Due to the introduction of technology in businesses, it is crucial for retailers to be innovative to meet the demand of many customers. The retailers should also integrate marketing strategies that add in keeping the success of their firms. This paper compares the product, distribution, price and promotion strategies of REI and its competitor, L.L. Bean. The paper also discusses how an integrated marketing program contributes to the economic success of a company. Finally, the writer studies how integrated marketing strategy of L.L. Beans contributes to the economic success of the company.
Considering the product strategies of REI and that of L.L. Bean, one can observe that both companies have almost similar strategies. According to Norton (2017), REI aims at giving customers real-life experiences and an encounter of virtual incorporation at kiosks which are located within the store. The runners of the company realized that success in their firm could not succeed without the invention of innovative strategies for selling their products. On the other hand, L.L. Bean established a huge catalog that later grew into stores and e-sales. The firm wholly re-established laws regarding their catalog at the extremely high amount. To accomplish this strategy, L.L. Bean had to analyze lifespan of the stock and incorporate a better forecasting strategy that would decrease overstocking and offer a variety of products to their customers (Swartz, 2016).
Both companies use similar distribution strategies. To fulfill desires of their customers, the companies require that products are ordered and distributed online. In REI, the company makes payments for shipping of goods ordered by consumers through the online outlet. L.L. Beans with the aid of VARGO couriers distribute products ordered by consumers through an online platform to their required destinations.
Both companies deal with online systems. With similar product category, REI has the power to compete with various levels of prices. The company has its price merchandise which is regular (the REI outline online) and its yearly REI Garage Sale. The strategy of pricing enables the Inc. to access new markets at fewer price intensities. Moreover, the company offers whole life membership for single time price of $20. The shareholders of the company get a yearly refund of 10% together with other seasonal paybacks (Norton, 2017). On the other hand, L.L.Bean ships its products for free to the customers. This idea of free shipping attracts buyers, and consequently, prices for the products are added.
Companies need to use promotion strategies that are aggressive. Such promotions should discount the total amount used in purchasing and production of products as well as distribution costs (Ehret, Kashyap, " Wirtz, 2013). L.L. Bean integrated their labeling on their website during the transition from catalog auctions and clothing trends just like their competing companies. On the other hand, ROI integrated the strategy of purchase online and pick in the store which drives customers to spend right to the stores. This strategy aided in the persuasion of customers to purchase more products from the company.
Integrated marketing program contributes greatly to the success of REI. It creates a strong customer base and also advances the relationship between sellers and customers. The program led to a high number of sales and new buyers into the company which improved the integrity of the company to its customers. Integration has also extended customer base to people who major in conducting outdoor doings that are of interest to many persons (Burnett, 2008). The integrated model is also a success to the L.L. Beans, which is a competitor to REI. Customers have the freedom of returning goods that do not satisfy them. The success of this company is contributed greatly by its employees. As a result, the company has incorporated a pension suite for its employees. The company also offers bonus and other rewards to its employees. Most people consider supporting firms that are loyal to their employees like the L.L. Bean. It is important for organizations to incorporate innovative models of products, their distribution, pricing and also promotion. Workers are key players in maintaining the success of their organizations. Thus, there is a need for company managers to honor and be loyal to their employees.
References
Burnett, J. (2008). Core concepts of marketing.
Ehret, M., Kashyap, V., " Wirtz, J. (2013). Business models: Impact on business markets and opportunities for marketing research. Industrial Marketing Management, 42(5), 649-655.
Norton, C. (2017). A critical evaluation of the feasibility of setting up an online based event prop hire business (Doctoral dissertation, Cardiff Metropolitan University).
Swartz, B. (2016). After record year of sales, LL bean announces biggest expansion in company history.
