Ll Bean Swot Analysis

Module 1 – Session Long Project

Strategic Marketing

MKT 501

Michael R. Primo

Instructor – Dr. Ronald Zallocco

January 22, 2017

Executive Summary

L.L. Bean is a privately held, family-owned company. L.L. Bean sells high quality and

innovative outdoor apparel for people who are outdoor enthusiasts. L.L. Bean employs over

3,400 employees and has a strong commitment to environmental stewardship. A major challenge

facing L.L. Bean is increasing their customer-base on the west coast of the United States in order

to successfully compete with Columbia Sportswear, their biggest competitor. In order to

accomplish this task, L.L. Bean needs to successfully market their new line of men and women’s
Ultralight 850 down jackets.

The strategic marketing plan for L.L. Bean is designed to evaluate the company’s internal

strengths and weaknesses as well as external opportunities and threats. The plan focuses on the

company’s growth potential by identifying and targeting business opportunities in different

geographical locations. The key actions for successful implementation is to evaluate their current

product; compare its product to their competitors product; identify areas of improvement; and

incorporate product changes to increase its market share for men and women’s down jackets.

Table of Contents

Product Statement………………………………………………………………. 4

Situation Analysis ………………………………………………………………. 5- 7

SWOT Analysis.…………………………………………………………………

Issues Analysis …………………………………………………………………..

Goals and Objectives …………………………………………………………….

Marketing Strategy Statements …………………………………………………..

Marketing Implementation ……………………………………………………….

Marketing Budgett ………………………………………………………………..

References ………………………………………………………………………… 8

I.
Product Statement L.L. Bean, currently headquartered in Freeport, Maine, was founded by an avid

outdoorsman named Leon Leonwood Bean in 1912 in the basement of his brother’s clothing

store. His goal was to outfit outdoorsman like himself with the proper hunting footwear

claiming “you cannot expect success hunting deer or moose if your feet are not properly dressed”

(L.L. Bean Company Profile, 2016)

From the very beginning, L.L. Bean has been providing quality outdoor clothing, gear

and expert advice. Today, the company still holds true to the founder’s belief in customer

satisfaction. The company has expanded from its original one-man operation located in a

basement to a global organization with annual sales of over $1.6 billion (L.L.Company Profile,

2016)

L.L. Bean products are known for their functionality, attractive designs and superior

quality. They currently have 27 retail stores and 10 outlets located outside the state of Maine

(L.L. Bean Company Profile, 2016). The majority of their stores are located on the east coast of

the United States with the highest concentrations in the New England area.

Since the highest concentration of L.L. Bean’s customers are located on the east coast;
it

is suggested to establish a brick and mortar footprint and customer base on the west coast. The

introduction of their Ultralight 850 down jackets for men and women gives L.L. Bean the perfect

opportunity to increase its market share.

Columbia Sportwear has a strong foothold on the west coast, especially in the Pacific

Northwest. An in-depth review of Columbia Sportswear’s customer demographics and

undertanding of their needs and purchasing trends will assist in the development of a marketing

perspective to assist L.L. Bean in achieving their goals.

II. Situation Analysis

External Environment - As of 2015, the external environment for hiking gear and

outdoor activities equipment has increased over the past five years (IBISWorld, n.d). The

continued growth of consumer’s interest in outdoor activities has increased the industry revenue

1.8 percent annually over the next 5 years (IBISWorld, n.d.). As a result, the external competition

will increase. Other companies will increase their hiking and outdoor activities gear inventory

causing smaller companies to close their doors. Due to this consolidation effort, the number of

hiking gear and outdoors activity equipment retailers is forecasted to decline by 0.3 percent to

3,115 companies by 2021 (IBISWorld, n.d.).

The competition in the hiking gear and outdoors activity equipment is very strong.
Columbia Sportswear is L.L. Bean’s major competitor. Columbia Sportswear has a legacy of

over 70 years and has a presence in over 100 countries through over 13,000 retail outlets

(Columbia Company Profile, 2016). Columbia Sportswear is a family business offering products

that are designed for functionality and durability (Columbia Company Profile, 2016). In addition

to the Columbia brand products; they have partnered with other brands like Sorel, Mountain

Hardware and Parana to increase their consumer base. Unlike L.L. Bean, Columbia Sportswear

has a presence in the stock market allowing consumers to own stock in their company. Columbia

Sportswear has a global presence serving consumers in over 100 countries. In 2015, Columbia’s

global sales increased to $114 million which is a 7 percent increase from 2014 (Columbia Annual

Report, 2015). Columbia’s global sales of Sorel and Parana brands increased to $209 million (26

percent increase) and $125 million (29 percent increase) respectively (Columbia Annual Report,

2015). Although the Mountain Hardware brand’s global sales declined 3 percent to $116
million;

the growth in the U.S. more than offset the decline (Columbia Annual Report, 2015).

The technological advances over the past 10 years has a dramatic effect on a company’s

success. Although brick-and-mortar businesses still exist, a strong presence on the internet is

needed for a company to ensure continued success. L.L. Bean has capitalized on growing

technology. L.L. Bean’s global awareness enabled the development of a global website that not

only serves 200 countries and territories but additionally convert product prices into over 60

different currencies including accurate tax and duty calculations (L.L. Bean Company Profile,

2016). Determined to keep up with technology, L.L. Bean entered the mobile commerce arena

and launched a mobile site and app for Smartphones (L.L. Bean Company Profile, 2016). In an

effort to appeal to the current generation they maintain a presence on social media sites like

Facebook, Twitter, YouTube and Instagram (L.L. Bean Company Profile, 2016).

There are no political, legal or regulatory trends, influence or events that could affect the

operations of L.L. Bean.

Customer Environment - L.L. Bean’s current customer demographics consists of men

and women who are college-educated; between the ages of 35 and 55 and are interested in the

outdoors (Pulido, 2015). One challenge for L.L. Bean is addressing their customer’s changing

desires and needs for better products and services. They had to change their strategy and

structure to meet customers changing needs while maintaining their core values and principles

(Pulido, 2015). In an effort to appeal to growing consumer’s needs, L.L. Bean transformed their

web site to attract customer groups which includes a special Park Search that can help their

consumers find vacation and getaway locations specific to their hobby interests (Pulido, 2015). Internal Environment - L.L. Bean is a privately held, family-owned company and its

benchmark customer service sets the standard in the business arena. Their customer service

success can be contributed to the nearly 2,900 customer service representatives they employee

(L.L. Bean Company Profile, 2016). In 2015, their distribution division employed nearly 2,500

employees and handled the shipment of over 15.5 million packages (L.L. Bean Company Profile,

2016). L.L. Bean is not solely focused on their sales and operational success. The company has a

strong commitment to environmental stewardship and social responsibilities. L.L. Bean is known

for using some of the best environmental practices including recycling, energy conservation,

greenhouse gas measurement and reduction, green building practices and sustainable products

and packaging reduction (L.L. Bean Company Profile, 2016). L.L. Bean is committed to sharing

their success by giving back to the community. L.L. Bean has contributed nearly $26 million to a

variety or organizations supporting outdoor recreation, conservation and stewardship of natural

resources (L.L. Bean Company Profile, 2016). Additionally, the raised a record-breaking $1.7

million during a United Way campaign (L.L. Bean Company Profile, 2016). L.L. Bean takes

pride in their employee relations by offering an Employee Wellness Program. This program

consists of on-site fitness rooms and classes at all worksites located in Maine and a 50 percent

reimbursement for gym memberships for employees outside of Maine (L.L. Bean Company

Profile, 2016).

L.L. Bean does not have presence in the stock market. The company has no future plans

to go public and offer consumers the opportunity to become shareholders in the company

(L.L. Bean Company Profile, 2016).

References

Columbia Annual Report (2015), Retrieved from www.columbia.com on January 21,

2017.

IBISWorld (n.d.). US – Industry, Company and Business Research Reports and

Information. Retrieved from www.clients1.ibisworld.com

L.L. Bean Company Profile (2016), Retrieved from www.llbean.com on January 21, 2017

Pulido, Ignacio (2015). L.L. Bean, Inc. Retrieved from www.css.mit.edu on 22 January,

2017