Build-A-Bear Case Analysis

I am giving you two options: 1) You have to build your own garage, costing you $5000 and a week's worth of time. 2) A professional builder will build it costing you the same $5000 but no time at all.

Which would you choose? I would choose the professional builder without even thinking twice about it. Why? Because I get the same product, done professionally, for the same amount of money, and not costing me any of my time (even though I then would not get the same satisfaction as I would if I did it myself).

Now go over to a three-year old and ask him/her the following question: Would you rather order a stuffed-animal online, or go to the store and make your own stuffed animal, making it look however you want? The answer of course will be the second choice, make it myself. Why? Ask the CEO of Build-A-Bear, Maxine Clark.

When children enter a Build-A-Bear store, they step into an imagination dreamland. They begin their "bear-making" process at a "Choose Me" station, where they can select any unstuffed animal that they find. Then, they fluff, stitch, dress, accessorize, and name their animals. Each child is creating a product that is unique and personalized to him/her. In fact, getting the stuffed animal at the end is not what the company is really selling. Build-A-Bear is selling an experience to each and every customer; the experience of personalized entertainment. So which child or parent would want to miss out on this opportunity, and instead buy a stuffed animal from Vermont Teddy Bear Co., for at least twice the amount?! 

Build-A-Bear will remain successful because of the way they build customer relationships. Build-A-Bear changes its huge assortment of accessories for the stuffed animals 11 times a year. They adapt to their customer audience, no matter what it takes. For example, when the Spiderman movie came out, Build-A-Bear added bear-size Spiderman costumes to the clothing line. Therefore, Build-A-Bear will not just be a fad like many other toys and dolls that go in and out. It will keep expanding and being successful because it adapts to its customers. Build-A-Bear understands its customers' needs, wants, and demands