...bears can be found in just about any toy store. It is a market that is completely saturated. In spite of its extensive history John Sortino found a way of putting a new spin on an old idea. Entry into what one might consider the toy market may have been a recipe for disaster. Plush toy makers like Gund, North American Bear Company, and Applause had a strong presence in the industry. This did not prevent Sortino from successfully entering the teddy bear business. He believed that making a product with the made in the USA label appeal to the American bear buying public. What he would discover many years later is that the “made in America” label was not nearly as important to consumers as quality and convenience of shopping. What made Vermont Teddy Bears different were not just the materials or the craftsmanship (though these are significant factors) with which they were created but the market they appealed to most.
Initially toy makers were seen as the competition. Elizabeth Robert, CEO and president, had the revelation that their competition was not the toy manufacturers but the gift and personal communication businesses. This epiphany would be the first step in the strategy to improving profits. Since its conception the Vermont Teddy Bear Co. had evolved, branched out and opened retail stores. What began on a pushcart had grown to require a manufacturing facility and retail outlet. Soon after it was being sold in large department stores and advertised on billboards. It was the advertisements on the local Vermont radio station that seemed the most appealing to consumers. The “Bear-Gram” could be purchased by calling the company’s 800 number. Consumers could call and request delivery of a special message for many occasions. This kind of advertising would have twice the reward. The Bear-Gram would also have the endorsement of celebrity deejays...
