Build-A-Bear Workshop

Where Best Friends are made

Outline• Company Profile• What is Build-A-

Bear? • The 4 P’s• SWOT Analysis• Financial Analysis• Implementation

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

What is Build-A-Bear Workshop?

8 stages of Building your Bear:Choose meHear meStuff meStitch meFluff meName meDress meTake me home!

Mission

• Franchising Build-A-Bear workshop in Sao-Paolo, Brazil.

• Target Market: Middle/Upper class families

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

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

Product life cycle

• Maturing product in a slowing industry• In 2009, Sales of toys & games declined by

nearly 3% from the prior year.

Introductory

Growth

Maturity

Decline

Perceptual Map & Competitor Analysis

Place

• Higienópolis mall• Located in Consolaçã district, Sao Paolo

PriceSet Price in Canada (USD) Price for Brazilian Market

(USD) Adjusted Price for Brazilian 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

Promotion

Pre-launch Promotion:• Billboard advertisement• Bus advertisement• CouponsPost-launch Promotion:• PR event

Sample Coupons

STRENGTHS

Stuff-fur-stuff loyalty program to increase repeat traffic

Highly differentiable product- customers have many, many choices

Shopping steps create an experience

Globally operated

Free online service: CyBEAR space

WEAKNESSES

Only offered in one location in Brazil when opened

Highly concentrated sourcing and distribution

High prices could impact customer’s value perception adversely

OPPORTUNITIES

Tapping opportunities in the child and teen market through internet and digital media

Brazil’s rising economy

Sao Paulo is the wealthiest city in South America

Plush and active toys are 1/3 of the toy market in Brazil

Increased influence by children on spending will boost kids-focused business

THREATS

Global recessionMany established competitors (ex: Mattel, MultibrinkQuestionable safety

standards related to toys manufactured in China

PROJECTED SALES – YEAR 1

Sales

= (2700 sq ft.)($420.667)

= $1,135,800

Units

= $1,135,800/$32

= 35,494

1.56% Market Share in Year 1

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

BREAK-EVEN

Units

=$581,000/($32-$23)

=64,556 units

Sales

= 64,556*$32

=$2,065,778

2.8% Market Share at Break-Even

March 1- April 30: Determine store location, layout, and design. Secure distribution channels.

May 1- Onward: Acquire retail/selling licenses/permits and begin to renovate property

June 1- August 1: Refine ad campaign and develop BaB* products specific to Brazil

August 1-Oct. 12: Launch ad campaign and begin raising awareness of new BaB store opening

September 20: 1-day test market of the BaB store

Marketing Timeline for Brazil Launch, 2011

October 12: Children’s day- Grand opening!

Nov. 1- Dec. 25: Begin Christmas promotions and sales

*‘BaB’ = Build-a-Bear Inc.

Dec. 25-Onward: Further promotional activities

Thank You Beary Much!

Aminata Wurie, David Chak, Laura Galin, Rebecca Varon, Stephanie Taras, Sophia Herbst