• Small Number of Lipcare Marketers
• Three Distinct Classes
• Diverse Companies Make Up the Mix
• Two Companies Control Over Half of the Market

• Leading Mass and Prestige Marketers Use Direct Distribution
• 85% of Lipcare Purchases Are Bought in Mass Outlets
• Drugstores Lead in Share of Sales

• Over 111 Million Users
• Products With Sun Protection Are Most Popular Types
• Lipcare User Profile

• Scope of the Report
• Methodology

II. The Products

• Background
  • Lips: A Delicate Part of the Body
  • Lips Have Many Uses
  • Aging Lips
  • Lip Ailments
    • Cold Sores and Fever Blisters
    • Cosmetic Dermatitis
    • Photosensitivity
    • Cheilitis
    • Sun Damage
• The Products
  • Focus of the Report
  • Types of Lipcare Products Covered
  • Products Not Covered
• Uses of Lipcare Products
  • Moisturize
  • Sun Protection
  • Lipstick and Cosmetic Aid
  • As a Medicinal Aid
• Product Ingredients
  • Cold Sore Remedy Ingredients
  • Sun Protection Ingredients
  • Lip Balm Ingredients
  • It's Only Natural
  • AHA's Now Showing Up in Some Products
  • The Taste Is the Thing
• Product Packaging
  • Packaging History
  • Retail Packaging
• Regulatory Milieu
  • FDA Has Jurisdiction Over Certain Lipcare Products
  • FDA Involved in "Gray Area"
  • The FDA and the SPF
  • FDA Monitoring of Lipcare Products with Sunscreen
  • Tentative Final Monograph Includes Lipcare
  • Cold Sore Claims Still Not Forthcoming
  • Ad Claims Need to Be Tempered

III. The Market

• Market Size and Growth
  • Difficulty in Arriving at Sales Estimates
  • Methodology
  • Retail Sales Estimated at $275 Million for 1996
  • Table 3-1: Size and Growth of the U.S. Lipcare Market, 1992-1996 (Retail Dollars)
• Factors in Future Market Growth
  • The Lip on Lipcare
  • A Healthy Lip Is a Happy Lip
  • More Awareness of Sun's Harmful Effects
  • Skin Cancer Can Form on the Lips
  • More Products Being Used by Men
  • Eyes, Cheeks, Nose...Lips?
  • A Plethora of Products
  • Check-Out Products = Impulse Buy
  • Youthful Customers May Remain for Life
  • Home Treatment of Cold Sores
  • Working Women and Feathering Lipstick
  • Sunblock Ingredients Could Smooth Market's Seasonal Spikes
• Projected Sales
  • Lipcare Sales to Reach $351 Million by 2001
  • Table 3-2: Projected Growth of the U.S. Lipcare Market, 1996-2001 (dollars)
• Market Composition
  • Medicated Lipcare Products Account for About 17% of Market
  • Drugstores Lead in Sales of Lipcare Products
  • Table 3-3: Share of U.S. Lipcare Market: By Outlet Type, 1992 and 1996 (percent): Drugstores, Mass Merchandisers, Supermarkets, Other Mass Market Outlets, Alternative, Prestige
  • Per Capita Use of Lipcare Products Varies Little by Region
  • Table 3-4: Use of Lipcare Products: By Region, 1996 (percent and index): South, Midwest, West, Northeast

IV. The Marketers

• The Marketers
  • Small Number of Lipcare Marketers
  • Three Distinct Classes of Marketers
  • Diverse Companies Make Up the Mix
  • Most Companies Offer Only One Brand
  • Table 4-1: Selected Marketers and Their Major Brands of Lipcare Products, 1996-1997 (listing)
• Marketer/Brand Shares
  • Overstatement of Purchases from Mass Retail Outlets
  • Two Companies Control Over 50% of the Market
  • Blistex Is Now the Leader
  • Table 4-2: Share of U.S. Lipcare Mass Market: By Marketer/Brand, 1996 and 1995 (percent): Blistex, American Home Products, Zila, Inc., Carma Laboratories, Unilever, Mentholatum, Bayer
  • American Home Products in Second Place
  • Five Second-Tier Marketers Command Over One-Third of the Market
  • Estée Lauder Leads in Prestige Lipcare Sales
  • Avon Number One in Direct Sales; No Clear Leader in Specialty Outlets
• Competitive Situation
  • Mass-Market Leaders Are Long-Time Lipcare Marketers
  • Few Prestige Companies Compete in Lipcare
• Competitive Profile: Blistex Inc.
  • A Totally Dedicated Lipcare Company
  • Looking to Expand Outside Lipcare
  • Advertising and Promotion
  • Blistex Product Line
• Competitive Profile: American Home Products
  • A Diversified Conglomerate
  • History of Chap Stick
  • Chap Stick Product Line
• Competitive Profile: Zila, Inc.
  • Revenues Approached $7 Million in 1996
  • The Zilactin Line
• Competitive Profile: Carma Laboratories, Inc.
  • A Family Affair
  • The Mystery of Carmex
• Competitive Profile: Unilever
  • A Huge Consumer Products Company
  • The Chesebrough-Pond's Division
  • Vaseline Lip Therapy
• Competitive Profile: Rohto Pharmaceutical Co. Ltd.
  • Mentholatum Division Markets Two Lipcare Lines
  • Natural Ice
  • Softlips
• Competitive Profile: Bayer Corp.
  • Marketing Campho-Phenique
  • Campho-Phenique's Journey to Bayer
  • Campho-Phenique Is Positioned as Cold Sore Medicine
• Competitive Profile: Bonne Bell, Inc.
  • Targeting Adolescent Girls
  • Lip Smackers
• Competitive Profile: Stanback Company
  • Three Lipcare Lines
  • Chap-et Dates Back to 1958
  • SunBan and Stay Moist Are of More Recent Vintage
• Competitive Profile: OraLabs, Inc.
  • Known for Mini-Sized Products
  • Size Differentiates Ice Drops Lip Balm
• Competitive Profile: Del Laboratories, Inc.
  • Competing in Lipcare with Two Different Lines
  • Natural Glow Lipcare Products
  • Tanac Medicated Gel
• Competitive Profile: Beiersdorf, Inc.
  • Marketing Nivea
  • Lipcare Products
• Competitive Profile: Johnson & Johnson
  • More Than a Baby-Care Products Marketer
  • Neutrogena
• Competitive Profile: Chattem, Inc.
  • Chattem Acquired Lipcare Product
  • Herpecin-L
• Competitive Profile: Schering-Plough Corp.
  • A Pharmaceutical and Healthcare Giant
  • Viractin Is Lipcare Brand
  • Viractin Is a Product for the 1990s
• Competitive Profile: Autumn Harp
  • Known For Un-Petroleum Products
  • Lipcare Entries
  • A Partnership with The Body Shop
• Competitive Profile: Scott's Liquid Gold Inc.
  • A Household Chemicals Marketer
  • Alpha Hydrox Brand Now Covers Lipcare
• Competitive Profile: Estée Lauder Group
  • A Prestige Powerhouse
  • Origins
  • Clinique
  • Estée Lauder
• Competitive Profile: Avon Products
  • A Major Force in Direct Sales
  • Into Lipcare in a Big Way
• Competitive Profile: Mary Kay Inc.
  • Another Large Direct Marketer
  • Lipcare Product Is Multi-Faceted
• Competitive Profile: The Body Shop
  • Facing Hard Times
  • Three Lipcare Lines
• Competitive Profile: Bath & Body Works (The Limited, Inc.)
  • A Division of The Limited
  • Lipcare Products
• Competitive Profile: Garden Botanika, Inc.
• Marketing Trends
  • Specialized Products Lead the Way
  • Multiple Packaging
  • All Family Use
  • Hiding In Plain Sight
• Product Trends
  • Natural Is Naturally Better
  • More for the Money
  • Flavors Are Fun
  • Table 4-3: Selected New Lipcare Product Introductions and Line Extensions, 1996-1997 (listing)
• Consumer Advertising Expenditures
  • Lipcare Marketers Estimated to Have Spent $19 Million in 1996
  • Advertising Helps Launch New Products
• Advertising Positioning
  • Ads Sell Benefits
  • Women Predominate
  • Advertising Examples Examined
• Consumer Promotions
  • Consumer Promotions Important
  • Mass Brands Use Point-of-Purchase Displays
  • Some Brands Offer Educational Information
  • Some Marketers Offer Coupons
• Trade Advertising and Promotion
  • Promotions to Retailers Important
  • Trade Advertising

V. Distribution And Retail

• Distribution
  • Leading Mass and Prestige Marketers Use Direct Distribution
  • Smaller Marketers Rely on Service Merchandisers
  • Diverters Move Prestige Products Through Mass Outlets
  • Alternative Marketers Important in Lipcare Arena
• At the Retail Level
  • The Major Outlets
  • Table 5-1: Share of U.S. Dollar Sales of Lipcare Products: By Outlet Type, 1993 and 1996 (percent): drugstores, mass merchandisers, supermarkets, alternative, prestige, other
  • Mass Outlets Account for 85% of Lipcare Purchases
  • Drugstores Lead in Share of Sales
  • Prestige Market Growing Slightly
  • Alternative Channels Holding Steady
  • Private Label Lipcare Sales
  • Multiple Lipcare Locations
• Retailing Lipcare Products in Drugstores
  • Drugstores Lead With Almost One-Third of Sales
  • New Efforts to Improve Standing
  • Will Consolidation Help?
  • Chain Drugstores Have the Greatest Selection
  • Merchandising in Drugstores
  • Drugstore Lipcare Promotions
• Retailing Lipcare Products in Mass Merchandisers
  • Mass Merchandisers Have One-Quarter of the Market
  • Brands Available
  • Merchandising
• Retailing Lipcare Products in Supermarkets
  • Supermarket Share of Sales Stays Relatively Stable
  • Brands Available
  • Supermarket Merchandising
• Retailing Lipcare Products in Prestige Outlets
  • Department Stores are Main Prestige Outlet
  • Merchandising Lipcare Products in Department Stores
• Retailing Lipcare Products in Alternative Outlets
  • Various Types of Alternative Outlets

VI. The Consumer

• Lipcare Users
  • Over 111 Million Users
  • Table 6-1: U.S. Adult Use of Lipcare Products: By Product Type, 1996 (number and percent): use any lip balm/lipcare product with sun protection/without sun protection; Use non-prescription product for cold sores/canker sores**
  • Products With Sun Protection Are the Most Popular Type
  • Women Are More Likely Than Men to Use Lipcare Products
  • Table 6-2: U.S. Adult Use of Lipcare Products: By Sex, 1996 (number and per capita index): any lip balm/lipcare product: with spf, without spf; non-prescription cold sore/canker sore medicine
  • Lipcare Products More Popular With Younger Crowd
  • Table 6-3: U.S. Adult Use of Lipcare Products: By Age, 1996 (percent and per capita index): 18-24, 25-34, 35-44, 45-54, 55-64, 65+
  • Lipcare Users Tend to Be Better Educated
  • Table 6-4: U.S. Adult Use of Lipcare Products: By Education, 1996 (percent and per capita index): College graduate, Attended college, High school graduate, Not high school graduate
  • Use of Lipcare Products Skews Upscale by Occupation
  • Table 6-5: U.S. Adult Use of Lipcare Products: By Occupation, 1996 (percent and per capita index): Professional/manger, Technical/clerical/sales, Blue collar, Other employed, Not employed
  • Lipcare Products Most Likely to Be Used by More Affluent
  • Table 6-6: U.S. Adult Use of Lipcare Products: By Household Income, 1996 (percent and per capita index): Under $20,000, $20,000-$40,000, $40,000+
  • Single People Show Greater Tendency to Use Lipcare Products
  • Table 6-7: U.S. Adult Use of Lipcare Products: By Marital Status, 1996 (percent and per capita index): Single, Married, Divorced/widowed/separated
  • Caucasians Account for 85% of Users
  • Table 6-8: Demographic Characteristics Favoring Use of Lipcare Products: By Product Type, 1996 (listing): sex, age, education, employment, occupation, family status, race, region, locality, household income, household size, children in household
• Use by Brand
  • Chap Stick Leads
  • Table 6-9: Brand Preferences of Lipcare Products Among U.S. Adults, 1996 (percent)
  • Brands: Chap Stick, Blistex, Carmex, Vaseline, Neutrogena, Softlips
  • Demographic Composition Varies by Brand
  • Table 6-10: Demographic Characteristics Favoring U.S. Adult Use of Lipcare Products: By Brand, 1996 (listing): sex, age, education, employment, occupation, family status, race, region, locality, household income, household size, children in household
• Users of Cold Sore/Canker Sore Products
  • Profile Similar to That of Lipcare Users
  • Table 6-11: Demographic Characteristics Favoring Use of Non-Prescription Products for Cold Sores/Canker Sores, 1997 (listing): sex, age, education, employment, occupation, family status, race, region, locality, household income, household size, ages of children in household

Appendix I: Examples Of Advertisements And Promotions
Appendix II: Addresses Of Selected Marketers