... Introduction The owner and creator of Build-A-Bear Workshop, Maxine Clark, worked for large retailers before she became an entrepreneur. The CEO of one of the companies she worked for, Stanley Goodman, once made a comment that changed the way Maxine viewed the retail business, “Retailing is entertainment, and when customers have fun, they spend more money” (Quick & Nelson, 2013). She took this outlook and created a company geared towards children, because she knew children knew how to enjoy themselves. Her company, Build-A-Bear Workshop, is “the only make your own stuffed animal’ retail-entertainment experience” (Quick & Nelson, 2013). The concept allows children to choose their own bear, or other stuffed animal have it filled with stuffing, choosing a heart to place inside, stitch it up and choose from a wide array of clothing to dress it in. (Make Your Own Stuffed Animal). The process even allows you to add a recording to the bear that can be replayed and receiving a birth certificate (Make Your Own Stuffed Animal). When Maxine started Build-A-Bear many people did not believe in her idea and did not think it would last, but her business it reaching children and has opened stores all over the world (Quick & Nelson, 2013). Now there are 254 Build-A-Bear Workshop stores in the United States and more franchises overseas. The company has 3360 employees and its’ annual revenue is at an estimated $306 million, with Ms. Clark still at the head of the company (Lappin,...
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...Build-A-Bear: Build-A-Memory In the late 1990s, it was all about the dot-com. While venture capital poured into the high-tech sector and the stock prices of dot-com startups rose rapidly, the performance of traditional companies paled in comparison. This era seemed like a very bad time to start a chain of brick-and mortar mall stores selling stuffed animals. Indeed, when Maxine Clark founded Build-A-Bear Workshop in 1996, many critics thought that she was making a very poor business decision. But as the company nears the end of its first decade, it has more cheerleaders than naysayers. In 2005, one retail consultancy named Build-A-Bear one of the five hottest retailers. The company hit number 25 on BusinessWeek’s Hot Growth list of fast-expanding small companies. And founder and CEO Maxine Clark won Fast Company’s Customer-Centered Leader Award. How does a small startup company achieve such accolades? THE PRODUCT On paper, it all looks simple. Maxine Clark opened the first company store in 1996. Since then, the company has opened more than 370 stores and has custom-made tens of millions of teddy bears and other stuffed animals. Annual revenues reached $474 million for 2007 and are growing at a steady and predictable 15 percent annually. After going public November of 2004, the company stock price soared 56 percent in just two years. Annual sales per square foot are $600, roughly double the average for U.S. mall stores. In fact, Build-A-Bear...
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...Build-A-Bear: Build-A-Memory In the late 1990s, it was all about the dot-com. While venture capital poured into the high-tech sector and the stock prices of dot-com startups rose rapidly, the performance of traditional companies paled in comparison. This era seemed like a very bad time to start a chain of brick-and mortar mall stores selling stuffed animals. Indeed, when Maxine Clark founded Build-A-Bear Workshop in 1996, many critics thought that she was making a very poor business decision. But as the company nears the end of its first decade, it has more cheerleaders than naysayers. In 2005, one retail consultancy named Build-A-Bear one of the five hottest retailers. The company hit number 25 on BusinessWeek’s Hot Growth list of fast-expanding small companies. And founder and CEO Maxine Clark won Fast Company’s Customer-Centered Leader Award. How does a small startup company achieve such accolades? THE PRODUCT On paper, it all looks simple. Maxine Clark opened the first company store in 1996. Since then, the company has opened more than 370 stores and has custom-made tens of millions of teddy bears and other stuffed animals. Annual revenues reached $474 million for 2007 and are growing at a steady and predictable 15 percent annually. After going public November of 2004, the company stock price soared 56 percent in just two years. Annual sales per square foot are $600, roughly double the average for U.S. mall stores. In fact, Build-A-Bear Workshops typically earns back almost...
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...CASE 1 –Build a Bear, Build a memory- Synopsis: Build a Bear was founded by Maxine Clark in hard times. Where the internet was in its early phases of development, this era was a bad time to come with this type of business idea and as a matter of fact, Maxine Clark was criticized for this business idea. But nearly a decade later this company was considered as one of the hottest five retailers. The company hit number 25 on Business Week´s Hot Growth list of fast expanding small companies and Maxine Clark won Fast Company´s Customer-Centered Leader award. After being the president of Payless shoe store and resigning in 1996 (Selk, 2015), Maxine Clark´s Build a Bear first store opened in 1997 in Saint Louis Missouri. By 2007 it had sold over 50 million customer-made teddy bears and registered sales of $474 million. Clark’s inspiration came from her 10 year old friend Katie. She argued why she couldn´t find the stuffed toy she wanted and that it was so easy to make (Build a Bear, 2015); and so the inspiration came. Currently, there are over 400 stores in the USA, UK, Puerto Rico, Canada and franchises in Europe, Asia, Middle East, Australia, Mexico and Africa, with more than 125 million Bears living around the world. They are also diversifying the product, not only teddy bears. Now customers can build dinosaurs (Build a Dino), dolls (Friends 2B Made) and Build a Bear at the Zoo where customers can decide in a variety of more than animals. (Build a Bear) Nowadays the current...
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...Introduction Build-A-Bear Workshop, Inc. (Build-A-Bear) is a retailer that offers its customers a unique experience. With its focus primarily on kids, this giant retailer provides a way for children to customize what their stuffed animals could and should look like. Build-A-Bear is the only U.S. based retailer that offers an interactive make-your-own stuffed animal retail-entertainment experience. Their stores provide an extensive selection of merchandise, including over 30 different styles of animals to customize along with a wide variety of clothing, shoes and accessories to choose from (“Build-A-bear Workshop, Inc,” 2014). It all started with a simple idea that was inspired by a 10-year-old girl. Maxine Clark was the former President of Payless Shoesource and left her successful career behind in pursuit of what she calls retail entertainment. Gleaning the advice from her mentor, Stanley Goodman, former CEO of May Department Stores, she recalls one of her greatest lessons from him, which was that retailing is entertainment and the store was the stage. The happier the customers, the more money they will spend. In an interview with CNBC, she states, “I just felt like he was calling me. And saying, ‘Maxine, you gotta get back to it.’ And I didn’t know exactly what I was gonna do, but I knew it was gonna be something for children, because children require you to be creative. They aren’t really worried about whether you’re making money or not making money. They want you...
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...BUILD A BEAR A MEMORY SUMMARY: Maxine Clark opened a company store “Build A Bear” in 1996. In that era people were interested in dot-coms . Opening a retail shop at that time was not rational. But the founder of the company store found a new way to attract customers and to satisfy them. As its name shows it is a workshop where bear are built but not by the worker but by the customers themselves. This was the concept that took Build A Bear to the highest position in the retail stores. Maxine Clark established a system where children come and by moving to various work stations step by step they make their own toy or stuffed animal unlike any other made anywhere in the world. This empowerment gives the customer more value than any other company. Maxine Clark sells the experience and not the product to the customer. This affordable empowerment of $10 to an average of $25 is the key success of Build A Bear. Maxine Clark takes all the ideas from the customers. It is a completely customer centric organization. This participation of customer has made it too successful that its annual sales have rose to $359 million for the year 2005 and is consistently increasing 20% per year. Build A Bear believes on customization and they think of their selves as an experience not the product. Question No 1: Give examples of need, want and demand that build A Bear customer demonstrate, differentiating each of these three concepts. What the implications of each are on Build a Bear’s actions...
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...BACKGROUND & UPDATING Build a bear was founded in 1996, in a really hard context for companies in United States, even more for new companies that were trying to come up with something new or in this case for something creative. It was hard at the beginning, but three years later it was recognized as one of the hottest retailers in United States, people also got proud of how a small company could grow up so fast and also to get in the bests companies for customers. Build a Bear was opened by first time in 1996, having after that over more than 200 companies around United States; right now it has even more than 400 companies around the world in four different countries (United States, UK (United Kingdom, Puerto Rico, and Canada), they also give the chance to make it possible for creating a store by starting at least with 5 million dollars (it depends of the country, but that is the minimum capital people have to start with), it doesn’t mean it will be a sub franchising or something similar, they still be the total owners of the store making the country as a new point of the brand. The idea came up in a really particular situation between Maxine Clark and her friend. She was only 10 years old when she was trying to get a bear toy from the store with her friend, but her friend couldn’t find the one she liked it, and then she said it should be a great idea about making her own teddy bear, it was the moment when Maxine went even deeper, and she got a creative and also a pretty...
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...Build-A-Bear's 1. Give examples of needs, wants, and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. What are the implications of each on Build-A-Bear's actions? Answer. Demonstration of needs, wants, and demands that Build-A-Bear customers. Needs: Needs are basic human requirements. Build-A-Bear customers demonstrated the strong needs for: · Recreation · Entertainment · Individual choice · Self Expression Wants: Need become wants when they are directed to specific objects that might satisfy the need. Wants are shaped by the society. When children enter in Build-A-Bear store they step into “cartoon land” having child friendly assembly line comprised of clearly labeled work stations. When children choose unstuffed animal from bin, stuff them, add voice box, spa treatment, dress them and name process of creating a stuffed bear become their want. Demand: demand are wants for specific products backed by an ability to pay. Build-A-Bear actually puts customer ideas into practice. The ideas generated by customers are actually demand of customers. The ideas that become successful addition of Build-A-Bear are: · Mini scooter · Mascot bears · Sequined purses Implications of needs, wants, demand on Build-A-Bear action: It is most important for Build-A-Bear to distinguish between these three concepts. First of all they should identify the core needs of their customers....
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...people would not expect to be on The Fortune 100 list is Build-A-Bear Workshop. For the fifth consecutive year, Build-A-Bear Workshop has been named one of Fortune Magazine’s “100 Best Companies to Work For” and is the only toy retailer on this year’s list. Build-A-Bear scored 62 out of 100 on the list. A woman named Maxine Clark founded Build-A-Bear Workshop in 1997. She is considered one of the true innovators in the retail industry. In an interview for CNN, Clark stated: “In 1997, I withdrew $750,000 from my retirement account to get Build-a-Bear Workshop off the ground. That covered startup costs and the building of the first prototype store. I also secured a bank line of credit for inventory and working capital, with my house as collateral. I knew I wanted to build a multimillion-dollar business with hundreds of units, and I realized I didn't have the ready cash to fund that growth. I knew I'd have to partner with outside investors.” While building the first Build-A-Bear store, there was a story posted in the St. Louis Business Journal about the concept. Through this article, it caught the eye of Barney Ebsworth, who owned a private investment firm with his partner Wayne Smith, They bought in 20% for $4.5 million, therefore Clark had enough money for several years and she did not even open her first store yet! The first Build-A-Bear Workshop opened in the St. Louis Galleria, in which lines were out the door! Clark stated, “In the...
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...Vazquez Cruz Build-A-Bear Case Incident June 17, 2015 1. Give examples of needs, wants and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. Build-A-Bear involves the participation of the customer into the creation of stuffed animals. This activity provides to the customers social, physical and individual needs, by performing a fun activity which at the same time give a pleasant experience and memories. What this product offers cannot be acquired in any other toy store. Therefore, what made Build-A-Bear unique, is what they give to the customers. The needs that people look forward to acquire from this store turn into wants. For example, Customers can get stuffed animals in stores such as ToysRUs, but they decided to get it from Build-A-Bear because they not only buy a stuffed animal. Customers also acquire the experience of participating in the creation of personalized entertainment. Therefore, it is a want when customers choose to spend their money in Build-A-Bear than in any other toy store because they want to participate in those activities. Moreover, customers’ demand comes when they choose to spend their money in order to acquire stuffed animals from Build-A-Bear over other brands or stores. 2. In detail, describe all facets of Build-A-Bear’s product. What is being exchanged in a Build-A-Bear transaction? 3. Which of the five marketing management concepts best describes Build-A-Bear Workshop? ...
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...Background Build a bear Workshop is a teddy bear retail- entertainment experience where children can create a stuffed animal, dressed it, give it a name and finally play with it, they’re giving life to stuffed animal. The idea starts when Maxine’s friend “Katie” who had 10 years old wants to buy a stuffed animal but it looked so simples, so they thought do it themselves. Build a Bear was founded in 1977 by Maxine Clark who is one of the biggest innovators in the retail industry; she had to convince several investors who made market research with their own children, getting amazing results, she also had to compete in the 90´s where it was all about online business. The first store was opened in 1977 at the Gallery Saint Louis in St Louis Missouri; it has 1200 fulltime and 4300 part-time employees and more that 70 millions of stuffed animals. Since then, the company has more than 400 stores worldwide, most of them in U.S; Puerto Rico France Ireland, Canada and United Kingdom are some of them gaining ground in the hearths of people. Updating 2001: was named as The Most Innovate Retailer of the year by National Retail Federation. 2004: was named the "Best Retail Company of 2004" by the "International Council of Shopping Centers. That same year tha company launched the Huggable Heroes program, that “is a way to recognize and honor young people that have impacted their own neighborhoods, schools and communities by giving of themselves to others” 2006: Maxine Clark published his...
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...examples of needs, wants, demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. Needs: Need is defined as a state of felt of deprivation or lacking something. According to this case study, we can say that the children needs are entertainment, fun and creativity. We know that every child want to play with something whether the child belongs to a rich or a poorer family. The second thing is we can notice that the new born babies love to play with technology means they want creativity. They want to do something that is new and unique. Build-A-Bear customers are children, who have needs of belonging (joining the Build-A-Bear "club."), affection (creating and caring for another being), and self-expression (the ability to create a product that reflects elements of the self). Wants: Wants are basically “needs, that are fulfilled according to the costumer’s personality and culture.” In this case study, we can observe that the target customers are children and children love to play with animals. Due to the advancements in technology, the children are being something which they really want and know to be the only source of delightfulness. Hence, the company has added different assembly lines and clearly labeled work stations. Children want a place where they can get a toy of their choice where they have freedom to make a toy like bear of their own choice by choosing, stuffing, stitching, and naming the toy (bear). Demands: Demands are “wants,...
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...1. Which one of the five generic competitive strategies discussed in Chapter 5 most closely approximates the competitive approaches that Built Build-a-Bear is employing? Build-a-Bear Workshop closely approximates by employing a Focused Differentiation Strategy which concentrating on a narrow buyer segment by meeting specific tastes and requirement of niche members. A focused strategy keyed to differentiation aims at securing a competitive advantage with a product offering carefully designed to appeal to the unique preferences and needs of a narrow, well-defined group of buyers (as distinguished from a broad differentiation strategy aimed at many buyer groups and market segments). Successful use of a focused a differentiation strategy depends on the existence of a buyer segment that is looking for special product attributes or seller capabilities and on a firm’s ability to stand apart from rivals competing in the same target market niche. Build-a-Bear Workshop employs successful differentiation-based focused strategies targeted at upscale buyers wanting products and services with world-class attributes. Indeed, most markets contain a buyer segment willing to pay a big price premium for the very finest items available, thus opening the strategic window for some competitors to pursue differentiation-based focused strategies aimed at the very top of the market pyramid. 2. Critic the chosen strategy in terms of effectiveness, suitability and competitiveness for a...
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...Build-A-Bear Case Incident Marketing 120- Learning Outcome 1 Assignment #1 1. Needs are described as states if felt deprivation. A few needs of BAB customers are the need for entertainment, the need for individual choice and the need for variety. Wants are described as the form human needs take as shaped by culture and individual personality. Some BAB wants are interactive entertainment and the variety of accessories and types of bears you can get. Demands are described as human wants that are backed by buying power. These demands would include sports related outfits, mini-scooters and Hello Kitty bears. 2. Facets would include: a. Building the bear- making the bear, choosing the outfits, naming the bear, crossing your heart b. They say waiting in line is part of the fun c. Customizing everything about your product The customers are exchanging their money and their time for the teddy bear and the time used to customize it. 3. The best marketing management strategies is the Marketing Concept. Maxine Clark has connected with her customers to determine the wants and needs of the market and uses those wants and needs to determine what the next step is. She goes to shops at least once a week to talk to her customers and stay connected. 4. BAB offers customers an interactive and personalized experience that fulfills their needs, wants and demands. The customer opinions are taken very seriously and into consideration by Maxine Clark. She utilizes...
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...that Build-A-Bear customers demonstrate, differentiating each of these three concepts. We understand a need as a basic part of the human design resulting in the state of felt deprivation. So from the article, it can be said that the Build-A-Bear consumers have a basic need of self-expression or creation. Each child that comes into a store has a distinct need to construct a bear, fueled by their own imagination. The article touches on the notion that each kid leaves, “[with] a product that they have created”. In addition, other needs that emerge are choice, playtime, free-will, individuality, stimulation, and bonding. I believe that bonding is more for the parents than the child. It fulfills a need to connect with their child by creating an experience which they can all share: “Parents love Build-A-Bear just as much as the kids do”. These needs lean into the wants, which is finding that specific place where their imaginations can run wild, i.e. make the end product. They choose what style of animal, stitch them, pick the clothes, name them, and when everything is finished, receive a birth certificate. These wants begin to take shape and ultimately form into the demands of the consumer. Build-A-Bear patrons now seek a very specific product that delivers value and satisfaction. And how Maxine Clark meets their expectations successfully is by introducing a trendy line of accessories, new store locations and popularized characters like, “Hello Kitty bears, mascot bears at professional...
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