Case Study: The Vermont Teddy Bear Company

Situation
For over 20 years, The Vermont Teddy Bear Company (VTBC) has been delivering its Bear-grams around the world to delighted recipients - to the tune of over 350,000 bears a year, all hand-stitched in Vermont. VTBC was looking to expand its business by diversifying its product line and target audience. The company approached MVS for expert advice on brand extension and innovation.

MVS' Approach
MVS used multiple tools to assess how internal strengths could be leveraged to fuel effective management of branding.

• Case studies on Hallmark, GE, Proctor and Gamble, and LL Bean were examined to provide a horizontal view of common industry practices and trend analyses
• Market research and consumer and competitive trend analyses were performed to provide vertical-specific strategic insights
• Comprehensive financial analysis was completed to determine the economic feasibility of creating new products.

MVS' Conclusions and Impact
MVS recommended scaling back ambitions and creating endorsed sub-brands to give new products the best of both worlds: leverage existing brand equity, while maintaining a safe degree of brand separation. MVS worked with VTBC to create a strategy for the launch of PajamaGram and TastyGram, new and innovative brands that offer pajamas and gourmet sweets as caring gifts items. The new brands have helped VTBC diversify their revenue streams and grow in new channels. In its first year selling the PajamaGram, VTBC revenues increased by 13%.

“I hired Mount Vernon Strategies to help Vermont Teddy Bear develop another product without hurting its own Teddy Bear Brand. Their recommendation to create the PajamaGram® Company made us money from the beginning” –Elizabeth Robert, President, CEO, CFO, and Director, Vermont Teddy Bear.

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