Case Study Burt's Bees

Clorox purchased Burt`s Bees for our reputation in personal health care niche market. But we stay in the same market with same products for almost 20 years. Our regular market could not provide us an even more profitable market. We recommend turn Burt`s Bees into a mainstream American market with multiple products combination to earn the profit maximization.
According to the Clorox research recently, 53 percent of consumers willing to pay for eco-friendly products, and 47 percent of those customers want to pay 20-25 percent more on these natural products. That is to say, being natural and healthy is the customers demand. From 2000 to 2007, our revenue boosted to 164 million from 23 million. Clorox bought us almost 1 billion for the big opportunities
Our product decisions should start with clear product lines and brand image. I suggest we keep the original Burt`s bees image on the products. Our products should be segment into different product lines, face and lip care for mass customers as regular product lines, body care, baby care and makeup for high-end customers as our luxury products lines. By saying so, I mean that natural personal care is a trend. We should launch different product lines to meet different demands rather than staying in the same and simple product line. The next step is choosing the distribution channel. I suggest keep our luxury lines products stay in the drugs store or healthy store, besides, we recommend display our body and baby care products into shopping mall such as Kohl`s and Macy`s. In this way, Burt`s Bees could remain a premium image to keep the good relationship with clients in the niche market. On the other hand, we recommend put our lips and hand care products into big-box market, such as Wal-Mart. Display the Burt Bees products near the Clorox promotion shelves. In this way, those used to buy Clorox stuff, especially those housewives can easily find the personal care products, Burt`s Bess particularly. Even they do not know our products before,