Clorox was willing to pay almost $1 billion for Burt’s Bees because the company sees big opportunities in the market for green products. These products are now readily available to consumers that may not specifically target green products but want the name or associated benefits of the product. However, there must be oversight of claims that products are environmentally and socially responsible in addition to being made from true natural ingredients.
For Clorox, Burt's gives Clorox its first major entry into personal care and furthers its involvement in two consumer megatrends: sustainability and "health and wellness." The company might learn from Burt’s Bees production line, product features and production process of its natural product line. Clorox could start to extend its Green product line and reduce the R&D cost for green products. Clorox could be going green and being socially responsible saves the company’s money and improves their image. A greener corporate image is behavior that environmentalists have been advocating for some time. And the company understand they can make a profit and know consumers will purchase these products even if the products are sometimes more expensive. But also for the drawbacks, Clorox might need to face the consumer complaint from loyal Burt’s Bee users, who might claim that the bleach will add into Burt’s Bees products and made it unreliable. The pairing of a natural-products brand with a consumer base won largely through environmentally focused retailers as Whole Foods could be a tough branding fit with a company known best for making chlorine bleach
As for Burt’s Bee, will gain great amount from Clorox, and could even get greater opportunities to grow under large resources from Clorox, such as promotion/marketing funding. Burt's Bees, which has grown its business largely through health, natural-food and other specialty stores, might gain t he distribution power of Clorox, and entered in the channel such as Wal-Mart. But the pairing of a natural-products brand with a consumer base won largely through environmentally focused retailers as Whole Foods could be a tough branding fit with a company known best for making chlorine bleach
Burt’s Bee should not mix up with Clorox product/brand, the brand should continue to run the business with the same team and principles with the same integrity of the natural products and sustainability that Burt’s Bee always have. For price, people are willing to purchase these products even if the green products are sometimes more expensive, so the street price should remain the same and keep the market segment the same. For promotion wise, Burt’s Bees should actively participate in promoting the development of natural product ingredients, and launch more 100% natural product, focus more on product R & D and innovation, then re-establish a market order and brand prestige.