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The main problem Burt’s Bees faces is the brand’s unclear mission statement under new ownership of Clorox, which could result in the company losing its regular target customers. To solve this problem, Clorox needs to adapt its brand positioning to Burt’s Bees’ original mission, take steps towards sustainable manufacturing of its products, and maintain the authenticity of the Burt’s Bees brand. The merger should be orienteered on expansion of brand representation and targeting mass customers.
The chosen strategy is suitable for addressing the separation of the two brands and reducing the dissatisfaction of regular Burt’s Bees’ customers, as it will preserve the original market segment and give the brand new opportunities to expand the representation. Clorox needs to leverage its ability to bring Burt’s Bees into the mainstream while maintaining sustainability and taking steps towards greening its own operations to close the gap between the two companies’ completely different products.
Burt’s Bees’ main strategy was to target a niche market, the company had a reputation of being an environmentally friendly manufacturer and was aimed at connoisseurs of eco-friendly products. To keep this image in the eyes of customers, Clorox needs to make its own production meet consumer expectations, develop a clear mission statement and broadcast clear steps towards green initiatives. If Clorox does not change its strategy, the company risks losing Burt’s Bees target customers, resulting in the merger unprofitability.
The disadvantages of the proposed strategy are the high cost of its implementation and the difficulty of bringing niche products to a wide market. Moving towards green manufacturing and eco-friendly initiatives can be costly for Clorox, as the company has pursued a non-sustainable manufacturing strategy for years. Representing Burt’s Bees’ products in a wide market is fraught with a lack of global demand and a corresponding unprofitability of this decision.
Product: Burt’s Bees should move into the mid-market; packaging must be consistent with the image of sustainable production. The brand line should remain the same, providing customers with familiar natural cosmetics.
Place: Burt’s Bees’ products should enter a wide market and start being sold in large retail chains. The consequence of this strategy will be the expansion of the geography of sales, which will make the brand’s products more popular.
Price: When choosing a new strategy, the price of Burt’s Bees’ products will inevitably increase. However, the price must remain competitive, Clorox must not allow an increase of more than 20%.
Promotion: To reach a wide audience of potential buyers, promotion can be carried out through social networks and events. By organizing sustainable events, Burt’s Bees will demonstrate commitment to its original mission. Advertising on social networks will tell buyers that the brand has significantly expanded its presence.
The downsides of the proposed marketing mix are the high risks of a lack of widespread demand for Burt’s Bees’ products and the high cost of promotion. The mass consumer may not be interested enough in a sustainable brand, or Burt’s Bees products may be lost in the shadow of other similar brands on the supermarket shelf. By targeting the general consumer, Clorox runs the risk of spending money on advertising and not achieving the desired result.
Do you need this or any other assignment done for you from scratch?
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