Monica Flores de Turner Naomi Masangu

Xuzhen Zhao Georgette Perkin-Moss

Alexandra Pescador

•  Executive Summary •  The Challenge •  Situation Analysis •  Swot •  Marketing Strategy •  Projections •  Conclusion

Table of Contents

Background History

2

1984 Burt’s Bees first start as an American Dream of entrepreneurship  

 2007 Sold to Clorox Company for $925 million in cash  

Background History 2008 Great Global Recession  

3

2011 Not meeting projected expectations  

 

2013 Inflation, slower growth  

Implementation of a New Strategy

The Challenge Differentiation between Clorox company and Burt’s Bees  

3

Product differentiation in an elastic market  

Law and Regulations  

Taking advantage of opportunities  

Situation Analysis •  Company:

–  Burt Shavitz and Roxanne Quimby founded Burt’s Bees in 1984 in Maine.

–  They gained local success with their earliest and most popular product which were candles.

–  Moved on to making other products such as: lip balms, soaps, and perfumes.

–  In 1993 Quimby bought out Burt Shavitz.

–  The Clorox Company buys Burt’s Bees for an estimated $925 million in 2007.

–  In 2012 Burt’s Bees reported sales of $242 million a 7% increase from the prior year.

Future Goals •  Burt’s Bees ultimate goal is

to become the greenest personal care company they hope to achieve this by the year 2020.

•  By 2020, Burt’s Bees want to be carbon free and produce their products on 100% renewable energy and have no landfill waste.

Operational Footprint Reduction

Reviewed by Ernst & Young LLP. Greenhouse gas emissions and energy consumption percentages reflect U.S. only.

Our Customers

The Greenies: Buyers who are eco-friendly they like to purchase natural and organic products.

The Addicts: Our most loyal customers, they are our biggest advocates either by word of mouth or on social media.  

Vanity Fairs: Buyers who purchase based on smell, taste, and looks. Usually teenage girls or young women in their 20’s. Usually our bloggers.

Our Competitors •  Aveeno and Neutrogena

are two of our biggest competitors.

•  Both companies are owned by Johnson and Johnson.

•  They had combined sales of $3.6 billion in 2012.

•  Very respected brands because of their good products and effective advertising campaigns.

SWOT Analysis Strengths : •  Loyal customers •  Committed with the

environment •  High market share •  Supply chain

Weaknesses : •  High price point •  Low brand awareness

Opportunities : •  Emerging markets and

expansion abroad •  Online sales •  Innovation

Threats : •  Low price competitors

or imports •  External changes

PEST Analysis Political and legal Alliances with farmers and apiarists’ in the fight against pesticides that are killing bees colonies which are a key not only for Burt’s Bees products but for agricultural and society benefit under “The Greater Good”

Economical Under the recession and an elastic market on the skincare industry, Burt’s Bees is thriving by the new global trend and social healthier lifestyle of natural and environmental friendly products.

Social and Cultural Megatrends of health and wellness, sustainability, and eco-friendly products are values that customers are looking in today’s society. Burt’s Bees does it by transparency in core values and commitment to their customers, planet and stockholders.

Technology Capitalizing on social media, Burt’s Bees have been able to educate and engage with not only future consumers but turning them into fans and loyal costumers.

Environmental Analysis

Economical

Social and Cultural

Technology

Recession and elastic market

Alliances with farmers and apiarists’ “The Greater Good”  

Political and legal

Megatrends: health, environment

Social Media: Facebook, Twitter, etc.

MARKETING PLAN 4 (P’S) PROMOTION q  SALES PROMOTION •  Sales discounts in the retail stores, pharmacy,

supermarket •  Personal selling q  PUBLIC RELATIONS •  Showing that not only regular people uses Burt’s Bees •  Use celebrities like Julian Ramsey to talk

about the products on their shows q  SOCIAL MEDIA-TWITTER, FACEBOOK,

YOUTUBE •  Get the BUZZ going by offering coupons or

samples on these channels q  5K RUNS •  Offer sample products

PLACE (DISTRIBUTION)

CURRENTLY SOLD IN q PHARMACIES  q RETAIL  STORES  q ONLINE  q SUPERMARKETS  

SUGGESTED  ADDITION  DISTRIBUTION  q KIOSK  IN  MALLS  

•  TARGETING  •  POSITIONING  •  CUSTOMER  COMMUNICATION  

SEGMENTATION  STRATEGY  

•  LOW  INCOME  CLASS:  Salary  Less  than  $  20,000  

•  MIDDLE  CLASS:  Salary  between  $20,000    to  $100,000  

•  UPPER  MIDDLE  CLASS:  Salary  between$100,000  to  $150,000  

•  UPPER  CLASS:  Salary  of  $150,000  or  more  

TARGETING  

•  LOW  INCOME:  Product  with  a  cheap  price  •  MIDDLE  CLASS:  Product  used  daily  with  

slightly  low  price    •  UPPER  MIDDLE  CLASS:  Product  with  high  

quality  but  higher  price  •  UPPER  CLASS:  Customize  product  

POSITIONING  

•  LOW  INCOME:  Send  samples  for  try  

•  MIDDLE  CLASS:  PromoBon  and  coupon  

•  UPPER  MIDDLE  CLASS:  Have  more  retail  stores  and  have  sales  people  to  introduce  products  

•  UPPER  CLASS:  Host  special  event    

CUSTOMER  COMMUNICAYION