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BUSI 520 - MMIP Part 5
International Business (Liberty
University)
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support services offered by the firm’s main competitor. How are they
different? (Ch. 14)
Q2. Describe post-sale service arrangements the firm does or should provide. How
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Q3. Discuss the firm’s new product screening process. Discuss possible sources
of new product ideas. (Ch. 15)
Q4. Discuss the firm’s pricing method or methods. Explain the price adaptations
(discounts, promotions, etc.) the firm should use. (Ch. 16)
Q5. Discuss the firm’s distribution strategy. Explain the channels used to distribute
the product. (Ch. 17)
L.L. Bean products are recognized around the world for their practical design and high quality.
Many items have been in the product line for several decades, such as the Field Coat, introduced
in 1924, and the Chamois Shirt in 1928. The widely recognized Boat and Tote® Bag was
introduced in 1944 as Bean's Ice Carrier. Today, over 20,000 items are stocked for the catalog,
Web site and stores. In March 2010, L.L. Bean launched L.L.Bean Signature, a new apparel and
accessories collection inspired by the company's nearly 100-year heritage. The collection
features a modern fit and updated style and includes classic items from the company's archives.
The collection is available online at llbeansignature.com, at the Freeport flagship store and at the
Tysons Corner L.L. Bean retail store in McLean, Virginia.
The company devotes significant time and energy to product research, testing and development.
This process includes lab tests, field testers and employee and customer feedback. L.L. Bean
operates its own independent test lab for scientific analysis of materials, construction and design.
Prototypes for new products are tested, revised and retested in a continuous cycle until they meet
customer requirements and L.L. Bean quality standards. Established products continue to be
tested to maintain their high level of performance and quality. The company also brings new and
innovative products into the marketplace through extensive interviews with customers and
subsequent concept development meetings that help ensure the products being designed will
meet specific customer requirements for outdoor clothing and gear. L.L. Bean product expertise
is also reinforced by a group of 1,300 independent field testers – adults and kids – who help
assure product quality and performance. The company uses a combination of expertise and
testing to enhance existing products even though many are already considered "best in class"
based on customer feedback and objective consumer ratings. "We get out into the field as much
as we can at L.L.Bean and do the same things that our customers are doing," explained company
President Chris McCormick. "We use our own products so that we have a better idea of how
they're performing. This practice helps us identify better with our customers' experiences and
needs."
L.L. Bean is an interesting company because of the way they have managed a deep
organizational transformation to enhance their already "world class" customer service capability
in light of more demanding customer needs. IT plays a key role of their product offering and
service delivery system, fitting nicely with their overall objectives and goals.
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Bean's use of information technology is directed toward enhancing the customer interface and
providing the customer with more related information and services. For Bean, quality happens in
the interaction with customers. Today, Bean is implementing two major IT programs in
telephony and electronic commerce/service via the internet.
Bean has always been an early adopter of interesting technologies. L.L. Bean has partnered with
IBM to offer an electronic catalog that will enable customers to select items and place credit-card
orders via the internet. L.L. Bean was the first company to sign on IBM's new Net.Commerce
software and use it to set up a "virtual storefront" on the internet. This service is embedded in
their impressive web page.
Another important aspect regarding the internet technology is the use they have given to their
web page. Bean has transformed their web page to attract customer groups, providing them with
information about their specific hobbies, informing them about recent developments, helping
them make the most out of their time outdoors, including a special Park Search feature that can
identify specific tailored destinations for a vacation or weekend getaway. In addition to this
information, customers can select clothing and gear for their specific purpose, sign up for special
training sessions with the Outdoor Discovery School, or interact with sporting goods experts to
help them choose the right equipment.
On the other front, Bean is enhancing its telephone customer interface making it more intelligent
by being able to 'guess' the customer's needs and supply the right operator with all the necessary
information. Bean is testing a new telephony system, integrated to the customer database, that
will identify a caller and route his/her information directly to the specific group based on
previous transactions, and other personal information. This phone service adds to the 24-hour,
365 days toll free number, and to the telecommunications device for the hearing impaired
(TDD).
Summarizing, L.L. Bean is an interesting case of a transforming organization that is using IT
technology in a clever way to support their overall strategy and processes. The result is to
enhance their value proposition to customers by widening the product offering and building
a closer and lasting relationship.
