2. Case Study Original vision is to reach ‘’ Everyone, Everywhere ’’ By expanding into the mass market will Burt’s Bees run the risk of becoming too commercial? How can Burt’s Bees grow the brand without distancing itself from the people and values that made it successful so far?
3. Overview Analysis External Internal Key Issues Strategic Alternative (A) Strategic Alternative(B) Chosen Strategy Case Lessons
12. Key Issues Product Line Brand Strength Retailer Relationships Management Change Where Next New Competitive Environment
13. Strategic Alternative (A)Staying in the Niche Market Focus on natural personal care Niche Market Increasing Market Share to dominate the natural personal care Niche Market Continuing to use Gift stores, Health stores and Speciality stores as main distribution channels
14. Strategic Alternative (A) Implementation Improving Retailer Relationships Continuing to Withhold Trade Terms (E.g. No discounts from mass retailers) Spa Chain Partnerships New, Specialised Distribution Channel Professional Image and New Use for Burt’s Bees Products Spa Chain with similar core values (natural)
15. Strategic Alternative (A) +Advantages+ Has worked in the past, and has led to the current success of Burt’s Bees Easy to implement, doesn’t require much change or expense Niche market retailers will fully utilize eye-catching “hive” merchandising By improving relations with niche retailers, recommendations and word-of-mouth will increase
16. Strategic Alternative (A)-Disadvantages- Limited potential for growth in niche market Limiting the potential for large-scale success Revenue is increasing in mass channels and decreasing in niche channels
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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)
22. Strategic Alternative (B) Overview The benefits of the strategy for Herbal Essence greatly out weigh the benefits for Burt’s Bees Burt’s Bees will be forced to give up a certain amount of control (Sherman, 2003) The risk of becoming too commercial Possibility of too much brand confusion, other strategies may need to be looked at
25. Why Rebrand? Image Problems Growth is possible without compromising Use that loyal customer base more effectively Sustain value whilst creating new value Retaining core values of the product but simply architecting a structured brand and product portfolio
26. Strategy Implementation I 1. Rebrand New Logo Brand Personality New Value Proposition Healer Differentiation Increase Ad Spend TV, Online, Communities 6 Months “embodiment of personality traits of the consumer in the brand itself” (West, Ford & Ibrahim, 2006; P259).
28. Strategy Implementation II 2. Build Up Campaign Niche Market Build New Advertising New Unified Packaging Promotion Sample Days Coupons Television burtsbees.com Social Media Use Customers
29. Strategy Implementation III 3. Selection Re-assess Consumer Awareness Select Categories: Hair care, Nail Care, Shaving, Skin Care and Fragrances High Growth Rate, Low Penetration Select Channels: Drug stores, Distributors and Grocery Most Profitable Revenue Increase Try keep Gift Stores but it will be hard
30. Strategy Implementation IV 4. Entry & Future Enter Selected Markets & Compete Monitor Performance Don’t over-do it all at once Gradual Long Term Key is to sustain value Future: Honey & Lemon Drinks Certified Stamps
31. Will it Work? 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
32. Case Lessons A clear consistent Image is key Business is about making a decision and implementing it, there will always be consequences but it’s about weighing them up Change can happen without compromising your values “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” Sydney J. Harris (1917-1986), American Journalist. “All growth is a leap in the dark, a spontaneous unpremeditated act without the benefit of experience.” Henry Miller (1891 - 1980), US Author.