Burt's_Bees

Growing the Brand ADV3001 Dr. Morton Andrés Puentes Randy Pulayya Sean Solomon Nicole Martinez Karen Kayir Amy Allen Table of Contents Executive Summary Challenge Statement Situation Analysis Problems and Opportunities Analysis Opportunities Recommendation Marketing Objectives Brand Essence Marketing Strategy Target Market Profile Positioning Statements Communication Strategy Communication Objectives Strategy Brief Media Strategy Integrated Brand Communications Tactics Measurement and Evaluation Appendix 3 4 4 11 13 13 13 14 14 15 16 16 16 18 18 20 21 2 Executive Summary Central Focus of the Campaign: We decided to focus our campaign on growing the Burt’s Bees brand through the promotion of the Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner. Recommended Target: The target market on which we recommend concentrating efforts is women between the ages of 18 and 34 who are concerned with the ingredients in their health and beauty products. We suggest concentrating on young, urban professionals. They are willing to spend more money on products with natural ingredients, believing they work better. Creative Strategy: The “Big Idea” behind our campaign is tying the product directly to the grapefruit and sugar beet ingredients by portraying the shampoo and conditioner in garden settings as though the user is “harvesting” the products. We wanted to set the gardens in urban settings on rooftops and in window boxes to contrast the natural benefits of the brand in such a polluted world. Also we intend to give off an image of independence as the women featured in the ad will be taking control and harvesting their shampoo on their own. General Media Recommendations: We recommend predominately using television and magazine spots to get publicity for the Burt’s Bees brand through both advertising and public relations. We also suggest supplementing this with occasional out of home advertising that will be seen in high pedestrian traffic areas. As for sales promotion, we suggest using traditional advertising, product packaging, in-store displays, and the Internet. Guerrilla marketing should also play a part in the campaign. Key Aspects of the IMC Campaign: We recommend using several communication outlets in the IMC campaign. These include advertising, public relations, sales promotions, and support media. For the advertising, we suggest it display the “Big Idea” behind the campaign, tying the product directly to its ingredients. As for public relations, getting into magazines’ top picks and being featured on talk shows will generate favorable PR. Sales promotion tactics will be used to generate brand consciousness, trial, and repeat purchase. The guerrilla tactics will be comprised of a national tour of hair washing. Other support tactics include being tied in with high-end hotels. Recommendations for evaluation: Evaluation should be conducted before the campaign begins and during the campaign every two months. Pre-testing should look to see if the projected campaign will relate to consumers. During the campaign, testing should look for things such as top-of-mind awareness and ad recall. Sales figures should be compared to see if the campaign is actually aiding in generating revenues. 3 Challenge Statement The challenge that Burt’s Bees faces is to expand its customer base and capture a larger share of the overall market. Situation Analysis The following section provides a thorough analysis of the natural health and beauty products industry, the Burt’s Bees company, the brand’s product lines, the health and beauty product consumer, the framework in which Burt’s Bees competes, an analysis of the market, and other environmental considerations which pertain to Burt’s Bees. Industry Analysis Natural and organic grooming products are a rapidly growing industry, with an average increase in sales of around 10% annually. Total sales for the industry reached 4.98 billion in 2004 (Packaged Facts 2005, 5). However, the natural cosmetics industry is still burgeoning. Assortments of facial, eye, and lip makeup are the fullest, yet still far more limited in breadth than in the mainstream (Packaged Facts 2003, 2) Marketers of natural and organic beauty products are gradually expanding their offerings as the category grows, and as the opportunities for shelving improve. In contrast to mainstreamers such as Procter & Gamble (Cover Girl), L’Oreal, and Revlon, which each have 300 or more cosmetics stock keeping units in stores, marketers with natural brands have no more than a few dozen SKUs in their countertop displays in stores (Packaged Facts 2003, 31). This expansion comes along with an industry push to improve the efficacy of natural products, a move spurred by consumer doubts. Company Analysis Roxanne Quimby and Burt Shavitz, a reclusive beekeeper living in Maine, founded Burt’s Bees, Inc. in 1984. The two started by making candles and lip balm from beeswax. Burt’s Bees, Inc. has been marketing all-natural products since 1991. Quimby has since bought out Shavitz in 1999. AEA Investors then bought 80% of Burt’s Bees, Inc. in 2004. Today the company offers 150 personal care products made from all-natural ingredients such as beeswax and nut oils. Some of the products include body crèmes, cosmetics, deodorant, lip balm, shampoo, soap, and toothpaste. John Replogle is the current Chief Executive Officer and President, and has been since January 9, 2006. Ken Troshinsky is the CFO, Renee Quimby is the Vice President of Sales and Marketing, Jesus Osuna is the Director of Manufacturing, and Roxanne Quimby is now the Director of Creative Services. The company’s revenues for 2001, 2002, and 2003, were $33.5 million, $43.5 million, and $50.0 million respectively. The company has a relaxed, “hippyish,” and environmentally friendly mentality. On the company’s Web site it states, 4 “At Burt’s Bees, we believe that sustainable business practices are always the best practices. Our ingredients and packaging choices reflect our careful consideration of the impact our activities will have on our environment and the overall health and well-being of all living things on Earth.” The market share for Burt’s Bees for 2003 was 8.9% (Mintel). In 2005, the company had $54 million in sales (Standard & Poor’s, 1). Its approximate net worth is $150 million. Product Analysis Approximately 20,000 retailers currently sell Burt’s Bees nationwide, including select drug stores, heath food stores and boutiques. Burt’s Bees did not start distributing to larger drug stores such as CVS and Walgreens until June 2005, and these stores only carry a limited selection of around 20 products. Burt’s Bees products are also available internationally in places such as, Canada, Europe, and Japan. Furthermore, Burt’s Bees products are also available through the Internet at www.burtsbees.com. The company did not do much marketing until 2005, relying before on word of mouth. In 2005 Burt’s Bee launched a campaign of primarily print advertisements running July through December. The company planned to spend $6 million on the campaign, including placement in People, Real Simple, Yoga Journal, O: The Oprah Magazine, Organic Style, Cosmopolitan and InStyle (AdWeek). From January 2004 to September 2005, Burt’s Bees spent $4.72 million on advertising, all of which was allocated to magazine advertisements (Adspender). For 2006, Burt’s Bees has placed an estimated $10 million media buy to continue the present campaign. Burt’s Bees’ pricing strategy is premium pricing, which means there is a relatively high price for the uniqueness of the product (Packaged Facts 2003, 23). Its product line includes lip care, lip color, cleansers, exfoliants, toners, moisturizers, complexion mists, healthy treatment, hands and feet, bath and shower, body moisturizers, deodorant, baby care products, hair care, oral care, cosmetics, natural remedies, and grooming kits. The Burt’s Bees Beeswax Lip Balm is the most popular product. The balm comes in two different packages, a .30 oz. tin or a .15 oz. tube. Both are priced at $2.50. The balm is made from 95.29% natural ingredients, but Burt’s Bees is quick to point out that the other small amount that is not natural has to be created in a lab and is not stable in a natural state, such as vitamin E. The lip balm stresses how it is made from beeswax, a natural emulsifier that “helps to seal and protect the skin when used to moisturize.” The brand’s predominant image is one personified by Burt Shavitz’, who “looks like the last of the hippies, and yet the appeal of this down-home brand is universal; perhaps it is the idea of no-nonsense quality – shrewdly combined with the very distinct brand image –that makes Burt’s popular with such a broad cross-section of America” (Packaged Facts 2003, 166). 5 Burt’s Bees positions its product to youth by featuring teen or twenty-something-looking women on its product packaging. This is evident with the company’s new namesake--branded Healthy Treatment Facial Care Kit. Burt’s Bees also offers Burt’s Bees Herbal Treatment Shampoo, suitable for any age group, but marketed to teens and youth. Consumer Analysis Burt’s Bees has a surprisingly versatile consumer base, and its market is quite large. In the natural and organic grooming products category, consumers spent $4.98 billion in 2004 alone (Packaged Facts 2005, 5). In 2003, 53.7 million households shopped organic, more than 49%. Based on research from Mintel in 2005, 20% of women ages 18-24 had purchased products from Burt’s Bees in the past year. According to Packaged Facts, for all ages and genders, there are four main classifications of the attitudes of the consumers of natural or organic personal care products: 1) Environmental Attitudes These are the people who feel packaging should be recycled. This is primarily a concern for the Baby Boomers, who tend to care more about the environment and are more conscious than other groups. This attitude is common across all age groups, although it is more common in women than men. 2) Willingness to Spend This attitude can be further divided into the emotionally laden sentiments, such as, “I will do anything to look younger,” and “I will pay anything for my health.” The first comment is popular with the Boomers, who are aging and are looking for ways to look younger. Surprisingly, it is also a sentiment present in the Teens, who are preoccupied with staying young, despite their fresh faces. The second comment is more popular with the Boomers, notably among widowed or retired persons. 3) “I know what I’m talking about” Attitude This is the kind of consumer who does not blindly accept any formulation – who is knowledgeable, and who may be more accepting of alternative medicine over traditional medicine. These people are preoccupied with reading the labels on products are often the people friends come to for advice on buying new things. 4) Animal Testing Consumers in the natural and organic grooming products category are often concerned with animal testing. Many of them are conscious of and will make a special effort to avoid buying products that have been animal tested. According to Mintel, there are two different consumer mindsets in the shampoo and conditioner market. The first type believes that all shampoos/conditioners bring the same results, so there is no reason for paying a higher price. The other group, however, feels that certain brands perform better than others, and this group is willing to pay more. Consumers were especially affected by media coverage that encouraged them to shop for alternative natural products instead of products that contained the possible carcinogenic 6 chemicals such as phthalates and triclosan, used in hair care, oral hygiene, and color cosmetics (Euromonitor International, 1.) According to Packaged Facts, most health and beauty products consumers doubt the efficacy of many natural products. They would rather use the mainstream version over a natural brand, even with concerns about the effects on health brought on by the non-natural brands. Packaged Facts predicts, however, that natural HBC sales will increase dramatically if the efficacy of the natural products is increased. Competitive Analysis Burt’s Bees competes in the natural grooming product category. One of the brand’s direct competitors is Tom’s of Maine, a company that also boasts all natural grooming products. Tom’s of Maine, a direct competitor, holds 6% of the market share. Founded by CEO Tom Chappell and wife Kate in 1970, Tom’s of Maine reportedly built to annual sales of over $75 million for the first fiscal year ended with 2004, which includes $23.1 million transacted through mainstream supermarkets, chain drugstores, and mass merchandisers. The company, whose products are also premium priced, began with a phosphate-free liquid laundry soap, and gradually expanded to oral care products, personal care products, decongestants, tonics, herbal extracts and so on. Tom’s of Maine-branded oral care and personal care proved to be the company’s most successful product lines. The company began to sell through mainstream supermarket and drugstore chains in 1983, when Tom’s sales stood at $2 million. According to Packaged Facts, no other natural grooming marketer is as comfortable as Tom’s at “management of its presence in multiple retail channels…[and] savviest in terms of quality of consumer advertising.” Tom’s of Maine invested in television spots for the first time in 2004. They first aired in New England in September 2004, and were next aired in the Midwest and West. The 15-second spots featured new anti-cavity and tartar-control toothpastes, and stress all-natural ingredients and environmentally friendly corporate policies. Tom’s of Maine spent $561,900 in advertising for 2005, exclusively in television spots. According to Packaged Facts, the Tom’s of Maine facings on store shelves are displayed in an “elegant yet earthy graphic style” and “seem to evoke an ‘old reliable’ kind of image.” Burt’s Bees’ indirect competitors are Procter & Gamble, which offers the Cover Girl line, and Estee Lauder’s Aveda, which offers “highly organic” products. These indirect competitors, while not in the natural and organic category, position themselves as “natural” by giving the “mere impression of a natural formulation, and by touting natural ingredients in otherwise nonnatural products” (Packaged Facts 2003, 32). Procter & Gamble’s mainstream Cover Girl line has been extended with Cover Girl CG Smoothers, a water-based, moisture-shielding line, and “there is nothing more natural than water,” but the facial makeup and lip colors also contain the more usual synthetics, in the usual 7 degree (Packaged Facts 2003, 174). Estee Lauder, on the other hand, positions Aveda on high, though not exclusively organic, percentages of content – often 70%, which meets the state of California’s new requirement on the use of the word “organic” on labeling. P&G and other large companies heavily feature natural or botanical or mineral ingredients in their advertising. While this tactic enhances their own sales, these marketers may also be boosting their natural health and beauty care rivals’ sales, by association. Both products have equal performance, however one is a mostly natural facial makeup featuring a botanical or natural mineral and the other is a mostly synthetic version featuring the same botanical/mineral. As for the financial performance of these two indirect competitors, Standard & Poor’s expects revenues to rise 4% in 2006 for the health and beauty aid industry, reflecting modest sales growth for Estee Lauder. Also, earnings per share are expected to rise nearly 9% in 2006. Estee Lauder spent $1.057 billion in advertising expenditures in 2004. Procter & Gamble, the top spender, spent $3.92 billion, and the company’s net income was $6.48 billion in 2004. Market Analysis The category development index, based on data from MRI, revealed the amount users spent on health and beauty aids as a whole in the last 12 months. Those who spent less than $100 are light users, those that spent $100 to $299 are medium users, and those who spent $300 or more are heavy users. The male heavy user is typically 25 to 34 years old, college educated, in management or business, also in the highest income bracket, located in the North Central U.S., single or engaged, with children between the ages of 12 and 23 months, with a home value of over $500,000. One noteworthy observation was that usage in the Alaskan Native and American Indian race group had an unusually high index of 266. The female heavy user is typically white, 35 to 44 years old, college graduate, in a professional or related occupation, also in the highest income bracket of over $150,000, located in the Northeast U.S., engaged, children between the ages of 6 and 11, a home valued of over $500,000. The male medium user is typically 25 to 34 years old, a college graduate, occupied in management or business, the highest income bracket, making over $150,000, located in the Northeast U.S., married or engaged, with a child between 12 and 23 months, and a home value of over $500,000; also, Asians had the highest index rating for the category. The female medium user is typically white, 35 to 44 years old, a college graduate, in a professional occupation, with a household income of $75-$150,000, located in the North Central U.S., married, with children under 12 months old, and a home value of $150-$500,000. According to a survey of 24,126 adults ages 18 and up conducted by Mintel, 94% of adults use shampoo and 49% use conditioner. Thirty-three percent of women use shampoo 5-7 times per week and 40% of men use shampoo 5-7 times per week. When asked if consumers believed that shampoo and/or conditioner with natural ingredients actually work better on hair, 59% said yes. Fifty percent of consumers buy shampoo or conditioner from discount store such as 8 Wal-Mart or Target and 21% buy shampoo or conditioner from a grocery store (Mintel, 2005). The average price for 16 oz. shampoo is $3.08 for regular shampoo, $12.46 for premium priced shampoo (a 9.2% increase from 2000), $4.12 for mid-priced shampoo, and $1.67 for low-priced shampoo. The average price for a 16 oz. conditioner is $3.96, premium priced conditioner is $15.30 (a 34.4% increase from 2000), mid-priced conditioner is $4.46, and low-priced conditioner is $2.14 (Mintel, 2006). Environmental Considerations Industry Trends: According to Standard & Poor’s, rising costs for raw and packing materials continue to put pressure on the U.S. household non-durables industry. It notes, “As of the third quarter of 2005, prices for the commodities that most affect the industry — oil, natural gas, paper pulp, corrugating medium, and resin — were up 5% to 44% from the year-ago period.” Surging oil and natural gas prices are also a concern. They affect the industry both directly, as an energy source, and indirectly, as raw materials for resin and other materials. As of November 18, 2005, Standard & Poor’s and Global Insight, a financial and economic research firm, projected that average prices in 2006 are expected to rise almost 3% over 2005, to near $59, in turn affecting all health and beauty aid manufacturers. Social Trends: One significant social trend is reported by Packaged Facts. According to this source, a survey conducted in 2003 by the University of Chicago’s National Opinion Research Center (NORC) reinforces the fact that society is “increasingly accepting ‘extended adolescence’ or ‘delayed adulthood’. One consequence of the trend is the growing number of young people living under their parent(s) roof who have disposable income they would not otherwise have if they were paying for their own apartments” (Packaged Facts 2003, 17). This is a significant observation relevant to the natural health and beauty products market. A higher disposable income may increase the chances of a member of the “youth market” buying the product, which is premium-priced. Another notable social trend is that more and more consumers in the U.S. have adopted a holistic approach to health and fitness. That is, they believe in properly maintaining the body as a whole, together with the mind. Therefore, preventive maintenance and treatment have also become a significant factor in the burgeoning natural and organic product market, and the organic nature of products has become more important. Organic foods, cosmeceuticals, aromatherapy, yoga, stress relief, and personal care products without potentially harsh synthetic ingredients are all part of the trend toward a healthier lifestyle for both the mind and body. 9 Demographic Trends: Two notable demographic trends are most evident between the Baby Boomers and teen/tween consumers. According to Packaged Facts, baby boomers ages of 41-59 are currently the best accommodated to be natural beauty product users (Packaged Facts 2005, 11). The “aging U.S. population,” which makes up approximately 22% of the population, is one driving force behind the manufacture of new products (Standard & Poor’s, 10). Natural skincare marketers, in particular, are offering both male and female middle-agers every kind of antiaging products, in form of moisturizers, masques, toners, blemish treatments (menopausal women, as well as teens, suffer breakouts), and other products that help keep skin looking young. Boomers are also psychographically ripe for any sort of grooming product positioned on wellness, healing, or soothing, or that is formulated to be toxin-free and therefore less apt to cause disease. Those just older than the Baby Boomers, however, do not respond as well to beauty enhancement. They have reached a point where they feel that only so much correction is possible and do not tend to buy these kinds of products any longer. As for the teen/tween segment, societal trends such as greater parental lenience, greater teen/tween spending power, and a lower threshold of puberty (most girls now reach it at the age of ten), are all increasing purchases by kids or by parents on their behalf. Combined with a larger disposable income, this demographic segment is a valuable prospect for marketers of organic beauty products. The population of children up to age 7 is expected to grow 3.7% over the next five years (Packaged Facts 2005, 11). In general, natural health and beauty care suppliers are behind others in the entire industry due to a higher level of brand awareness among children in an age where they are inundated with information every day. Technological Trends: One trend in information technology is that it continues to force changes on individuals, families, businesses, organizations, governments, and international affairs, while improving efficiency and reliability, and increasing breadth and depth of knowledge. Virtually every large organization is now primarily an information machine. Access to information about a company’s resources is becoming increasingly open and available, sometimes through explicit policies of open access, but more often from the activities of public interest groups, the media and blogs. As more environmentally conscious consumers become interested in Burt’s Bees products, technology will grant them access to the company’s information, such as the products’ ingredients. Furthermore, new developments in software are allowing companies to run more efficiently and keep a more current database. More efficient business practices will lead to better financial returns (Research Technology Management, 7). 10 Problems and Opportunities Analysis: The following section is an assessment of the problems and opportunities derived from the situation analysis. Problems Burt’s Bees is only distributed to select locations, limiting the availability of the products. In the beginning, the brand was only sold at specialty stores and boutiques. The brand has since expanded its distribution to include larger drug stores such as CVS and Walgreens. While this expansion has helped the product reach more people, it is still not widely available in the places people most often buy shampoo and conditioner. Burt’s Bees expansion, a fairly recent development, may take away some of the exclusive feel of the brand. This may occur because some costumers buy the product in organic food outlets and feel that it adds to the “green” nature of the brand. According to Packaged Facts, most health and beauty product consumers doubt the efficacy of many natural products. They would rather use the mainstream version over a natural brand, even with concerns about the effects on health brought on by the non-natural brands. Packaged Facts predicts, however, that natural health and beauty product sales will increase dramatically if the efficacy of the natural products is increased. Burt’s Bees could potentially face possible short-term monetary losses by increasing its distribution to larger drug stores. In these stores, Burt’s Bees is now competing directly with other well-established brands such as Procter & Gamble’s Cover Girl line or Wyeth’s ChapStick and it will be difficult to change purchase behavior of these competitors’ loyal customers. The cost of distribution could be more than the cost of revenues gained. Surging oil and natural gas prices present another problem because they affect the industry directly as an energy source and indirectly as raw materials for resin and other materials. - - - - Opportunities Burt’s Bees has an opportunity to increase the spread of its distribution. Recently, the company signed on with Walgreen’s and CVS pharmacies to get its products out to over 20,000 retail outlets worldwide. Although they have already done a great deal, there is still a lot of room for expansion, and by increasing availability of 11 - Burt’s Bees products to even more retail locations, such as grocery stores and super centers like Target and Wal-Mart, more people would be able to purchase the products on a regular basis. Fifty percent of shampoo and conditioner users purchase their shampoo and conditioners at discount stores such as Wal-Mart or Target, and 21% buy shampoo and conditioner in grocery stores so such expansion would allow consumers to purchase Burt’s Bees without making a special trip. Burt’s Bees’ success with the Beeswax lip balm as its most popular item results in a higher level of brand awareness and recognition for the brand. This may serve as a catalyst for the Burt’s Bees to promote other products. Of adults ages 18 and up, 94% use shampoo and 49% use conditioner. With this large base of shampoo and conditioner users already established, Burt’s Bees will not have to convert people to using a product, rather they will only have to convert people to their brand. Of those consumers of shampoo and conditioner, 49% feel that natural and organic products are important, yet only 13% of shampoo and conditioner users actually purchase natural or organic shampoo and conditioner. The natural and organic grooming products industry is rapidly growing. This presents Burt’s Bees with a growth opportunity because of its status as an all-natural product line. There are several reasons for the growth of the natural and organic grooming products industry, including several niche markets that could be targeted by the brand. Natural and organic grooming product companies, including Burt’s Bees, are expanding the number of products they offer. This expansion creates an opportunity to not only create more products to sell, but also to capture more shelving space, giving the consumer a greater chance of noticing the brand. Teens/tweens are emerging as an opportunity for Burt’s Bees. With a higher disposable income than in previous times, and societal trends such as greater parental lenience, the teens/tweens are waiting to buy the products that appeal to them. The Baby Boomers offer a great opportunity for Burt’s Bees. They are the largest population segment in the United States. The sheer size of the market, combined with the Boomer mentality of wanting to look and feel younger and healthier, provides a viable market for Burt’s Bees to pursue. Kids up to age 7 will increase 3.7% through 2010, giving Burt’s Bees an opportunity to spread the use of their Baby Bee products among a larger market. This would in turn produce customer loyalty and brand awareness at a younger age. - - - - - - - 12 - AEA Investors bought 80% of the Burt’s Bees Company in 2004. By selling off such a large portion of the company to AEA Investors, Burt’s Bees has an opportunity to utilize more resources than ever before to help improve in all aspects of their Marketing Mix. Opportunities Recommendation: Based on present findings, the team recommends that Burt’s Bees pursue a course of action in which it grows the brand through promotion of the Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner lines. All the right pieces have fallen into place to make this a viable alternative. The shampoo/conditioner market is growing, and almost half of all of this market’s consumers (49%) feel that natural or organic materials in their shampoo/conditioner are important. Yet only 13% of consumers actually buy natural or organic shampoos/conditioners. Burt’s Bees’ unique selling point is its natural/organic materials, giving it a strong opportunity to capitalize on consumers’ wants of natural/organic materials. Also, Burt’s Bees has not yet maxed out its distribution alternatives. The fact that 71% of all shampoo/conditioner purchases are made in retail outlets that Burt’s Bees is not currently found cannot be ignored. Expansion to these distribution outlets would definitely help expand this brand. Marketing Objectives: The following marketing objectives are meant to provide measurable and time-bound goals that we propose following the initiation of the campaign. To increase sales of the Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner by 15% within the first 12 months of the campaign introduction. To increase distribution of the Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner to grocery stores and retail super centers such as Target and WalMart within the first 12 months of the campaign introduction. Brand Essence: The brand essence is the fundamental message we wish to portray through the Burt’s Bees brand. This is particularly important because it is different from Burt’s Bees current brand essence. We recommend changing the overall image of the Burt’s Bees brand from the current hippy, “granola” feel to a more modern and sophisticated image, while still keeping the natural and environmentally friendly image of the brand. By doing this, we plan to gain credibility for 13 the brand as a natural alternative, emphasizing how the Burt’s Bees products are a chance for consumers to gain a sense of empowerment with new “pure” alternatives to traditional health and beauty products. Marketing Strategy: The marketing strategy provides suggestions for the product, pricing, promotion, and distribution of the Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner. For the Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner, we believe that as a relatively new product offered by Burt’s Bees, there are many things that can be done to improve the brand, keeping in mind the new image we want the brand to develop. We suggest keeping the premium pricing of $8 per 12 oz. bottle, staying in line with the premium image for the brand we wish to promote. We also recommend increasing the distribution to the places where most 18 to 34 year olds purchase shampoo and conditioner: grocery stores and retail super-centers such as Target and Wal-Mart; this will generate a following of consumers that although conscious of natural products, are not willing to go out of their way to purchase them. Also, we recommend gaining shelf space for the shampoo and conditioner in the shampoo and conditioner aisle instead of on a display in a different section in the store. Finally, we suggest a cause-related marketing campaign in which Burt’s Bees donates 5% of all profits from the Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner sales to a charitable cause like Locks of Loves. Target Market Profile: The following target market profile is a personalized depiction of a typical consumer of the natural shampoo and conditioner market. We based the profile on data compiled through MRI, market research, and supplemental information. Erin is a 27-year-old, health-conscious woman concerned with natural ingredients in her personal care products. She is a young urban professional who has a desire to set trends among her peers. She lives in a major metropolitan area of the United States in a middle class neighborhood. Her household income is $70,000. She is willing to spend more money on products with natural ingredients, believing that they work better. Therefore, she is more likely to buy premium-priced products that position themselves as natural or organic. Image is important to her, and she is concerned with her appearance. She washes her hair 6 to 7 times a week, wears makeup and practices other beauty regimens frequently. Erin is also conscious of the environment, but does not necessarily pursue environmental conservation zealously. For example, if her neighborhood provides recycling pick-up she will always recycle, but she will not inconvenience herself for the sake of recycling if it is not 14 provided. She does not blindly accept any formulation promoted by a product, and reads the labels on products before she purchases them. She is trusted by her friends and is known for being a source of information on products. Positioning Statements: The following statements depict where the brand and the consumer meet. There are three independent possibilities for a statement containing the consumer, consumer needs, competitive framework, brand character and value-based payoff. To women between the ages of 18 and 35 who are concerned with natural ingredients in their beauty products, Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner are the brands of natural beauty products that provide an alternative for women who want a high quality hair product that is still natural and environmentally friendly. The reason is Burt’s Bees Sugar Beet Shampoo and Conditioner are nearly 100% natural, and effectively cleanse, strengthen, and add shine. The brand character is young, energetic, and natural. The value-based payoff is protection of the environment and self-confidence. To women between the ages of 18 and 35 who are concerned with both their health and their image, Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner are the brands of high quality, natural shampoo and conditioner that keep hair healthy and keep you looking stylish. The reason is that Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo’s luxurious lather from grapefruit extract, coconut and sunflower oils create a gentle yet effective cleansing complex. Sugar beet extract and soy protein penetrate to strengthen and repair damage. Honey combined with essential oils of orange, lemon, lime, and tangerine moisturize the hair for a naturally beautiful shine. The conditioner’s essential citrus oils and sugar beet extract combine with penetrating marula oil to replenish, soften and improve manageability without weighing down hair. The brand’s character is healthy, fruity, fun, and stylish. The value-based payoff is a self-confidence and environmental consciousness. To women, ages 18 to 35, who prefer natural or organic ingredients in their personal care products, Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner are the brands of all natural hair care products that strengthen and repair damaged hair without synthetic materials or harsh chemicals. The reason is 1) the grapefruit extract, coconut and sunflower oils create a gentle yet effective cleansing complex, 2) Sugar beet extract and soy protein penetrate to strengthen and repair damage 3) Honey combined with essential oils of orange, lemon, lime, and tangerine moisturize the hair for a naturally beautiful shine. The brand character is pure, original, and independent. The value-based payoff is an environmental consciousness and self-confidence. 15 Communication Objectives: The following communication objectives are meant to provide measurable and timebound goals that we propose following the initiation of the campaign. To increase awareness of the Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner by 20% within the first 12 months of the campaign introduction. To increase trial of the Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner by 10% within the first 12 months of the campaign introduction. Communications Strategy: The following is the communication strategy that we recommend be used to communicate the position of the Burt’s Bees brand to the consumer. Convince: Women, ages 18 to 34, who are concerned with natural ingredients in their personal care products That: as the brand of all-natural hair care, Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner strengthens your hair and adds shine with nearly 100% natural ingredients Because: the grapefruit extract, coconut and sunflower oils create a gentle yet effective cleansing complex, sugar beet extract and soy protein penetrate to strengthen and repair damage, and honey combined with essential oils of orange, lemon, lime, and tangerine moisturize the hair for a naturally beautiful shine. Brand Character: pure, independent, and original Value-based Payoff: self-confidence, environmental consciousness, and empowerment Strategy Brief: The following section is an example of a strategy brief that could be given to that should be used for ideas in the creative development of the promotions. Brand Idea: Pure and Smart Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner are a smart choice for a smart consumer. These premium all-natural hair care products are good for your hair and good for the environment. 16 Brand Personality: Cleansing, healthy, and energizing. This shampoo and conditioner’s ingredients are not found in a lab, they’re from the kitchen and the garden, and the product is not tested on animals. This product is for someone who wants clean hair and a clean conscience. The Opportunity is: To introduce a natural shampoo that is actually natural, unlike so many others in the market that claim to be “natural” or “organic” and are not, to consumers in search of a truly organic experience. Burt’s Bees Super Shiny Grapefruit and Sugar Beet Shampoo and Conditioner are formulated with nearly 100% natural ingredients. Unlike the “organic experience” touted by Herbal Essences, Burt’s Bees is actually organic, the natural choice for the natural consumer. So this is why we are advertising: To build brand awareness of the product because it’s new to the market and part of a growing brand. To these people: Adults, female skew, 18 to 34, college educated, environmentally conscious. Females account for 80% of the media target. Erin, 27, college-educated, single. She is adventurous and aware of new products in the market. She is health-conscious, confident and independent, and practices healthy regimens such as yoga and taking vitamins. Erin believes that all-natural shampoos and conditioners work better and are better for her hair’s health. She believes that the brands she uses reflect her personality. She exhibits this in the car she drives, the music she listens to, and the clothing she wears. Our proposition is: the natural choice for the natural consumer. And they will believe it because: This product was created from natural ingredients. The people we are targeting for this product are believers in the effectiveness of those natural ingredients. This is not a long list of chemical ingredients conveniently thrown into a bottle and perfumed to smell nice, it is effective and has an energetic pleasant smell from carefully chosen natural ingredients. Tonality: Make this brand stand apart from all of the other products that claim to be “natural”. Burt’s Bees is no longer the hippy “granola” brand that people may have seen it as in the past, now it should be seen more as a sophisticated, and empowering brand. Executional: In terms of the overall look and style of the ads, elements of the ad need to reflect the brands transition from “granola” to modern, yet still full of life. Our ads use strong imagery to show the contrasting environments of the shower experience with the Burt’s Bees shampoo and conditioner to the crowded and polluted city. The ad will make Burt’s Bees seem as though not only the everyday pollutants you come into contact with are unnatural, but also, the 17 competitive products become pollutants due to all of their chemical ingredients. Also they show elements of the natural materials in the product. Media Strategy: The following section provides the best means for promoting the brand and effectively reaching the market through integrated brand communications. Advertising: Primarily, we recommend advertising for the Burt’s Bees brand through television spots and magazine print ads, we also recommend launching some out of home advertisements such as billboards. Public Relations: Public relations efforts should target coverage from television programming, and magazines. Sales Promotion: In addition to traditional advertising of our sales promotions, we recommend using in store displays, the Web site and packaging to make consumers aware of promotions. Non-Traditional Media: We suggest a guerilla marketing effort to try to establish a lot of media buzz not only for the Burt’s Bees brand, but also more specifically for the new shampoo and conditioner. Integrated Brand Communications Tactics: The following section is a list and description of elements we recommend regarding a communications program for the Burt’s Bees Super Shiny Grapefruit and Sugar Beer Shampoo and Conditioner. All aspects of an integrated marketing communications mix are included. Advertising Tactics: The “Big Idea” behind our campaign is tying the product directly to the grapefruit and sugar beet ingredients by portraying the shampoo and conditioner in garden settings as though the user is “harvesting” the products. We wanted to set the gardens in urban settings on rooftops and in window boxes to contrast the natural benefits of the brand in such a polluted world. Also we intend to give off an image of independence as the women featured in the ad will be taking control and harvesting their shampoo on their own. 1) Ad #1 Television: The TV Spot starts in the shower where a young woman runs out of shampoo. The woman walks out of the shower in a towel, still soaking wet, through her living room. As she gets closer to the living room window you hear the loud sounds of the city below. The woman walks up to a window box and you can see the city scene in front of her. She reaches into the box and pulls out a bottle of Burt’s Bees shampoo from the dirt as if it was a sugar beet. 18 Then, you hear a woman’s voice-over as the woman walks back to the shower. The voiceover says, “New Burt’s Bees Grapefruit and Sugar Beet Shampoo and Conditioner, the natural choice for naturally beautiful hair.” 2) Ad #2 Print: A magazine ad that uses a picture window format of a view from the window of an urban apartment. You can see the city below and there is a planter in the windowsill that has the shampoo and conditioner planted in it. The magazine ads will be very light on copy limited to the slogan and the product name, “New Burt’s Bees Grapefruit and Sugar Beet Shampoo and Conditioner, the natural choice for naturally beautiful hair.” Public Relations Tactics: 1) Public relations efforts can be targeted to getting into beauty magazine top pick lists. 2) Get the new Burt’s Bees shampoo and conditioner on television talk shows such as Oprah and Ellen Degeneres to create buzz. 3) Generate publicity about the cause-related marketing campaign with Locks of Love. Sales Promotion Tactics: 1) Get into the weekly sales promotion brochures of the stores that are distributors of the Burt’s Bees line, particularly for the new distributors of the Burt’s Bees line hopefully including several grocery stores and super centers. 2) In store displays of a cardboard grapefruit tree that showcases the new shampoo and conditioner to help generate awareness. 3) Hold a sweepstakes for a new hybrid car. The sweepstakes will require participants to enter online, generating traffic to the Web site. The information gathered from the entry forms can then be used to send out additional promotional material such as email and direct mail. 4) Package the shampoo and conditioner with a free Burt’s Bees lip balm to promote trail of the new products. As many people use and trust the lip-gloss, the success of that product could be carried over to give the shampoo and conditioner and good image. 5) People love being tied to charitable causes. The money raised for the Locks of Love campaign is an incentive for consumers to purchase the Burt’s Bees products repeatedly. Support Media Tactics: 1) Arrange a contract with a high-end hotel to distribute travel size shampoo and conditioner to promote trial and gain awareness in the business community. 2) Set up stands around larger cities on the street and in shopping malls major metropolitan centers where professionals would actually wash people’s hair and make a big event to promote the brand. 19 Measurement and Evaluation: The following section provides a plan for measuring and evaluating the effectiveness of the proposed program for future implementation. Criteria for examining the efforts before, during, and after the marketing plan is implemented are provided. Pre-testing: We suggest pre-testing the projected campaign to see if it resonates with consumers. The tests should be looking to see if the target market agrees with the new direction recommended for Burt’s Bees. Concurrent testing/ Post testing: We recommended concurrent testing every two months to make sure that the campaign is on the right path to meet marketing and communication objectives. Testing should be looking at consumer behavior such as top-of-mind awareness, advertisement recall, and trial for communication objectives. For marketing objectives, testing should look at sales figures to see if they are reaching the goals. Breaking the sales down by location will help to see if expanded distribution has helped. If the campaign is not on the correct path to achieving the goals, measures should be taken to put the campaign on the right path. 20 Appendix The following are examples of the creative concepts discussed earlier in the plans book. Storyboard for television advertisement 21 Sketches of in-store display promotions 22 Example 1 of print advertisements 23 Example 2 of print advertisements 24 Works Cited “Beauty and Personal Care Products Consumer (The) - US - November 2005”. Mintel International Group Limited. 2005. (accessed February 2005). "Burt's Bees Looks for Bigger Buzz," AdWeek, July 2005, VNU Business Media. “The Growth of Natural Ingredients.” Euromonitor International. October 29, 2005. “Household Nondurables Industry Survey.” Standard & Poor's, 2005. “Looking ahead: at 14 Technology Trends.” Research Technology Management, September 2005, Vol. 48, No. 5; Pg. 7 “Natural Products Marketplace Review: The Market - US - October 2004.” Mintel International Group Limited. 2004. (accessed February 2005). Packaged Facts (2005), “MarketLook: The Natural/Organic Personal Care Market” Compiled from the U.S. Market for Natural and Organic Personal Care Products, available at www.packagedfacts.com (accessed February 2005). Packaged Facts (2003) “MarketLook: The Natural/Organic Personal Care Market” Compiled from the U.S. Market for Natural and Organic Personal Care Products, available at www.packagedfacts.com (accessed February 2005). “Shampoo and Conditioner – US – March 2005.” Mintel International Group Limited. 2005. (accessed March 2006) “Shampoo and Conditioner – US – March 2006.” Mintel International Group Limited. 2006. (accessed March 2006) 25