Burts bee case study
Burt’s Bee’s: Leaving the Hive
Case Study
Burt’s Bees definitely has the potential to become the “Starbucks of personal care”. Unlike most mainstream companies, Burt’s Bees has been to grow at a rate of 30% a year starting 2006, which indicates the success of their products over a large market it governs. All of this being done with extremely less marketing compared to their competitor Aveeno. They have an extremely loyal customer base built on the back of an effective product, which shows results as promised to customers. a new experienced management team. However, their main challenge would be of their acquisition of the controversial Clorox that has had issues with dubious product claims and the sustainability of their products. One of the key strengths of Burt’s Bees is their loyal customer base, and as mentioned in the article their customers are accusing Burt’s Bees of selling out to Clorox. As a successful product entering the mainstream market, product image is a crucial factor and having Clorox entered into their brand name could their chance at being successful.
Their “Greater Good” model can be replicated. Over the last 10 years, consumers have been buying products that are more than just a product. These products have a moral backing to it and large box companies like Johnson and Johnson and L’Oreal who are acquiring companies such as Burt’s Bees at a very high base value have caught on this trend. With the cost of energy sky rocketing, green initiatives have proven to be a lucrative alternate is one of the key reasons for the rise of the acquisition trend.
As the company prospered and had reach sales of over $40 million in 2000, the owner Roxanne Quimby sold 80% of the company to AEA. AEA immediately recognized the situation where the company was growing too fast. They tackled this problem by strengthening the company’s core operations by hiring Mike Indursky, Chief Marketing Officer, had spent many years with L’Oreal and Unilever while CEO
Case Study
Burt’s Bees definitely has the potential to become the “Starbucks of personal care”. Unlike most mainstream companies, Burt’s Bees has been to grow at a rate of 30% a year starting 2006, which indicates the success of their products over a large market it governs. All of this being done with extremely less marketing compared to their competitor Aveeno. They have an extremely loyal customer base built on the back of an effective product, which shows results as promised to customers. a new experienced management team. However, their main challenge would be of their acquisition of the controversial Clorox that has had issues with dubious product claims and the sustainability of their products. One of the key strengths of Burt’s Bees is their loyal customer base, and as mentioned in the article their customers are accusing Burt’s Bees of selling out to Clorox. As a successful product entering the mainstream market, product image is a crucial factor and having Clorox entered into their brand name could their chance at being successful.
Their “Greater Good” model can be replicated. Over the last 10 years, consumers have been buying products that are more than just a product. These products have a moral backing to it and large box companies like Johnson and Johnson and L’Oreal who are acquiring companies such as Burt’s Bees at a very high base value have caught on this trend. With the cost of energy sky rocketing, green initiatives have proven to be a lucrative alternate is one of the key reasons for the rise of the acquisition trend.
As the company prospered and had reach sales of over $40 million in 2000, the owner Roxanne Quimby sold 80% of the company to AEA. AEA immediately recognized the situation where the company was growing too fast. They tackled this problem by strengthening the company’s core operations by hiring Mike Indursky, Chief Marketing Officer, had spent many years with L’Oreal and Unilever while CEO