Positioning the brand
A Chap Stick case study

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Page 1: Introduction

Chap Stick 2 Image 2Few organisations operate in a static environment. As we move toward the last years of the 20th century, the pace of change in Markets across the globe has accelerated with the result that products have shorter life-cycles. An innovation or a new product development can make other products obsolete overnight. It is said that the research and development of new products is both creative and destructive. As new products are launched others fall by the wayside. The major effect of this pace of development is that Successful businesses have to invest in technological change. If they do not, they risk their products being overtaken by the products of their competitors. Nowhere is this more the case than in the pharmaceutical industry. For organisations in this industry good marketing involves:

  • Looking outwards in order to respond to changes in markets, business conditions and competition
  • Looking inwards in order to develop both the organisation and its products to meet consumer needs which have been identified through the marketing process.

American home products corporation is a global, Innovation-driven company focusing upon discovering and developing cost-effective health care products. Each year, the company commits approximately $1 billion to investment in pharmaceutical research to make it one of the world leaders in research and development investment. This process helps to ensure that the company is well positioned for future growth in an industry which is constantly providing new life-improving products.

This case study focuses upon just one of the many products from the diverse businesses of American home products - Chap Stick. From its early origins as a simple health care product, it has become, today, a highly sophisticated and successful product in an extremely competitive market.

When we think of products, we tend to think of brands representing those products. A brand identifies the products from an organisation through specific features such as a name, sign, term, symbol or other creative element. Chap Stick has a distinct advantage as a brand. The advantage is that the name Chap Stick has become increasingly associated with the product. Today people refer to the vacuum cleaner as the Hoover, clear sticky-tape as Sellotape and when referring to lip balm - they say Chap Stick.

Chap Stick | Positioning the brand