Lacoste's Marketing Strategies in the US

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Case Details:

Case Code : MKTG132
Case Length : 14 Pages
Period : 2001-2006
Organization : - Lacoste SA
Pub Date : 2006
Teaching Note :Not Available
Countries : USA
Industry : Apparel

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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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."


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 I: René Lacoste's Polo Shirt
EXHIBIT II: The Lacoste Logo
EXHIBIT III: Most Counterfeited Brands in the World in 2005
EXHIBIT IV: Top 10 Counterfeited Brands in the World in September 2005

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