Bear Market
How one company repositioned itself for a plush success story
Want to give your customers the warm fuzzies? Then look deep
into your company to find the right positioning.
Before
The Vermont Teddy Bear Company was founded in 1981 to craft
cuddly teddy bears. Sales were in hibernation for years until 1990,
when the company started promoting its Bear-Gram-a delivery service
via a toll-free phone number-and sales roared to life.
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During
By 1995, management was building the brand as a teddy bear
retailer with three stores. The problem? Consumers selected the
bears as gifts and shipped them-just as they could have over the
phone! At the same time, the catalog expanded to include all sorts
of bear paraphernalia. Both strategies caused the company to lose
focus.
Elisabeth Robert was named CEO in 1997 and quickly
repositioned the business as a gift-delivery company. The stores
were shuttered, catalog offerings restricted to stuffed bears, and
radio ads broadcast the Bear-Gram as the convenient, creative
alternative to flowers. Meanwhile, the company created a
"wow!" experience for recipients, starting with the box:
an air hole for the bear, a warning not to turn it upside down lest
your bear get a headache, a colorful drawing of headquarters and
all the employees' first names. Other soft touches include Bear
Counselors, who assist customers with the selection and
personalization of their bears; an invitation to visit the factory;
and free bear repairs at the Vermont Teddy Bear Hospital.
After
Today, some 500,000 customers are enrolled in the company's
PreFur'd customer loyalty program, and 2001 sales exceeded $37
million. The company's position in the gift-giving business has
enabled it to launch two new companies: The Pajamagram Company and
SendAmerica. Remember, understand your position, and you can profit
from it.
Elizabeth J. Goodgold
is CEO/chief nuancer of The Nuancing Group, a brand consulting firm
in San Diego, and author of the monthly newsletter Duh!
Marketing.
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