Case Analysis Report
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Caseanalysisexample.docx
Build-A-Bear Case Analysis
I. Background:
Build-A-Bear Workshop was formed in 1997, the first store opening was in Saint Louis. They now have more than 400 locations worldwide. Build-A-Bear is based around the in-store process of creating the bear. These bears are completely customizable for the person creating the bear. They can add clothing, sounds, accessories, and more to make it as unique as possible. Adults were skeptical about the business at first, but the children were not. This is when Maxine Clark decided to formally pursue Build-A-Bear. (Golden, 2018)
As times have changed over the past 20 years so has the need for a Build-A-Bear. Why? To put it simply, technology. Build-A-Bear is a bit late to the game, but they have had to change the way they are thinking especially as they have seen other companies such as Toys “R” Us take a turn for the worst.
II. Problem Definition:
Build-A-Bear is experiencing a major short coming when it comes to advertising, especially media advertising. They are missing the mark of getting kids and/or parents’ attention. Eventually they will become an obsolete brand if something does not change. When researching Build-A-Bears commercials they seem to take a decline in releasing commercials around 2013. When I went on an even deeper dive on YouTube, I cannot find one single commercial for 2020. This will become a huge problem, if it hasn’t already.
III. Situation Analysis: (Team, 2020)
i. Strengths:
· They have more than just the bear itself. They also offer gift cards, parties, accessories, etc. With these items they do not have to solely rely on selling bears, they will have other forms of getting the customer in the door.
· The new online ordering system has helped relieve some of the purchasing problems they were experiencing in the past. With this new system they are able to draw customers in that might have not had an opportunity to be a customer before, i.e. no store close enough, illness prevented in store shopping, etc.
ii. Weaknesses:
· Short shelf life for the toy. Customer preferences change so often that what is on trend one day may be obsolete tomorrow. They must turn the inventory as quickly as possible.
iii. Opportunities:
· Use more commercials based on specialized bears as possible. For example, Disney characters, video game characters, etc. This can draw in more customers based on character preferences.
· Build the brand name and expand further in the USA and other countries. This can help bring is more revenue and create more exposure of the brand.
iv. Threats:
· Toy preferences are more electronic toy based now. They need to either step up to become more electronic based or offer something so unique that it is unmatched. This can be through more personalized voice boxes in the bear, etc.
IV. Identification of Alternatives:
i. Create advertising that is easily interchangeable for when trends change.
ii. Create animated advertising opposed to actors.
iii. Maintain current status.
V. Evaluation of Alternatives:
i. Create advertising that is standard, so that trends do not affect the use of it.
a. Pros:
These ads can be used for an entire year or so, this would be for standard bears that are almost always in stores.
These types of ads can bring the nostalgic feeling of creating a unique bear back to the parents, therefore creating a cycle for their children as well. This would be similar to the “Disney effect,” where Disney uses nostalga to continue bringing in customers.
b. Cons:
This ad may become repetitive in nature if used to often.
Some people may not be aware of Build-A-Bear and decide this is not the right toy for their children. Something new and on trend might trump Build-A-Bear.
ii. Create animated advertising opposed to actors.
a. Pros:
This gives more leeway to change the ad to fit multiple occasions.
These types of ads can be interchangeable depending on the time of year, feedback from customers, etc.
This ad content can be changed to fit what is on trend at the time, i.e. new Disney movie release bear. This content can be changed with animations and be easily dropped much sooner than with people.
b. Cons:
This type of advertising is not as much of a true representation of the product.
iii. Maintain current status.
a. Pros:
With the minimal advertising effort they are putting in they are still driving profit and are able to allocate this money in other parts of the business.
They have not producing as much ad content in the past few years and they are still on the right track for success.
They have the opportunity to invest in other parts of the business, i.e. the app, the online experience, etc.
b. Cons:
They are not reaching their full potential.
This can be detrimental to the business, they are missing an opportunity of reaching potential customers.
VI. Recommendation:
My recommendation would be create animated advertising opposed to actors. This alternative gives Build-A-Bear an opportunity to create advertising in a minimal way. Although it is not a true representation of the product it is still getting the brand name out to the public more and the idea of Build-A-Bear into potential customers minds. This can also be benefitical to Build-A-Bear because they are able to create content quicker, especially because this industry is mostly trend based.
Being in a trend based market surely has put a kink into Build-A-Bears initial model. They initially were strictly bears but now they are having to quickly produce tendy bears. These bears will be something that kids will enjoy, but they almost have no time to advertise for it. This is why have animated advertising would be more helpful for the company as a whole.
Bibliography:
Golden, A. (2018, September 14). History of Build-A-Bear Workshop - ToughNickel - Money. Retrieved October 08, 2020, from https://toughnickel.com/industries/History-of-Build-A-Bear-Workshop
Team, M. (2020, April 12). Build-A-Bear Workshop SWOT Analysis: Top Build-A-Bear Workshop Competitors, STP & USP: Detailed SWOT Analysis of Brands. Retrieved October 08, 2020, from https://www.mbaskool.com/brandguide/media-and-entertainment/5858-build-a-bear-workshop.html
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