Page 458 - Foundations of Marketing

Retailing, Direct Marketing, and Wholesaling | Chapter 14 425

operation. In addition, L.L.Bean is expanding its retail pres- about its products. Customers can pause for a cup of coffee
ence in Japan and China, where customers are particularly or sit down to a full meal at the in-store café. Thanks to the
drawn to brand names that represent quality and a distinct store’s enormous size and entertaining extras, it has become
personality. The company’s outdoorsy image and innova- a tourist attraction as well as the centerpiece of L.L.Bean’s
tive products, combined with a century-old reputation for retail empire.
standing behind every item, have made its stores popular L.L.Bean’s online store continues to grow in popular-
shopping destinations around the world and around the ity. In fact, online orders recently surpassed mail and phone
Web. orders, a first in the company’s history, and the company
Although the award-winning L.L.Bean catalog swelled also offers a mobile app for anytime, anywhere access via
in size during the 1980s and 1990s, it has slimmed down cell phone. The web-based store is busy year-round, but
over the years as the online store has grown. Now, using especially during the Christmas shopping season, when it
sophisticated marketing database systems, L.L.Bean man- receives a virtual blizzard of orders—as many as 120,000
ages and updates the mailing lists and customer preferences orders in a day. Unlike the physical stores, which have lim-
for its catalogs. For targeting purposes, L.L.Bean creates ited space to hold and display inventory for shoppers to buy
50 different catalogs that are mailed to selected customers in person, the online store can offer every product in every
across the United States and in 160 countries worldwide. The size and color. Customers can order via the Web and have
company’s computer-modeling tools indicate which custom- purchases sent to their home or office address or shipped to a
ers are interested in which products so they receive only the local L.L.Bean store for pickup. This latter option is particu-
specialized catalogs they desire. Still, says the vice president larly convenient for customers who prefer to pay with cash
of stores, “what we find is most customers want some sort rather than credit or debit cards.
of touch point,” whether they buy online, in a store, by mail, At the start of L.L.Bean’s second century, its dedication
or by phone. to customer satisfaction is as strong as when Leon Leonwood
The company’s flagship retail store in Freeport, Maine, Bean began his mail-order business so many decades ago.
like its online counterpart, is open 24 hours a day, 7 days “We want to keep … the customer happy and keep that cus-
a week, throughout the year. Even on major holidays like tomer coming back to L.L.Bean over and over,” explains the
28
Thanksgiving and Christmas, when most other stores are vice president of e-commerce.
closed, the flagship store is open for business. It stocks extra
merchandise and hires additional employees for busy buy- Questions for Discussion
ing periods, as does the online store. Day or night, rain or 1. What forms of direct marketing does L.L.Bean employ?
shine, customers can walk the aisles of the gigantic Freeport Which additional forms of direct marketing should
store to browse an assortment of clothing and footwear for L.L.Bean consider using?
men, women, and children. They can try out camping gear 2. Do you think L.L.Bean’s website will ever entirely take
and other sporting goods, buy home goods like blankets, and the place of its mail-order catalog? Why or why not?
check out pet supplies. Every week, the store offers hands-on 3. What type(s) of location do you think would be most
demonstrations and how-to seminars to educate customers appropriate for future L.L.Bean stores, and why?

NOTES

1 Based on information in Stephan Faris, “Italy, 3 Annual Retail Trade Survey, 2010, U.S. Bureau of 6 Top 250 Global Retailers, Deloitte, www.stores
Fast & Slow: Behind the Unlikely Rise of the Census, www.census.gov/retail/index.html#arts .org/STORES%20Magazine%20January%20
Eataly,” Time , January 21, 2013 , www.time.com ; (accessed February 15, 2013). 2012/global-powers-retailing-top-250 (accessed
Kathleen Squires, “Eataly Explosion: Inside the 4 Greg Bensinger, “Order it Online, and … Voilà,” February 16, 2013).
Italian Market’s Success and Expansion Plans,”
Wall Street Journal , December 3, 2012, http:// 7 “About Us,” National Association of Convenience
Zagat , January 31, 2013, www.zagat.com ;
online.wsj.com/article/SB10001424127887324712 Stores Online, www.nacsonline.com/NACS/
Glenn Collins, “At Eataly, the Ovens and the
504578133602774225678.html (accessed About_NACS/Pages/default.aspx (accessed
Cash Registers Are Hot,” New York Times ,
February 16, 2013). February 16, 2013).
August 29, 2012, www.nytimes.com ; www
5 John Paczkowski, “A Big Year for Apple’s 8 Stephanie Clifford, “Shopper Alert: Price May
.eataly.com .
iPhone in India,” All Things D , February 11, Drop for You Alone,” New York Times , August 9,
2 Statistics of U.S. Business, U.S. Bureau of the
2013, http://allthingsd.com/20130211/a-big- 2012, www.nytimes.com/2012/08/10/business/
Census, www.census.gov/econ/susb/index.html
year-for-apples-iphone-in-india/ (accessed supermarkets-try-customizing-prices-for-shoppers
(accessed February 15, 2013).
February 16, 2013). .html (accessed February 16, 2013).
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