IQRA UNIVERSITY

GULSHAN CAMPUS

SUBMITTED BY: HIRA NOOR

DATE OF SUBMISSION: 4 October, 2010
CASE STUDY

BUILD A BEAR
A MEMORY

SUMMARY

Maxine Clark opened a company store “Build A Bear” in 1996. In that era people were
interested in dot-coms . Opening a retail shop at that time was not rational. But the founder of the
company store found a new way to attract customers and to satisfy them.
As its name shows it is a workshop where bear are built but not by the worker but by the
customers themselves. This was the concept that took Build A Bear to the highest position in the
retail stores. Maxine Clark established a system where children come and by moving to various
work stations step by step they make their own toy or stuffed animal unlike any other made
anywhere in the world.
This empowerment gives the customer more value than any other company. Maxine Clark sells
the experience and not the product to the customer. This affordable empowerment of $10 to an
average of $25 is the key success of Build A Bear.
Maxine Clark takes all the ideas from the customers. It is a completely customer centric
organization. This participation of customer has made it too successful that its annual sales hae
rose to $359 million for the year 2005 and is consistently increasing 20% per year. Build A Bear
believes on customization and they think of their selves as an experience not the product.

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CASE STUDY

Q NO 1: Give examples of need, want and demand that Build A Bear customer
demonstrate, differentiating each of these three concepts. What are the implications of each
on Build A Bear’s actions?

NEED, WANTS AND DEMAND:

It is one of the physical needs of a child toplay with a toy. So, we can say that it is their need for
toys that attracts the customers (children) to Build A Bear.

Though the customers of Build A Bear need a stuffed toy but not an ordinary, premade toy. They
want a toy that they have created themselves according to their cultures, environment and
wishes.

Once the toy is being made by him, he adds as much accessories as his buying power.

BUILD A BEAR’S ACTIONS :

Customers’ needs for toys are satisfied through selling stuffed animals and bears.

To fulfill customers’ wants to have a unique toy or bear, they have made an environment where
which is a cartoon land or a fantasy where their desired toys can be manufactured by themselves.

To meet the customers’ demand of adding accessories to their self created toy, Build A Bear
offers different accessories which raises the price of the toy. A customer will add only as much
accessories as its buying power.

Q2: Describe all facets of Build A Bear product .What is being exchanged in Build A Bear
transaction?

FACETS OF BUILD A BEAR PRODUCT:

The eight facets are shaped into eight workstation through which their toy is processed step by
step with the help of workers.

The facets are:

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CASE STUDY

1- CHOOSE ME:
Where customers select an animal of his choice to be stuffed.

2- STUFF ME:
They blow in the stuffing as much as he/she wants.

3- HEAR ME:

Where the customer adds a voice box.

4- STITCH ME:

Where the child stitches the animal shut.

5- FLUFF ME:

Here blow drying spa treatment is done.

6- DRESS ME:

The animal is dressed here.

7- NAME ME:

At this point the birth certificate of the toy is made in the name of the child.

8- ACCESSORIES:

Accessories are added at this stage.

WHAT IS EXCHANGED?

By the time the children leave the workshop they have more than a toy. They have the memory
and the experience of taking part in the making of the product.So, it is not the product Build A
Bear is selling for money but it’s the experience.

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CASE STUDY

Q3: Which of the five marketing management concepts best describes Build A Bear
Workshop?

This organizations believes in achieving the goals according to the needs and wants of the
customer and then delivering it at a price better than the competitors which shows that Build A
Bear follows Marketing Concept

Q 4: Discuss the value that Build A Bear creates for its customers?

The empowerment that lets the customer do something provides far more value to its customers
than the mass produced products. It has made many successful additions and products by
considering the idea from customers. This consideration and giving hold to the customer is the
value that Build A Bear creates for its customers.

Q5: Is Build A Bear likely to be successful in continuing to build customer relationships?

Why or Why not?

Yes , it will be successfullin continuing to build customer relationship because:

 It is a truly customer centric organization.

 The CEO visits aal the stores which are more than 200 only to know the opinions,
complains and to make improvements.
 Thousands of mails are received which means that thousands of ideas from the customer are
being read daily. They don’t think themselves.They rely on customers to help them which
builds strong customer relationship.
 Feedbacks are taken.
 A number of ideas proposed by customers have now become their actual products and
proved to be very successful. This shows great relation ship between the company and the
customers.

If they keep on maintain the relationships the same way it is doing now then it will surely
continue to build successful customer relationship.

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