This document provides an overview and analysis of plans to franchise the Build-A-Bear Workshop toy store concept in Sao Paolo, Brazil. It outlines the company profile and core business model, analyzes the product offering and competitive landscape, and provides a financial projection estimating 35,494 units sold in the first year for estimated sales of $1,135,800 and a break-even point of 64,556 units at $2,065,778 in sales. A marketing timeline is also proposed to support the Brazil store launch and opening in October 2011.

1. Build-A-Bear
Workshop
Where Best Friends are made

2. Outline
• Company Profile
• What is Build-A-
Bear?
• The 4 P’s
• SWOT Analysis
• Financial Analysis
• Implementation

3. Company Profile
• Founded 1997 in St. Louis, Missouri by Maxine
Clarke
• 21 stores in Canada
• More than 400 stores worldwide
• Mascot: Bearemy
• Our process: Making a new furry friend – A fun
and unique experience
• Philanthropy

4. What is Build-A-Bear
Workshop?
8 stages of Building your Bear:
Choose me
Hear me
Stuff me
Stitch me
Fluff me
Name me
Dress me
Take me home!

5. Mission
• Franchising Build-A-
Bear workshop in Sao-
Paolo, Brazil.
• Target Market:
Middle/Upper class
families

6. Product
• Offers a variety of stuffed animals (30+)

7. Points of differentiation
• Hundreds of Outfits and Accessories
• Highly customizable
• Will produce and offer new Brazilian
accessories
• Packaging: Cub Condo Carrying Case
• In-store Personnel- Master Bear Builder
Associates

8. Product life cycle
• Maturing product in a slowing industry
• In 2009, Sales of toys & games declined by
nearly 3% from the prior year.
Introductory Maturity
Growth Decline

9. Perceptual Map & Competitor
Analysis

10. Place
• Higienópolis mall
• Located in Consolaçã district, Sao Paolo

11. Price
Set Price in Canada (USD) Price for Brazilian Market Adjusted Price for Brazilian
(USD) Market (BRL)
Price of undressed bears $12 - $36 $10 - $34 BRL 17.00 – 58.00
Price of accessories $1.50 - $15 $1- $12 BRL 1.99 – 19.99

12. Promotion
Pre-launch Promotion:
• Billboard advertisement
• Bus advertisement
• Coupons
Post-launch Promotion:
• PR event

13. Sample Coupons

14. STRENGTHS
Stuff-fur-stuff loyalty
Globally operated
program to increase
repeat traffic
Highly differentiable
product- customers have
many, many choices
Free online service:
Shopping steps create an CyBEAR space
experience

15. WEAKNESSES
High prices could
impact customer’s
value perception
adversely
Only offered in one
location in Brazil when
opened
Highly concentrated
sourcing and
distribution

16. OPPORTUNITIES
Tapping opportunities Increased influence by
in the child and teen children on spending
market through will boost kids-focused
internet and digital business
media
Brazil’s rising Plush and active
economy toys are 1/3 of
the toy market in
Brazil
Sao Paulo is the wealthiest
city in South America

17. THREATS
Global recession
Many established
competitors (ex:
Questionable safety Mattel, Multibrink
standards related
to toys
manufactured in
China

18. PROJECTED SALES – YEAR 1
Sales Units
= (2700 sq ft.)($420.667) = $1,135,800/$32
= $1,135,800 = 35,494
1.56% Market Share in Year 1

19. EXPENSES
• Initial and continuous franchise fees
• Cost of the merchandise, store occupancy
cost, freight costs, cost of warehousing and
distribution, packaging, stuffing, and damages
• Store preopening costs
• Store payroll, advertising, credit card fees, and
store supplies
$1,415,481

20. BREAK-EVEN
Units Sales
=$581,000/($32-$23) = 64,556*$32
=64,556 units =$2,065,778
2.8% Market Share at Break-Even

21. Marketing Timeline for Brazil Launch, 2011
Dec. 25-Onward:
Further promotional
October 12: activities
Children’s day-
Grand opening!
August 1-Oct. 12:
Launch ad campaign
and begin raising
awareness of new
BaB store opening Nov. 1- Dec. 25: Begin
September 20: Christmas promotions
May 1- Onward: and sales
1-day test
Acquire retail/selling
market of the
licenses/permits and
BaB store
begin to renovate June 1- August 1: Refine
property ad campaign and develop
BaB* products specific to
Brazil
March 1- April 30:
Determine store
location, layout, and
design. Secure distribution *‘BaB’ = Build-a-Bear Inc.
channels.

22. Thank You Beary Much!
Aminata Wurie, David Chak, Laura Galin, Rebecca Varon,
Stephanie Taras, Sophia Herbst