SHANTO-MARIAM UNIVERSITY OF CREATIVE TECHNOLOGY

Creative Destination of the Nation

MBA in Product & Fashion Merchandising
Module Title: International Marketing Management
MODULE CODE: MBA 6201

CASE STUDY
on
Lacoste’s Marketing Strategies in the USA

Submitted to:
Tarique Mahmood
Assistant Professor
Department of Apparel Manufacturing Management & Technology

Submitted by:
Nusrat Jahan Munia
ID : 211153003
Semester : 4th Semester
Batch : 19th Batch
Submission Date : 20.12.2021
Table of Contents
Executive Summary ............................................................................................................... 3

Background ............................................................................................................................ 4

Case Presentation ................................................................................................................... 4

Discussion .............................................................................................................................. 5

Lacoste & it's US Journey .................................................................................................. 5

Reviving The Lacoste Brand .............................................................................................. 6
Lacoste's Retail Strategy .................................................................................................... 6
Lacoste's Promotional Strategy .......................................................................................... 7
Conclusion.............................................................................................................................. 7

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Executive Summary
The case study discusses the marketing strategies undertaken by Lacoste SA (Lacoste), a
French clothing company to enhance its image in the US market. It shows how Lacoste which
was a premium menswear brand in the US in the early 1950s lost its appeal in the market
after it was taken over by General Mills, a popular FMCG company in the US.

It then talks how Lacoste bought back the US rights to the Lacoste brand with a view to
restoring the brands image in that market.

The case shows how under the management of Robert Siegel, who joined as Lacoste USA's
CEO in 2001, revived the brand and re-established it as a high-end fashion label in the US.

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Background
In the 1920s, René Lacoste (René), a French tennis champion, created a white, short-sleeves
tennis shirt for use on the tennis court. The shirt instantly became a hit and revolutionized
tennis fashion. Until then, tennis players wore starched, long-sleeved shirts that were made
of woven fabric. In contrast, René's shirt was made of a more comfortable, light cotton fabric
called "jersey petit piqué". Later on, René set up the company La Chemise Lacoste (LCL)
and began manufacturing and marketing these shirts under the brand name 'Lacoste'. The
shirt had the logo of a green crocodile embroidered on it. These shirts came to be known as
'polo shirts'.

Case Presentation
Over the years, the Lacoste brand and its crocodile logo became synonymous with polo shirts,
all over the world. The Lacoste brand became established as a premium sportswear brand.
When the Lacoste brand was introduced in the US through a licensing agreement in the early
1950s, it quickly became popular, going on to become a premium sportswear brand for men.
In 1969, LCL sold its US rights to the Lacoste brand to General Mills (GM). GM owned this
brand until the mid-1980s. Under GM, the brand began to lose its appeal and its premium
brand image in the US.

In the early 1990s, LCL bought back the US rights to the brand and tried to restore the brand's
image in the US. However, by this time, the company was facing stiff competition from other
premium brands like Ralph Lauren.

In fact, the polo shirts created by Ralph Lauren had become more popular than the Lacoste
polo shirts. In 2001, Robert Siegel (Siegel) took over as the CEO of LCL's US business,
Lacoste USA. He undertook a variety of marketing initiatives which helped re-establish
Lacoste as a popular and youthful luxury brand in the US.

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Discussion
Lacoste & it's US Journey
The Lacoste brand and its famous logo were born in 1933, when René Lacoste and André
Gillier, the owner of a leading knitwear manufacturing firm in France, set up the apparel
company La Chemise Lacoste, and began manufacturing white polo shirts embroidered on
the chest with the picture of a green crocodile. Reportedly, this was the first time that a brand
name and logo appeared on the outside of a garment. The Lacoste shirts became a part of
popular sportswear. Although, there was an interruption in the company's activities between
1940 and 1945 due to World War II, LCL resumed production of the shirts in 1946.

In the 1950s, LCL began exporting the shirts to overseas markets such as Italy and the US.
In 1951, LCL introduced colored polo shirts. Towards the end of the 1950s, the company
also introduced a children's line of polo shirts. In 1960, LCL launched striped polo shirts and
shorts. LCL further expanded its operations in the international markets through licensing
agreements. In 1961, LCL signed a clothing manufacturing and distribution license in Spain.

In 1951, DC and LCL entered into an agreement whereby DC agreed to market Lacoste polo
shirts in the US. DC sold the Lacoste polo shirts under the 'Izod Lacoste' label. Lacoste shirts
were well received by American consumers and became a big hit in the US market. The
popularity of the shirts increased in the 1950s when Dwight Eisenhower, the President of the
US (1953-1961), was photographed playing golf in a Lacoste polo shirt with its crocodile
logo. In 1966, DC signed a licensing agreement with LCL to manufacture and market Lacoste
shirts in the US.

Over the years, the sales of Lacoste polo shirts surged and 'Izod Lacoste' established itself as
a premium sportswear brand for men. However, the shirts also became more closely
associated with Izod than with the Lacoste brand. In 1969, GM acquired DC and thus
acquired the license to the Lacoste brand and the crocodile logo. During the 1970s, GM
popularized the green crocodile logo by launching a range of clothing items like sweaters,
jackets, ties, socks, etc. Gradually, the Lacoste clothing line was extended to include
womenswear and children's clothes as well.

However, the polo shirt with the green crocodile logo was still the Lacoste brand's flagship
product, and it was still perceived as menswear brand. Until 1975, GM imported Lacoste
polo shirts from France. The shirts were made of fine cotton with buttons made of mother of

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pearl. However, from 1975 onwards, GM started manufacturing the shirts in the US and Asia,
and the shirts were of poorer quality. Lacoste shirts were now made of a cotton/polyester
blend, and their design was different from the original Lacoste shirt...

Reviving The Lacoste Brand

Siegel, who was to be instrumental in establishing Lacoste as high-end fashion label in the
US, took over as Lacoste USA's CEO in January 2001.

He was earlier credited with creating and establishing the popular clothing brand, Dockers,
for Levi Strauss & Co. in 1986.

Siegel intended to change the image of Lacoste as an older person's brand, and to make it
more fashionable. To begin with, he brought about changes in the Lacoste clothing line.

During the early 2000s, the vintage preppy look was coming back into fashion in the US.
Siegel spotted an opportunity in this, as Lacoste shirts went well with the 'preppy look'. With
Lemaire, he came up with a new range of Lacoste clothing that was trendier and more
appealed to younger people, and also launched a new range of piqué polo shirts.

Lacoste's Retail Strategy

One of the reasons for Lacoste's 'cheap brand' tag in the US was its over-exposure in the
market. During the 1980s, Lacoste was available at non-luxury retailers like T.J. Maxx,
Macy's, etc. When, LCL took over the brand, it restricted its availability to luxury department
stores.

When Siegel arrived at Lacoste USA, the brand was available in around 11 departmental
stores and the few Lacoste boutiques in the US. Siegel then decided to expand Lacoste's retail
presence.

But since he wanted to popularize the Lacoste brand as a fashion label, it was important that
it was sold only at upscale department stores and specialty boutiques. Said Tamara Rosenthal
(Rosenthal), director of marketing, Lacoste USA, on the significance of specialty retail stores,
"They have the ability to seed the brand with influencers, because the type of people shopping
in those stores are setting trends."

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Lacoste's Promotional Strategy
Promotion played a major role in enhancing the brand value of Lacoste in the US. The
company emphasized product placement in popular movies and TV shows, as they influenced
the fashion choices of young people to a great extent.

Lacoste USA set up a special division called Propaganda Entertainment Marketing in Los
Angeles, which worked towards getting permission from movie studios for product
placements. Lacoste shirts were worn on-screen by popular movie and TV stars like Gwyneth
Paltrow in the movie The Royal Tenenbaums, Lindsay Lohan in Mean Girls, Mathew
Broderick in The Stepford Wives, and the cast of the popular TV show, The O.C. Lacoste
USA also sponsored the premiere of the movie Garden State, in 2004, which featured Natalie
Portman, a popular actress. The company also offered free Lacoste clothing to celebrities and
popular figures.

Analysts commented that Lacoste USA had managed to become a 'Hollywood favorite'.
Siegel believed that endorsements by popular movie stars helped Lacoste keep the brand 'hip
and relevant' in the market. Commenting on this strategy, Rosenthal said, "If you say you're
cool, you're not. It's a property that needs to be demonstrated. We would gift product to some
celebrities and then we'd literally see them wearing it in magazines." She said, "That works
really well because we know the product is going directly to them. It's worth it to us. Celebrity
endorsement is huge in the fashion industry."

Conclusion
In February 2006, the BusinessWeek reported that Lacoste USA's sales had soared 1000% in
the past five years. As a result, the US became one of the largest and most profitable markets
for Lacoste. This success was largely attributed to the initiatives taken by Siegel to improve
the performance of Lacoste USA.

Lacoste USA had also managed to attract more female buyers. In early 2006, 55% of Lacoste
USA's consumers were male and 45% female. Further, it was reported that Lacoste USA's
sales from women's wear accounted for one third of the total sales of the company, whereas
in the 1990s, it had accounted for only around seven percent.

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