Vermont Teddy Bear
...or the collectibles industry. In 1997, teddy bears accounted for 70 to 80% of the $1 billion in sales of the plush toy industry and sales were growing by more than 3%. In 1997, manufacturer's shipments for plush products rose 37.5% from $984 million to $1.4 billion because of the Beanie Baby craze. The US toy market is larger than Japan and Western Europe's combined. In the 1990's, marketing appeared to be the key to success in the toy market.
Competitive Analysis:
Major competitors in the toy industry include plush doll manufacturers Mattel and Hasbro. Competitive bear manufacturers include Steiff of Germany, Dakin, Applause, Fiesta, North American Bear and Gund. Competitors in the flowers industry include 1-800-FLOWERS and FTD. Chocolate producers such as Malley's and mail order gifts companies such as the Red Envelop are competitors. Competitors also include local and regional companies that provide flower, balloon, candy, cake and gift delivery.
Supplier Analysis:
Vermont Teddy Bear obtains its raw materials from domestic suppliers. However due to rising costs, overseas suppliers are being sought. Fabric cutting and sewing is performed at the Shelburne factory. Home workers are also subcontracted for their sewing skills. Bears are mechanically stuffed and then dressed to order. To reduce damage to the product and shipping costs, Vermont Teddy Bear began shipping their bears with Sealed Air Corp's Rapid Fill air-filled packaging. These plastic bags saved postage costs and did not damage plush fur.
Community Analysis:
The Vermont Teddy Bear Co. supports the women and children served by Women Helping Battered Women. During the holiday season, Vermont Teddy Bear donated equal to 25% of newly hired Bear Counselor's gross paid earning to the charity. Every child served by the program is also given a teddy bear.
Strategic Issues...
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