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Burts Bees Essay

4400 words - 18 pages

Burt’s Bees Has Buzzed its Way to the Top of the Natural Care Product Market

Kelsey Morales,
Madeleine Tessier,
Kelsey Rosentreter

TABLE OF CONTENTS
Table of Contents…………………………………………………………………………………………..…….…..2
Thesis Statement………………………………………………………………………..……………….…..….……3
Introduction to Burt’s Bees History…………………………………………………………………...….……..…4-5
(Kelsey Morales)
Burt’s Bees is a Green Company…………………………………………………………...…….…...….………5-6
(Kelsey Morales)
Charity and Giving back to the Community……………………………………..………………………….………6
(Kelsey Morales)
Clorox Takes over Burt’s Bees Ownership…………………………………………………...……….…………6-7
(Kelsey Rosentreter)
The Current Company ...view middle of the document...

She knew she had to start a business in order to give them that life. One day on her way to work she saw a man on the side of the road selling honey, she stopped to get some, and met the man that would change her life forever. The man she met was named Burt Shavitz, a bee keeper from Maine who was selling gallon jars of honey for only $12.00. Soon after meeting they became romantically involved. Roxanne knew immediately there was a better business opportunity there then just selling the honey in bulk for cheap (Quimby, 2004).
She took over the business end of things while Burt kept to the bee keeping. First, she changed the packaging of the honey to small beehive-shaped jars and made handmade labels resulting in a more visually appealing product. Next she took the beeswax and made it into candles. She took her candles and honey to craft fairs and ended up making a great profit. They made $20,000 the first year alone in sales from the honey and candles. The following years Burt and Roxanne tried making many different products; furniture polish, lip balm, moisturizing cream etc. Immediately they found beeswax lip balm sold 10 times faster than anything else. They continued to make the products that sold the fastest and in 1993 they reached $3 million in sales. Quimby bought out Burt Shavitz in 1993 giving her sole proprietorship of the company (Quimby, 2004).
In 1994 they moved the business to Raleigh, North Carolina where she felt the business opportunity was more favorable than it had been in Maine and it was also exactly halfway between New York and Miami, which was great for shipping the products country wide. In her new corporate headquarters she had 300 employees and was a very unconventional CEO. She chose not to do focus groups because “They only confirm what you already know. A consumer cannot vocalize what is missing in their lives. You have to give them something they don't know they want” (Hoovers, 2012). Later that year Burt’s Bees personal care products were sold for the first time in retail stores. Distribution and demand of products had also reached the Japanese market (James Press, 2004).
By 1998 Burt’s Bees was offering over 100 natural personal care products in 4,000 locations, including higher-end national retailers with sales that reached over $8 million dollars (Burt's Bees, 2012). A year later they launched their ecommerce website, making the products readily available for purchase country-wide. Four years later Burt’s Bees launched its first toothpaste, shampoo and introduced the Baby Bees product line, that year Burt’s Bees brought in $60 million in sales (Burt's Bees, 2012). In 2004 a private equity firm, AEA Investors, purchased 80% of Burt's Bees for $173,000,000 (Clark, 2008). Roxanne Quimby retained a 20% share of the company and a seat on the board. On October 31st 2007, Clorox, an internationally known company, bought out Burt’s Bees for just under $1 billion; Which Roxanne Quimby received 20% of the...

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