Marketing Strategy of Olay Cream by uco71677

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									            Media Plan 2006




                Prepared By:

Alison Menius, Candice Miles, icole Schlosser




                      0
Executive Summary………………………………………………………...pg 2-3
Situation Analysis…………………………………………………………..pg 4-10
SWOT Analysis…………………………………………………………….pg 11-12
Marketing Objectives……………………………………………………….pg 13
Marketing Strategy………………………………………………………….pg 14-18
Creative Strategy…………………………………………………………....pg 19
Media Objectives
      Target Coverage…………………………………………………….pg 20
      Overall Media Budget………………………………………………pg 21
      Seasonality & Regionality…………………………………………..pg 22-23
Media Strategy
      Reach, Frequency, Media Weight…………………………………..pg 24
      Scheduling…………………………………………………………..pg 25
      Budget Recap………………………………………………………..pg 26-28
      Suggestions for Vehicle Selection…………………………………..pg 29
      Media Mix…………………………………………………………..pg 30-31
      Media Flowchart…………………………………………………….pg 32
      IMC and other Promotional Efforts…………………………………pg 33
Evaluation of the plan……………………………………………………….pg 34
Works Cited…………………………………………………………………pg 35-36




                         1
Marketing Situation Analysis:
                     Facial cleansers are a $236,400,000 industry
                     Cetaphil is an over the counter line of facial cleansers and moisturizers
                     Cetaphil is less expensive than most facial cleansers
                     The brand positions itself as a facial cleanser recommended by
                     dermatologists
                     The brand’s main competitors include Ponds, Olay and Neutrogena
                     Cetaphil is distributed in stores such as Target, Kmart, Wal-mart,
                     Walgreens, CVS, grocery stores and internet websites
                     Cetaphil’s secondary competitors include standard bar soaps and facial
                     services provided by professionals and beauty salons
                     Cetaphil is in the mature stage in the product life cycle
                     Seasonality: Cetaphil is a year-round product. However, it is most useful
                     during extreme weather experienced in the summer and winter.
                     Regionality: The South, West and North are the areas of the country with
                     the most extreme weather and therefore the best targets for Cetaphil.
                     Current Positioning: Cetaphil is now positioned as a very plain product
                     recommended by dermatologists
                     SWOT summary:
                         •   Cetaphil’s current strengths are that it is a great product that brings
                             people results. It is also dermatologist recommended.
                         •   The brand’s weaknesses include its image, packaging, competition
                             and current target.
                         •   Cetaphil has a lot of opportunity because it is such a great product.
                         •   Its main threats are the strong images of the competitors and the
                             competitors’ ability to create faster results with harsher ingredients.




                                                   2
Marketing Strategy:
                      Objectives: We would like to increase unit sales by 3-4% within the next
                      two years by raising people’s awareness of the Cetaphil brand and
                      positioning it as a trendier and younger brand.
                      Our target audience will consist of females aged 18-34 with higher than
                      average education. The target makes over $20,000 per year and heavily
                      uses magazines and television.
Creative Strategy:
                      The tagline of the new campaign will be, “The balance you need for healthy
                      skin.”
                      We plan on using ads that have a younger and trendier feel
                      By mailing and giving out samples and college campuses we hope to
                      improve awareness of our product in the new younger target
                      We will create an ad that will be spread virally through the use of YouTube
                      Online interviews, “tips of the week” and Q&A with dermatologists will
                      help customers interact with the brand
Media Objectives:
                      Through media, we hope to reach 75% of our target audience within the
                      year. We want to place more emphasis on the 18-24-year-old demographic
                      We want to expose our target audience to the brand two times a week
                      Our budget for this media plan is $1,291,280 which is 8% of our past annual
                      sales of $16,141,000
Media Strategy/Tactics:
                      We will have heavier reach in the winter and summer months than the fall
                      and spring months
                      The TV ads will be on a flighting schedule while magazine ads are constant
                      Our campaign uses the Internet, TV, Magazines and promotional samples
                      Our Integrated Marketing Communication efforts include an interactive
                      website, Healthy Skin Care Club, Skin Care Tips, free samples and skin
                      quizzes.




                                                 3
                                    A. Skin Care Industry

The personal care products and skin care industry is a $1.76 billion industry, and facial cleansers
make up about 14% of that industry with $236,400,000 in sales annually. Facial cleansers include
numerous forms of lotions, creams, and wipes. In a U.S. consumer survey of women’s beauty
product purchases and habits in 2006, studies found that 97% of women use beauty products daily
and that 54% of women are “very loyal” to skincare brands. Skin care sales are up +3.6% from
last year, and the industry continues to grow.




                      Dollar Sales (in millions) of products
                              in Skin Care Industry
                                          2%   2% 2% 1%
                               4%   3%
                                                                        24%
                          5%

                     9%




                          9%                                                  15%
                                    10%
                                                           14%
                                                   *Facial Cleansers*
                           Hand and Body Lotion           Facial Antiaging
                           Facial Cleansers               Liquid/All Other Soap
                           Facial Moisturizers            Acne Treatments
                           Nondeodorant Bar Soap          Depilatories
                           Deodorant Bar Soap             Liquid Hand Soap
                           Fade/Bleach                    Hand Sanitizers
                           Body Antiaging                 Heavy-Duty Hand Cleaners




                                                      4
                             B. Product/Brand Analysis
       CETAPHIL (Galderma): Our brand, Cetaphil facial cleansers, are in the personal care
products category and are produced by the company Galderma, which first began as Owen
Laboratories in 1961, and then as Galderma in 1981 when it began a joint venture with Nestlé and
L'Oréal. Galderma’s main goal is to provide innovative therapeutic solutions that meet the needs
of dermatology patients and physicians. Most of its products consist of various prescription topical
products to treat conditions such as acne, rosacea, and psoriasis. Cetaphil is Galderma’s only over-
the-counter line of facial cleansers and moisturizers.


                                    Cost:         $6.99 for 8 oz*

Cetaphil facial cleansers are a slightly lower price compared to other brand’s facial cleansers.
Consumers value Cetaphil as a gentle and mild facial cleanser with more medication than other
brands. Cetaphil positions itself as the facial cleanser that dermatologists recommend for a
medicinal treatment of acne, and it is fragrance-free and won’t clog pores. It is best to use
Cetaphil consistently. Cetaphil’s products line includes:

   •   Cetaphil Daily Facial Cleanser For Normal to Oily Skin
   •   Cetaphil Gentle Skin Cleanser
   •   Cetaphil Antibacterial Gentle Cleansing Bar
   •   Cetaphil Gentle Cleansing Bar
   •   Cetaphil Moisturizing Cream
   •   Cetaphil Therapeutic Hand Cream
   •   Cetaphil Daily Facial Moisturizer SPF 15 with Parsol
   •   Cetaphil Moisturizing Lotion




                                                   5
                            C. Primary Competitors Analysis
1)              PO DS (Unilever): This personal care products brand was established in 1910, and
made use of celebrities in their ads during the 1920s and was one of the first brands to place
samples in magazine ads. The Company merged with the Chesebrough Manufacturing Company
in 1955 before it finally partnered with Unilever in 1987. Pond’s products are best sellers and the
brand has many “classic” products that consumers have enjoyed for numerous years. Pond’s also
has a wide range of products so consumers know they have a choice when it comes to various
facial needs that Pond’s products can fulfill. Cost: $7.89 for 9.5 oz*



2)             OLAY DAILY FACIALS (Proctor & Gamble): This personal care products brand
started as Oil of Olay in 1949 and in 1970, Richardson Merrell acquired the Olay product and
added products, a sales force, and TV advertising. Proctor & Gamble then acquired RVI in 1985
and Olay has been expanded ever since. Olay’s facial cleansers are slightly higher priced relative
to other facial cleanser brands, and Olay tends to attract a slightly older consumer due to its anti-
aging lines such as Olay Regenerist and Olay Definity. Olay overall has been a long-time favorite
of consumers and professionals. Cost: $7.49 for 6.7 oz*



3)               EUTROGE A (Johnson & Johnson): This personal care products brand was
bought from an independent company by the Johnson & Johnson conglomerate in 1994.
Neutrogena’s products are sold internationally and are well known for their famous spokespeople.
Neutrogena is valued by consumers for being a stronger makeup and dirt remover than other facial
cleanser brands due to the hydroxyl acid its products contain. Neutrogena’s products aren’t meant
as much for those with sensitive skin since it can dry skin out. However, those consumers whose
skin doesn’t get dried out find Neutrogena very effective. Cost: $6.39 for 7 oz*

*prices listed on drugstore.com




                                                   6
                                        Facial Cleansers Market Share

                                  8.00%
                    % of Market   7.00%
                                  6.00%
                                  5.00%
                                  4.00%
                                  3.00%
                                  2.00%
                                  1.00%
                                  0.00%




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                                                                                          Dollar Sales Share

                                                              N
                                                               Brand                      Unit Sales Share


                                     Brand               Dollar Sales          Unit Sales
                                     Olay                $16,843,000           2,740,000
                                     Pond's              $16,395,000           3,384,000
                                     Cetaphil            $16,141,000           1,882,000
                                     Neutrogena           $9,247,000           2,212,000

Distribution: Cetaphil and its competitors’ facial cleanser products are distributed with general
retailers such as Target, supermarkets such as Kmart and Wal-mart, drug stores such as Walgreens
and CVS, and other discounters, grocery stores, and numerous internet websites, such as
www.drugstore.com. These skin care brands are distributed nationally.

                                  Skin Care Advertising by Retailers for the Year Ending Sept. 2006
                                                    [Source: Chain Drug Review]




                                                                                   Walgreens 31%




                                     CVS 56%
                                                                                      Kmart 6%

                                                                                Target 6%

                                                                            Wal-Mart 1%




                                                                  7
                                 Secondary Competitors
       Some secondary competitors to Cetaphil and facial cleansers in general include various
standard bar soaps such as Dial, Zest, and Dove, as well as facial services provided by
professionals and beauty salons. These are secondary competitors because bar soaps and beauty
salon services could potentially perform the same task as Cetaphil facial cleansers, by cleaning the
facial area. However, bar soaps are not as catered to just the facial area as facial cleansers are, and
they do not contain the same ingredients as facial cleansers. Also, while beauty salons essentially
perform the same task as using a facial cleanser, it is more of a service than a product and is not a
direct threat to the skin care product category because consumers may go to a salon more for the
experience and service than for the actual task of cleaning their skin. For these reasons, Cetaphil
facial cleansers do not have that great of a threat from secondary competitors in the marketplace,
and our focus will be more on competing with Cetaphil’s primary competitors.




                                                   8
                D. Product Life Cycle/Seasonality/Regionality

Product Life Cycle
   •   Cetaphil is a facial cleanser product in the skin care and personal care product category
   •   Cetaphil is in the Mature stage in product life cycle
   •   Cetaphil has been on the market so long that its once patented material is no longer covered
   •   Cetaphil has won awards for its usefulness and still ranks amongst top skin care brands
   •   Cetaphil has the potential to reach a broader audience than what is currently being reached


Seasonality
       Cetaphil is a year-round product but could be used and advertised more heavily during the
“extreme” seasons – summer and winter. The summer season brings about warmer weather, days
at the beach, and the unfortunate sunburn. Sunburns are one of the many conditions Cetaphil can
treat, and thus advertisements should highlight or reflect upon this point during the summer
months. Similarly, dry skin is often a result of the winter months due to harsh winds and cold
temperatures that tend to try out the skin.


Regionality
       If not participating in a nationwide campaign or something along those lines, regions of the
country that are most affected by the seasonality factors should be the primary focus for
advertising. The South and West, for example, would be heavily targeted due to the numerous
beaches, high temperatures, and other opportunities for sunburn. Likewise, the North would be
targeted for the extremely cold temperatures and other winter-like factors that attribute to dry skin.




                                                   9
           E. Product Positioning and Communication Strategy
   Cetaphil facial cleansers are currently positioned as a “no-frills” facial cleanser that focuses on
getting the job done. Cetaphil is fragrance-free and doesn’t have as elaborate packaging as other
brands. Because of its plainness Cetaphil is positioned as a facial cleanser that simply works well
and is backed by dermatologists. Cetaphil currently primarily communicates and advertises
through television and recommendations by dermatologists or other users.
   We will attempt to further position Cetaphil by playing upon its praise from dermatologists and
heavy users. This praise is often spread by word-of-mouth and this form of communication is
valued most, as shown by results of a survey from Marketing to Women. We could use viral
marketing to increase consumers’ use of word of mouth and since we only currently advertise in
television, we can try to communicate through other mass media such as magazines or the internet.


  (Raw) Competitive Media Expenditures                                                Share of Voice
                                            TV (Cable,                                                    TV (Cable,
                                             Network,                                                      Network,
   Brand         Total     Magazine                                   Brand           Total   Magazine
                                              Spot,                                                          Spot,
                                           Syndicated)                                                   Syndicated)
  Cetaphil    $522,600        $0            $522,600               Cetaphil      33.72%        0.00%        46.25%
   Ponds      $296,400     $296,400                $0               Ponds        19.13%       70.61%         0.00%
    Olay      $607,300        $0            $607,300                 Olay         39.19%       0.00%        53.75%
 Neutrogena   $123,400     $123,400             $0                Neutrogena       7.96%      29.39%         0.00%
   Total      $1,549,700   $419,800         $1,129,900              Total        100.00%      100.00%      100.00%


                                   Share of Voice 2004- Facial Cleansers
                                           Total Expenditures: $1,549,700


                                      Neutrogena
                                         8%                     Cetaphil       Cetaphil
                                                                 34%
                                                                               Ponds
                               Olay                                            Olay
                               39%                                             Neutrogena
                                                        Ponds
                                                         19%




                                                        10
                                    A. SWOT Analysis
a. Cetaphil
(1) Strengths:
    o Dermatologist recommended: actual product works well and is backed by dermatologists
    o    atural, healthy skin focus: many other facial products use harsh ingredients to combat
       acne and other skin problems
    o Gentle product: suitable for skin conditions such as acne, eczema, rosacca, razor burn and
       wrinkles, and will not make skin even more irritated than it already is
    o Product Ingredients: help keep the natural pH balance of skin
    o Fragrance-free and on-comedogenic: Cetaphil is a great choice because it does not
       have any added medicine or fragrance. Too much acne medicine can dry out and irritate
       skin more
    o Long Lasting: product works well throughout the entire day, and the moisturizers in
       Cetaphil help make pores, wrinkles and blemishes appear smaller and more blended
    o Price: Cetaphil is fairly inexpensive compared to other similar facial cleansers

(2) Weaknesses:
    o Brand Image: lacks status as popular or cool product
    o Packaging: looks plain like a type of medicine and needs to look fresher and younger
    o Price: because it is cheaper consumers may think the product itself is ineffective
    o Target: teenagers and people in their early twenties would find Cetaphil a great product to
      pair with acne medicine because it is so gentle, but because of its boring image, it does not
      appeal to this younger demographic.
    o Competition: competing brands are strong in the images and packaging that Cetaphil lacks

(3) Opportunities:
    o Effective product: it will be important to let people try the product and see first hand just
      how gentle and effectively the product works
    o Image: through advertising and promotion, Cetaphil can revamp its image to appear fun
    o Trends: Consumers depending more on word-of-mouth for product information as well as
      consumer’s loyalty to brands that work provides an opportunity to reach consumer virally
    o Other brand’s harshness: because other brands give promises to zap away acne problems,
      taking away the natural balance of skin and leave the face dry and irritated, Cetaphil can
      position itself as the brand that doesn’t do this and is gentle to problematic skin

(4) Threats:
    o Strong competitors’ images: other brands have celebrity endorsed commercials and their
       packaging is often brightly colored and appeals more to consumers




                                                11
(4) Threats continued:

   o Desire for Speedy Results: consumers want to fix their skin care problems quickly and
     want fast results with the acne medicine that is present in other brand’s cleansers
   o Skin care market: while Pond’s, Olay, and Neutrogena are Cetaphil’s primary
     competitors, many other brands of facial cleansers exist and many other generic retailer
     brands create a cluttered environment for consumer to pick one particular brand


b. Competitors Comparison

 Competitor         Strengths             Weaknesses             Opportunities             Threats

                 ~Popular image                                   ~Brand loyalty
   Pond's                              ~Slightly higher price                        ~Generic Substitutes
               ~Wide product range                              ~Brand awareness


                                                                  ~Brand loyalty
                 ~Popular image                                 ~Older, anti-aging
    Olay                                  ~Higher price                              ~Generic Substitutes
               ~Wide product range                                   market
                                                                ~Brand awareness


              ~Stronger makeup and
                    dirt remover        ~Harsher product                              ~Gentler products
                                                                 ~Cheaper price
 Neutrogena   ~High association with    ~Doesn't work for                            that also remove dirt
                                                                ~Brand awareness
                celebrity endorsers      sensitive skin                                and makeup well
               ~Wide product range




                                                12
                                B. Marketing Objectives
       Cetaphil is ranked number three in sales among brands within its market. However, it is
ranked number eight in unit sales. This means that Cetaphil moves fewer actual bottles of product.
We would like to leave the price of Cetaphil as it is. We feel that it is a quality product and
therefore is priced appropriately. However, we would like to increase unit sales and therefore
increase revenue. As of now, Cetaphil has a market share of about 4.3% in unit sales. We would
like to see this unit market share go up by 3-4% in the next two years. We also would like to
increase general awareness of Cetaphil as a brand that competes with other more well-known
brands such as Pond’s, Olay, and Neutrogena. We would like to market and position Cetaphil as a
trendier or more attractive, younger brand.
       To accomplish all of these goals we will implement an offensive marketing strategy, where
will go into new areas and target audiences to promote sales and we will try and advertise more
than our competitors.




                                                13
                                                                       C. Marketing Mix Strategy
Product
   ♦ Cetaphil’s products include lotions, creams, cleansers, moisturizers, and cleansing bars
   ♦ Cetaphil meets consumer needs by serving all types of skin ranging from healthy to dealing
      with conditions such as dryness, acne, and eczema
   ♦ Cetaphil’s product is older and established, yet is a relatively unknown brand in
      comparison to heavily advertised competitors
   ♦ Cetaphil has strong support from and affiliation with dermatologists

Price
   ♦ Cetaphil’s facial cleansers and somewhat cheaper and more affordable than other cleansers
   ♦ Competitive and comparable sales with its main competing brands
   ♦ Possible discounts and promotions could be used through advertisements, samples, etc.

Place (Distribution)
   ♦ Cetaphil is distributed nation-wide, focusing more on drug stores, pharmacies, and retailers
           o CVS/Walgreens
           o Wal-Mart/Target
           o *Note: According to the RDS Database information, drugstores have seen the
              greatest increase in sales volume when it comes to personal care items

Promotion
   ♦ The skin care product is has a growing opportunity for word-of-mouth marketing
   ♦ Skin care product information is Peer-to-peer and pass-along
   ♦ When promoting, emphasize that Cetaphil is still known for its effectiveness without major
     advertising
         o Reference other skin care products that are heavily advertised (highest share in
             market) but convey that the products work equally well

                                                                     Top Sources of Healthy & Beauty Product Info
                                                                      [Source: BuzzBack Market Research, 2006]
               45%
               40%
               35%
               30%
               25%
               20%
               15%
               10%
                5%
                0%
                                                                                                                                  In-Store Circulars


                                                                                                                                                        Dermatologists


                                                                                                                                                                         TV Programs
                     Family/friends/colleagues


                                                 Magazine articles


                                                                       Magazine ads


                                                                                      TV/Internet ads




                                                                                                                                                                                                           Catalogs




                                                                                                                                                                                                                                            Celebrities
                                                                                                                                                                                       Store salesperson
                                                                                                        Salon or spa consultant




                                                                                                                                                                                                                      Spouses/Significant
                                                                                                                                                                                                                           Others




                                                                                                                                                       14
                                   D. Target Selection
         For Cetaphil’s facial cleansers, we will target young adult women in the age
bracket/demographic of 18-34. This younger age group works well for our product since Cetaphil
is in the cheaper price range and since consumers in this age demographic will not be as willing to
pay large amounts of money for their facial cleanser. Race does not play a major factor in our
target selection because Cetaphil helps all skin types regardless of one’s heritage.
         Studies in magazines and journals have shown that our target audience (young women)
often make their purchase decisions based upon factors such as recommendations, satisfaction with
the product, and loyalty to the product or brand as a whole (Global Cosmetic Industry, May 2006).
We intend to incorporate this information into our strategies and objectives. Therefore, a basic
profile of our audience would be consistent with the following guidelines/information:


Age:
   ♦ 18-34
Gender
   ♦ Female
Education
   ♦ High school and beyond
Income
   ♦ $20,000+
Media Consumption
   ♦ Heavy magazine readers
   ♦ Moderate TV/Radio users




                                                  15
                      Choice 3 for Cetaphil Cleansers/Moisturizers

DEMOGRAPHICS (PERSONAL INFORMATION):
SEX: FEMALE
                                         Sample                          211
                                         '(000)                      832.383
                                         Vertical                    79.61%
                                         Horizontal                   1.30%
                                         Index                           134
                                         Base                         0.77%

DEMOGRAPHICS (PERSONAL INFORMATION):
SEX: MALE
                                         Sample                           55
                                         '(000)                      213.254
                                         Vertical                    20.40%
                                         Horizontal                   0.49%
                                         Index                            50
                                         Base                         0.20%

DEMOGRAPHICS (PERSONAL INFORMATION):
AGE: 18-24
                                         Sample                           28
                                         '(000)                       76.904
                                         Vertical                     7.36%
                                         Horizontal                   0.79%
                                         Index                            81
                                         Base                         0.07%

DEMOGRAPHICS (PERSONAL INFORMATION):
AGE: 25-34
                                         Sample                           45
                                         '(000)                      197.755
                                         Vertical                    18.91%
                                         Horizontal                   1.27%
                                         Index                           131
                                         Base                         0.18%

DEMOGRAPHICS (PERSONAL INFORMATION):
EMPLOYMENT STATUS: NOT EMPLOYED
                                         Sample                          113
                                         '(000)                      515.056
                                         Vertical                    49.26%
                                         Horizontal                   1.18%
                                         Index                           121
                                         Base                         0.48%




                                           16
DEMOGRAPHICS (PERSONAL INFORMATION):
EMPLOYMENT STATUS: FULL TIME STUDENT
                                            Sample             6
                                            '(000)        33.766
                                            Vertical      3.23%
                                            Horizontal    1.55%
                                            Index            160
                                            Base          0.03%

DEMOGRAPHICS (PERSONAL INFORMATION):
EDUCATION - HIGHEST LEVEL COMPLETED: HIGH
SCHOOL - 9-11 YEARS
                                            Sample             8
                                            '(000)        21.567
                                            Vertical      2.06%
                                            Horizontal    0.21%
                                            Index             22
                                            Base          0.02%

DEMOGRAPHICS (PERSONAL INFORMATION):
EDUCATION - HIGHEST LEVEL COMPLETED:
GRADUATED HIGH SCHOOL/<1 YEAR COLLEGE
                                            Sample            77
                                            '(000)       404.724
                                            Vertical     38.71%
                                            Horizontal    0.96%
                                            Index             99
                                            Base          0.38%

DEMOGRAPHICS (PERSONAL INFORMATION):
EDUCATION - HIGHEST LEVEL COMPLETED:
ATTENDED COLLEGE (<1-3 YEARS)
                                            Sample            91
                                            '(000)        330.37
                                            Vertical     31.60%
                                            Horizontal    1.10%
                                            Index            113
                                            Base          0.31%

DEMOGRAPHICS (PERSONAL INFORMATION):
EDUCATION - HIGHEST LEVEL COMPLETED:
ATTENDED COLLEGE (1-3 YEARS)
                                            Sample            65
                                            '(000)       258.775
                                            Vertical     24.75%
                                            Horizontal    1.09%
                                            Index            112
                                            Base          0.24%




                                             17
                                     Secondary Target
Any secondary target group would be men fitting the same age demographic. The following table
from Drug Store News shows that while not as large a market, men’s skin care is growing.


                                 Men's mass market facial skin care:

                                      Year Sales (Millions)
                                      2001        $25.1
                                      2002        $35.8
                                      2003        $42.1
                                      2004        $57.6
                                      2005        $76.5
                                 Source: Information Resources Inc.

This growth shows that there is a current trend in men using more and more facial cleansers.
Because they are a growing consumer of this product we shouldn’t ignore them as a possible
secondary target.


These men would be targeted through media such as print advertisements in various men’s
magazines and other nontraditional media outlets such as the company website on the Internet.
This would be our strategy if we were to seriously look into this target, but since we are first trying
to increase awareness and sales through our female target audience, we will not concentrate on the
secondary targets in our current media plan.




                                                  18
“The balance you need for healthy skin.” – This is the tag and theme of the
advertisements for our campaign. We will play upon the fact that our product comes highly
recommended by dermatologists and other professionals in the field by using various meanings of
balance in the advertisements. For example, a young woman can be shown balancing her work life
and love life simultaneously with Cetaphil being the product to help her look her best during both
times.


In order to appeal to our target demographic like never before, we intend use the following for a
younger, cooler, campaign:


Magazines
   ♦ Increase overall number of advertisements
   ♦ Use rich, high quality magazine adds with appealing copy


Product Promotion
   ♦ Visit college campus, improve awareness in the demographic
   ♦ Utilize direct mailing of samples


Internet/Viral Marketing
   ♦ YouTube/other viral video featuring a mini-drama that draws users to our website for more
         information about our product
   ♦ Increase online interviews and Q&A with real dermatologists
   ♦ Update website with more user-friendly content including giving users the option to
         provide information about themselves
   ♦ Update “Tips of the Week” to allow for subscriptions to our online services and more
         specialized targeting/marketing




                                                 19
                                    A. Target Coverage
   Through our media plan, we will reach 75% of our target audience within the year, with more
emphasis being placed on the younger 18-24 demographic and the south and Midwest regions.
This is because we would like a consistent user rate in all target areas and target age groups. We
would like to reach more of our target audience in the 18-24 age group and the south and Midwest
regions because we don’t have as many current users in these areas and in this demographic as we
do in the Northeast and West regions and 25-35 age demographic.
   On average, we want to expose our target audience to the message twice a week through either
cable television or magazines and another two times a week through the Internet with our viral
marketing and company website.
   After the introductory period we would like to keep our reach constant while increasing
frequency by 1 exposure through television and magazines. This is to increase top of the mind
sales with the target audience we gained in the initial campaign. At this point, we hope that our
target audience continues to use our company website and it will naturally spread and receive more
hits, and reach of the target audience will grow through word-of-mouth.


                   Users of Cetaphil In Our Target Age Groups:

DEMOGRAPHICS (PERSONAL
INFORMATION): AGE: 18-24                         Sample                                            28
                                                 '(000)                                        76.904
                                                 Vertical                                      7.36%
                                                 Horizontal                                    0.79%
                                                 Index                                             81
                                                 Base                                          0.07%
DEMOGRAPHICS (PERSONAL
INFORMATION): AGE: 25-34                         Sample                                            45
                                                 '(000)                                       197.755
                                                 Vertical                                     18.91%
                                                 Horizontal                                    1.27%
                                                 Index                                            131
                                                 Base                                          0.18%




                                                 20
                               B. Overall Media Budget
       Our planned budget is $1,291,280, which is 8% of our past annual sales of $16,141,000.
We chose 8% because we need a big enough budget increase to support our new offensive media
strategy. Our previous advertising budget was $522,600, so we believe that by increasing the
budget by $768,680, we will be able to achieve our marketing objectives of an increase in unit
sales by 3-4% and increase our general awareness as a brand.




                                                21
                             C. Seasonality & Regionality
Regionality:
       Based on our brand’s past history, we have seen that our brand has the most current users
in the northeastern and the western regions of the United States, probably due to the harsher
weather conditions in those areas. Because these areas already have a higher tendency of users, we
would like to place more advertising weights on the southern and Midwestern regions. We will
maintain the regions that already have users by consistently placing ads in monthly magazines.


                Users of Cetaphil Moisturizers/Creams/Cleansers

  GEOGRAPHIES: CENSUS REGIONS:
  NORTHEAST                                     Sample                                         65
                                                '(000)                                    233.253
                                                Vertical                                  22.31%
                                                Horizontal                                 1.10%
                                                Index                                         113
                                                Base                                       0.22%
  GEOGRAPHIES: CENSUS REGIONS:
  MIDWEST                                       Sample                                         56
                                                '(000)                                    154.735
                                                Vertical                                  14.80%
                                                Horizontal                                 0.62%
                                                Index                                          64
                                                Base                                       0.14%
  GEOGRAPHIES: CENSUS REGIONS:
  SOUTH                                         Sample                                         79
                                                '(000)                                    370.599
                                                Vertical                                  35.44%
                                                Horizontal                                 0.94%
                                                Index                                          97
                                                Base                                       0.34%
  GEOGRAPHIES: CENSUS REGIONS:
  WEST                                          Sample                                         66
                                                '(000)                                     287.05
                                                Vertical                                  27.45%
                                                Horizontal                                 1.28%
                                                Index                                         132
                                                Base                                       0.27%




                                                 22
Seasonality:
       Based on the region, our media plan will vary weights depending on the time of the year,
due to varying needs for our product at different times. For instance, because it is extremely cold
in the winter months in the north, we will place more weight to advertise in that region for the
months of January, February, November and December. Likewise, because the weather is most
extreme in the south and west during the hot summer season, we will place more weights in those
regions during the months of May, June, July, and August. The other months will receive fewer
weights overall, because none of the regions at those times have as extreme of weather conditions
as the other times of the year. Our media plan will follow the fluctuations in weather patterns in
the different regions.



                         Seasonality Weights based on Regions

                  3.5
                    3
                  2.5
        Weight




                    2                                                              North/Midwest
                  1.5                                                              South/West
                    1
                  0.5
                    0
                     br y




                          ne
                     M ry




                   pt ust




                     em r
                          ch




                     Au ly




                     e r
                    O ber
                          ay




                            r
                          ril




                   ec e
                   ov e


                         be
                   Fe rar




                        Ju
                       ua




                 D mb
                       Ap




                  N t ob
                       Ju
                       M
                       ar




                 Se g
                     em
                      nu




                     c
                   Ja




                                               Month




                                                 23
                             A. Frequency & Reach
   Over the course of the year, we will meet our frequency and reach goals by putting more
weight on the winter and summer months. By advertising with magazines year round and
television during the winter and summer, we will have a frequency of about two during the
winter and summer and one during the fall and spring. We will divide our reach so that it
reaches 16.66% of our total reach during the fall and spring and 33.34% during the winter and
summer.

                                      Reach by Season


                                       Fall,
                                      16.66%
                                                            Summer,
                                                             33.33%
                                  Spring,
                                  16.66%



                                               Winter,
                                               33.34%




                              Frequency by Season

                                      Winter                     Summer
                              2

                            1.5
                                                          Fall            Spring
              Frequency       1

                            0.5

                              0
                                       1              2            3      4
                                                          Season




                                                 24
                                         B. Scheduling
       We recommend that magazine advertisements remain constant throughout the year. This
will be a continuous schedule.   We plan to do this because it will decrease our costs by buying
magazine ads in bulk for a full year, while also maintaining frequency. However, we recommend
that the television ads are on a flighting schedule. Cetaphil should advertise via television during
the winter to the Northeastern and Mid-western regions. During the summer, Cetaphil should
advertise in the Southern and Western regions. This will add more weight to the target regions
during the summer and winter when weather conditions are harsher.




                                                  25
                     C. Budget Recap
                                       Budget 2007
January
Magazines                                 $36,988.10
TV (North/Midwest)                       $106,666.67
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                    $155,606.67
Feburary
Magazines                                 $36,988.10
TV (North/Midwest)                       $106,666.67
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                    $155,606.67
March
Magazines                                 $36,988.10
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                     $48,940.00
April
Magazines                                 $36,988.10
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                     $48,940.00
May
Magazines                                 $36,988.10
TV (South/West)                           $96,000.00
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                    $144,940.00
June
Magazines                                 $36,988.10
TV (South/West)                           $96,000.00
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                    $144,940.00
July
Magazines                                 $36,988.10
TV (South/West)                           $96,000.00
Internet                                   $8,000.00
Promotional Events                         $3,951.90
Total                                    $144,940.00
August
Magazines                                 $36,988.10
TV (South/West)                           $96,000.00
Internet                                   $8,000.00




                          26
Promotional Events                                                            $3,951.90
Total                                                                       $144,940.00
September
Magazines                                                                    $36,988.10
Internet                                                                      $8,000.00
Promotional Events                                                            $3,951.90
Total                                                                        $48,940.00
October
Magazines                                                                    $36,988.10
Internet                                                                      $8,000.00
Promotional Events                                                            $3,951.90
Total                                                                        $48,940.00
  ovember
Magazines                                                                    $36,988.10
TV (North/Midwest)
Internet                                                                      $8,000.00
Promotional Events                                                            $3,951.90
Total                                                                        $11,951.90
December
Magazines                                                                    $36,988.10
TV (North/Midwest)                                                          $106,666.67
Internet                                                                      $8,000.00
Promotional Events                                                            $3,951.90
Total                                                                       $155,606.67

TOTAL BUDGET                                                              $1,254,291.90



                                               Magazine GRP   TV GRP
                     January                      300.09       8.90%
                     February                     300.09       8.90%
                     March                        300.09       0.00%
                     April                        300.09       0.00%
                     May                          300.09       56.51%
                     June                         300.09       56.51%
                     July                         300.09       56.51%
                     August                       300.09       56.51%
                     September                    300.09       0.00%
                     October                      300.09       0.00%
                      ovember                     300.09       0.00%
                     December                     300.09       8.90%

                     Total target
                     population                               2,467,500
                     Total Magazine Circulation               7,404,779
                     Total TV impressions in South/West          13,944
                     Total TV impressions in North/Midwest        2,195




                                                 27
                                 2007 Budget by Month
$160,000.00
$140,000.00
$120,000.00
$100,000.00
 $80,000.00
 $60,000.00
 $40,000.00
 $20,000.00
        $0.00
                   January




                                                                     July
                                                                            August




                                                                                                           November
                             February




                                                              June
                                                        May
                                        March
                                                April




                                                                                     September
                                                                                                 October


                                                                                                                      December
                                                              Month



                                        Plan Spending by Media

                        $47,423, 4%


                                                                              $443,857, 34%
$96,000, 7%


                                                                                                                           Total Magazines
                                                                                                                           Total TV
                                                                                                                           Total Internet
                                                                                                                           Total Promotion



   $704,000, 55%




                                                                28
                      D. Media Selection and Rationale
Qualitative values of each media:

   •   Internet:
           o Interactive
           o High involvement for audience
           o Flexibility/customization
           o Gets through advertising clutter
           o Low cost
           o Easy to document effectiveness
   •   TV:
           o Sight and sound dynamics
           o Flexibility (geographic)
           o Reach of different markets (mass/selective): TV is able to reach a lot of people
           o Cost efficiency (low CPM)
   •   Magazines:
           o Magazines are looked at for an average of 45 minutes
           o High involvement
           o Selectivity of audience
           o Fine color reproduction
           o Long life
           o Pass-along readers
           o Controlled circulation
   •   Other Promotions
           o Free samples given out in-store and on various college campuses
           o Coupons for discounted items available from the company website




                                                29
                                       D. Media Mix
Target Audience’s Use of Media Class:
   o TV: Quintile ratings are lower for television. Quintile One has an index of 86 and
       Quintile Two has an index of 90.
   o Magazine: Cetaphil has a high quintile ranking for magazines. The top two quintiles have
       a much higher index than the lower quintiles. Quintile One has an index of 166 and
       Quintile Two has an index of 103.


Advertising Objectives:
   o Internet: The Internet will add an interactive aspect to our media mix. Using this type of
       interactive media will help to target 18-24 year old women. Our internet sources will give
       current and potential customers a chance to receive information about our product and
       general skin care. It will also allow them to become a member of our “healthy skin club.”
       Members will have access to skin care tips and free samples.
   o   TV: Television will provide a quick way to reach more people. It will also increase
       potential customer’s knowledge of our brand. Cetaphil will gain “top of the mind” status
       with potential customers when they are shopping for facial cleanser.
   o Magazine: Magazine advertisements will help to build the image of our brand.
       Consumers take more time to look at advertisements when they are reading a magazine
       because magazines require higher involvement from readers. This will give Cetaphil a
       chance to create a creative and memorable campaign that will improve the image of
       Cetaphil. The advertisements will give Cetaphil a fresher and younger look.




                                                30
Creative Constraints:
   o Internet: It will be harder to build Cetaphil’s image using the internet. However, the
      internet will be very helpful in building relations with customers. It will allow for more
      creative flexibility because anything is possible through the internet.
   o TV: Television will give Cetaphil a chance to reach customers quickly. It will be a good
      way to gain recognition of the Cetaphil brand.
   o Magazine: Magazines will offer an opportunity to build recognition of Cetaphil within the
      target. They allow a chance to offer more detailed information about the product because
      people tend to look at magazine advertisements for a longer amount of time.


Budget Constraints:
   o Internent : The internet has a low cost and a low CPM. It is inexpensive to create a
      website. A large number of people will view the website.
   o TV: Television is expensive but cost efficient. It will help to create awareness among a
      high percent of the target demographic.
   o Magazine: Magazines advertisements are expensive and have a low CPM. However, this
      expenditure is necessary to reach the target audience in a highly involved media outlet.




                                                31
E. Advertising Flowchart




          32
                       F. IMC Efforts/Promotion Supports
       Interactive Website: This website will allow customers and potential customers to have
access to a site that provides information about Cetaphil.
       Healthy Skin Club: This club will allow customers to join as members to receive extra
information and free samples of Cetaphil products. Customers can join through the company
website online.
       Skin Care Tips: This is a program that will email customers a skin care tip every month.
This concept will keep customers in touch with the Cetaphil brand.
       Free Samples: The website will also provide a way for customers to sign up to receive
free samples of Cetaphil products. Customers will be able to try other Cetaphil products and then
potentially become regular buyers. We will also work with various retailers such as Walmart and
drugstores such as Walgreens to allow for free samples in-store or for the promotion of various
coupons for our product sold at those stores.
       Skin Quizzes and Tests: These quizzes and tests will give Cetaphil customers a reason to
come to the Cetaphil website. It will serve as a resource of information for healthy skin.




                                                 33
                                             Copy Test
       In order to assess the media plan, we would mainly look at sales to measure the
effectiveness of the plan. This would be done by seeing how much dollar sales and sales per unit
go up. Also, the internet site will allow us to document the number of hits it gets.
       Conducting a survey would also be a useful way to test for recognition of the Cetaphil
brand. By asking people if they recognize Cetaphil and what they know about the brand, we can
see if our campaign has increased awareness and revamped the image of the brand.
       Also, we would be able to measure how many people turned in or redeemed coupons that
we provided in magazines and on the website.




                                                  34
“Allure.” MRI Plus – Allure. 5 November 2006. <http://www.mriplus.com/>

“Beauty care.” Chain Drug Review, 27 (9): 57. Racher Press, Inc. 11 November 2006.

       <http://search.rdsinc.com>

“Beauty care.” Chain Drug Review, 29 (9): 41. Racher Press, Inc. 11 November 2006.

       <http://search.rdsinc.com>

“Cetaphil: Cleansers and Moisturizers.” Cetaphil.com. 5 October 2006.

       <http://www.cetaphil.com/>

“Drug Chains Outperform Wal-Mart in beauty care in‘05.” Chain Drug Review, 28 (2): 15. Racher

       Press, Inc. 11 November 2006. <http://search.rdsinc.com>

“Elle.” MRI Plus – Elle. 5 November 2006. <http://www.mriplus.com/>

“Facial Cleansers.” Chain Drug Review, 27 (92): 19. Racher Press, Inc. 11 November 2006.

       <http://search.rdsinc.com>

“Find Olay Products.” Olay.com. 12 October 2006. <http://www.olay.com/products/index.jsp>

“Glamour.” MRI Plus – Glamour. 5 November 2006. <http://www.mriplus.com/>

“MMR/IRI H&BA report.” MMR, 23 (7): 63. Racher Press, Inc. 11 November 2006.

       <http://search.rdsinc.com>

“Neutrogena: Dermatologist Recommended.” Neutrogena.com. 10 October 2006.

       <http://www.neutrogena.com/>

“Online Pharmacy – Prescription Drugs, Health and Beauty, plus more.” Drugstore.com. 28

       October 2006. <http://www.drugstore.com>

“Pond’s Institute.” Ponds.com. 10 October 2006. <http://www.ponds.com/cleanse_purify.asp>




                                               35
“Shape.” MRI Plus – Shape. 5 November 2006. <http://www.mriplus.com/>

“Skin care is complicated.” Chain Drug Review, 28 (15): 31. Racher Press, Inc. 11 November

       2006. <http://search.rdsinc.com>

“Skin care.” MMR, 22 (15): 84. Racher Press, Inc. 11 November 2006. <http://search.rdsinc.com>

“Skin care: facial cleansers.” Chain Drug Review, 28 (11): 223. Racher Press, Inc. 11 November

       2006. <http://search.rdsinc.com>

“Smooth Operators: More subcategories have meant more dollars, but how long can sales trends

       up? [sic]”. Private Label Buyer, 19 (8): 33. Stagnito Publishing Co. 11 November 2006.

       <http://search.rdsinc.com>

“Spot Runner.” 2005. Spot Runner, Inc. 11 November 2006. <http://spotrunner.reachlocal.com/>.

“Vanity Fair.” MRI Plus – Vanity Fair. 5 November 2006. <http://www.mriplus.com/>




                                               36

								
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