Build a Bear
Individual Coursework: Build-A-Bear Workshop
Executive Summary
Within this coursework essay, I hope to address the concepts of marketing and operations management and apply it to the Build-A-Bear case study. I will include an example of a transformation process model and explain how it is relevant to this particular company by including the transforming/transformed inputs, the transformation process, and the outputs. Also, I will identify the unique communication method used between Maxine Clark and her customers. Moreover, I will explain how Build-A-Bear contrasts with traditional toy shops by exploring the different marketing strategies used; specifically customer relationships. Finally, I will evaluate the facets of the Build-A-Bear product and describe the transaction that takes place.
Introduction
Build-A-Bear is a toy shop which sells fully customisable bears and accessories which are created and manufactured by the customer and put together by staff. The company has opened more than 200 stores and has custom-made more than 30 million teddy bears. Annual revenues reached 262 million Euro’s in 2005 and it is predicted that the company will experience a 20% annual growth. The share price has increased by 56% since it went public. Build-A-Bear hopes to franchise 20 stores per year, internationally. This coursework looks at the operations in detail, specifically the inputs, processes and outputs of the company using a process model to illustrate. This also helps to show how the company uses a unique manufacturing technique (allowing the customers to get involved). Moreover, I will look at how Build-A-Bear differentiates itself from traditional toy shops in order to gain an insight into how its sales growth has survived when other, similar, toy shops have failed. I hope to analyse the customer relationships that the company has built up and why it has input so much into retaining its customers, using the idea of customer equity and customer lifetime value.
Executive Summary
Within this coursework essay, I hope to address the concepts of marketing and operations management and apply it to the Build-A-Bear case study. I will include an example of a transformation process model and explain how it is relevant to this particular company by including the transforming/transformed inputs, the transformation process, and the outputs. Also, I will identify the unique communication method used between Maxine Clark and her customers. Moreover, I will explain how Build-A-Bear contrasts with traditional toy shops by exploring the different marketing strategies used; specifically customer relationships. Finally, I will evaluate the facets of the Build-A-Bear product and describe the transaction that takes place.
Introduction
Build-A-Bear is a toy shop which sells fully customisable bears and accessories which are created and manufactured by the customer and put together by staff. The company has opened more than 200 stores and has custom-made more than 30 million teddy bears. Annual revenues reached 262 million Euro’s in 2005 and it is predicted that the company will experience a 20% annual growth. The share price has increased by 56% since it went public. Build-A-Bear hopes to franchise 20 stores per year, internationally. This coursework looks at the operations in detail, specifically the inputs, processes and outputs of the company using a process model to illustrate. This also helps to show how the company uses a unique manufacturing technique (allowing the customers to get involved). Moreover, I will look at how Build-A-Bear differentiates itself from traditional toy shops in order to gain an insight into how its sales growth has survived when other, similar, toy shops have failed. I hope to analyse the customer relationships that the company has built up and why it has input so much into retaining its customers, using the idea of customer equity and customer lifetime value.