Build-A-Bear Workshop was founded in 1996 by Maxine Clark and allows customers to personally create stuffed animals. It became very successful despite opening during the dot-com era, which was a difficult time for retailers. The company grows by opening numerous new stores each year in both the US and internationally. Build-A-Bear's success stems from selling an experience where customers participate in making a personalized stuffed animal rather than just a product. The customization process creates fiercely loyal customers and long-term value.

1. Case Study
Build-A-Bear
Build-A-Memory
Amir Abdollahi
Hesam’oddin Pourpirali
Morteza Ahmadi
Mohammad Mostafavi
Sharif University of Tech
Marketing Course

2. The late 1990s
• Dot-coms era
• VCs poured into high tech
A very bad time to start a
mall store selling stuffed
animals.

3. Indeed,...
• Maxine Clark founded Build-A-Bear
workshop in 1996.
• And came 25th on Hot Growth
list of fast expanding small
companies of BusinessWeek.

4. And since then...

5. Also...
30 new stores in US and
Canada each year.
Franchise 20 stores per year
internationally.
Internet sales are exploding.
56% since 2004 in stock
market

6. Success is not in tangible objects
What Build-A-Bear is
selling is the experience
of participating in the
creation of personalized
entertainment.

7. BUILD-A-BEAR WORKSHOP
• Children step in a
cartoon land.
• A genuine fantasy
world
• Organized child-friendly
assembly line
• Comprised of clearly
labled workstations.

8. Guests are introduced to
all the furry characters in
the store and select one,
which soon becomes
their new best friend

9. Guests may select from
several sound choices to
place inside their stuffed
animal to further
personalize their new
friend

10. With the help of the
master Bear Builder
associates, guests fill
their new friend with
stuffing for just the right
amount of hug-ability

11. The last seam is neatly
pulled shut, nearly
completing each new
best friend

12. The guest brushes the
animal at the bear spa to
make sure his or her
new friend is well
groomed and pawfectly
huggable!

13. Guests then stop at the
computer, where they
answer several
questions about their
new furry friend,
including the birth date
and of course, the name
of their new pal

14. Guests may dress
their new friend in
the beary latest furry
fashions. The bear
apparel boutique
features clothes and
accessories for all
occasions

15. Guests wrap up their
bear-making adventure
at the final station,
where they are given
their customized birth
certificate and a special
Buy Stuff Club® card to
apply towards future
purchases

16. Personalization
“[Customization feature] builds
fiercely loyal customers”
Jason Blair
Research analyst for Rchdale securities
It let’s customers to express
themselves. It provides far
more value for customer than
mass-produced products. “It’s
empowerment- It lets the
customer do something in their
control”
Maxine Clark

17. An Experience
• Vermont Teddy Bear
“Only bear made in
america and guaranteed
for life”
• Hand makes all its bears.
• Quality is key selling
point.
• Sells direct to consumer.
• + Customization.
Receiving in mailbox.
• Start at $50 top to $90.
• Maxine Clark : “Most
things today are high-tech
and hard-touch. We are
soft-touch.”
• “We don’t think of
ourselves as a toy store-we
think of ourselves as
an experience.”
• This involvement in
personalization is more of
the “product” than the
resulting item.

18. More than strategy
• Clarck attributes her
success to “never
forgetting what is like to
be a customer”
• Every week she visits 2
or 3 of more than 200
stores.
• To take the opportunity
to interact with
customers by chatting
with kids and parents.
• Putting herself on the
front line.
• Assisting employees in
serving customers.
• Even handing out
business card.

19. “Virtual Club Advisory Council”
• Clarks receives
thousands of emails
each week and she’s
added to buddy lists.
• She tries to respond to
as many of them via her
BlackBerry.
• To capitalize these
communications she
created “Virtual Club
Advisory Council”
• A panel of children on
her e-mail list, to get
ideas from kids.

20. Ideas by kids for kids
• From location to
accessories, as some
ideas come in
• Clark polls the Club
Council to get real-time
feedback.
• Great potential in
future as more ideas
are being considered.
• Bear-sized furnitures.
• NASCAR, NBA, NHL,
NFL, MLB licence
agreements.
• “Friends 2B Made” new
line of stores with
concept of
personalization of dolls
rather than stuffed
animals.

21. Strengths
• Waiting in line
enhances the
experience and fun
• Children have a product
they have created,
unlike any other one.
• More than just a stuffed
animal, a memory is
created on their visit.
• Kids love Build-A-Bear.
Parents love it too.
• Cost of experience
starts as low as $10.
And options can push it
to $25.
• Parents see how each of
these dollars translates
into their child’s delight.

22. Strengths
• Sales do not peak during
the holiday season, but
evenly distributed
throughout the year.
• Making customization a
key driver for customer
value.
• Customer loyalty.
• Broad customers from 3
generations.
• Not a toy industry fad.
Although accessories are
trendy.
• Commitment to
community.
• Online shopping.

23. Opportunities/Threats
• Opportunities:
– More store locations
– Expand out of malls
– Extend the brand
• Threats:
– Russ Berrie
– Vermont Teddy Bear Co.
– Toys R US
– Disney Store
– Mass retailers (Wal-Mart,
Target)
– Changing fads in youth
culture

24. Discussion 1 of 5
• Give examples of needs, wants and
demands that Build-A-Bear customers
demonstrate.
• What are the implications of each on
Build-A-Bear’s actions?

25. Discussion 2
• In detail, describe all facets of Build-A-Bear’s
product.
• What is being exchanged in a Build-A-Bear
transaction?

26. Discussion 3
• Which of the 5 marketing management
concepts best describes Build-A-Bear
Workshop?

27. Discussion 4
• Discuss in detail the value that Build-A-Bear
creates for its costumers.

28. Discussion 5
• Is Build-A-Bear likely to be successful in
continuing to build customer
relationships?
• Why or why not?

29. Thank you!