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  1. 1. Burt’s Bees ‘Leaving The Hive’<br />Seánpaul Walsh <br />Kenneth Kiernan <br />MaeveMc Quillan <br />
  2. 2. Case Study<br />Original vision is to reach ‘’ Everyone, Everywhere ’’<br />By expanding into the mass market will Burt’s Bees run the risk of becoming too commercial?<br />How can Burt’s Bees grow the brand without distancing itself from the people and values that made it successful so far?<br />
  3. 3. Overview<br />Analysis<br />External<br />Internal<br />Key Issues<br />Strategic Alternative (A)<br />Strategic Alternative(B)<br />Chosen Strategy<br />Case Lessons<br />
  4. 4. Competitor Analysis<br />
  5. 5. Category Product Range Audit<br />
  6. 6. Usage by Brand<br />
  7. 7. Brand Awareness<br />
  8. 8. Strategic Mapping<br />
  9. 9. Distribution Breakdown and Market Share<br />
  10. 10. CBBE Pyramid<br />
  11. 11. SWOT Analysis<br />
  12. 12. Key Issues<br />Product Line<br />Brand Strength<br />Retailer Relationships<br />Management Change<br />Where Next<br />New Competitive Environment<br />
  13. 13. Strategic Alternative (A)Staying in the Niche Market<br />Focus on natural personal care Niche Market<br />Increasing Market Share to dominate the natural personal care Niche Market<br />Continuing to use Gift stores, Health stores and Speciality stores as main distribution channels<br />
  14. 14. Strategic Alternative (A) Implementation<br />Improving Retailer Relationships<br />Continuing to Withhold Trade Terms <br /> (E.g. No discounts from mass retailers)<br />Spa Chain Partnerships<br />New, Specialised Distribution Channel<br />Professional Image and New Use for Burt’s Bees Products<br />Spa Chain with similar core values (natural)<br />
  15. 15. Strategic Alternative (A) +Advantages+<br />Has worked in the past, and has led to the current success of Burt’s Bees<br />Easy to implement, doesn’t require much change or expense<br />Niche market retailers will fully utilize eye-catching “hive” merchandising<br />By improving relations with niche retailers, recommendations and word-of-mouth will increase<br />
  16. 16. Strategic Alternative (A)-Disadvantages-<br />Limited potential for growth in niche market<br />Limiting the potential for large-scale success<br />Revenue is increasing in mass channels and decreasing in niche channels<br />
  17. 17. Strategic Alternative (B)Joint Venture Into Mass Market <br /><ul><li>Joint venture with Herbal Essence (pseudo natural, 97% brand awareness).
  18. 18. “Smaller firms would seek alliances with bigger more powerful companies is because of the credibility boost, technology leveraging and access to a market which a larger player is likely to bring to the table” Sherman (2003)
  19. 19. Another possible reason for joint ventures is to integrate product lines. Sherman (2003)
  20. 20. Careful thought into choosing partnership</li></li></ul><li>Strategic Alternative (B) What’s In It For Herbal Essence?<br />
  21. 21. Strategic Alternative (B) What’s In It For Burt’s Bees?<br />
  22. 22. Strategic Alternative (B) Overview<br />The benefits of the strategy for Herbal Essence greatly out weigh the benefits for Burt’s Bees<br />Burt’s Bees will be forced to give up a certain amount of control (Sherman, 2003)<br />The risk of becoming too commercial<br />Possibility of too much brand confusion, other strategies may need to be looked at<br />
  23. 23. Chosen Strategy:Rebranding-Strengthen-Enter Mass Market<br />
  24. 24. Rebranding<br />
  25. 25. Why Rebrand?<br />Image Problems<br />Growth is possible without compromising<br />Use that loyal customer base more effectively<br />Sustain value whilst creating new value<br />Retaining core values of the product but simply architecting a structured brand and product portfolio<br />
  26. 26. Strategy Implementation I<br />1. Rebrand<br />New Logo<br />Brand Personality<br />New Value Proposition<br />Healer<br />Differentiation<br />Increase Ad Spend<br />TV, Online, Communities<br />6 Months<br />“embodiment of personality traits of the consumer in the brand itself” <br />(West, Ford & Ibrahim, 2006; P259).<br />
  27. 27. Umbrella Brand<br />
  28. 28. Strategy Implementation II<br />2. Build Up Campaign<br />Niche Market Build<br />New Advertising<br />New Unified Packaging<br />Promotion<br />Sample Days <br />Coupons<br />Television <br /><br />Social Media<br />Use Customers<br />
  29. 29. Strategy Implementation III<br />3. Selection<br />Re-assess Consumer Awareness<br />Select Categories:<br />Hair care, Nail Care, Shaving, Skin Care and Fragrances <br />High Growth Rate, Low Penetration<br />Select Channels:<br />Drug stores, Distributors and Grocery<br />Most Profitable Revenue Increase<br />Try keep Gift Stores but it will be hard<br />
  30. 30. Strategy Implementation IV<br />4. Entry & Future<br />Enter Selected Markets & Compete<br />Monitor Performance<br />Don’t over-do it all at once<br />Gradual Long Term<br />Key is to sustain value<br />Future:<br />Honey & Lemon Drinks<br />Certified Stamps<br />
  31. 31. Will it Work?<br />Our chosen strategy is achievable and realistic because of recent consumer demand trends for organic natural products and because we are not compromising the core values of the product but simply architecting a structured brand and product portfolio whilst sustaining and growing existing customer value<br />
  32. 32. Case Lessons<br />A clear consistent Image is key<br />Business is about making a decision and implementing it, there will always be consequences but it’s about weighing them up<br />Change can happen without compromising your values<br />“An idealist believes the short run doesn’t count. A cynic believes the long run doesn’t matter. A realist believes that what is done or left undone in the short run determines the long run”<br /> Sydney J. Harris (1917-1986), American Journalist.<br />“All growth is a leap in the dark, a spontaneous unpremeditated act without the benefit of experience.” <br />Henry Miller (1891 - 1980),<br />US Author.<br />
  33. 33. Thank You For Listening<br />