Build-A-Bear Case Study

Through a master-license agreement with Hasbro, Build-A-Bear intended to expand its market beyond its retail stores and web site. Under the agreement Hasbro would develop and market a special kit for building teddy bears at home as well as a line of stuffed animals and clothing accessories. These products would extend Build-A-Bear sales to mass market retailers beginning in late 2004.

The excellence with which Build-A-Bear executed its retail formula attracted the attention of children's product marketers and authors of four books published in 2003 dedicated whole chapters to the company. Authors cited the company's attention to every detail of the retail experience as directed toward its target market. In Brand Child renowned marketing specialist Martin Lindstrom lauded Build-A-Bear for its effectiveness in meeting the needs of children between the ages of seven and 14 to express themselves, to be unique, to have fun, and to involve their friends. The authors of Creating Customer Evangelists credited Clark with creating a memorable retail experience that prompted word-of-mouth sales.

Although Clark intended to take the company global from its inception, concrete plans did not begin to take shape until late 2002. In November Build-A-Bear signed a franchise agreement with Japan, held by Tech R&DS Co. Ltd. The company also began a search for locations in the United Kingdom. These countries were chosen in response to requests from customers who had visited stores while in the United States or had visited the company's web site. A high number of addresses in the Find-A-Bear ID database for these countries indicated strong interest in the Build-A-Bear concept.

The opening of the company's first international locations occurred in Canada, however. In May 2003 Build-A-Bear opened at malls in Edmonton and Calgary, Alberta, with additional stores opening in Mississauga, Ontario, and Coquitlam, British Columbia,