Build-A-Bear Workshop

Where Best Friends are

made

Outline
Company Profile
What is Build-ABear?
The 4 Ps
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 me
Hear me
Stuff me
Stitch me
Fluff me
Name me
Dress me
Take me
home!

Mission
Franchising Build-ABear 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
Introducto by nearly 3% from the prior
ry
Maturity
year.
Growth

Decline

Perceptual Map & Competitor

Analysis

Place
Higienpolis mall
Located in Consola district, Sao
Paolo

Price
Set 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
Coupons
Post-launch Promotion:
PR event

Sample Coupons

STRENGTHS
Globally operated

Stuff-fur-stuff
loyalty program
to increase
repeat traffic

Highly differentiable
product- customers
have many, many
choices

Shopping steps
create an experience

Free online service:

CyBEAR space

WEAKNESSES
High prices could
impact customers
value perception
adversely

Highly
concentrated
sourcing and
distribution

Only offered in one

location in Brazil
when opened

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

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

Brazils rising
economy

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

Sao Paulo is the

wealthiest city in
South America

THREATS
Global
recession
Questionable
safety
standards
related to toys
manufactured in
China

Many established
competitors (ex:
Mattel, Multibrink

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)

Sales
= 64,556*$32

=64,556 units
=$2,065,778
2.8% Market Share at BreakEven

Marketing Timeline for Brazil Launch, 2011

Dec. 25Onward: Further
promotional
activities

October 12:
Childrens dayGrand opening!
August 1-Oct.
12: Launch ad
campaign and
begin raising
awareness of
new BaB store
May 1- Onward:
opening
Acquire
retail/selling
licenses/permits June 1- August 1:
and begin to
Refine ad campaign
renovate
and develop BaB*
property
products specific to
Brazil
March 1- April 30:
Determine store
location, layout, and
design. Secure
distribution channels.

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

Nov. 1- Dec. 25:

Begin Christmas
promotions and
sales

*BaB = Build-a-Bear
Inc.

Thank You Beary Much!

Aminata Wurie, David Chak, Laura Galin,

Rebecca Varon, Stephanie Taras, Sophia
Herbst