Marketing Plan Lacoste

ASSESSMENT 1 - MKT 300

Erwann Derradji - 4014729

Marketing Plan - Strategic Analysis : LACOSTE

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Table of Contents                                                                 Page Number[pic 2][pic 3]

1. Executive Summary _____________________________________  3                                                    
2. Business description ____________________________________   3
3. PESTEL analysis _______________________________________  4

1. Political
2. Economical
3. Social
4. Technological
5. Environmental
6. Legal

1. Porter’s Five Forces Analysis ______________________________  7

1. Bargaining power of buyers
2. Bargaining power of suppliers
3. Threat of new entrants
4. Threat of new products or services
5. Rivalry among the existing competitors

1. Competitor identification and analysis ________________________ 9

1. Casual
2. Sportswear

1. SWOT analysis ________________________________________   11
2. Evaluation of strategic positioning and market ________________   12

attractiveness

1. High standard and quality, the DNA of Lacoste
2. Sport identity
3. A new demand : the sportswear

1. Market segmentation analysis _____________________________  13

1. Adults
2. Good income
3. The sport attitude

1. Identification of potential opportunities ______________________   14

1. The sportswear
2. The women
3. Australian visibility
4. Social

1. EXECUTIVE SUMMARY

This report is a Marketing Business Plan for the Lacoste company in Australia. There are an analysis of the market, of the competitors and of the company itself, in order to propose the best strategy for the future.

1. BUSINESS DESCRIPTION

Lacoste is a clothing brand founded in 1933 by René Lacoste, a world-renowned tennis player, and based in Paris, France. It manufactures casual and sports clothing, shoes, perfumes, leather goods and belts for women, men and children. In Australia, Lacoste doesn’t have a lot of own shops, but its products are sold in general shops and online.

The apparel retail industry in Australia had several challenges over the past five years, including intense competition and rising rent costs. Industry had total revenues of $16,6 billion in 2015, representing an annual growth rate of 2.2% between 2011 and 2015. The womenswear segment was the most lucrative, with total revenue of $8.9 billion in 2015, equivalent to 53.4% of the industry’s overall value. This is due to the expansion of online sales channels. The growing popularity of online shopping should lead the industry to keep growing for the next years, up to $19.3 billion by the end of 2020.

During the previous years, the increase of sport events explains the popularity of sportswear apparel which is rocketing. This is reflected in the sales of the sportswear, which is recorded to have increased at a healthy rate in Australia. Industry revenue has increased by 5.8% since 2014, to reach $2 billion, and a growth of 3.3% is anticipated in the current year. This market is huge because everyone can easily be involved in some physical activities, no matter your age or your sport capacities. But sportswear is not only for practice, it can also be a way to express yourself in the fashion world. The healthy growth of the Australian economy will help the sportswear market to keep growing in the coming years.

1. PESTEL Analysis

1. Political

In Australia, a brand can be removed if it has not been used in a three-year period since registration, although the owner gets an initial five years period before the registration becomes vulnerable. The Australian law allows a trade mark to remain on the register if the trade mark owner can show that there were obstacles to its use. Australia also has a discretion not to remove a registration if the Court considers it reasonable.

1. Economical

Economic factors can have both positive and negative impacts on the clothing industry. In fact, during economic boom periods, people have more income and they will buy more clothes (as it is a normal good), increasing sales for clothing manufacturers and retailers. However, an economy in recession have the opposite effect. Sales for these various clothing entities are significantly lower. Retailers then have a large amount of inventory and they have to reduce the prices if they want to sell their production.  Consumers often shop for cheaper brands when they have less income, and Lacoste is the opposite of a cheap brand.

Hopefully for Lacoste, the Australian economy has been growing by 3.4 per cent this year, and it should keep growing for the next years. It is the fastest annual rate of growth since September 2012, showing the well-being of the Australian economy. The population is pretty rich, the national income per people being 45,000$ per year, it is more in big city such as Sydney or Melbourne, and their lifestyle allow them to buy their goods in high brands.

1. Social

Creation of the Lacoste foundation, which support and finance projects to    teach key      values to children through sport : team spirit, tenacity, motivation, respect… In 2016, Lacoste foundation allowed young people to go to the Miami Open and have a lesson with Mark Wellington, to go to the Hassan Trophy (golf), to Rolland Garros, to the US Open and even to the Olympic Games in Rio. It proves that Lacoste is involved in the development of young people in difficult situation who love sport, and it gives a good image for the brand.

On social media, Lacoste has more “like” on Facebook than its first competitor “Ralph Lauren”, but on Twitter and Instagram, Ralph Lauren has twice de number of Lacoste’s followers. This is an issue because Facebook is getting older, and most of the young adults (20 to 30 years old), Lacoste and Ralph Lauren target, prefer Twitter and Instagram. This can be explained by the fact that Ralph Lauren post 2 or 3 times a day on Instagram, while Lacoste post once every 2 or 3 days.

1. Technological

The demand of buying clothes online increasing, Lacoste sells its products online as in store, in order to attract new consumers and increase its market  

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