L. L. Bean, a leading mail-order company in the outdoor apparel and equipment industry, is renowned for its exceptional delivery of top-notch products to customers. It holds the reputation of being the foremost mail-order company due to its efficient service. From 1976 to 1980, L.L.Bean experienced remarkable growth, acquiring 650,000 new customers and generating sales exceeding $120 million. What factors can be attributed to the accomplishments of L.L.Bean?
Clear company positioning and strict compliance are crucial for L. L. Bean, which offers high-quality outdoor wears at fair prices and provides exceptional customer services. The company treats its customers with care and consideration, treating them like friends and neighbors. This is evident through its provision of free shipping and handling, adding convenience for customers. Additionally, the company’s success can be attributed to its professional personnel who contribute to its achievements.
The combination of clear positioning, fair pricing, excellent customer service, genial care shown to customers, and the provision of free shipping and handling contributes significantly to customer satisfaction and loyalty towards L. L. Bean. Furthermore, the professionalism exhibited by the staff enhances the reputation of the company.
Nevertheless, relying solely on word-of-mouth as a marketing tool may pose sustainability challenges in the long run for L.L.Bean’s marketing efforts; hence it becomes essential to diversify marketing strategies to ensure continued growth and success in the future.
Despite facing some challenges during a transitional period, including a shortage of young talents, outdated technology, and slow growth, L. L. Bean experienced a positive trend with increasing sales, inquiries from domestic and international distributors, and invitations to conduct business in various locations. However, it is important to address concerns about the potential imbalance of management due to the successors of the Beans not being able to join the company in the near future. Additionally, while the growth of new customers has not been exceptionally high, it is crucial to evaluate how to effectively respond to these matters as raised by Mr.
Gorman poses at the end of the case? L. L. Bean should consistently prioritize loyalty and honesty towards its customers, offering high-quality products at fair prices to meet their needs. This approach is similar to what L. L. Bean has been practicing by treating customers as personal friends. While a company’s ultimate goal is profitability, it must also remain focused on the factors that sustain its presence in the market in order to maintain long-term success and keep the magic alive. 5. Which, if any, new avenues for growth should L.
L. L. Bean should maintain consistency in its operational ideology within the US, but should adapt its approach in other countries to accommodate different demographics and buying preferences. While deciding whether to prioritize retail stores or mail-orders, it is important to note that mail-order has always been a strong competitive advantage for L. L. Bean and offers cost savings. Therefore, I personally recommend that in the initial phase of expanding business in other countries, mail-orders should be the primary method of reaching customers.
