Strengths Weaknesses

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 market 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 average 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 awareness. 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. 1 Situational Analysis Marketing Problem Burt’s Bees has been in the market since 1984. Their biggest struggle is that their primary competitor, 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 category 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 3 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 supplements. 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.

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