BURT'S BEE

Case Study - Burt's Bee

Case Study - Burt's Bee

Answer 1) Skin Care Retail Industry Trend

From many centuries the largest product segments are the Skin-care products followed by cosmetic, hair care and fragrances. These major product segments accounts for approximately three quarters of products manufacture, though they differ on the basis of individual region or country (www.umsl.edu).

Baby care products, along with those targeted at the teen segment (in line with the age compression phenomenon) are another growth area being targeted by various industry participants. In the case of baby-care products, a number of manufacturers in the more mature geographic markets are currently encouraging purchasers (often older, wealthier mothers) to trade up to higher price of organic, natural or other value-added products. In 2010 the baby-care market posted sales growth of nearly 8%, boosted in part by strong growth within Latin America, reflecting the success of two Brazilian baby-care brands. Over the next five years, there will be an increased focus on green products as industry participants cater to the developing eco-consumerism trend, which is rapidly gathering momentum as consumers seek to avoid harsh chemicals. This will see a growing number of products with green credentials including eco-friendly ingredients and packaging as well as those that incorporate a lower carbon footprint within the manufacturing process.

Retail Market Opportunity for Burt's Bees

As the following diagram states the opportunities that are available for retailer, we have further discussed the demand and supply that enjoyed by the manufacturer when getting into the retail market.

Product Enhancement Opportunities

Through the expanding the business in to retail can increase the profile of the product such as the Cosmetic and Beauty Products. This will expand the operation of the company and seek new growth opportunities. The consumer preference and taste will be notified by the company which will increase their further products and operations. For instances, the continuous focus us on the Baby products and personal skin care would leads to the development of new product or any improvement in the products which will be better or longer-lasting benefits. Additionally, national trends in consumerism will set the stage for the expansion of eco-conscious and naturally derived cosmetic enhancements (www.loreal.co.uk/).

Crossing Boundaries

Cross boundaries recognition would be enjoyed by the company which will not only increase their sales but also their worth in the market. Direct sellers like Avon and Mary-Kay are characterized by their door-to-door cosmetic sales. Hence, if ...