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This project is about Lacoste, a global casual sportswear brand, and its marketing systems and strategies. The purpose of the project is to understand Lacoste from a marketing perspective and to apply marketing tools to it. This is being done in order to reach a conclusion about the Lacoste’s current strategy globally as well as in India. The project introduces the industry where Lacoste operates with an environment scan of the markets which Lacoste competes in. An extensive analysis of political, economical, social and technological factors is done to understand the macroenvironment currently. The brand is compared with its competitors like Tommy Hilfiger and Adidas to analyse its position in the market. A segmentation of the consumer market is done with the help of secondary and primary data and its studied how the brand is positioned in the market. Based on the segmentation the brand’s marketing mix is analysed in the world scenario. Different aspects of a strategy are then taken up separately with explanation of product, branding, distribution, retail and promotional strategies. In the conclusive chapters, Lacoste’s current global strategy is studied with the help of a framework for analysing a brand’s strategy. In the last chapter, Lacoste’s current position in the Indian market is studied and Lacoste’s position on the PLC is identified.

Consumer Analysis CONSUMER ANALYSIS SEGMENTATION, TARGETING AND POSITIONING The term segmentation was first introduced into marketing literature by Alderson (1937). In 1950s, Smith conceptualized and provided a definition of segmentation as we know it today. Market segmentation may be defined as subdividing a heterogeneous market into more homogeneous subgroups based on some common customer characteristics, such as age, location, time of purchase or purchase frequency. Segmentation strategy has been expanded into several forms, such as niche, multi-segment and across-the-board targeting strategies (Alderson, 1957; Kotler, 1980; McCarthy, 1978).

SEGMENTATION DEMOGRAPHICS Table 2: Demographic Segmentation of Lacoste[1] Age: 18-44. Gender: More male (57%*) than female (43%*) buy from Lacoste. Income: Above 12.5 lakh per annum. The people with incomes from 6 to 10 lakh (21.6%*) and 10 to 15 lakh (21.6%*) are keener to buy Lacoste. Occupation: Business (51.4%*), Corporate and Service (16.2%*)

Social Class: Upper Middle Class, Upper class, SEC Class A Generation: Generation X, Generation Y

Lacoste targets people from the age of 18-44 since its a brand that targets the youth as well as older people. It produces clothes within a wide range with basic silhouettes but different colors and prints which can be for the youth. Since Lacoste started out as a menswear brand, a majority of their target group is male. However, of late their global strategy has shifted to focus more on women as well. This happened because they noticed that more and more women across the world are buying Lacoste. Within India, people who fall in upper middle class and upper class are the ones who buy Lacoste. This is apparent from the salary of the target group for Lacoste. The lifestyle that Lacoste is suited for is found more amongst Business class and people in corporate sector. PSYCHOGRAPHICS Needs and Motivation: On the hierarchy of needs, the customer who purchases Lacoste would ideally be on the 4th level where the esteem needs become the motivation for buying the product. Lacoste is an aspirational lifestyle brand which the consumers purchase in order to be a part of the higher society. Perception: Low risk – Lacoste produces mostly fashion basic merchandise such as polo t-shirts in various colors and designs, basic shirts and sweaters. Purchasing Lacoste merchandise doesn’t entail much risk for the buyer. A Lacoste customer is quality (43.2% people said good quality3) and value oriented as opposed to price oriented. Since Lacoste prices are super premium, the people should be willing to pay it for the quality they receive. Personality: The Lacoste customer comes in the segment of early adopters since these people like to keep up with the happenings in the world of activewear and Lacoste happens to be the market leader in this category. Novelty seekers – They are exploratory in nature. Involvement: The Lacoste buyers are highly involved with the product because Lacoste has a niche in the market that cannot be matched by any other brand. Lifestyle: Activities: Work (Business and Corporate), Hobbies (Casual Sports, Laidback weekends), Sports, Vacation (Beaches, Laidback) Interests: Job, Home, Family, Tennis, Recreation

Opinions: Economy and business, Social, Family values

BEHAVIOURAL Consumer Awareness: People are generally aware of Lacoste[2] even if they don’t buy from it. Benefits sought: The Lacoste customer is trying to fulfil social need by using Lacoste products. Buying/Usage Frequency: Heavy product users. People who buy Lacoste tend to use it often and account for a significant portion of the revenue for the brand. The people who buy from Lacoste wear it mostly on for casual outings (70.3%4). Loyalty status: About 70% hardcore loyals. 30% split loyals (TNN, 2004). Usually people prefer buying it at full price (62.2%4) Attitude: People who use Lacoste are positive about the product. People who don’t use Lacoste aspire to use it or are enthusiastic about it.

TARGETING Once the market has been segmented it is necessary to select a target market for the product to direct the communication and promotion efforts to. The target customer of Lacoste is chosen based on the following factors: a) Market attractiveness: Lacoste has been a category leader in the casual and fashionable activewear brands for around 80 years since it was established in 1933. According to the Birkhold (Levy, 2012), one time CEO of Lacoste, the perfect occasion to wear Lacoste would be a casual but playful one. With the changing economy and upcoming middle class which is highly conscious of the brands it wears, Lacoste has an attractive market offering for the Indians. There has been a major shift in the lifestyle of the middle aged youth in India. The youth has become more brand conscious and lifestyle oriented. b) Lacoste entered India 20 years ago, at a time when United Colors of Benetton was the only other international brand in India. At that time people were opening up to the idea of buying from international brands and getting exposed to fashion on a larger scale. Lacoste’s CEO at the time saw huge potential in the Indian market and so went ahead with opening Lacoste in India.

c) In India currently menswear is a highly profitable division. Since Lacoste is primarily a menswear brand it will be highly profitable for the brand to sell in India. In the words of Christopher Chenut, CEO of Lacoste, “We are targeting the middle class more than the upper class, and this category of population is growing by millions, thousands of millions across the world. At the same we are specialists of casual wear and everywhere in the world, including Japan, you can now go to the office or a party without a tie and without a jacket, and that means at the same time we are [benefitting from] the rise of the casual wearer.” (Chenut, 2012). This means that Lacoste is not unaware of the rise of new middle class which consists of people who earn a decent living but expect a better standard of living than what they did in the past. Lacoste has realised that even though they have always targeted upper class with their high quality products and high prices, their new buyers and new target segment will come from the middle class uprising everywhere. Also Lacoste sees the change in the general social acceptable behaviour all over the world where the dress codes are changing as well. As a result they have changed their target segment to focus more on the youth than just old, established people.

Lacoste was founded by French tennis player Rene’ Lacoste in 1933. It is primarily an upscale clothing company which also sells other products like bags, footwear, eyewear etc. It has the green crocodile as its logo which has been the same ever since its inception and hence has formed a great sense of recognition by the customers. The founder was called ‘crocodile’ for his agility on the tennis court and was a successful tennis player during his career. Lacoste continues to maintain its spot in the market with stiff competition from other brands like H&M, Zara, Polo etc. VISION One Brand, One Team, One Voice, for a controlled growth based on operational excellence, customer satisfaction and talent development. MISSION Our mission is to make Lacoste a unique casual luxury brand embodying French elegance. This requires a high level of quality and professionalism among all departments involved in design, merchandising, manufacturing and retail. Lacoste products and employees make clients live a unique experience globally whether it be in our stores or online.

Marketing Mix of Lacoste analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the Lacoste marketing strategy. The article elaborates the pricing, advertising & distribution strategies used by the company. Let us start the Lacoste Marketing Mix:

Product:

The product strategy and mix in Lacoste marketing strategy can be explained as follows: Lacoste’s products are premium quality ones and cater to the upper class of the society. The company first started with tennis shirts. Then the product portfolio in its marketing mix expanded into perfumes, leather products like wallets and bags, sunglasses and shoes. Lacoste shirts available for men are polos, sweatshirts, jackets, trousers and tracksuits. For women they have t-shirts, denims, skirts and polos. In shoes it has a collection of casual and sports for men and women they have sandals, shoes and slippers. In accessories Lacoste sell fragrance, socks, watches, caps, sunglasses and scarves. Leather products like bags and belts are also available. They also have a specialized kids-collection which includes polos, tops, bottoms, sweaters, sweatshirts and dresses. Lacoste have a sports collection primarily for tennis which includes tennis polos, shorts, wrist bands etc. They also have a Novak Djokovic collection which has shirts which represent the style of the ace tennis player. They also have a fall winter collection featuring clothes suitable for that season. The clothing comes in small, medium, large and extra-large sizes.

Price: Below is the pricing strategy in Lacoste marketing strategy: Lacoste targets the upper middle class and upper class of the society. These customers do not hesitate to pay the high price of the luxury products as owning a Lacoste is a status symbol. The pricing strategy in its marketing mix is therefore called as premium pricing strategy. The prices of t-shirts, polos and jackets are in the range of Rs.800 to Rs.25000 which is very wide. Lacoste competes directly with H&M and Zara through this pricing strategy. The range for Sport shoes and casual shoes is between Rs.4500 and Rs.8000. The price range of Lacoste for the leather bags and purses is from Rs.6000 to Rs.8000. Belts come for around Rs.4000. Watches are priced between Rs.9000 to Rs.12000. Sunglasses come for around Rs.9000 with little number of variants. Fragrances are in the range of Rs.2500 to Rs.5000. Caps and scarves are in the range of Rs.2500 to Rs.3500.

Place: Following is the distribution strategy of Lacoste: Lacoste is a global brand and is present in around 120 countries which include India, China and the United States. It first got in the US market in 1952 and by the end of 1973 had found a loyal customer base cementing the brand’s position there. Lacoste has its own retail outlets in big malls where there is a great footfall of people. They also make sure that the malls are visited by people who can afford the premium products. The outlets convey elegance through simplicity which adds to the value of the brand offering. Lacoste sell through popular stores like Macy’s, Nordstrom and Halls. The clothing and other products can be purchased through the website through card payment. Also, there is an option to return the product in 15 days after buying it if the customers want to do. The orders are delivered in 3-7 days depending upon the address of delivery.

Promotion: The promotional and advertising strategy in the Lacoste marketing strategy is as follows:

Lacoste promotes itself majorly through its successful brand ambassadors. Novak Djokovic promotes the brand for tennis clothing. Lacoste had also been associated with other famous personalities like star tennis players. Famous golfers Jose Maria Olazabal and Colin Montgomerie have been the brand ambassadors as well. They have sponsored top tournaments like Rolland Garros. It has also promoted itself in the film ‘Timeless Elegance’ by featuring the clothing collection in the film. There is a Lacoste foundation which funds an organization in Philippines which is lobbying for protection of crocodiles. It also helps children in sports at school level. It markets itself through print advertising more than the TV ads. Lacoste advertises in magazines like GQ, Cosmopolitan etc. Digitally its promotions can be seen through Twitter, Instagram and Facebook where customers can get a glimpse of the current campaigns. Its website too does the same. Hence this completes the marketing mix of Lacoste. SWOT analysis of Lacoste analyses the brand/company with its strengths, weaknesses, opportunities & threats. Lacoste is one of the leading brands in the lifestyle and retail sector. Lacoste SWOT Analysis highlights the internal factors (strengths and weaknesses) and external factors (opportunities and threats) for the brand. SWOT Analysis is a management framework that can enable brand like Lacoste to benchmark its business & performance as compared to the competitors and industry. The table below also lists the top Lacoste competitors and elaborates Lacoste market segmentation, targeting, positioning strategy & Unique Selling Proposition (USP).

Lacoste Brand Analysis Parent Company Category Sector Tagline/ Slogan

USP

Lacoste Company Apparel and accessories Lifestyle and Retail Your Style is our mission A vintage company with quality designs, modern technologies with a niche look.

Lacoste STP

Segment

All aspiring sportsmen and fashion conscious with a high purchasing power who prefer to flaunt a status symbol through their apparel.

Target Group

All sportsmen and fashion conscious people who want to look sporty, trendy with an expensive brand name.

Positioning

An Aspiring brand for achievement for sportsmen and a classic look apparel for lifestyle consumers.

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Lacoste. Strengths are: 1. The brand is present in over 120 countries and employs over 1000 employees. 2. The brand has an iconic image and a very rich heritage in the fashion industry. 3. The brand is highly accessible. Even-though positioned in the niche segment, the brand has reasonable price points compared to its competitions. 4. The brand has a very rich clientele in the sports fraternity 5. The brand has an elaborated product line including Bags, wallets, perfumes and shoes. 6. The brand is socially responsible as it funds organizations in Philippines to protect the extinction of crocodile. 7. The brand is very famous for its plain polo’s in multiple colors Here are the weaknesses in the Lacoste SWOT Analysis: 1.The brand sales and image is affected by fake imitations of the products 2. The brand has been involved in environmental issues and has been accused of “dirty laundry” blamed for using hormone-affecting chemicals in their T-shirts. Following are the Opportunities in Lacoste SWOT Analysis: 1. Demand for Lacoste’s products are Increasing in the Asia-Pacific region significantly. 2. The world wide demand of green-clothing which is an opportunity for Lacoste to explore as the brand uses natural cotton fiber for all its clothing. 3. Demand for active sportswear in the Australasia Region. The threats in the SWOT Analysis of Lacoste are as mentioned: 1.increasing competition from lifestyle brands like H&M, ZARA and sportswear companies like adidas and Nike are increasing 2.Increasing number of counterfeit products and market, Lacoste has become one of the most Imitated brands. 3. The company has lost significant market share to other brands Below are the top 5 Lacoste competitors: 1. H&M

2. Zara 3. Tommy Hilfiger 4. Nike 5. Reebok

acoste SWOT, Competitors, Marketing STP & Brand analysis Table

Lacoste Brand Analysis Parent Company Category Sector Tagline/ Slogan

USP

Lacoste Company Apparel and accessories Lifestyle and Retail Your Style is our mission A vintage company with quality designs, modern technologies with a niche look.

Lacoste STP

Segment

All aspiring sportsmen and fashion conscious with a high purchasing power who prefer to flaunt a status symbol through their apparel.

Target Group

All sportsmen and fashion conscious people who want to look sporty, trendy with an expensive brand name.

Positioning

An Aspiring brand for achievement for sportsmen and a classic look apparel for lifestyle consumers.

Lacoste SWOT Analysis

Strengths

Below is the Strengths, Weaknesses, Opportunities & Threats (SWOT) Analysis of Lacoste. Strengths are: 1. The brand is present in over 120 countries and employs over 1000 employees. 2. The brand has an iconic image and a very rich heritage in the fashion industry. 3. The brand is highly accessible. Even-though positioned in the niche segment, the brand has reasonable price points compared to its competitions. 4. The brand has a very rich clientele in the sports fraternity 5. The brand has an elaborated product line including Bags, wallets, perfumes and shoes. 6. The brand is socially responsible as it funds organizations in Philippines to protect the extinction of crocodile. 7. The brand is very famous for its plain polo’s in multiple colors

Weaknesses

Here are the weaknesses in the Lacoste SWOT Analysis: 1.The brand sales and image is affected by fake imitations of the products 2. The brand has been involved in environmental issues and has been accused of “dirty laundry” blamed for using hormone-affecting chemicals in their T-shirts.

Opportunities

Following are the Opportunities in Lacoste SWOT Analysis: 1. Demand for Lacoste’s products are Increasing in the Asia-Pacific region significantly. 2. The world wide demand of green-clothing which is an opportunity for Lacoste to explore as the brand uses natural cotton fiber for all its clothing. 3. Demand for active sportswear in the Australasia Region.

Threats

The threats in the SWOT Analysis of Lacoste are as mentioned: 1.increasing competition from lifestyle brands like H&M, ZARA and sportswear companies like adidas and Nike are increasing 2.Increasing number of counterfeit products and market, Lacoste has become one of the most Imitated brands. 3. The company has lost significant market share to other brands

Lacoste Competition

Competitors

Below are the top 5 Lacoste competitors: 1. H&M 2. Zara 3. Tommy Hilfiger 4. Nike 5. Reebok

The brandguide table above concludes the Lacoste SWOT analysis along with its marketing and brand parameters. Similar analysis has also been done for the competitors of the company belonging to the same category, sector or industry. Browse marketing analysis of more brands and companies similar to Lacoste. The BrandGuide section covers SWOT Analysis, USP, STP & Competition of more than 6000 brands from over 20 categories.

H&M

H&M, or Hennes & Mauritz, is the oldest of the three. The discount retailer, known for its affordable prices, was founded in Sweden in 1947 and has, over the years, grown into one of the most recognizable brands in the fashion industry. H&M is publicly traded, both in its native Sweden and in the United States. It went public in Sweden in 1974. H&M has expanded considerably over the last few years. It has 4,968 stores open worldwide, as of early 2019, far more physical stores than Zara and Uniqlo, by far. H&M's infiltration into the U.S. market has also been more prolific than that of its competitors, with 578 stores open. H&M has stated plans to roll out thousands more in the next few years. At the same time, H&M has had to close select stores as many customers take their purchases online, reflecting the broader transition in the retail world from physical sales to a more eCommercebased model. Despite being known as a budget retailer, H&M also owns COS, which stands for Collection of Style. COS sells higher-end products at higher prices than H&M. H&M also owns seven other brands: Monki, Weekday, H&M Home, & Other Stories, Cheap Monday, Afound, and Arket. Part of H&M's strategy to boost sales has been to offer customers featured products that have been marketed as designer collaborations with well-known names such as Versace and Alexander Wang. By offering these products within

H&M locations, the company boosts its own reputation by partnering with valuable figures in the fashion world, and it offers its customers additional lines for purchase that are different in look and style from the mainstay designs of the company. Zara

Zara is the youngest of the trio, having begun in Spain in 1975. The company is owned by textile giant Inditex and is its flagship brand. Zara’s ownership of its supply-chain steps allows for more rapid product turnover; Zara can design a product and have it sold in stores a month later. Zara boasts 2,200 stores in 96 countries. It currently has 87 stores open in the United States, with a majority of its locations worldwide in Spain, where there are 563 locations (including Zara Kids and Zara Home). Zara's strategy is to offer a higher number of available products than its competitors. While most clothing retailers manufacture and offer to the public for sale 2,000 to 4,000 different articles of clothing, Zara's production has been markedly higher, at over 10,000 pieces produced per year. This unique feature of the company's strategy has allowed Zara to appeal to a broader number of customers with unique tastes. Uniqlo

Uniqlo was purchased by Fast Retailing Co. in November 2005 and was originally founded in 1949 in Japan. Its business model is based on that of The Gap. Uniqlo has opened 2,000 stores in 19 markets worldwide. Uniqlo's introduction into the U.S. market occurred in 2005 with three stores; currently, there are over 50 stores on the east and west coasts as of March 2019. Uniqlo's distribution channels are concentrated in its country of origin; 825 Uniqlo store locations are in Japan. Uniqlo's distribution strategy has centered on the timing of its products' introductions into stores, with new products created as a function not of quantity, but of demand. Uniqlo responds to changing trends in Japanese fashion and specifically caters its designs to mimic the minimalistic style that is popular in Japan. This affects the appeal that Uniqlo may have for western distribution channels, and may be the determining reason behind its low number of store locations in the U.S.