Llbean Ours

8/12/2019 Llbean Ours

1/23

Submitted By:Manish Yadav

Sahil SethiAmit KumarAzad Ali KhanVikash SinhaAshish Bhatt

Submitted To:

Prof. Ravi Kumar


2/23

Founded in 1912 by Leon Leonwood Bean of

Greenwood .

First product: The Bean Boot handmade by Bean in hisbrother's basement in Freeport.

90% of the initial batch sold were returned broken this is where Bean's money-back guarantee comes from.

Company Overview


3/23

Company Overview

Major Competitors include:- Land's End- Eddie Bauer- Cabela's- Bass Pro Shops

Primary Target Customers include:- Avid Outdoorsmen / Outdoorswomen.- Typically between the ages of 35 and 54.

- No plans to target the younger urban segment.

Sales Channels:- Online- Retail Stores (36 worldwide)

- Catalogue Sales


4/23

Company Overview

Number 9 sporting goods retailer in the U. S.

259 th largest privately owned company in 2005.

73 rd largest mail-order house company.

Ranked number 8 in the best apparel, fashion, textile, anddepartment store companies.


5/23

L.L.Bean Products

Specializes in:

Outerwear and Indoor Apparel Footwear Adventure Outdoor Accessories


6/23

Challenges

Competitive environment becoming much more complicated.

Consumer tastes are beginning to change.

Evolution of the Internet, e-marketing, and e-commerce.

Growing popularity of retail stores and retail shopping.

L.L. Bean, in the 1980s and 1990s, had become very popular inJapan. Japan was doing well at the time and it's people werebuying from Bean's left and right, that is, until their economystarted to shift.


7/23

Initial Response

L.L.Bean quickly jumped on the web bandwagon and created a website.

The site was created and launched in late 1995.

Featured little more than product descriptions and pictures.

Gained criticism from critics and competitors

Thus Initial response of website was not overwhelming .


8/23

Re-Vamping

They developed a more feature-rich site including many differentthings such as company background information, outdoor tips, and a

national park directory.

Order Management System .

They also teamed up with IBM to create an e-commerce

selling plat form (called Net.Commerce) .


9/23

Exploring

- Other improvements that Bean's decided to implement:

- Designing of new product lines such as Freeport Studio.(Women Catalog

- Store remodeling (Freeport).

- New manufacturing equipment. (kayaking,hunting,canoeing)

- New specialty catalogues. (Maine hunting shoe)

- Opening more retail stores (across the U.S. And

eventually Japan).

- Partnering with Unica (the company that acquired MarketSoft Corp)

and implementing their Affinium software suite.


10/23

Nowadays

- Now, one can do just about anything on the L.L. Bean website as itpertains to their products:

- Monogramming- Embroidered Logos- Special Gift Wrapping and Boxing- Special Gift Ideas for the Holidays- Etc.

- Bean's now has a Japanese-language website!- http://www.llbean.co.jp


11/23

Measuring Success

2006 TurnaroudOnline sales from llbean.com surpassed that of catalog sales!

Online sales - 10% higher than those of the previousyear, and in the previous year (2005) online sales had grown bytwenty-eight percent!

73 million visits, which was 13% more than previous year .

Bean's sales have been on the steady increase since theimplementation of the website, especially the new and improved website.


12/23

Marketing Mix Products

Outdoor apparel for man, woman, child Footwear Outdoor gear Luggage & travel accessories Home & outdoor living

Price Average for the industry

Place 200 million catalogs/yr. plus 10 specialty catalogs 6 retail stores, 14 factory outlets (NE USA, Japan)

Promotion Word of mouth, strong reputation Outdoor Discovery Schools


13/23

Continued People

- Dedicated Employees & staff in providing assistance toitscustomers 24 hrs & believed in complete satisfaction .

Physical Evidence


14/23

Customer Service

The philosophy of the company has not changed.business today might differ from doing business in1912.

Chris McCormick remains firm in his commitment toproviding superior service and excellent products. Eachproduct is still guaranteed to provide 100% satisfaction.

They serve customers with knowledgeable employeeswho are highly customer focused. Employees aretrained to take the time each individual customerrequires to feel valued whether through the mail, onthe phone, by fax, over the Internet or in the stores.


15/23

Initial launch,including interactive shoppingguides, 24-hour live customer service andfeatures such as order tracking, up-to-date

product availability, customer order history andratings and reviews. The company is a well-recognized world leader in

the mail order and retail industries and has

developed a multichannel approach tomaintaining the same high level of service forcustomers in the US and abroad.

Customer Service


16/23

Evaluating Response

- Understanding customer needs and behaviors:

Bean was beginning to understand the trend people's tastes were just changing.

Trends come and go, as always. Also, e-commerce was making it's move around

the time in question, and the popularity of retail was beginning to rise. They

began contemplating a website and the opening of more retail stores, as well as

strengthening their relationship with their customers, a big source of sales. They

wanted to find other a venues of marketing, as well, and started to watch what

their other competitors were doing.


17/23

Evaluating Response- Formulating a Strategy to Fulfill Needs:

Bean figured they would start off slow. They didn't want to just

jump in to the web and invest a whole lot of money intosomething that might not come back profitable. They figured they'dstart off with just a small description site and see how that workedout first. They were also thinking about other e-marketing methodslike e-mail marketing. However, when they began thinking of goingretail, their thought process was different. They decided to try andaggressively open up new stores.


18/23

Evaluating Response - Implement Effectively and Efficiently:They first got the site up and running towards the end of 1995, with not many bellsand whistles. They also started doing e-mail marketing, again, being slow and basic.

After obtaining profits from their website and email marketing, they invested thismoney into the growth of these departments.

Now they have a full-featured website and one of the best email marketing programsavailable.

They did effectively manage their risk and probably saved money by taking it slowThen, they beefed up the site and introduced e-commerce using IBM's Net.

Commerce platform.

However, coming to their retail store end, Bean's attempted to open threelarge stores in two years, which did not prove to be successful.After a while, however, they got the hang of it and now have a total of 36 stores.


19/23

- Formulating a Strategy to Fulfill Needs :

At this point in time, Bean didn't have to try and build a trusting

relationship with their existing customers they've had one in place since1912! Even if somebody has never done business with L. L. Bean, as long asthey know who they are, they know what type of reputation Bean has. For thepeople that didn't know, all it takes is one visit to the website or one browse inthe catalog to see that Bean's just isn't your average company. One order fromthem and you'll have a customer hooked.

Evaluating Response


20/23

What Is a Customer?

A customer is the most important person ever in thiscompany in person or by mail. A customer is not dependent on us, we are dependent on

him. A customer is not an interruption of our work, he is thepurpose of it. We are not doing a favor by serving him, he is doing us a

favor by giving us the opportunity to do so. A customer is not someone to argue or match with. Nobody ever won an argument with a customer. A customer is a person who brings us his wants. It is our

job to handle them profitably to him, and to ourselves.


21/23

CORPORATE CITIZENSHIP

All new L.L.Bean buildings are constructed in accordancewith the US Green Building Councils LEED (Leadership inEnergy &Environmental Design) program

L.L.Bean encourages its employees to adoptenvironmentally friendly commuting options, such ascarpooling, biking and walking and provides access toresources and incentives

The companys fleet contains biodiesel trucks, buses andhybrid vehicles, and L.L.Bean supports a fleet of propanebuses at Acadia National Park

L.L.Bean recycles more than 82% of its waste, including5,000 tons of cardboard, and donates unused officesupplies and equipment to local schools


22/23

Conclusion-L. L. Bean was (and still is) a company that knows what it's like

to be able to grow.

- When times started changing, Bean's at least knew that they had tochange/modify some things.

-While their first attempts may not have been so great, they learnedfrom their mistakes and figured out how to climb out of the holethey'd dug.

-Their first website wasn't too great, but less than a year later,after seeingthe response, they jumped on creating a full-featured

site to draw inmore revenues.

-Their first attempt at opening retail stores (other than Freeport)wasn't too great either, but eventually they got the hang of it, andnow have 36 stores worldwide (27 in the U.S. And 9 in Japan)


23/23

THANK YOU

Documents

Llbean Ours