A successful retail promotion gets people in the door, ready and willing to spend money. But success also implies that the retailer is prepared to meet the demand that might result—a step that Build-A-Bear Workshop seemingly forgot about when it designed a “pay your age” promotion for its stuffed animals.

The promotion achieved an important goal: It got kids and parents truly excited. Promising that they could obtain one of the popular bears at a cost equal to the child’s age meant that parents could save a substantial amount, because at their regular prices, the stuffed animals can cost up to $25.

In response, families showed up in droves. Lines snaked through malls, with small children and their parents waiting literally hours. As if that were not bad enough, some retail locations ran low on inventory, and others cited safety concerns, leading them to halt operations and send everyone home, without a bear.

The kids were disappointed. The adults were mad, and they expressed it quickly and widely through social media. The negative word of mouth blamed the store for poor planning and protested that “turning away kids at the door” was inexcusable. Although Build-A-Bear promised everyone in line vouchers, such that they could come get the toys at a later date for the same price, the immediate effects were powerful, for both consumers and the retailer.

Discussion Questions: 

1. Which Service Gap occurred as a result of Build-A-Bear’s recent promotion?

Source: George Anderson, Retail Wire, July 13, 2018