IIBMS EMBA CASE STUDY SOLUTIONS – Today’s consumers want good value, low prices, and convenience, but they also are attracted to a great shopping experience.
IIBMS EMBA CASE STUDY SOLUTIONS – Today’s consumers want good value, low prices, and convenience, but they also are attracted to a great shopping experience.
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Retail Management
CASE 2 Providing a Retail Experience: Build-A-Bear Workshop
Today’s consumers want good value, low prices, and convenience, but they also are attracted to a great shopping experience. Build-A-Bear Workshop, a chain with over 170 stores generating $300 million in annual sales, is a teddy-bear-themed entertainment retailer whose stores are playgrounds for children.
The stores are exactly what the name says: Customers, or builders, choose an unstuffed animal and, working with the retailer’s staff, move through eight “creation stations” to build their own bear. At the first station, the Stuffiteria, children can pick fluff from bins marked “Love,” “Hugs and Kisses,” “Friendship,” and “Kindness.” The stuffing is sent through a long, clear tube and into a stuffing machine. A sales associate holds the bear to a small tube while the builder pumps a foot peddle. In seconds, the bear takes its form. Before the stitching, builders must insert a heart. The builders follow the sales associates’ instructions and rub the heart between their hands to make it warm. They then close their eyes, make a wish, and kiss the heart before putting it inside the bear. After selecting a name and having it stitched on the bear, builders take their bears to the Fluff Me station, where they brush their bears on a “bathtub” that features spigots blowing air. Finally, they move to a computer station to create a birth certificate for their bear.
Bears are sent home in Club Condo boxes, which act as mini-houses complete with windows and doors. Besides adding value as playhouses, the boxes advertise Build-A-Bear to the child’s friends. “[You] could buy a bear anywhere” says Maxine Clark, founder and Chief Executive Bear. “It’s the experience that customers are looking for.” The experience is depicted on the retailer’s Web site, www.buildabear.com.
Customers pay about $25 for the basic bear, but they can also buy sound, clothing, and accessories for their bear. To keep the experience fresh, Build-A-Bear regularly introduces new and limited-edition animals. Cloths and accessories are also updated to reflect current trends. There are also in-store birthday parties and an official CD. To make sure that customers have a great experience every time they visit, all sales associates attend a three-week training program at “Bear University,” and the firm offers incentive bear styles arriving weekly. Build-A-Bear stores also feature seasonal merchandise such as a King of the Grill bear for Father’s Day and a Sweetheart bear for Valentine’s Day.
RefactThe origin of the teddy bear was a 1930 incident in which President Teddy Roosevelt refused to shoot a cub while bear hunting. The spared animal was thereafter referred to as the Teddy Bear. |
DISCUSSION QUESTIONS
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Is the Build-A-Bear concept a fad, or does it have staying power?
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What can Build-A-Bear do to generate repeat visits to the store?
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