L.L.Bean, based in Freeport, Maine, began life as a oneproduct firm selling by mail in 1912. Founder
Question:
L.L.Bean, based in Freeport, Maine, began life as a oneproduct firm selling by mail in 1912. Founder Leon Leonwood Bean designed and tested every product he sold, starting with the now-iconic rubber-soled Bean Boot. Today, the catalog business that L.L.Bean began is still going strong, along with 30 U.S. stores and a thriving online retail operation. In addition, L.L.Bean is expanding its retail presence in Japan and China, where customers are particularly drawn to brand names that represent quality and a distinct personality. The company’s outdoorsy image and innovative products, combined with a century-old reputation for standing behind every item, have made its stores popular shopping destinations around the world and around the Web.
Although the award-winning L.L.Bean catalog swelled in size during the 1980s and 1990s, it has slimmed down over the years as the online store has grown. Now, using sophisticated marketing database systems, L.L.Bean manages and updates the mailing lists and customer preferences for its catalogs. For targeting purposes, L.L.Bean creates 50 different catalogs that are mailed to selected customers across the United States and in 160 countries worldwide. The company’s computer-modeling tools indicate which customers are interested in which products so they receive only the specialized catalogs they desire. Still, says the vice president of stores, “what we find is most customers want some sort of touch point,” whether they buy online, in a store, by mail, or by phone.
Questions for Discussion 1. What forms of direct marketing does L.L.Bean employ?
Which additional forms of direct marketing should L.L.Bean consider using?
2. Do you think L.L.Bean’s website will ever entirely take the place of its mail-order catalog? Why or why not?
3. What type(s) of location do you think would be most appropriate for future L.L.Bean stores, and why?
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