Burt's Bee Retailing

Burt's Bee Retailing

Burt's Bee and Retailing

The case study which is going to be discussed is Burt's Bee case regarding its entry into the retailing sector. The Burt's Bee is amongst the leading natural skin care products that have been involved in the production of beauty care, skincare and personal care products. The first question that we are going to talk about is the entry feasibility of Burt' Bee in the retailing sector. This study will depend on this question; Should Burt's Bee enters into the retail market?

To answer the above question, we reviewed the given case study and came to the conclusion that today's businesses are more concerned about their products, customers' behaviour and distribution of their products and so Roxanne Quimby was. The retail experiment of Roxanne in 1996 was probably the right step because that was the time when this new trend of retailing emerged in the business of that time. Today, the market of retail has reached to top and almost every other single company has its own retail store. Keeping in view the today's trend and success of retailing, it is suggested that Burt's Bee should enter into the retailing market. Retailing has many advantages over other distribution. The advantages that Burt's Bee will have are as follow;

Easy tracking products in real time;

Simplifying the inventory;

High return on investment (ROI) on the introduction of RFID-systems;

Effective protection against theft of goods;

Monitoring of inventory in real time;

Increased profitability;

Improving the quality of service;

The fight against abuse and theft;

Transparent inventory control, a simple inventory;

Convenient and analyst reports for managers and investors;

The possibility of using RFID-technology to improve customer loyalty programs and their involvement.

Due to the increasing competition in trade leads to actively developing of retail network, a collection of retail businesses under common control. Chain stores is one of the most important and significant phenomena of retail in the 21st century. With Burt's Bee own retailing stores, the firm will be able to simplify operations with stakeholders and provide timely information about the product ended, the returns and their causes.

How Burt's Bees Enters into the Retail Market

At this point, the main concern for Burt's Bee is how to enter into retail with the same success pattern as a manufacturer. There should be a sound strategy which attracts customers to come to the retail stores of Burt's Bee. There must be differentiation in the offerings of Burt's Bee for its customers. For a business like Burt's Bee, the retail structure should be vertically distributed. It means vertical distribution networks are built on the principles of subordination of management. They combine functionally dependent manufacturers, resellers, and consumers of the product. These networks are formed on the basis of the submission of related units of goods movement by one of the channel, which has the greatest potential and dominates it. These networks are also called cross-sectoral. They can be formed by:

Retailers association with the manufacturers (proprietary trading);

Combining retail and businesses

Diversification

It is based on the fact that a single point of ...