...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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...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 Assignment January 28th/14 000263038 Kerry Helgason 1) Needs are of felt deprivation. There are the basic physical needs which include food, clothing, warmth and safety, social needs for affection and to feel that you belong; and the individuals need for knowledge and expression. Examples of this at Build-A-Bear would be: Entertainment- it is so much fun to pick out the bear and the whole process can take quite a while. Individual choice- you get to make the bear who you want it to be Self-expression- you can express yourself through how you build your bear Wants are the human needs shaped by culture and individual personality. Examples of this at Build-A-Bear would be: When you walk into the Build-A-Bear and see how a child’s face lights up. As they pick out an unstuffed bear and continue down the assembly line. From there they will stuff the bear, add a voice box, spa treatments, dress them and name them and finally creating the bear that they want. Demands are wants for specific products backed the ability to pay. Build-A-Bear helps customers put their ideas into practise. These ideas are demands of customers. These demands could include buying the accessories for the bears such as skateboards, sequined purses, or Mascot bears. 2) The items being exchanged in Build-A-bear are: Option to build the bear Picking out the bear Stuffing the bear Spa Treatments Dressing the bears Naming them The experience of waiting in line to...
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...The customers of Build-A-Bear Workshop are preteens from all over the world. The customers demonstrate a social need and the need to learn. In fulfilling a social need, this company offers entertainment to its customers and it also allows them to learn to follow instructions and how to assemble a bear. Everyone needs to be entertained, without fun our world will be a place filled with miserable minds and corruption. Being entertained helps children to have a more cheerful spirit and learning helps them to feel successful and to grow. The customers need to be entertained but wants to have fun with and create an experience with the people at build-a-bear workshop. In addition, they need to learn, but want to learn how to build a bear. They find the Build-A-Bear workshop and experience to be appealing and interesting and wish to be a part of it. Because the customers are able to afford what they want, they are able to satisfy their demand for the entire build-a-bear experience. Build a bear actions are certainly satisfying the needs, wants, and demands of the customers. This company has assessed the needs of the customers and has created their products around those needs. 2. In detail, describe all facets of Build-A-Bear’s product. What is being exchanged in a Build-A-Bear transaction? In order to assemble a bear, the customer can visit a total of seven work stations. First of all, the customer chooses an animal that he or she prefers. Afterwards, the child has the opportunity...
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...Brooke-Lyn Somogyi Build a Bear Assignment #1 1. Give examples of needs, wants and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. Customers demonstrate a need to learn and be entertained. When creating a bear you need to follow instructions on how to make it properly. Hopefully, making the bear keeps you happy. Everyone needs to be entertained, without fun our world will be a place filled with miserable minds and corruption. Being entertained helps people have a more cheerful spirit. The customers need to be entertained but wants to have fun with and create an experience with the people at build-a-bear workshop. With that, they need to learn, but want to learn how to build a bear. Since the customers are able to afford what they want, they are able to satisfy their demand for the entire build-a-bear experience. 2. In detail, describe all facets of Build-A-Bear’s products. What is being exchanged in a Build-A –Bear transaction? In order to assemble a bear, the customer needs to go through seven steps. First, the customer chooses an animal that he or she prefers. Second, you have the opportunity to actually bring the hand-picked stuffed animal to life by stuffing it. Third, you get to customize the bear. You can insert a voice box to add sound or you can leave it without any sound, and then stitch the animal together. Once your have it filled with stuffing and its all stitched up then you dress it. Just the way you...
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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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...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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...that are being served. One company many 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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...oupon Groupon: Decisions! Decisions! Decisions! Saint Leo University MBA 530 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...
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...Maxine Clark is the founder and former CEO of Build-A-Bear. She graduated from the University of Georgia in 1971, and moved to Washington D.C. shortly after (Carr, 2016). In Washington D.C. she initially worked for Macy’s ultimately becoming the President of Payless, where she was able to gain superior business experience within multinational companies. In 1976 Clark moved to Saint Louis, and then in 1997 she founded founded Build-A-Bear. Her inspiration stemmed from her friend named Katie who was 10 years old at the time (Clark, M., 2012, pg. XYZ). Katie wanted to build her own Beanie Babies as a primitive craft, when she couldn’t find any that she liked. Maxine Clark took this simple phase very literally and used it as the inspiration for...
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...Build-A-Bear Assignment Question #1: Give examples of needs, wants and demands that Build-A-Bear customers demonstrate, differentiating each of these three concepts. Needs: Needs are defined as states of felt deprivation. They include basic physical needs (food, shelter, warmth, etc.), social needs (affection and a sense of belonging) and individual needs (knowledge and self-expression). These needs are a part of the human makeup; they are not created by marketers. The Build-A-Bear customers are mainly children and all children have a need of entertainment, love & affection, comfort and a sense that they belong. Build-A-Bear fulfills these needs by offering an experience that provides them with entertainment, creates a new friend for them to love & bring comfort and by joining the Build-A-Bear “Club” they get a sense of belonging. Wants: Wants are defined as the form needs take when shaped by culture and individual personality. In Build-A-Bears case children want the opportunity to personalize their new friend based on their individual preferences. Starting from the “Choose Me” station, where they can select the type of stuffed animal, thru to the “Name Me” station, the children have control, giving them a sense of individual satisfaction. Culture shapes the sense of belonging need into a want by influencing the children to want to belong to the “Build-A-Bear Club”. Other children who have shared the experience already belong making the new customers want to as well...
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...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: Why children like staffed animals? Why children like Teddy bear over other staffed animal? The answer of the above two question will give you the answer “what is the needs and wants of Build-A-Bear customers?” as well. First of all, children like to play. They always wish to play with those animals and superheroes that they see in the Television screen and other media especially in cartoons. As Build-A-Bear’s customers are almost children, their need is to play. Now, come to the second question, it focuses of a specific toy renowned as “Teddy Bear”. If you think deeply about the question, you will surely find something irrelevant. You may question, who have told you that all the children throughout the world like Teddy bear? Yes you are right, and the difference between needs and wants is embedded into your question. Most of the children of western country like Teddy bear, but from our perspective as an inhabitant of a third world country, the situation is much different. The reason behind it is want – the form of human needs shaped by culture, habits and individual personality. As children of western countries are familiar with the animal teddy bear physically their want is to play with the animal and that’s why Teddy bear is a renowned staffed animal in those countries...
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...Build A Bear How does a small start-up company achieve such accolades? A small start-up company such as Build-A-Bear can achieve such accolades by doing what it has been doing for the last fifteen years. It has kept the customer very involved in the final product. That way there is never a dissatisfied customer, because they created exactly what they wanted to see as an end result. Not only do you have a very pleased customer, but the company has also created a personal memory with them that can never be taken away. Which is a lot more than other companies can offer. 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? Build-A-Bear customer’s needs are the self-expression and affection they have from building their friend. The want that they have is adding all the accessories that don’t necessarily need to be on the bear, but it’s what makes them unique. Is this essay helpful? Join OPPapers to read more and access more than 550,000 just like it! get better grades Demands are things like the Spiderman costume that came out when Spiderman the movie was a hit. 2. In detail, describe all facets of Build-A-Bear’s product. What is being exchanged in a Build-A-Bear transaction? In a Build-A-Bear transaction the customers have multiple options to apply within the making of the bear. For example, the choosing of...
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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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