StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Economic environment effect on Build-a-Bear - Essay Example

Cite this document
Summary
Name Instructor Course Date Economic environment effect on Build-a-Bear Trends in Consumers’ Income, Employment, Savings, Debt, and Credit Availability that have an Impact on the Brand There are various economic environmental factors that determine how a brand performs…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
Economic environment effect on Build-a-Bear
Read Text Preview

Extract of sample "Economic environment effect on Build-a-Bear"

Download file to see previous pages

When consumers’ income decrease, then it is expected that their purchasing power will fall thus impacting on the brand negatively. For example, after the financial crisis of 2007/2007, consumers’ income fell remarkably in the United States as a result of closure of companies, laying down of workers and reduction of salaries of wages (Nanto Dick). As a result consumers were unable to spend money buying items in the manner they did before the financial crisis. This is what resulted in the decline in sales of the Build-a- bear company thus negatively affecting its brand.

According to the company’s press release the company increased its sales remarkably in the first quarter of 2013 (yahoo finance). Other external factors that affected the company’s brand are savings, debts, employment and credit. All these factors were also greatly influenced by the financial crisis of 2007/2008 thus negatively affecting the company’s brand. This is due to the fact this industry dependent highly on consumers’ disposable income (Accuval). How Recent Stock Market Movements have Affected the Company Despite the economic crisis of 2007/2008, the United States of America economy has been recovering gradually.

This has been as a result of the austerity and stimulus policies that have been adopted by the United States of America government (Weaver, 189). . At the same time the company’s sales increased by1.4 dollars more than the previous quarter. This is a remarkable improvement considering the company was performing poorly after the financial crisis of 2007/2008. This is because consumers in the united Sates of America opted for imported toys and other commodities in the industry from countries such as china since they were at a cheaper price.

Thus it can be concluded that the recent stock market movements have favored the company. Actions Has the Company been Taking in Response to these Developments and Trends In order to cope with the developments and trends in the economy, the company came up with a number of strategies. Firstly, the company introduced a store design that is new where the company introduced 11 stores which were newly imagined. These stores increased sales to 20 percent in the second quarter. The company expects that by 2013 it will have established the new store design in at least 30 locations and 25 more in 2014.

The company decided to reduce on operational costs by closing up 38 stores in 2012 and transferring the sales of these stores to other stores in the market. The company also remodeled it stores in order to save on cost by reducing the square footage occupied by the stores. It also moved to smaller premises in small malls. Build-a Bear also changed its approach to marketing and advertising in order to increase shopping frequency. The company did this by building their brand through television advertising in its markets in the United States of America 2012 mid October.

It also rebalanced its marketing mix in Europe in order to retain existing customers and attract more consumers to their products. This has resulted in the company realizing

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economic environment effect on Build-a-Bear Essay”, n.d.)
Economic environment effect on Build-a-Bear Essay. Retrieved from https://studentshare.org/marketing/1486201-economic-environment-effect-on-build-a-bear
(Economic Environment Effect on Build-a-Bear Essay)
Economic Environment Effect on Build-a-Bear Essay. https://studentshare.org/marketing/1486201-economic-environment-effect-on-build-a-bear.
“Economic Environment Effect on Build-a-Bear Essay”, n.d. https://studentshare.org/marketing/1486201-economic-environment-effect-on-build-a-bear.
  • Cited: 0 times

CHECK THESE SAMPLES OF Economic environment effect on Build-a-Bear

Relationships in Second Life and how they can affect Real Life

Relationships in Second Life and How They Can Affect Real Life Relationships in Second Life and How They Can Affect Real Life Introduction The information age has spurned the creation of 3D virtual societies in which users can log on and create avatars, virtual representations of themselves.... hellip; Since its release in 2003 by Linden Lab, Second Life has become a very popular Web-based multi-user virtual reality tool and is used by educators all over the world to support opportunities for interaction, a sense of community, and self-building capabilities within their students (Zhang)....
5 Pages (1250 words) Essay

Local and Surrounding Ecologies and Environment

There is a marked difference between the “built” environment and the “natural” environment, because the perception of the natural environment is prominent by its varied workings that consist of total environmental and biological groups with specific functions, which includes all plant life, flora, undergrowth, foliage and shrubbery, bacteria microbes, germs and soil, rocks, atmosphere and all non-artificial events in the physical sense that are not produced by humans, although they effect humans....
4 Pages (1000 words) Essay

Build-A-Bear - Build a Memory, Dubai Metro Stations

The paper "build-a-bear - Build a Memory, Dubai Metro Stations " highlights that the build-a-bear workshop actually believes in selling experience or personalized entertainment to its clients than just selling an ordinary product or a service for some money.... build-a-bear is actually a workshop that allows preteens to create their teddy bears through a step-by-step production process.... The marketing management concept of Product Development best describes the build-a-bear workshop....
7 Pages (1750 words) Assignment

Child Abuse

Children in effect develop behaviors that may fall flat in the broad… Also, while trying to cope with the thoughts of the abuse, their conditioning in the environment and for the environment becomes maladaptive and leads to acquisition of many health and psychological problems.... It not just has its effect in the immediate family; it explodes and infects the society altogether with crime, drugs, disease and callousness.... It's a state of emotional, economic and sexual maltreatment meted out to a person below the age of eighteen and is globally prevalent phenomenon....
7 Pages (1750 words) Research Paper

Environmental economics. Article review 4

Research process is done keenly in search of any isotopes that may have leaked or fallen out to the environment.... Therefore thorough checking in all possible components in the environment that can be contaminated is analyzed.... I felt that the article is precisely up-to-date and strongly recommend that other people read it, especially my colleagues in this course given that it builds references to both the environment and economic issues.... In conclusion, the article addresses the environmental problem caused by the Fukushima Daachi incident that may have long term economic effects to the world....
2 Pages (500 words) Essay

Impact of Climate Change on Ocean Life

The climatic conditions being experienced today are not the same as those experienced years back.... There have been several debates on the major causes of climatic change and various ways… Its effects are felt globally and one of the major effects is the changing weather patterns.... Apart from affecting weather patterns and agriculture, it also affects ocean life....
9 Pages (2250 words) Research Paper

How the Travel and Tourism Industry Impacts the British Economy

This assignment "How the Travel and Tourism Industry Impacts the British Economy" discusses the value of travel and tourism to the British economy, comparisons between the natural and built environment tourism and the effects of the external factors.... hellip; The economic health of Britain is one of the important factors in the growth of its travel and tourism industry....
8 Pages (2000 words) Assignment

Building Environmental Assessment Method (BEAM)

nbsp;…  Indoor issues included in BEAM are those parts of building execution that effect on the wellbeing, solace or prosperity of the tenants, and in addition parts of execution that enhance quality and usefulness.... It gives an acknowledgment for enhanced execution and minimizing false claims; Give a far-reaching arrangement of execution benchmarks that can be sought after by designers and proprietors; Lessen the natural effect of structures for the entire time of the life cycle, and guarantee that ecological contemplations as incorporated for the comfortable outline and arranging stages....
12 Pages (3000 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us