Colors 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 Burst’s Bees into a mainstream American market with multiple products combination to earn the profit minimization. According to the Colors research recently, 53 percent of consumers willing to pay for CEO-friendly products, and 47 percent of those customers want to pay 20-25 percent more on these natural reduces.That is to say, being natural and healthy Is the customers demand. From almost 1 billion for the big opportunities In the market for green goods.
All these signs Indicate that we should shift our business from niche market Into mass market. Although we have thought the Idea keeping Burst’s Bees stay In the niche market, such as developing partnership with spa chain to malting our Image as a premium status. The approach Is still not able to maximize our profit. 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 commend display our body and baby care products into shopping mall such as Kohl ‘s and Macy’s.In this way, Burst’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 Wall- Mart. Display the Burt Bees products near the Colors promotion shelves. In this way, those used to buy Colors stuff, especially those housewives can easily find the personal care products, Burt ‘s Bess particularly. Even they do not know our products fore, they care the natural products, they care their own healthy, and they can easily find such products in the market.I believe there is a big potential market among them. When choosing the price channel, we aim to stay the premium price In our luxury product lines, in order to keep the strong brand awareness of the natural and healthy. In the super market, we recommend set the price friendly strategy on our lip, hand and face care products.
In addition, we could provide some coupon with Closer’s products, provide discount package for Burst’s bees and Colors products to attract those potential clients. Following this, we suggest to put a large portion of the profit Into advertising budget.As a part of the company, we could use this opportunity expand our recognition and rebind the CEO-friendly Image of Colors. This can be done through TV advertisement, funding TV program such as “Discovery, given sponsorship to environment events and distribute Burst’s Bees lip balm as samples, and direct mail with coupon to household or provide the discount to straight to mass market could bring an even more profitable result to Burt ‘s Bees, and create a more CEO-friendly image for Colors.