No doubt a lot of Canadian children tuck teddy bears in at night, but probably not many of the stuffed animals were actually created by their pint-sized nurturers. That’s about to change as St. Louis, Mo.-based Build-A-Bear Workshop expands north of the border at the end of the month, with its first location at the West Edmonton Mall.
The five-year-old interactive chain, which boasted sales of over US$107 million in 2001, offers a whole different approach to teddy bear retail: guests visit stations to create their own toy.
At ‘choose me,’ they pick their new pal; at ‘hear me,’ they choose a sound chip; then there is ‘stuff me,’ ‘stitch me,’ and ‘fluff me.’ At ‘name me,’ they choose a moniker and create a birth certificate; and at ‘dress me’ they select an outfit. The price for undergoing this process – either in-store or at www.buildabear.com – ranges from $15 to $39.
A second venue will open in Calgary’s Chinook Centre in mid-June, followed by a store in the Greater Toronto Area during the next several months. According to Jill Saunders, director of bear relations, there will be 10 to 20 Build-A-Bears in Canada within the next five years.
The retailer has already informed selected consumers in the Edmonton region about its arrival via e-mail and will follow up with a direct mail campaign. According to Saunders, the names were pulled from a Canadian database already built through visits to the company’s Web site. While database numbers aren’t available, the Web site has already received 30,000 unique visits from Canadian consumers, and gets 900,000 unique visits in total per month.
‘Initially our primary means of marketing will be publicity [via Toronto PR agency Strategic Objectives] and that will be augmented by direct mail, as well as events, as a way of maintaining excitement and interest,’ says Saunders.
In the U.S., this approach has already been proven by the US$107 million in sales achieved in 2001, compared to about US$20 million in 1999.
Get-togethers typically hosted by the 112-store chain include fashion shows and tea parties. During the former, ‘bear tracks’ in the floor enable the stuffed toys to participate in a catwalk, where they show off the latest styles. Kids get involved by bringing their own dressed-up bears; hence if they see a fabulous outfit that would look great against teddy’s fur tone, their parents might be more inclined to buy. Tea parties, meanwhile, are generally held in mall food courts.
Both types of events include the participation of the company mascot, Bearamy, who takes photographs with the guests; and both tend to be well attended, with some crowds hitting the 500 mark. Saunders says the retailer generally sees a spike in sales during these affairs, which are listed in a calendar, printed quarterly, and available in stores, as well as at buildabear.com.
Besides PR and events, the launch will also be supported by the retailer’s other main marketing thrust – charity.
The Edmonton store has already planned a charity tie-in for its opening, as kids will be designing bears for patients at a local children’s hospital. Says Saunders: ‘We want to launch in a way that the media understands our participation in the community. That’s an important part of our story.’
All charitable involvement revolves around either children or animals, both of which are considered perfect associations for the brand. Says Saunders: ‘A teddy bear…is a gift that stands for comfort and security.’
Other non-profit partners include the World Wildlife Fund (WWF), which has been a charity of choice for three years and receives a one-dollar donation for any special-edition WWF toys sold, as well as a literacy program for kids, which launched last July.
Build-A-Bear will often participate in programs at the suggestion of its customers. One example is Nikki’s Bear, which was added to store shelves a year ago, to commemorate the efforts of a 14-year-old Connecticut girl who died of cancer, and had wanted to make a difference in the fight against the disease. A portion of the proceeds from the sale of Nikki’s Bear will fund children’s cancer research and treatment programs, including efforts at two Canadian hospitals. A media tour across North America will drum up support for the initiative.
How will teddy bear retail go over in Canada? Richard Talbot, a retail analyst and president of Unionville, Ont.-based Talbot Consultants, believes the concept will be well-received.
‘It’s pretty neat from the point of view of customer participation,’ he says. ‘From a marketing perspective, [they need] to attract as wide a demo as possible, [and to do that] you need a fairly unique concept. It’s a destination for sure.’