Kevin Norstrem

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Burt’s Bees Case Study

1.) I think the pricing strategy truly differentiates it from its competition. Burt’s Bee’s spends the extra money to make sure that the products they put out on the market are 99% natural whereas the other competitors use cheap chemicals as substitutes for those natural ingredients. The high price grabs the consumer’s eye and almost forces the consumer to read the explanation as to why the price is so steep. It makes the consumer second-guess their decision to buying the cheaper product with lower quality.

2.) Burt’s Bees has been executing value-based pricing. The price they set for their products reflect the quality of those certain products. The higher prices portray a higher quality to consumers. It is more expensive to use all natural products rather than chemical substitutes and many consumers don’t mind paying extra money for a more natural, value-based product.

3.) Burt’s Bees uses a product-line pricing strategy to market their products. They set the prices of their products using a guideline based on cost differences between the products, consumer evaluation, and the competition. If the product requires more natural resources to produce, the price of that product goes up. Also, the prices of their products tend to be at least a third more than their competitors product according to the article.

4.) I do not think the company would have been successful if it employed a “low-price” strategy. The expenses of