts down on energy emissions but takes a lot more time and money. They also are importing beeswax from Ethiopia, which can get expensive. All of these things increase the price of their product, which might turn consumers away. They have a great prod- uct, but do not advertise to their full potential.

Strengths Weaknesses All-natural products 1 manufacturing location Promote healthy well-being Shipping beeswax from Ethiopia (expensive) High quality High-cost product Experienced in natural product industry Focus on online presence, but haven’t reached Several different product lines full potential in social media Extremely environmentally conscious Burt’s Bees team genuinely care about their customers Extremely transparent to customers

8 Situational Analysis SWOT Analysis--Burt’s Bees

Opportunities The green movement started not that long ago, and many people are getting involved. A lot of people are now concerned with sustainability, and the natural personal care products are becoming more and more popular. Burt’s Bees is a leading brand in this market, and should continue to grow in this movement. They also have extremely loyal customers. They could continue to capitalize on their loyal customers, and could continue to give back to them. They give back to their customers, and should continue to do so to maintain their loyal consumers.

Threats This company was recently sold to Clorox, which sparked a lot of negative comments on social media. The FDA also only requires 70% of a product to be natural in order to consider it organic, which could also spark a lot of negative comments if Burt’s Bees does not advertise that they are 100% natural. They also have a low brand awareness, which is why they are still considered to be in the growth stage. They have many different competitors, who have lower prices than they do. They do not use traditional advertising, which does not help them to stand out against their competition. They need to raise aware- ness and increase brand awareness in order to avoid these threats.

Opportunities Threats New trend of rising awareness for eco-friendly FDA only requires 70% of product to be products—“Green Movement” organic to be considered all-natural Loyal customers Low brand awareness Received several awards for products Sold company to Clorox Stewardship and giveaways Many different competitors Huge growth in markets They do not use traditional advertising Unique competitive advantage

9 Situational Analysis SWOT Analysis--Chapstick

Strengths Chapstick has the largest market share and the largest budget out of all lip balm companies. They have been around for 100 years, and have built a multi-million dollar brand. They are easily found in most stores; they have a wide distribution. They are sold in many countries around the world. They are also of- fered at a lower cost to consumers. Weaknesses Chapstick is owned by a larger corporation. This larger corporation is not interested in sustainabil- ity—they have made no movements toward recycling like other companies have. Some would say that they are not concerned with sustainability. The product also contains a lot of chemicals that some have found controversial. This includes petroleum byproducts and a chemical called Oxybenzone that is thought to cause skin cancer. Opportunities Most of their ads just promote the brand Chapstick as a whole. They could easily spend more of that money in new ventures. Chapstick only sells lip balm, but could easily expand in the personal care industry. They have a strong brand that has a loyal following. They have been around for over 100 years, and have built up quite a following in that time. Their brand is the most trusted when it comes to lip care. Their brand name is interchangeable with the words “lip balm.” Those loyal customers would easily follow Chapstick on a new venture. Threats As mentioned earlier, Chapstick is no longer just a brand name. It is a household item. Many people don’t know the difference between Chapstick and lip balm. The brand has become very diluted. They can no longer search for their brand name online without seeing many different posts about other brands. When people complain about lip balm, they may be inadvertently complaining about the Chapstick brand. They have simply lost control of the brand, and can no longer trace their name through programs like Radian 6.

Strengths Weaknesses Large market share Cannot be recycled; not interested in 100 year old company sustainability Easily found in most stores Obtains chemicals that some find Low cost controversial (Oxybenzone)

Strengths Weaknesses Large market share Cannot be recycled; not interested in 100 year old company sustainability Easily found in most stores Obtains chemicals that some find Low cost controversial (Oxybenzone)

10 Marketing Strategy SWOT Analysis--Blistex Strengths Blistex was founded in 1947. They offer a complete range of lip care products that range from med- icated to fruity flavored lip balms. Blistex lip balm offers SPF protection in most of their products. The lip balm is reasonably priced with the medicated balm with a slightly higher price. Blistex, over recent years, has implemented sustainable packaging in the development of their products. Weaknesses Blistex has no other products associated with their brand. They only produce lip balm. The lip balm contains many chemicals that are unrecognizable. A main weakness of the company is that their social me- dia is not organized or presented well. The Facebook page is uninteresting and has under 40,000 likes. Opportunities Blistex sells to a wide range of supermarkets in over 60 countries worldwide. They also do a bulk of their advertising in magazines. Their goals are Product quality, growth, Innovation, and leadership. They have opportunity to expand based on the success on their lip balm thus far. Threats Blistex has a sustainable component to their brand that they have implemented through packaging. Although this is a positive part of their brand they do not present this information on social media. Their Facebook page is not integrated well with their website.

Strengths Weaknesses Promotes sustainability Produces only lip balm and medicated lip balm Offers complete range of lip care products There are no other beauty products associated Sells to a wide range of supermarkets with the Blistex brand Affordable Contains many chemicals Provides SPF protection A lot of ingredients are not recognizable Under 40,000 likes on Facebook; Facebook is not maintained

Opportunities Threats Featured in many magazines targeted to Competes with other moisturizing lip balm women brands Promoted more sustainable packaging over Are they really for sustainability? the years Do not have a link to their website on Facebook

11 Marketing Strategy SWOT Analysis--Carmex Strengths Carmex has been in the personal care industry since 1937. Their medicated lip balm has created a name for itself because of it’s tingly cool sensation that heals chapped lips and aids cold sores. People over time have sworn by their product. Their Internet advertising is well maintained and their website gives de- tailed information about their product. They have personalized products to promote their brand that has brought positive attention to the product. Weaknesses The lip balm that Carmex creates has over 10 ingredients. Half of them are very unrecognizable which turns people away from the product. One of Carmex’s ingredients is salicylic acid that is a popular ingredient in acne medication. This shows that their product is harsh when supposed to be treating and soothing lips. Opportunities The Carmex brand provides more product than just lip balm. They produce lotions and other mois- turizing personal care products. Carmex has used celebrities in a campaign that has drawn attention to the brand. They are very active on twitter, and even ask customers what they can do with their empty Carmex containers on twitter. Threats Carmex’s Facebook page has fewer than 1 million likes as opposed to other personal care sites with well over that. The brand never draws any attention to the ingredients used in their products. This could eventually result in the questioning of if the ingredients really work for long term lip care.

Strengths Weaknesses Has been around since 1937 Product has over 10 ingredients They give very detailed information on their Under 1 million likes on Facebook website for how their product is effective Treats lips and cold sores

Opportunities Threats Expanded their brand to more than just lip Includes a drying agent- Salicylic acid, same balm as zit medication Using celebrities to promote their brand on The ingredients are unnatural Facebook with a best lips contest Promoting with giveaways Utilize Twitter and Facebook together

12 Marketing Strategy Marketing Objectives and Advertising Objectives Marketing Objectives 1. To increase product sales by our target audience to $300 million from the current $250 million in the next year. 2. To increase market share 1% from the current 6.6% in the next year.

Advertising Objectives 1. To increase brand awareness to all women nationwide by increasing reach. 2. To maintain consistent consumer loyalty to Burt’s Bees lip balm by increasing repeat sales and customer’s word of mouth advertising. 3. To use a greater variety of media. 4. To create brand ambassadors by allowing them to customize their products and connect with the brand.

Our main advertising goal is to increase our reach. We believe that we can achieve this goal by using a variety of different media. Currently, Burt’s Bees is putting its entire budget into magazine print ads. While those indexes for the target population are very high, it is not our entire population. We would like to expand our reach by not only continuing magazine advertisements, but also by including outdoor advertising, more internet ads, and a stronger social media presence.

We will tailor our outdoor advertising to the Northeast and Midwest. We will include internet advertisements on popular sites, such as facebook and natural product forums. We will also increase our social media usage by creating a new campaign that will increase reach and will spark more word of mouth advertising for the brand. We will also create a new way for customers to personalize their brand by allowing them to customize the labels of products. We will include giveaways to maintain brand loyalty and create brand ambassadors. Once we reach the next stage in the product life cycle, maturity, we will have an increased budget and will be able to afford more media. We will then increase our fre- quency by running television ads on prime time TV. However, for now, our objective will concentrate on minimal vehicles, as the Burt’s Bees brand has a minimal advertising budget, with a reasonable reach.

13 Marketing Strategy Target Selection Our primary audience is females ages 18-24. This portion of the female population is 112% above average due to an index of 212. Our secondary target is women ages 34-44. This age group uses Burt’s Bees 90% above average with the index of 190. Geographically, the target audience is found in the Northeast and Midwest.

Our female audience is environmentally conscious; they believe that everyone has an obliga- tion to be environmentally conscious. They also believe that companies should have an obligation to help consumers become more environmentally conscious. They believe in sustainability, and try to use products that are recyclable or recycled. They are prepared to pay more for environmentally friendly products.

It is shown that most females ages 18-24 work at eating a well-balanced diet, and focus on nutri- tional value when they are selecting foods. They exercise regularly, and are focused on their well-being. They participate in health management, and try to eat healthier whenever possible.

Our audience is an informed audience. They actively seek information about the products they use, and consult product information labels before they consult advertising. They actively seek infor- mation for products online; this is the first place they look for information about products and services. They do most of their shopping online, and believe that the internet has increased their desire to learn and search for information. They are heavily involved in the internet, and always use it as a source of information rather than a way to waste time.

They also believe in word of mouth advertising. Their friends ask for their advice before shop- ping for health products, and they actively tell their friends what products they use. It is important for them to be seen as being environmentally conscious, and they pride themselves on being well-versed on the best natural products.

Our audience tries to use natural products, and they will try to use many different types of natu- ral personal care products. Burt’s Bees has natural products ranging from shampoo to baby washes to lip balm. Our target audience uses not only the lip balm, but many different Burt’s Bees products. Our goal is to harness the segment of our audience that solely uses lip balm but is still interested in using natural products. We want to turn lip balm users into brand ambassadors. We want those who just use lip balm to expand into other Burt’s Bees product lines, including Baby Bees, and facial care.

Our consumers believe in the Burt’s Bees brand, and believe that the brand is doing the right thing by being environmentally conscious and concerned for our consumers personal health. Our target audience believes in natural products, and sees our website as a host of information about how to truly live an all-natural lifestyle.

14 Marketing Strategy Media Objectives 1. To reach 80% of our target audience. 2. To have an average frequency of 3-4.

We have a rather large target audience, females 18-24. And of those females, we hope to reach 80% of them through some type of advertising. Our target audience spends most of their time on the internet, so we will rely heavily on social media to reach our audience. Social media will also help us boost our average frequency.

Overall Target Coverage Our overall target reach is 80%. We really want to maximize the reach, as our company is in the growth stage. Once people know about our brand, then we can worry about increasing frequency. Our advertising objectives state that we want to use social media heavily as that is where most of our target audience is. Those that are not involved in social media will see our brand in magazines and outdoor media.

While we naturally want to increase frequency, we will not focus on it. We will have a small target frequency, because we mainly want to increase reach at this stage. We have a small budget, and believe that reach is what we should focus on instead of frequency. Our target frequency is three to four times per audience member. This will be through outdoor, magazine, and internet advertising. Hopefully our audience will be reached through our print ads or outdoor ads once, and then two or three more times through social media and internet advertising.

15 Media Objectives, Strategies, and Tactics

Overall Media Budget We will be increasing Burt’s Bees media budget from $370,800 to $425,000. They have a very low budget, and we will be increasing it so that we are able to use a variety of different media. We would like to increase IMC efforts while maintaining our magazine advertisements, and therefore need a larg- er budget. We are also planning on increasing outdoor and internet advertising, and expanding the way Burt’s Bees advertises. They are currently just using magazine advertisements, so this expansion will be a drastic increase for them. We are going to be extremely cost efficient, because we cannot increase the budget above their means. We will be targeting our audience in extremely cost efficient manners.

16 Media Objectives, Strategies, and Tactics

Regionality We divided the nation’s regions into four categories: Northeast, Midwest, West and South. The Northeast has a BDI of 118 and a CDI of 108. The Midwest has a BDI of 112 and a CDI of 105. Due to high levels of BDI and CDI in these regions, we will use a defensive strategy because Burt’s Bees should maintain their sales in those regions (as seen in Figure 6A). These markets still have potential, because this is an ideal situation for the brand. The West has a BDI of 117 and a CDI of 94. For this region, we will also use a defensive strategy because our brand sales are above average however there is little growth potential. We will not advertise heavily in this region and will monitor the market. The South has a BDI of 74 and a CDI of 94, therefore, we will not risk using an offensive strategy due to the dying market and poor market potential.

Little Growth Potential/Defensive

Promising Market/Defensive

Promising Market/Defensive

Dying Market/Use Caution

Figure 6A 17 Media Objectives, Strategies, and Tactics

Seasonality and Scheduling Seasonality Burt’s Bees Lip Balm will be used all year round, but we project that their sales will peak during the winter months, December through February followed by the summer months, June through Au- gust. These two seasons produce overly dried chapped lips, one through heat and other through cold. Generally, this is the reason why Burt’s Bees will be used more often than in spring and fall. The average buyer may go through a tube of Burt’s Bees once during the winter followed by another purchase in the summer. The consumer could buy additional tubes during these months as backups because they are readily seen in stores at checkout counters, making the buyer more aware of the need for this product. Winter months purchasing will be more out of necessity for dry lips. Summer months purchasing will be more for assorted colors.

Scheduling Burt’s Bees should use the Pulsing Strategy for the products that are sold year round. This strat- egy will be the safest for the brand. The advertisements will be year-round, and will be “heavier” during peak times of the year (as seen in Figure 6B). The first peak time is between November and February. This is when the temperature outside drops, and more people will have chapped lips. This is also the time when our target audience will have a Christmas break from school, or work. Many college students shop during their winter breaks, and will be looking for new products to try. This is also when a lot of people will be shopping for Christmas gifts. We expect an increase in sales during these months, and will therefore increase spending during these months.

Our next peak time will be between May and June, when people will be interested in spending more time outdoors. This is when we will be sponsoring outdoor festivals. To support our advertising in sponsorships, we will be increasing our own advertising to increase reach. This is also a time when we can promote our spring and summer tinted lipbalms. In our other months, we will still be advertising, but not as heavily as we will be in May-June, and in November-February.

Budget SchedulingPulsing

85

68

51

34

17

0 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.

Figure 6B 18 Media Selection Media Rationales (Media Quintile Analysis)

Outdoor Index

Quintile 1 Quintile 2 Quintile 4 Quintile 5 114 84 95 86

Because our outdoor quintiles are very high, we plan on using outdoor advertising. Our users enjoy it, and are very receptive to the concept.

TV Index

Quintile 1 Quintile 2 Quintile 4 Quintile 5 109 150 67 97

This quintile is for prime time television only. Using television in general does not look good for our audience, however prime time might be worth advertising because the first two quintiles are higher than quintile 4 and 5. However, the only drawback is that prime time is dramatically more expensive than any other type of television advertising.

Internet Index

Quintile 1 Quintile 2 Quintile 4 Quintile 5 144 94 93 58

Our internet is very high because females 18-24 are very active on the internet, and because it comes natural to them. This is a very good way to target our audience, because it is where they spend the most time, and where we can give them the most information by directing them to our website.

Radio Index

Quintile 1 Quintile 2 Quintile 4 Quintile 5 92 61 122 74

Our outdoor quintiles do not look good for our brand because quintile 4 is drastically higher than quintile 1. Our target audience does not like radio advertising, and therefore we will not be using it.

19 Media Selection Advertising Objective Magazine Burt’s Bees should keep using magazine advertising because certain magazines are proven to be very popular among our target audience. It has very strong segmentation, which is beneficial for our brand. We will continue to use magazines because the quintiles are strong, and our audience is very receptive to them.

TV While prime time television may be promising for our brand, we do not have the budget necessary to use prime time television. It would be more beneficial for us to use the budget for magazines, outdoor, and Internet advertising.

Outdoor Outdoor advertising is location specific. Since Burt’s Bees has strong regionality, outdoor can be very strategic. Even though the exposure is short, outdoor advertising is very noticeable. It is a great way to increase reach, because it has so many impressions. Our quintiles look good for this medium, and we will be using this medium in our plan.

Internet Internet is user-selective and interactive. It can do things that other mediums cannot; such as build a community of consumers. It can also interact with consumers, and it is also very shareable. We expect our audience will be excited not only to receive information about our company, but will also give feed- back about the brand. Therefore we will use internet advertising as well as social media to advertise our brand.

20 Media Selection Budget Constraints Burt’s Bees has a relatively small budget, and we cannot drastically increase it. We will increase their budget by 15% in order to make an impact on the lip balm market. This will go towards cost effi- cient media, and media that have a very large reach with our target audience. We also need to consid- er the high initial cost that comes with TV. While TV would give us a large reach, it is out of our price range. The money that we spend in TV could be used towards more cost efficient media. Our quintile indices for television are very low, and therefore would not be worth the high initial cost that televi- sion brings. The only quintile that looks usable for Burt’s Bees is prime time television, and even then the quintiles are not ideal. We believe that other media, such as outdoor, internet and magazines, will give us a better reach for our budget.

21 Media Selection Vehicle Selection Internet Internet will be our cheapest vehicle of advertisement. The amount of Burt’s Bees users that utilize the Internet is 44% above the average. When our audience needs information, the first place they look is the internet; those who agree with this statement have an index of 138. Burt’s Bees Internet advertisements would include banner ads and social media campaigns through Facebook and twitter. Internet advertising will use 10% of our total budget.

Magazines Magazines will be our largest advertising expenditure using 40% of our total budget. Burt’s Bees will advertise in Modern Bride and Allure Magazines because these two magazines had the highest quintile indices (with 377 and 282 respectively). The Modern Bride advertisements will be strategically placed in the spring issue. Allure ads will placed four times per year.

Outdoor Burt’s Bees will use outdoor advertising due to it’s potential for reach. The index for outdoor viewers is 14% above the average. Our budget will allow 30% to be used toward outdoor visuals. Some of the visuals we plan to exhibit will be connected to IMC efforts.

IMC Sponsorship Burt’s Bees will spend 20% of their budget on IMC efforts. This will be a strong outlet of advertis- ing for Burt’s Bees. The sponsorships that will be made to various festivals will open up the Burt’s Bees name to some free advertising that will be very beneficial to the brand.

22 Media Selection Media Mix (Budget Allocation) Magazine advertisements give us the reach and audience segmentation that Burt’s Bees needs. Our target audience enjoys magazines, and it would be a great way to show them exactly how Burt’s Bees can benefit their lives. Magazine advertisements need a good percentage of the budget because it can be costly. However, the cost per magazine is small enough for our budget.

Our audience enjoys outdoor advertisements. The quintile index is 114 for quintile 1. It has a very low CPM, and would give us great reach. Our main goal is cost efficiency, and outdoor advertisements are a great way of gaining that efficiency. You can also target outdoor regionally. Because we are trying to target specific areas around the United States (the Northeast and the Midwest), outdoor will be a great way to target those specific areas. Another large portion of our budget will go to outdoor adver- tisements because of the cost of outdoor advertising. It is more expensive than internet advertising or sponsorships. Therefore, it will receive the second largest budget allocation.

Internet advertising is very cost efficient. This will be a huge focus for us, because our audience spends so much time online. This is where they get their news, and they do most, if not all, their re- search about new products and companies online. The quintile for internet is extremely high, at 144. This shows us that we should really be focusing on advertising through the internet and on social me- dia. This cannot be segmented like magazines or outdoor can, but it can still provide a great reach to all of our consumers, not just females 18-24. We will also get our consumers involved on social media. So- cial media is very cost efficient, because there is no initial cost. The only cost is the time of the employee managing the account. Because of the low initial cost, internet advertising will receive a low portion of the budget. However, internet advertising will still make a large impact on our consumers.

We will also be advertising through sponsorships of various green and environmentally con- scious music festivals. Our consumers enjoy talking to others about the brands they use, and they are very responsive to giveaways and interactions with certain brands. This would also be a very cost effi- cient medium, because every time the festival is advertised our brand would be mentioned. Not only would we be able to interact with our loyal customers, but we would also be able to get a lot of very cheap advertising, and we would be able to reach a lot of people.

Burt’s Bees Yearly Budget Media Class ($) Allocated (‘000) Expected GRPs Magazine 170 2,730 Outdoor 127.5 2,185 Internet 42.5 1,930 IMC (Sponsorship) 85 890 Total 425 7,735 Figure 5A

23 Media Budget

Media Budget

Month Jan Feb Mar April May June July August Sept. Oct. Nov. Dec TOTALS Media Class $51,000 $48,875 $14,875 $19,125 $55,250 $63,750 $34,000 $19,125 $17,000 $21,250 $38,250 $42,500 $425,000 Magazine GRPs 380 215 105 140 330 410 210 140 120 150 250 280 2,730 *One insertion at 6 magazines each $20,400 $19,550 $5,950 $7,650 $22,100 $25,500 $13,600 $7,650 $6,800 $8,500 $15,300 $17,000 $170,000 Outdoor GRPs 250 230 90 120 280 340 140 100 95 120 200 220 2,185 *In Northeast and Midwest $15,300 $14,663 $4,463 $5,738 $16,575 $19,125 $10,200 $5,738 $5,100 $6,375 $11,475 $12,750 $127,500 Internet GRPs 200 180 90 100 220 240 180 100 90 150 180 200 1,930 *Online banners $5,100 $4,888 $1,488 $1,913 $5,525 $6,375 $3,400 $1,913 $1,700 $2,125 $3,825 $4,250 $42,500 Sponsorship GRPs 90 70 70 80 150 150 90 50 - - 70 70 890 *Eco-friendly Festivals $10,200 $9,775 $2,975 $3,825 $11,050 $12,750 $6,800 $3,825 $3,400 $4,250 $7,650 $8,500 $85,000 24 Creative Strategy Creative Strategy Burt’s Bees focal point of their entire product line is only using natural products. Our creative strategy builds upon this focal point with an expressive theme. The theme of our creative strategy is “Bee Natural, Bee Yourself.” This campaign encourages women to embrace their natural beauty, to ex- press the qualities that make each individual unique, and to be proud to be of themselves. This theme supports the message of Burt’s Bees that focuses on women’s health and beauty. What sets Burt’s Bees lip balm apart from their competitors is that they use all natural ingredients. The same goes for women. What sets women apart from each other is their natural beauty and their individual personality.

Our campaign will consistently use the “Bee Natural, Bee Yourself” slogan for each media se- lection, which will be the focal point of each advertisement. The text will be in Burt’s Bees red, and in a bold, heavy font. The ad will also include a picture of a woman’s face that is visible natural, healthy and beautiful. It will only display natural, calm colors to emphasis the natural appearance. Each form of advertisement will have the same footer that includes a picture of the Burt’s Bees lip balm with a de- scription tagline of 100% Natural. The advertisement is simple, focused on the message, and appealing to women. We will use this format for magazine, internet, and outdoor advertisements.

Our outdoor billboard advertising will be traditional; they will show our female user and will include the slogan and logo. Our indoor advertisements (in various shopping centers, bus shelters, and subways) will be unique; they will feature growing plants and flowers behind the glass. They will be around the edges of the traditional ad, stating the slogan and including the logo. This will drive atten- tion to our advertisements, and will be a refreshing change to traditional outdoor advertisements.

By strategically placing these advertisements in magazines that our target audience reads and on billboards close in proximity to shopping centers that our target audience frequently visits, we can potentially meet our media objective to reach 80% of our target audience. This could potentially meet our marketing objective to increase sales to $300 million, because these advertisements are placed in magazines and on billboards near places that sell this.

25 Creative Strategy Creative Strategy Social media websites are also a focal point of this campaign. The Facebook page and Twitter account will constantly update followers about new products and promotions. This can also influence a two-way interactive form of communication, as well as a more personal connection with our audience. We will have a Youtube account for videos that will coincide with our theme. We will have videos of women talking about how they are proud to be themselves or what makes them unique. We want to showcase women expressing their individuality and how it relates to using Burt’s Bees. We will also share these videos on the Facebook and Twitter account.

On our twitter account we will start a trending topic of “What makes you, you?” with a hashtag #beeyourself. Will will also ask users “What is one thing that you do to help the environment,” and we will include the hashtag #beenatural. We will create a TweetDeck account for the Burt’s Bees Twitter account that will retweet any tweet using this hashtag, or any tweet that states a positive opinion, or a nice reference to Burt’s Bees. On our Facebook page, we will post bi-weekly statuses about the impor- tance of all-natural products. We will also use this social media site as a platform for any contest or coupons. Once every three months, we will hold a contest for fans to win prizes from free products, to personalized products, to free tickets to festivals. Our goal is to make the social-media sites as interac- tive as possible.

Our social media sites are the most effective way for us to reach the marketing objective to in- crease brand awareness, because the potential reach on Facebook, Twitter, and Youtube is endless. These sites are notorious for circulating word-of-mouth communication among young women, which will help us achieve our media objective to reach 80% of our target audience. This will also assist in meeting the advertising objectives that include: increase brand awareness by increasing reach, increase repeat sales and customer’s social media word-of-mouth, and to increase to a wide variety of media types.

26 Promotion Strategy and IMC Efforts IMC Efforts Public Relations The purpose of public relations is to establish and maintain a positive image of the company, and to inform the public with updated information about the company. Burt’s Bees has consistently delivered at least four press releases a year to various media outlets. These press releases include infor- mation about their cause-related community partners and the projects they are working on. They also created a press release for when they introduced their baby line. This form of communication informs the public about the good deeds that Burt’s Bees is doing and portrays the company in a positive light. We plan to continue these press releases, and create one specifically for the “Bee Natural” campaign.

Sponsorship The creative strategy that we have designed allows consumers to identify the brand with a spe- cific slogan and associate the brand with honorable values. One way we plan to implement exceptional relations with our consumers is through sponsorship. We plan to have Burt’s Bees sponsor a large- scale outdoor environmentally friendly festival. Potential festivals to sponsor include Rothbury Festival in Michigan, awarded the greenest music festival in the United States, and Bonnaroo Music & Arts Festival in Tennessee, a festival set on a 700 acre farm to appreciate nature and great music. Both of these festivals attract over 80,000 festival goers, last about 4 days, feature hundreds of musicians, and promote an eco-friendly lifestyle. These festivals attract our target audience as well as a wide variety of demographics. High levels of sponsorship include free publicity on any form of promoting that the festival uses, as well as all program guides and media kits. Besides free publicity, another advantage of sponsorship is gaining credibility as a brand. In order to be a top level sponsor of a large-scale event, a company must already be well-established. This will strengthen Burt’s Bees credibility and recognition. This will also establish a Burt’s Bees community for fans and customers, and establish a strong connec- tion with environmentally friendly festival goers.

27 Promotion Strategy and IMC Efforts IMC Efforts Sales Promotion Burt’s Bees posts coupons on their website and emails frequent customers coupons a few times a year. This selective strategy promotes exclusivity, so that the coupon receiver feels special. This is a great strategy, and we plan to continue this strategy. In the past Burt’s Bees used a promotional bill- board that was made out of coupons. Anyone on the street could walk up to the massive billboard and take a coupon off the board. This strategy received a lot of attention and promoted their product.

To continue the promotional strategy of Burt’s Bees and increase brand identity, we plan to reach out to technology sources such as QR Codes, UPC, and product placement in stores with a mem- ber card database. Stores such as Sephora, Ulta, and CVS have a member card database that identifies the demographics of their customers as well as records product purchases. Marketers can use this to determine who is buying the product and identify the best communication channels to reach them. Another value of IMC is an increase in Media and Audience Fragmentation. Burt’s Bees plans to utilize magazines, outdoor, internet and non-tradition media. IMC also affects to brand parity. Burt’s Bees focuses on the quality of the product, so by using this factor in promotions can be very advantageous. Price is not something that we want to focus on, but availability and promotional deals are our best avenue to lead to an increase in brand parity. The creative strategy and promotional plan that we have created is designed to increase brand loyalty.

Another way to gain publicity and build relationships is by increasing the use of personalized lip balms. Burt’s Bees has made personalized lip balms for loyal customers and celebrities and put the customer’s name on the label. An increasing trend in today’s society is customizing products. Investing in this trend will help Burt’s Bees increase buyers and grow as company. Burt’s Bees can promote this through Twitter and Facebook to become a trending topic to raise awareness Burt’s Bees already uses outstanding stewardship, by offering loyal customers custom made lip balms will help us reach our ad- vertising objective to maintain consistent consumer loyalty.

Cause-Related Marketing Burt’s Bees is involved with several organizations that promote a greener environment. They give back to the community by sponsoring and partnering programs that help the world become a healthier place. They are heavily involved in recycling and green packaging. The packaging of their product is 100% recyclable and uses the highest approved level of Post-Consumer Recycled and Post Industrial Recycled. They use shrink wrap free packaging on lip balms and that has helped eliminate 1800 miles of shrink wrap film that would have been sent to a landfill. They also trimmed their excess packaging by 50% to decrease waste. They helped introduce TerraSkin Wraps, an alternative packaging for bar soaps that is treeless and bleach-free. Burt’s Bees has partnered with Gimme 5 Recycling that uses polypropylene plastic (also known as #5 plastic). Burt’s Bees has also partnered with Healthy Child Healthy World, a California non-profit public benefit corporation with a mission to empower parents to take action and protect their children from harmful chemicals. Burt’s Bees has also teamed up with Natural Environmental Ecological Management in Durham, North Carolina where they plan commu- nity gardens and celebrate Culture Day.

28 Promotion and IMC Efforts Copy Testing To test the effectiveness of our new marketing campaigns, we plan to conduct trend studies in the Northeast and Midwest area. We will do a short survey before we do any marketing, as a control. We will conduct a trend study every three months to see how many people can recall the advertisements. People will be taking surveys, asking them what they remember about the ads and how well they recall specific aspects about the ads. We will also ask them basic questions about their personal care prod- ucts, how environmentally conscious they are, and how that affects what products they buy. They will be surveyed on college campuses, because that is a cheap resource we can take advantage of. College students are also our key demographic. We will survey during the different pulsing periods, so we can measure how well the pulsing strategy works for us. If there is a dramatic increase in the recognition during the pulsing periods, then we can increase our advertising and increase advertising year round. After our campaign is over, we will also measure how well the audience can recall the brand without any advertising at all. Hopefully the trend studies will tell us more about our audience, and we can use this information to quickly adapt to meet our target audience’s needs and wants.

29 Kirak Sohn, Kimberley Rushton, Adrienne Henk, Lauren Sancho, Gabrielle Favret