Lacoste's Marketing Strategies in the US

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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.

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."

Outlook

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.

Exhibit

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