Almost as if it had been timed for our class, this Sunday's LA Times (and released earlier today online) has a short piece on Burt's Bees continued success even in face of the latest recession.
http://www.latimes.com/news/nationworld/nation/la-na-bees17-2009may17,0,6395043.story
CEO Replogle is quoted as saying "No matter how bad the economy gets, 'it's the small luxuries, the small indulgences, that people are reluctant to trade off'." The article also attributes the firm's success with the increasing emphasis of consumers to find things that are good for themselves (natural products) and good for the environment.
I'm a bit skeptical on the former as I imagine the luxuries are the first things to go. However, I do see how (as mentioned in the case) the strong loyalty of its customers can help Burt's Bees weather this economic storm. As for the latter, it seems like they were also in the right place at the right time with its increased focus on distribution in mainstream retailers (CVS, Walgreens, Target, Walmart, etc).
In either case, the bigger question (not tackled in the short article) seems to be -- Is their continued success (they're even hiring!) in this recession an indication that they have proven out a way to separate themselves out from their peers in the marketplace? And I'm also curious, for those of you that are customers, do you think they have they done so while maintaining enough authenticity to preserve the "quirky" nature of the brand, or despite losing some of this authenticity as they go mainstream?
Subscribe to:
Post Comments (Atom)
I saw this this morning and wasn't sure about the spoiler alert.... One juicy thing the LA Times article mentioned was that ol' Burt and Roxanne were an item for a long time. Those chaste writers at Harvard emitted that.
ReplyDeleteI'm a bit surprised by Burt's Bees' growth as they face more and more competition. To be honest, the products I've tried have seemed more like novelties than good substitutes for daily personal care items. They smell -very- strongly of whichever natural ingredient is etched on the label (peppermint, honey, almond, etc). Many of the other competitors listed in our article have toned-down packaging, subtler fragrances like lavender, and can be found at a lower cost. I understand the ways in which Burt's Bees is endearing, but would've expected a larger transition towards more affordable options like the 365 label personal care products at Whole Foods. Other thoughts?
ReplyDeleteThough I have never used Burt's Bees products, I have seen them and agree that they have a very distinct smell. However, I feel that the reason they have not transitioned into the more affordable options is to maintain their strong brand image among their loyal consumer base. Like Threadless, changing their core values has the potential to lose its key customers and make them appear to be "sell-outs." I think keeping Quimby's packaging theories and brand image is what has kept them successful.
ReplyDelete