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Marketing presentation Burt's Bees

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Hendrik De Vries

on 14 October 2013

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Transcript of Marketing presentation Burt's Bees

Anouk Van Der Reest
Sarah Luttkau
Casper Wilken
Rens Keuzekamp
History Of Burt's Bees
1984 Founded in Maine as a partnership by Burt Schavitz and Roxanne Quimby, they originally only sold honey and candles made from beeswax

1989 Burt’s Bees first got into personal care products when Quimby found a 19-century book about homemade versions of these products

1991 Burt’s Bees became a corporation, they had a product line that had products like natural perfume, soaps and lipbalm

1993 Quimby bought all of Schavitz’ shares, Burt’s Bees moved to North Carolina and started manufacturing personal care products exclusively

2007 Clorox purchases Burt’s Bees for $925 million

Burt's Bees' ??
Table of content
Price Strategy
The Greater Good Business Model
Price Stategy
The Greater
Good Business
1. Does the Burt's Bees' Strategy truly differentiate it from the competition?
2. Has Burt's bees executed value-based pricing, cost-based pricing, or competition-based pricing? Explain.
3. How has Burt's Bees implemented product-mix pricing strategies?
4. Could Burt's Bees have been successful as a natural product marketer had it employed a low-pricing strategy? Explain.
5. Is Burt's Bees pricing strategy sustainable? Explain
" Operating Our
Company with the Highest
Level of Social Responsibility"

A leading brand in Natural Personal Care
From honey to insect relief
Wide range of personal care products
Premium pricing
Question 1
Question 2
Question 3
Question 4
Question 5
Burt’s Bees’ pricing strategy does differentiate themselves from the competition. With them using 99% majority of natural resources, that sets them away from the competition already. But with the high pricing marketing strategy they propose, it creates a higher level of quality into the consumer’s eyes. Having both of these attributes to there products, it is differentiated from the competition.
Burt’s has executed the value-based pricing the most. With Burt’s highest selling product, the lip balm. There product goes for $2.99 a tube, where the leading market chapstick can go for a about a third of the price. With this being said Burt’s entire product line goes for a higher price than the standard market. They are trying to create a value to their product with a higher price.
Burt’s has used product-line pricing strategy.
They have set a higher standard with a higher price to all their products. Creating a higher valued product with the all natural resources they use.

We believe that Burt's has picked the right strategy by premium pricing. If they would have picked a low-price strategy the curiosity effect that a higher price has on costumer wouldn't be there.

We think that Burt's Bees is sustainable, since Burt's Bees has a very loyal consumer base. Burt's Bees didn't many any less profit during the last economic crisis; this shows that they have a "fanbase" that is willing to pay more for natural products.
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