Lady Foot Locker: the Lobo Launch Essay Example

in around 170 countries. Its largest market is the United States.

E. Rebecca Lobo attended the University of Connecticut from 1992-1995 where she studied Political Science. During her time at the university, Lobo achieved numerous accomplishments including becoming the all-time leader in rebounding and blocked shots for the school with an average of 16.9 points per game. She received several awards such as being named the Big East Conference Player of the Year in both 1994 and 1995 and earning recognition as an Academic All-American. In 1995, she was honored with the Wade trophy for being designated as the National Player of the Year.

The text discusses the areas of consideration when pursuing a study. One area of consideration is Reebok's endorsement of Rebecca Lobo. Lobo's contract with Reebok allowed them to involve her in product endorsements, advertisements, store appearances, and speaking engagements. However, due to Nike and champion being primary sponsors of the WNBA in footwear and apparel respectively, Lobo was not able to appear in WNBA games wearing Reebok footwear with the logo visible. Additionally, Reebok could not feature Lobo in their advertisements or in-store displays wearing her New York Liberty uniform. Another area of consideration is mentioned but not elaborated on.

Target Consumer C. Industry Competition - Marketing Mix 1. Product The advantage of having broad lines within the channel was provided by economies of scale and purchasing power to companies. Brands like Nike, Reebok, Adidas, and Fila developed multiple product lines that encompassed basketball, tennis, soccer, and hiking/outdoor shoes. Various athletic footwear brands had their own proprietary technologies aimed at improving product performance. Due to increasing consumer demand, consumer segmentation, and heightened

competition, manufacturers often introduced new products and shortened the lifespan of existing ones.

The introduction of products in the basketball category, especially those influenced by fashion, has seen a shift from yearly to quarterly and monthly cycles. Consumers were willing to pay higher prices for athletic shoes with advanced technology as they believed these products improved performance. Reebok sold its Hexalite shoes at prices ranging from $50 to $90. Pricing in the athletic footwear industry typically involved supplier gross margins of 30% to 55% on wholesale selling price and retailer markups of 45% on retail selling price. Reebok's management saw the potential for incorporating their soon-to-be-introduced DMX technology into the Lobo shoe.

The suggested retail price for Reeboks DMX shoes was $110. Meanwhile, LFL observed Nike's difficulties with their $100-plus Swoopes shoe. In response, LFL suggested that Reebok create a Lobo product with Hexalite cushioning at a suggested retail price of $85, aiming for a selling margin of 45%. In terms of retail channels, competition in the athletic footwear market depended on various elements such as target consumer segment, price, merchandise assortment, store or chain reputation, store location, advertising, and customer service.

For years, Foot Locker and Lady Foot Locker had limited direct competition in the women's athletic market. However, they faced competition from indirect sources like national athletic specialty stores such as Footaction and Finish Line, as well as "big box" stores like The Sports Authority, Sneaker Stadium, and Just For Feet. Companies like Reebok and Nike relied on promotions, such as celebrity endorsements and national brand and image campaigns, to increase their market share.

Reebok invested heavily in celebrity endorsements, such as basketball

player Shaquille O'Neal, with an annual deal worth $3 million. Nike's promotional expenses, which included celebrity endorsements, were $290 million in 1997 and $160 million in 1996. In contrast, Reebok spent $68.1 million in 1997 and $68.2 million in 1996. As competition increased and the athletic footwear industry matured, companies focused on market segmentation, differentiation, and branding strategies to gain market share. Unfortunately, the athletic footwear market has declined for the past two years.

Industry sources report that the rise in popularity of alternative footwear, such as andals and casual shoes, played a role in this trend. It was expected that this pattern would continue in 1997. Additionally, the increase in sports involvement among pre-teen and teenage girls, with a focus on achieving gender equality in intercollegiate sports, impacted the women's sport market. According to the Women's Sports Foundation, only one out of every 27 girls participated in high school sports in 1971. However, by 1997, this number had risen to one out of every three. Furthermore, it was noted that over 13 million women aged six and above were actively involved in playing basketball in the United States.