Case Study Submitted By: ERNEST JOHN OLA Leon Leonwood Bean

Case Study Submitted by: ERNEST JOHN C. OLA

Leon Leonwood Bean

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Case Study Submitted By: ERNEST JOHN OLA Leon Leonwood Bean

Summary The objective of this case study is to determine the advantages of direct marketing specifically direct mail. This investigation illustrates how L.L. Bean commenced his business. It further describes the operations of the company as it utilizes direct mailing as its effective marketing tool. It also specifies the characteristics of the place of business of L.L. Bean. Moreover, significant contacts and model documents are included in the study.

Contents
Aims/Objectives .................................................................................................................... 3 Where ....................................................................................Error! Bookmark not defined. How did it do it? .....................................................................Error! Bookmark not defined. Who was involved?............................................................................................................... 4 What did it achieve? ............................................................................................................. 4 Contacts and Model Documents ........................................................................................... 5

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Case Study Submitted By: ERNEST JOHN OLA Leon Leonwood Bean
Aims/Objectives
This case study aims to answer the following questions: 1. What were the direct mailing strategies that L.L. Bean used? 2. How effective is direct mail as a tool to sell L.L. Beans products? 3. How does direct mail affect the progress of L.L. Beans business? 4. What are the advantages of direct mail in the business growth of L.L. Beans company? 5. What is the significance of direct marketing in every business?

Where
L.L Bean started his business in Freeport, Maine. It is located in the northwest of United States. Freeport is a small town and bounded by the beautiful Casco Bay, recreational parks and wilderness area. The town of Freeport is a mixed of urban and rural characteristics. In early 1900s, hunters and fishermen are the mainly livelihood in Freeport, Maine.

How Did It Do It?

L. L. Bean was a fan of the outdoors. After a hunting trip, a revolutionary idea came into his mind; thus started to create a comfortable and practical boot that could withstand the Maine woods. From this, he started working out his business in the basement of his brothers apparel shop. His initial step was to gather all hunting license holders address and send a direct mail with a flyer that state publicly, "You cannot expect success hunting deer or moose if your feet are not properly dressed. The Maine Hunting Shoe is designed by a hunter who has tramped the Maine woods for the last 18 years. We guarantee them to give perfect satisfaction in every way." This three-page flyer communicated common sense logic and genuine enthusiasm. Consequently, these factors became appealing to the public. One hundred hunters respond to order his product but it is not successful at first. Out of 100 ordered, 90 of them returned the product to L.L. Bean because the rubber bottoms separated from the leather tops. He kept his one word and he refunded his customers and nearly stop running his business. However, this bit of failure did not stop him. He borrowed some money to start again and to correct the problem of his product. Then he started to mail more brochures. L.L. Beans catalogs had timeless appeal to the public. It featured paintings of outdoor Maine scenes and stories that underscored the strong link between Bean products and an outdoor lifestyle. Moreover, he has intentions to build an intensive mailing list. For this reason, he used all the companys profits for advertising. When Leon Gorman took over the company after L.L. Beans death, he studied the old catalogs. The old mailing list was converted to a computerized database. The success of L.L. Bean could not be
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Case Study Submitted By: ERNEST JOHN OLA Leon Leonwood Bean
attributed to direct marketing alone. It is undeniable that L.L. Beans personal touch greatly contributed to the success of the company. His Golden Rule states Sell good merchandise at a reasonable profit; treat your customers like human beings, and theyll always comeback. Likewise, he believes that a customer is the most important person ever in this office in person or by mail. Direct selling brought customers satisfaction and eventually bringing an increase of sales. Furthermore, he learned the art and science of customer satisfaction by listening to the customers needs and changing his product in order to meet the needs of his customer. His undiminished confidence on his product was proven by the personal touch that he gave as he personally tested his products. His honest advertising that is based on firm convictions, strengthened customers satisfaction. He manufactured the product and directly sold it to the customer. The interplay of these factors, direct selling and premium priority in customer satisfaction, made his company as the trusted source of outdoor equipment. He was the pioneer of direct selling and he marketed his boot through mail or through the retail store. After that, L.L. Beans business progresses and recognized as trusted source of outdoor equipments.

Who Was Involved?

L.L Bean is the solely person who started his business, from the creation of his first product to the use of direct mail and the attractive advertisement. Hunters are his first customers.

What Did It Achieve?

L.L. Bean achieved reasonable profit gained from the advantages of the direct mail. Through direct mail, he directly attracts his target audience mainly the hunters who practically needed good quality functional boots. Then he learns how to listen to his customers needs and wants and also changing his product in order to fully please his customers. L.L. Bean chooses the right way of using direct marketing to start his business; thus, bringing his business to soaring heights. Until now, L.L. Bean has a mailing list more than 115 million and offers 24 various kinds of catalogues yearly and still listens to his customers needs and wants. This is how L.L. Bean progressed and expanded. Today L.L Bean products control 25 percent of the $6 billion outdoor industry. Being the model of early direct-mail advertising, L.L. Bean set the benchmark for customer satisfaction as it tirelessly addressed the needs of its customers. Direct-mail explicitly communicated to outdoor lovers that L.L. Bean wanted to reach out to and help with their hunting needs.

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Case Study Submitted By: ERNEST JOHN OLA Leon Leonwood Bean
Contacts
http://www.llbean.com/customerService/aboutLLBean/background.html

Model Documents
Proquestcitation.pdf 110408_about-LLB.pdf http://www.fundinguniverse.com/company-histories/LL-Bean-Inc-company-History.html http://jlwatsonconsulting.typepad.com/my-blog/2011/03/free-shipping-one-of-threehistoric-decisions-by-ll-bean.html

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