build-a-bear

1.Giveexamplesofneeds,wants,anddemandsthatBuild-A-Bearcustomersdemonstrate,differentiatingeachofthesethreeconcepts.WhataretheimplicationsofeachonBuild-A-Bear’sactions?Answer:Whychildrenlikestaffedanimals?WhychildrenlikeTeddybearoverotherstaffedanimal?Theansweroftheabovetwoquestionwillgiveyoutheanswer“whatistheneedsandwantsofBuild-A-Bearcustomers?”aswell.Firstofall,childrenliketoplay.TheyalwayswishtoplaywiththoseanimalsandsuperheroesthattheyseeintheTelevisionscreenandothermediaespeciallyincartoons.AsBuild-A-Bear’scustomersarealmostchildren,theirneedistoplay.Now,cometothesecondquestion,itfocusesofaspecifictoyrenownedas“TeddyBear”.Ifyouthinkdeeplyaboutthequestion,youwillsurelyfindsomethingirrelevant.Youmayquestion,whohavetoldyouthatallthechildrenthroughouttheworldlikeTeddybear?Yesyouareright,andthedifferencebetweenneedsandwantsisembeddedintoyourquestion.MostofthechildrenofwesterncountrylikeTeddybear,butfromourperspectiveasaninhabitantofathirdworldcountry,thesituationismuchdifferent.Thereasonbehinditiswant–theformofhumanneedsshapedbyculture,habitsandindividualpersonality.Aschildrenofwesterncountriesarefamiliarwiththeanimalteddybearphysicallytheirwantistoplaywiththeanimalandthat’swhyTeddybearisarenownedstaffedanimalinthosecountries.Onetermleftstoexplain,thatisdemand.Whenhumanwantbackedbybuyingpowerthenitbecomesdemand.Forexample,astaffedanimalatacostof$10-20isveryhighamountaccordingtoathirdworldcountry(i.e.Bangladesh)valueofcurrency.So,itchildrenofthosecountryhardlyaffordthiskindofstaffedanimal.ButinUSA,almosteverychildcanbuythoseproductsatthosepricetag.So,wewillsaythat,thirdworldcountry’skidsmayhaveneedforthosetoysbutnotdemandandUSAchildrenhaveboth.Build-A-Bearalwaysremembertheircustomers’needs,wantsanddemandswhileplanningfortheirbusiness.Asallthesetermsareveryvariableinnature,Build-A-Bear’sbusinessplanalsovariestimetotimeaccordingtothechangingfactors.So,theyarethreemajorfactorsofBuild-A-Bear’sactions.2.Indetail,describeallfacetsofBuild-A-Bear’sProduct.WhatisbeingexchangedinaBuild-A-Beartransaction?Answer:WecansimplydescribeBuild-A-Bearasatoyworkshopthatmakesandsellstoystothekids.Butthestatementwon’tdescribethemajorityaspectofBuild-A-Bearanditsproductfacets.ActuallyBuild-A-Beardoesn’ttakepartinproducingfinishedtoysratheritgivesitscustomerstheopportunitytotakepartinassemblingthekeycontentsofproductsandpreparingoneaccordingtotheirownchoices.Forimplementingthese,Build-A-BeararrangesitsstoreswithsomesegmentswhichincludeChooseMe,StuffMe,DressMe,andNameMeetc.Inaddition,Build-A-BearalsoexclusivelypartneredwithSkechersShoesandsellsshoes,sandals,bootsandslippers.Build-A-Bearisamajorinvestorofthestart-up“Ridemakerz”(25%ownershipstake)andithasasimilarbusinessunit“Friends2BMade”initsportfolio.SurelythesuccessofBuild-A-Bearisnotallaboutitsproductbuttheexperiencethatchildrengatherbyparticipatinginthecreationoftheirpersonalizedentertainment.So,Build-A-Bearismainlytransactingawholenewexperienceforattainingbusinessobjectives.3.WhichofthefivemarketingmanagementconceptsbestdescribesBuild-A-BearWorkshop?Answer:FromthecasestudyitisclearthatBuild-A-Bear’smarketingstrategyisbasedonMarketingConceptthatisachievingorganizationalgoalsknowingtheneedsandwantsoftargetmarketanddeliveringthedesiredsatisfactionbetterthancompetitorsdo.4.DiscussindetailthevaluethatBuild-A-Bearcreatesforitscustomers.Answer:Marketingisallaboutcreatingandexchangingvalueswithothers.Itisaprocessbywhichcompaniescreatevalueforcustomersandbuildstrongcustomerrelationshipsinordertocapturevaluefromtheminreturn.Build-A-Bearalsofocusesonthekeymarketingobjectives.Theyhavestudiestheirtargetcustomerverydeeplyandprioritizedtheir(targetmarket’s)needaboveeverythingelse.So,fromthefirstweseethatBuild-A-Beargivesthechildrenopportunitytodiscovertheirdreamlandandcustomizetheirdreamheroes.So,itisnotjustabearthatchildrenclutchastheyleaveastorebutalsoanexperiencethatwillbeeverfreshintheirmind.Build-A-Beardoesnotonlyvaluetheircustomerbutalsotheirparents.Asevidence,Build-A-Bearspricerangestartswith$10&averagepriceis$25.Anotherevidenceofitscustomervalueisimplementingtheir(customers’)ideasgeneratedfromlow-tech&high-techmethodofinteraction.So,theabovedetailsstatethevaluesthatBuild-A-Bearcreatesforitscustomers.5.IsBuild-A-Bearlikelytobesuccessfulincontinuingtobuildcustomerrelationship?Whyorwhynot?Answer:Yes,IbelievethatBuild-A-Bearislikelytobesuccessfulincontinuingtobuildcustomerrelationship.Becausetheyvaluetheircustomermost.Alltheirbusinessdecisionsarecustomercentric.Forexample,ithasestablishedonlinemarketplaceandwebsitetoimprovetheirongoingserviceforthecustomers.Fromthepricerangetothecustomization,itisallaboutcustomerwhoseideaisthekeyelementofalltheirbusinessstrategies.Andlikesellingconcept,theydoesn’talwaysthinksaboutmakingandselling.Theyvaluetheircustomers’interestandforthatreasonweseethattheychangetheirassortmentsofaccessories11timeseachyear!Isn’titenoughtorealizehowtheyvaluetheircustomerandtheirrelationshipwiththem?So,iftheycontinuethesesteps,itwillbealwayssuccessfulincontinuingtobuildcust