Sweet leaf bath co case analysis

9B13A044 SWEET LEAF BATH CO. Melissa Jean wrote this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Copyright © 2014, Richard Ivey School of Business Foundation Version: 2014-01-27

It was January 2012 when Rose Creamer and Stacey Guymer, partners of Sweet Leaf Bath Co. (Sweet Leaf), had just finished mixing another batch of their handmade rosemary mint soap in the company’s production facility located in Creamer’s basement. The partners took a well-deserved break and began their review of Sweet Leaf’s 2011 financial statements. The statements confirmed that the company had experienced minimal sales growth over the past year and the partners decided that they needed to develop and implement a new marketing strategy that would enable them to grow their business. They wanted to formalize their strategy, specifically their distribution plans and promotion efforts, with the hope of growing sales to a level that would allow Guymer to return to the company on a full-time basis. COMPANY HISTORY The mother-daughter team had operated their bath and body products company out of Creamer’s St. Mary’s, Ontario home since 2007. The idea for Sweet Leaf originated from the pair’s weeknight hobby of making homemade soaps in Creamer’s kitchen. They loved to spend quality time together experimenting with different ingredients and recipes to create products for their personal use. Soon the pair began selling their high-quality, unique products at craft shows and exhibitions. Eventually those efforts led to sales through local retailers who were anxious to carry their line. Through these initial sales channels, the partners learned more about the bath and body industry and the international issues surrounding the sourcing of many raw ingredients used in their products. Both women were committed to creating products with ingredients that were ethically sourced and environmentally sustainable. It was at this point that the company decided to purchase as many raw ingredients as possible through fairtrade1-certified producers and to seek certification of as many of their products as possible through an organization known as Fairtrade Canada. According to the company, Sweet Leaf was one of

1 “Fair trade (also known as “fairly traded”) refers to the broader concept of fairness and decency in the marketplace, whereas “fairtrade” refers to the specific fair trade certification system run by Fairtrade International (FLO) and its members, including Fairtrade Canada. When speaking generally about the concept, it is best to use “fair trade.” When speaking specifically about the FLO system, use “fairtrade” (“fairtrade certified products,” “fairtrade certification standards,” etc.).” From “What is Fair Trade?” Fairtrade Canada, www.fairtrade.ca/en/about-fairtrade/what-fair-trade, accessed May 22, 2012.

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