Service firms can strategically view their operations along a continuum ranging from necessary evil to the other extreme, where operations are viewed as a key source of competitive advantage. Clearly, Build-A-Bear Workshops have used their world-class service delivery systems to create a compelling service experience for its customers. Build-A-Bear Workshops offer an experience-based business model where customers and their children, grandchildren, nieces, nephews or friends can make and accessorize their own teddy bears. Given the option of purchasing a bear off the shelf at a the local discount toy store or accompanying a child to a Build-A-Bear Workshop where they can be personally involved in creating the bear as a family, many customers are enthusiastically opting for the latter choice.

Build-A-Bear Workshop is the only national company that provides a make your-own stuffed animal interactive entertainment retail experience. The company opened its first store in St. Louis in 1997, and as of October 2009 operated 400 stores, including company-owned stores in the United States, Puerto Rico, Canada, United Kingdom, Ireland, and France and franchise stores in Europe, Asia, Australia, and Africa.

In addition to Build-A-Bear Workshops, the company has also introduced make your-own Major League Baseball mascot in stadium locations and Build-A-Dino Stores.

The company has also teamed up with prominent zoos and the Rain Forest Café and offers customers the opportunity to make stuffed animals that are unique to these specific locations. Since 1997, the company has sold tens of millions of stuffed animals making Build-A-Bear Workshop the global leader in the teddy bear business. Build-A-Bear’s competitive advantage has been its service delivery system, consisting of the clever process of Choose Me, Hear Me, Stuff Me, Stitch Me, Fluff Me, Name Me, Dress Me, and Take Me Home.

As described by the company’s website (www.buildabear.com), the process of making a teddy bear flows as follows: Choose Me—guests select from a variety of bears, dogs, cats, bunnies, monkeys and a series of limited edition offerings. Hear Me—guests then select from several sound choices that are placed inside their new stuffed friend. Examples of sounds include giggles, growls, barks, meows, and recorded messages such as “I Love You” and songs like “Let Me Call You Sweetheart.” Stuff Me—guests with the help of master Bear Builder associates fill their new stuffed friends with just the right amount of stuffing for customized huggability. Each guest then selects a satin heart, makes a wish, and places the heart inside their new furry friend. Barcode inside the stuffed animal so that if lost, the furry friend can be reunited with its owner. The company believes that thousands of bears have been returned to their owners through their exclusive Find-A-Bear ID tracking program. Fluff Me—guests are now able to fluff their new friends to perfection with the use of cool-air hair dryers and brushes at the purposely designed bear spa. Name Me—guests stop at the Name me computer where they enter their names and the birth date and name of their new friend. Guests can then select between customized birth certificates or a story that incorporates the owner’s name and the stuffed animal’s name. Guests can either select English or Spanish. Dress Me—guests are now directed to the bear apparel boutique where Pawsonal Shoppers help guests select from hundreds of choices the perfect outfit and accessories for their new friend.

Take Me Home—guests end their experience at the Take Me Home station where they receive their customized birth certificate or story and a Buy Stuff Club Card to apply toward future purchases. Finally, each new furry friend is placed within a Club Condo carrying case which is specifically designed as a handy travel carrier and new home.

As testament to the effectiveness of Build-A-Bear Workshop’s extraordinary delivery system, the company has received numerous awards such as ICSC “2004 Hot Retailer Award” and was named National Retail Federation’s International 2001 Retail Innovator of the Year—Global Winner. In 2008, the company’s founder and CEO, Maxine Clark, was named one of The 25 Most Influential People in Retailing by Chain Store Age. In 2006, Clark was inducted into the Junior Achievement National Business Hall of Fame. As a manager of a local Build-A-Bear Workshop, Laura Gray was wondering about the service costs associated with making each bear (or other type of animal friend). Store associates, known as master Bear Builder associates, shared the experience with customers at each stage of the bear-making process and were paid $10 per hour. Laura further estimated the average activity time for each stage of the bear-making process:

BUILD-A-BEAR PROCESS STEPS	ACTIVITY TIMES (SECONDS)*
Choose me	180
Hear me	60
Stuff me	90
Stitch me	60
Fluff me	120
Name me	120
Dress me	240

Take me Home                                                                               60          

BUILD-A-BEAR PROCESS STEPS ACTIVITY TIMES (SECONDS)*

Case study Questions

                                                                                                                       

1. Explain the motivation of consumers in buying from the above-mentioned service and what will be your way of promoting it?

2. Segment, targeting and position the build a bear workshop in Pakistani market?

3. Explain how the Pakistani culture will impact on this idea and what will be your strategy to overcome it?

Question

Discuss the role of reference groups on consumer behavior while making decision during purchase.

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I It brings a sense of belonging This can be promoted by increasing the involv... View the full answer