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Marketing Plan - Part B

Luxe Lip Balm

Zolaib Iqbal, Anne McGaffigan, Kyle Taylor & Michelle Sanchez

Pace University

Abstract

Created by Dr. C.D. Fleet in the early 1880s, Chap Stick, was the first of many lip balm’s to come. With its ability to moisturize lips, with its protective ingredients, Americans have continued to spend millions of dollars yearly on Chap Stick (Bellis). As the lip balm market continues to expand globally, it has become nearly impossible to compete with leading lip balm’s such as Blistex, Lypsyl, Neutrogena, Kibio, and C Me Smile, as they continue to be the top five lip balms in the industry (Best Health Magazine, Jan/Feb 2009). Apart from the benefits provided within these top five however, we have noticed the absence of a lip balm directed strictly towards a high-end female clientele that offers protection for all weather conditions in one balm.

With hopes of delivering an elite product that soothes and protects lips year round, we have created Luxe Lip Balm, a high-end form of lip care that includes essential oils to enhance mood and cater to stress. The marketing plan that follows, will further explain our pricing and distribution analysis’, along with an in depth explanation of our advertising and promotion strategies. In cooperation with our strategic advertising campaign and media mix, Luxe will not only dominate the market, but generate an impressive amount of sales because of its high-quality ingredients and superior value among its competitors.

Marketing Plan - Part B

Luxe Lip Balm

Pricing Strategy

Pricing Strategy & Rationale

As shown in Figure 1.10, we can see our competitor’s prices compared with our product’s price. Most of our competitor’s prices are in the extremely low/affordable range ($1.00-$4.00), and try to accommodate a wide spectrum in the market, such as women and men, young and mature. They’ve made their prices as low as...