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Read The Case And Answer The Questions Burts Bees

460 words - 2 pages

Burt’s Bees Case Questions

1.
Burt’s Bees does definitely differentiate from its competitors by it pricing strategy. Often a company’s pricing strategy is to offer a lower price than its competitors for a contrastable product because a lot of people think “the lower the better”. Burt’s Bees does the exact opposite. It is their purpose to get attention by having striking high prices. By that they make the customer curious and make him to inform more about that product. The customer realizes that Burt’s Bees sell mostly natural and green products and that meets a lot of today’s people’s values. So somehow the high prices are also legit as they have a higher value then ...view middle of the document...

But all of these products (most of them are in the personal care market) claim to be very natural and the prices are all set noticeable higher than competitors products. The company maintains a commitment that they mostly use natural ingredients and they have the 99 percent average in natural products. After the acquisition by Clorox the Burt’s Bees Company was allowed to keep their all natural value up. The pricing strategy of Burt’s Bees works in all markets as the value of ecofriendly and natural product is created to the customer.

4.
Due to the fact that people tend to buy natural products more likely than unnatural products if those are in the same price range Burt’s Bees might have the potential to be a big company even if they employed a low-price strategy. But the high-pricing strategy is also a reason for their nowadays success. People wonder why this product is so overprized and think that it must be something special. It operates with the customer’s curiosity and then states the benefits and values that come along with using this product. Customers. The product is something special for the consumer that is worth the extra money it costs.

5.
If Burt’s Bees keeps selling and developing “green” products this pricing strategy might be sustainable.
The consumers will keep on seeing a benefit in using natural products and this fulfills what the consumer wants. As long as there are enough customers that are willed to spend the higher prices (especially the ”dark-green” consumers) to keep up the value of nature the Company will be successful.

Maximilian Koehler
Student # 014900299

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