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Glocalization of promotion mix as a

repositioning strategy

Submitted by: “Surbhi Mittal in Partial Fulfilment


of the requirements for the degree in M.A. Fashion
Marketing”
2012-2014

Submitted to: MAFMG Course Team


(Business and Technology)

25th March 2013

Pearl Academy
New Delhi
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

Table of Contents
S.No. Heading Pg. No.
1. Introduction 1
2. Literature Revew 2
2.1 Global + Local = Glocal 2
2.2 Glocalization: A tactical approach 3
2.3 Why glocalise? 4
2.4 Glocalization in India 6
2.4.1 Brands that have glocalized in India 7
2.4.2 Fashion brands that have glocalized in 7
India
2.5 Glocalization of promotion 8
2.6 Lacoste in India 9
3. Research Methodology 11
4. Findings and Analysis 11
4.1 Lacoste customer in India 11
4.2 Glocalization of Lacoste’s promotional 12
mix in India
5. Conclusions 13
6. Bilbliography 15
7. Annexure 1 18
8. Annexure 2 19
9. Annexure 3 20
10. Annexure 4 21

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

1. Introduction

Lacoste is a French sportswear brand that was started in 1923 by the legendary Tennis player Rene
Lacoste (Lacoste.com, 2012). Rene Lacoste revolutionised not only sportswear for Tennis players but
for sportspeople all over the world by inventing the Polo shirt. It expresses itself today through a large
collection of apparel for women, men and children, footwear, fragrances, leather goods, eyewear,
watches, belts, home textiles, and fashion jewellery. Lacoste bases its success on the essential values
of authenticity, performance, and elegance. Lacoste operates in 115 countries across the world with
India being one of them. They came to India in 1992 through an apparel distribution and production
license with Sports and Apparel Leisure Ltd (Rodrigues, 2003). In the 20 years that it has been in
India, the brand has grown and evolved in terms of stores as well as sales.

Since 2011, Lacoste has been trying to reposition itself as a brand which caters to the tastes of the
youth as well. Globally Lacoste has adjusted its strategy according to the new target segment by
introducing a new advertising campaign called ‘Unconventional Chic’ 1. This is different from its
previous advertising campaigns in that the models used for this campaign are younger than the usual
models. Also the imagery for this campaign used is uninhibited as opposed to the previous campaigns.
The brand also moved away from the usual tennis and golf imagery as well. Globally, the brand is
revamping their stores as well by making them brighter and fresher.

In India, Lacoste has not been able to communicate the image that its trying to portray globally. The
brand is perceived as an old, expensive and sophisticated brand by the youth 1. As a result, people are
not buying Lacoste and the brand is not able to change its image. The reason for this could be the
youth in India has tastes and preferences which are extremely different from the global youth. In order
for Lacoste to reposition itself in India the brand might need to glocalise its image which includes
retail outlets, advertisements and product development.

The purpose of this paper is to evaluate glocalization of promotion mix as a repositioning


strategy which can be used by Lacoste in India. The paper introduces glocalization as concepts
which focuses on the customization of the market’s local needs and match them up to the brand’s
global strategy. The literature review is done in order to get an understanding of the concept of
glocalization and establish a base of the brands that glocalised in India. Since this project is about
glocalization options for Lacoste, the history of Lacoste in India is documented which leads up to the
stage at which the brand is right now. The paper is focusing on the glocalization of promotional mix
by various global brands in India. This has been discussed in the literature review as well. Based on
the secondary research and the primary findings, discussions are done on how the Indian consumer
requires different things as opposed to the global customer and glocalization strategies are suggested
accordingly.

In their host countries, the multinational enterprises have the option of choosing two fundamental
strategies of marketing their products and services: globalized strategies or localized strategies.
Globalized strategies or globalization involves developing marketing strategies as though the world is
a single entity. This means marketing of standardized products using standardized marketing mix in
the same way everywhere. Organizations employ the standard products, promotional campaigns,
prices and distribution channels across all markets considering the world to be a single market.
Localized strategies or localization, on the other hand, involves marketing strategies for a specific

1
See Annexure 2 for Unconventional Chic campaign

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
region according to its cultural, regional and national uniqueness. However, some multinational
enterprises apply hybrid strategies, commonly referred to as Glocalization. This group of strategies
combines the globalization and localization strategies by emphasizing on the fact that globalization of
a product will succeed when the product or service is adapted specifically to that region.

2. Literature Review
The purpose of this section is to theoretically catalogue glocalization as a concept and its application
to global brands. This section provides a framework for suggesting glocalization methods for Lacoste.
The papers, research and articles reviewed are presented in order to (a) differentiate between global,
local and glocal (b) explain glocalization as a tactical approach (c) understand the rationale behind
glocalization (d) review brands which have glocalized in India (e) understand how glocalization of
promotion is possible.

2.1 Global + local = Glocal


With technology being what it is today and people who have reached new heights of
consumerism, more and more brands are going global. A global strategy pushes the brand
towards homogenization, standardization and integration of marketing activities across global
markets (Kotler, 2009). Globalization leads to homogeneity across markets but at the same
time it makes people more aware of their own culture by highlighting the differences (Yip,
1989). When these differences are highlighted people feel a cultural dissonance with the
products they use and as a result move towards products that better suit localized needs.

While the theory of globalization by the way of standardization is applicable to strategic


decisions regarding a marketing plan, the tactics in order to achieve the marketing aim still
need to be localised. For example, when Disneyland first opened in Hong Kong it was not
successful in drawing crowds to the tune of those who come in CA. This was because
Disneyland had standardised all the rides, services and food according to that present in CA.
These were not acceptable according to the Chinese culture and hence people were not able to
associate with Disneyland Hong Kong. As a result, Disneyland had to localise the food
according to the Chinese to serve fish and change their services so that Chinese would feel
comfortable amongst the staff (Tian, 2006). This is a perfect example of changing the tactical
marketing in order achieve a glocalised strategy for a brand.

A good example of a brand that followed globalization for a very long time is Coca cola.
Their beverages were standardized across the globe and so was the packaging. However, over
a time period they realized that their increasingly standardized strategy didn’t work with the
masses anymore (Matusitz, 2011). According to Coca-Cola’s former chair Douglas Daft “The
world had changed, and we had not. The world was demanding greater flexibility,
responsiveness and local sensitivity, while we were further consolidating decision making and
standardizing our practices. The next big evolutionary step of ‘going global’ now has to be
‘going local’ ” (Ball, 2003). The tuition for Coke learning was its loss of international market
share to its competition, both global and local. This led to Coca-cola standardizing its
message across the globe to say ‘Open Happiness’ but altering the tactics across nations to
say it in a manner that would reach people.

“The term ‘glocalization’ aims to capture something of the push-and-pull of globalization,


where the influx of global culture is met with a local resistance and counter-flow. The result is
often a hybrid between the global and the local. Seen this way, the global and the local are not

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
opposites, but mutually constitutive, interconnected force” (Wasserman, 2006). This applied
to the rules of branding can be seen as a standard strategy with localised tactics.

In a glocal strategy, a brand uses its global experience in order to form a shape for its strategy
and then tailoring and customizing their marketing mix in order to suit the local tastes and
preferences. The global element in the ‘glocal’ helps in shaping the corporate direction of the
company whereas the local element helps in deciding what the products, service and
promotion are going to be for the brand (Kotler, 2009).

The expansion of Wal-Mart to Germany is an example of a global strategy and localised


services. Upon entering a Wal-Mart in the US you are welcomed by the now globally
renowned “Wal-Mart greeters” who are ever cheerful and greet you with smiles On entering
the German market Wal-Mart did not glocalize their brand and as result struggled to make an
impact. Germans found the greeters too ‘superficial’ and had to be removed .Upon realizing
the social differences between America and Germany, adaptations were made in order to be
able to integrate into their German surroundings. They started singles shopping nights at Wal-
Mart Germany which say 25% rise in the sales (Towers, 2004).

2.2 Glocalization: A tactical approach


A combination of the words and concepts of globalisation and localisation is known as
glocalization. Glocalization refers to the interface of the global and the local (Andrews &
Ritzer, 2007), a cooptation of the global and the local (de Nuve, 2007; Swyngedouw, 1997),
the dynamics of cultural homogenization and heterogenization (Eric, 2007), and the
conflation of both universalizing and particularizing tendencies (Robertson, 1994).
Globalisation refers to mass generalization of an idea across borders whereas glocalization
refers to particularisation of a global idea with respect to the location its being originated in.

In his essay ‘The Globalization of Market’, leading Harvard professor Theodore Levitt
claimed that all world markets were moving ‘towards a converging commonality’ which
means that all the markets in the world were becoming homogenous in terms of demands and
behaviour (Tian, 2006). Glocalization acknowledges this homogeneity, but it requires that the
needs of all the markets are somewhat heterogeneous and thus global companies need to tailor
their offerings according to the differences (Onkvisit & Shaw, 2002).

The term glocalization was popularised by Roland Robertson in 1995 when he stated that it
refers to conflation of both universalizing and particularizing tendencies (Matusitz, 2011).
Originally the concept was first put to use by Japanese in their farming method called
‘dochauka’ which means global localization and originally referred to adapting farming
techniques to local conditions. This was later adapted by them in their business strategies as
well applying the idea to the marketing products and affecting all parts of the marketing mix.
For example, there was an improvement in the Japanese car’s manufacturing because of
growing awareness in US markets (Global Media Global Culture, 2004).

The author Thomas Friedman defines glocalization as “the ability of a culture, when it
encounters other strong cultures, to absorb influences that naturally fit into and can enrich the
culture, to resist those things that are truly alien, and to compartmentalize those things that,
while different, can nevertheless be enjoyed and celebrated as different” (Friedman, 1999).

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
This then means that glocalization is the ability of a culture to assimilate other cultures in it
without allowing them to overpower the essence of their own culture.

In the glocalization strategy, some parts of a product are changed according the local market
and some of them remain the same across the globe (Robertson, 2007). These changes in the
local products help to remove the transnational differences between the companies and local
market (Mooney and Evans, 2007). People think they might know a great deal about
foreignness, strategic fit, and differences in host cultures, but there is something about the role
of the country environment in the global transfer of corporation assets that is missing
(Brannen, 2004). This gap is filled by glocalization (Matusitz, 2008).

There are over 200 countries in the world and each country has an inherent culture of its own.
For a while in the past decade, it was okay to sell standardized products across all cultures.
But what this globalization led to in effect was people realising that some parts of
standardized products did not match with their culture and caused cultural dissonance
(Matusitz, 2011). As a result, while companies maintained their global identities and images
they had to change their product accordingly.

2.3 Why glocalise?


In order for a brand to achieve true success and top of the mind recall, they have to expand
internationally as well. However, it is not enough to just open an outlet in another country and
expect the consumers to start buying products. Today’s consumers are informed enough to
know what need a particular product will satisfy and why they should buy it. Since customers
have become so enlightened, it is the duty of the retailers to start questioning what need their
products serves as well. For the most part, the world’s best retail brands should be well
positioned to capitalize on the opportunity of emerging markets.

Even though technology has taken over the world today, traditional vehicles of publicity such
as public relations and word of mouth are still as popular as they were earlier. In fact, with the
advent of technology word of mouth has gotten faster and people can connect to each other
much easily than before. As a result brands have to get things such as location, price and
convenience right the first time and keep adjusting them with the changing needs of the
country. For example, in a country like India where consumers are not brand loyal and prefer
visiting multiple stores multiple times for the best deal, the brands need to provide extensive
product information.

For global expansion today the top 3 challenges are uncertainty (49%), finding the right
vendor and partners (48%), and lack of local market knowledge (45%) (Parker Avery Group,
2012). Without sufficient local market knowledge, retailers are finding it difficult to address
the needs of the people in that market and to develop their products accordingly. For any
brand to expand globally in an effective manner they need to have a strong background in
Market Research. Usually the firms research the markets they are about to enter themselves,
but there are upcoming research consultancies to which this job can be outsourced to.

Today, most retailers are investing in strategic capabilities such as understanding the local
market and tailoring assortments to each individual market. As they move into 2013, the
focus adjusts to developing talent and improving logistics. For 2014, majority of retailers are
budgeting to build more stores and optimize their fulfilment capabilities. Retailers have

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
shown that understanding the local market is a capability that can pay immediate dividends
leaving them able to plan for future site construction. The primary area of international
growth for more than 52% of retailers in 2012 is store development. The substantial areas of
growth after store development are online, mobile and social media for more than one third of
retailers. Catalog is an area that is clearly waning, but it is still viable for slightly more than
16% of retailers.

Retailers believe that it is necessary to adjust their offerings according to local tastes and
preferences in order to achieve true global success. As a result, a majority of retailers are
customizing product offerings, using local merchants and managing campaigns with a
localized calendar in order to relate best to the local market. For example, brands such as
Louis Vuitton have special sales for 2-3 days around Diwali and Republic Day which are
Indian festivals. To manage glocalized promotions and campaign calendars, a 54% use a
localized or regional calendar for each country (Parker Avery Group, 2012). This enables
retailers to capitalize on local preferences giving the products a level of familiarity which, in
turn, makes them more appealing to the local demographic.

The most common approach to merchandising for retailers is to establish international


assortments by allowing international merchants to determine the assortments. The second
most common approach is to use a global assortment as the foundation and customize based
on international buyer input. In both systems, assortments are adjusted to meet local demand,
which results in higher sales.

In regard to retailer investment in internal merchandising capabilities over the next three
years, it is estimated that retailers will be changing their focus from product development and
sourcing in 2012 to customer relationship management (CRM) and vendor management by
2015 (Run, et al., 2012). To plan for international markets, a majority of retailers build
financial plans for all countries off of an existing global plan. This is a more time-efficient
approach to financial planning and does not interfere with glocalized campaigns and product
assortments.

Different nations have different cultures and there are a number of issues 2 that retailers face
when transferring their strategies across multiple cultures. The commonly accepted systems
and expertise in logistics differs across nations widely. The biggest problem faced by most
retailers is to find systems and tools suitable for their brand. The second most common
challenge for retailers is finding the right alignment with respect to domestic and international
processes. This tends to occur in organizations that approach international expansion without
a plan for optimizing this relationship. Further, retailers have commented that suitable buy-in
from leadership can mitigate this problem.

In South-east Asia, super-premium brands such as Lacoste and Tommy Hilfiger find a
substantial market for their products. These brands need to be especially responsive to the
cultural benefits and motivations for people in these parts to buy a particular brand. A marked
difference is in the fact that while Western customers use such products for individualistic
pleasure, south-east Asian customers view these products as social symbols.

2
See Annexure 3 for a summary of cross cultural issues faced by companies

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
2.4 Glocalization in India
The tremendously diverse culture that is India, made more complicated by its restrictions on
foreign direct investment, is still a high-potential market in the eyes of top retail brands. It is
home to the world’s second-largest population—1.2 billion people—with a large and growing
middle class (PriceWater Coopers, 2012). Forecasts for retail growth are 15 to 20 percent
over the next five years, based on strong macroeconomic conditions, rising disposable
incomes and rapid urbanization (Technopak, 2012).

The allowance of 100% FDI in single brand retail has led to the entrance of brands such as
Ralph Lauren and Armani Exchange. India’s GDP in 2012 has been between 5.6 to 7 %
which is much higher than most of the western countries (HindustanTimes, 2012). With the
arrival of FDI in India there is a forecasted increase in the number of jobs for the people
which will reduce unemployment and increase standard of living. With the increase in
standard of living, people will have lifestyles that are more suited for them to buy Lacoste.
India is growing at an average annual rate of 7.6% for the past five years and it is expected to
continue growing at an equal if not faster rate. (KSOils, 2005). India's exports maintained
their growth momentum in September 2011, rising by 36.3 per cent year-on-year to US$ 24.8
billion. (IBEF, 2012)

India has a large and aspirational middle-class of 75 million households or 300 million
individuals (PWC, 2010). India also has 500 million Indians under the age of 25. Young
Indians have access to more money than before and with this have come independence,
aspirations and a demand for products. The majority of Indian consumers are value-
conscious.

It is apparent that for a while now India has been one of the most upcoming economies in the
world. There has been a marked shift of economic growth from the west to the east. The west
has almost reached its saturation level and with the economic recession worsening every year,
there doesn’t seem much promise for a rebound anytime soon. A big repercussion of this has
been that many retail brands have turned towards expansion in India now. These brands have
recognised that India and China have different cultural choices than those in which they
operated before. As a result a lot of the brands are considering including elements from both
the countries in their marketing mixes in some way or the other.

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
2.4.1 Brands that have glocalised in India

Brand Sector Glocal strategy


McDonalds Fast Food Localised food (no beef no
pork), global image of fast food
at cheap price
Unilever FMCG Regional ice-creams etc.,
Global FMCG brand
HLL FMCG Shampoo sachets for rural
consumers
MTV Music channel Programs and music is
localised, the idea of a music
channel is globalised
Indian Idol TV Show Localised voting; global
concept of reality shows
Table 1: Global brands that have glocalised in India

As in most markets as shopping is changing, brands will need a multichannel strategy and an
ability to adapt to local markets while actively managing customer expectations, along with
the patience and persistence needed to build trust. In Table 1, a summary of brands that have
glocalised in India is given

A world class example of glocalization can be found in McDonalds which customizes itself
according to every country it expands in (The Times, 2012). In India, they have made quite a
few changes such as serving vegetarian burgers since a majority of Indians are vegetarians
especially in the north. A similar change has been seen in KFC. Both the restaurants do not
serve beef or pork in India as it goes against the cultural values of the people. However, both
the brands have the same ethos and target market all over the world which provides them with
the global angle to their policies.

Unilever took glocalization to a new level in the 1990s. Instead of adapting products
unnecessarily, it adapted products to the local market marginally i.e. the basic product would
be fine-tuned instead of expensive total adaptation. E.g. Unilever identified the need for a
regional ice cream and was very successful with its Wall’s ice cream adapting it specifically
to the Asian. In 2000, it had a market share of 41% to Nestle’s 15% (Luigi & Simona, 2004).

2.4.2 Glocalization of apparel brands in India


Table 2: Glocal fashion brands in India

Brand Strategy
Bottega Venetta India knot clutch, Global marketing strategy
Canalli Bandhgala jackets for Indian market
Adidas Associate themselves with sports events. Use cricketing brand ambassadors to
promote in India
Nike Combination of star endorsements, grass roots-level activities and events besides
high-profile advertising, Bleed Blue campaign
UCB Language adjustment, sales during festive season, specialized print advertisements
Levi’s Local advertisement, Akshay Kumar brand ambassador

Another very important form of glocalization can be seen being done by Italian Luxury
Fashion Brands such as Bottega Venetta and Canalli. Bottega came up with a special version

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
of the knot clutch for the Indian market to commemorate the opening exhibition in India.
Canalli introduced a special bandhgala jacket that was sold in India. In general, luxury
fashion brands glocalise according to the countries they enter since luxury consumers are used
to high degrees of customization for their needs to be met. Table 2 shows an overview of
apparel brands that have glocalized in India

Sportswear brands in India which have a global background as well have changed their
strategies according to Indian needs. For example, Adidas entered India with very aggressive
sports campaigns and roped in cricketing legend Sachin Tendulkar as its brand ambassador.
Adidas has been promoting sports such as tennis and cricket at various levels. The company
aggressively promotes tennis in India as a part of the firm’s strategy to drive growth by
identifying and developing key performance sports in India.

Levi’s launched its 118 year old brand- Levi’s 501 jean globally in August. In India the
launch and the campaign was formally announced with brand ambassador Akshay Kumar.
This global launch of Levi’s 501 jean had taken place across 110 countries and a local
celebrity had been roped in to endorse this brand only in India.

2.5 Glocalization of Promotion Mix


While it is true that any part of a strategy can be localised in order to suit the local needs, it
stands to reason that promotion mix is the easiest one (PR Newswire, 2001). Promotion mix
includes all the activities done by the brand in order to create awareness about itself (Kotler,
1994). Promotion, or the marketing communications mix, was seen by Kotler (1994) as
consisting of five major tools:
(1) advertising;
(2) direct marketing;
(3) sales promotion;
(4) public relations and publicity; and
(5) personal selling.

Promotion strategy for many brands is outsourced to local marketing firms in order to tweak
them according to the needs of people in the local environment. Euro RSCG, which is the 5 th
largest advertising agency in the world, handles the advertising for brands such as P&G and
Volvo in New York. It is used to changing the advertisement of brands according the local
needs of the people (PR Newswire, 2001).

Public relations and publicity are a popular option for adaptation by sportswear brands. In a
country like India where people worship cricket it is a good option to include the sport in the
marketing communication. By sponsoring events such as IPL and World Cup, brands can
leverage the identity of these events to themselves.

Multinational companies can benefit by acknowledging the local calendar of the country in
terms of festivals and events where they can provide sales promotions to the people. Most
apparel and technology brands have huge sales during the Christmas time in North America.
This proves to be a beneficial period for these brands despite the markdowns.

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

Table 3: Global Marketing Strategies. (Adapted from Schiffman and Lazar Kanuk, 2009)

PRODUCT STRATEGY COMMUNICATION STRATEGY


Standardized
Localized Communications
Communications
Global Strategy: Glocal Strategy: Uniform
Standardized Product Uniform Product/Uniform Product/ Customized
Message Message
Local Strategy: Customized
Glocal Strategy: Customized
Localized Product Product/ Customized
Product/ Uniform Mes/sage
Message
Glocal Strategy: Customized Product/ Customized Message

A firm might decide to either standardize or localize its products, either standardize or
localize its communications programs, or combine the two. The five possibilities that this
decision framework considers range from a company incorporating a ‘global strategy’
(standardizing both product and communication program) to developing a completely ‘local
strategy’ (customizing both the product and communication program) for each unique market
(Schiffman and Lazar Kanuk, 2009). Table 1 shows how a brand can choose to either
glocalise its communications or products.

2.6 Lacoste in India


Lacoste is a French sportswear brand that was started in 1923 by the legendary Tennis player
Rene Lacoste (Lacoste.com, 2012). Rene Lacoste revolutionised not only sportswear for
Tennis players but for sportspeople all over the world by inventing the Polo shirt. This shirt
had the logo of the crocodile which has been associated with the brand’s iconicity in its 80
year period. The crocodile was used as the logo of the brand because Rene Lacoste was
named ‘The Crocodile’ on the court. He sowed on this logo on the first polo that he designed
and gifted and it became iconic to the brand’s identity (Silver, 2012).

Lacoste, in 1992, was one of the first brands to enter India along with Benetton (Dhall, 2007).
Bernard Lacoste, the eldest son of Rene Lacoste and CEO of Lacoste at the time, was a
visionary much like his father. He started operations in Brazil, India and China much before
rest of the international brands came to India. It can be said that Lacoste’s coming to India in
1992 was a good decision because the NEP was just introduced in the country and it was just
opening up to globalisation and liberalisation.

When the brand first came to India it came with just Polo Shirts, T-shirts and Shirts. Despite
the intentionally low profile, the brand garnered sales of $3.6 million in 1997 (Crain
Communications Inc., 1998). In 1997, the brand entered into the jeanswear segment in the
country. At the time, the brand was going through a phase of growth and found it profitable to
expand into more segments as well as open new stores. Through 1997 to 2002, the brand
expanded at an immense pace and opened a few franchise owned stores as well. Apart from
retail expansion, the brand was promoting itself through print advertisements and hoardings
as well.

Even though Lacoste opened new stores, they never tried to form a relationship with their
consumer. It has always portrayed itself as an international brand that sells in India. Between

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
2000 and 2003, the company faced an all-time high financial loss and by 2004 about 20% of
its stores came down (Dasgupta, 2007). In 2003, the brand realised that it was going into
decline and it decided to make significant investments to make it more accessible to the
people (TNN, 2003).

Till 2006, the brand was only present in EBOs. It became more open to sell through MBOs
when it realised it was more suitable for a lifestyle brand. Lacoste’s India licensee also signed
a marketing deal with Barista to market its products via Barista outlets. Lacoste’s then CEO,
Mr Vikas Gupta, said that for the brand to reinvent they have to change their stores, product
and image (TNN, 2003). They also shut down previously owned stores and opened new ones
in their place. The flagship store in South Extension was also shut down, to open a massive
7000 sq ft store carrying aThell their lines.

When Lacoste realised India’s manufacturing potential, especially in the field of knits, they
set up a manufacturing unit for their polo shirts and some of their wovens in Noida. The brand
wanted to take its manufacturing further by sourcing leather products from the country as well
(TNN, 2004).

From 2008-2011, Lacoste concentrated on product for repositioning itself. It introduced its
footwear line, its fragrances and other accessories. This helped introduce the image of its
products as a lifestyle brand from a global to a local scale. From 2011-2013, the brand has
been concentrating on retail expansion and reinnovation. When the stores were closed down,
they were rebuilt as world class Lacoste stores. Lacoste also introduced Lacoste L!VE and
Polo Lounges to India in 2011 and 2012 respectively.

80 years since its inception and 20 years since it has been in India, Lacoste has seen a number
of changes. Currently it is trying to reposition itself as a brand for youngsters. World over the
Lacoste product is now younger, brighter and more fashionable. A new label Lacoste L!VE
has also been introduced which produces clothes for youngsters at cheaper prices. The stores
have been revamped to give a fresher vibe. This was done with the help of visual
merchandising tools which laid emphasis on product. The background of the stores was made
a pristine white with the Lacoste merchandise adding color to the store surroundings.

Globally Lacoste has changed its promotional mix as well. They have completely shut down
traditional media advertisement in US and shifted to new media entirely (Burkitt, 2009). In
India, however, Lacoste is not promoting in any way. The same advertisement campaign is
put up on the stores and hoardings. Keeping in tune with their global strategy, there are no
print ads or dedicated Facebook and Twitter pages. Lacoste does not sponsor sports events in
India probably because it is not associated with Cricket or Hockey which are the most popular
sports in the country.

So far Lacoste has successfully taken steps for repositioning its product and place in the
country. The next and very important step in its repositioning strategy is to promote the brand
effectively. Lacoste has so far not made any concrete attempts to promote its new image to
the country. There is huge potential for the brand’s new image in a country like India where
youth makes up a huge part of the demographics.

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

3. Research Methodology
The concept of globalization has been around for about 3 decades now since early 1970s when it
was first introduced to the world at large through airlines. During this time airline travel got
cheaper, technology became more advanced and the boundaries across the world saw themselves
blurring out. It was only a matter of time before brands started crossing boundaries and reaching
to other nations. Glocalization, however, is a relatively new concept as far as literature is
concerned. It was first introduced by Robertson in 1994 in a conference on globalisation. This
paper aims to explore the concept of glocalization and make suggestions about promotional
glocalization for Lacoste in India. Since the findings are based on secondary research in
glocalization the study is an exploratory study and can be tested further to prove the findings
correct.

In order to meet the purpose of this paper secondary and primary research has been conducted.
Findings through secondary framework have been studied in order to recommend strategies for
glocalized promotion of Lacoste in India.
In order to start off the research, various journals, books and articles were reviewed. An
understanding of the concept of glocalization and reason for glocalization was reached. India is a
part of the BRICS and is well known globally as one of the upcoming economic superpowers. As
a result brands which have glocalised in India have been studied. Since this paper aims to suggest
glocalization of promotion strategies for Lacoste in India, the brand’s history in India has been
detailed.
From the literature review it was established that glocalization is necessary to adapt to the
localised needs of the people in nations. Also it was established that glocalization is localization
of the tactics but globalization of the strategy. To suggest Lacoste’s glocalization of promotion
strategies, it was necessary to study the Lacoste consumer in India which was done through
structured questionnaires given to Lacoste consumers pinpointed through a combination of
snowball technique and convenience sampling. In the snowball technique a single Lacoste user
was identified and more users were identified through this user. In convieniece sampling, the
people who came out of the Lacoste store after having made a purchase were asked to fill the
questionnaire. Based on the findings about the Lacoste consumers, glocalization of promotion
strategies have been suggested for Lacoste India.

4. Findings and Analysis


The purpose of this section is to document and discuss the findings from the surveys and
secondary research. Through the first part of the section, which studied the Indian consumer of
Lacoste we find that the main reason that Lacoste needs to glocalize is that psychographics are
much different in India than globally. Based on the findings about the consumer and through
secondary research, possible glocalization strategies have been suggested in the second part of
this section.

4.1 Lacoste Indian Consumer


Lacoste is a niche brand with a niche strategy world over. The business that started with top
quality polo shirts has today expanded into a number of product lines. It prices its clothes in a
manner that they are thought of as being ‘affordable luxury’. In 2006, it decided to expand its
target market and include the youth in it. This can prove to be quite a task for a brand like
Lacoste since their products are very sophisticated, classy and sober. Significant changes in

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
their product mix, pricing strategies and promotions have been made by the brand ever since
this repositioning started.

The segmentation, targeting and positioning of a brand is a strategic decision which has to be
taken based on the company’s global strategy. Lacoste’s target market across the globe is the
same. The target group of Lacoste now includes young (18-303), professional, casual,
sophisticated and successful people. These characteristics are the same amongst the people
throughout the world, however the tastes, preferences and behavior of the people change with
the culture4 they have grown up with.

Culture plays a major role in the way people belonging to a particular culture dress. Overall,
globally people are dressing more casually now in daily life. Even in the corporate work
environment, business dressing requirements are not as stringent as they used to be before.
However, in every culture the definition of a casual dress changes significantly. The shift to a
more casual dress code is a positive change for Lacoste.

India is a nation who’s youth pulse runs on cricket. Lacoste promotes a casual sports lifestyle.
The sports which are most commonly associated with Lacoste are Tennis and Golf. As a
result, not a lot of Indians are able to associate with the imagery related to Lacoste and
imagery is very important when it comes to fashion brands.

Lacoste is an expensive brand globally. In India, their iconic product the Polo Shirt is priced
at Rs 2950 which is quite expensive3 as compared to the prices of its competitors. For
example, Polo Shirts from Tommy Hilfiger, which is Lacoste’s main competitor in India, cost
Rs 1999. Lacoste’s target consumer which is the youth and middle aged people are value
conscious and do not find a Polo Shirt worth Rs 3000.

While it is not to say that people are not aware of Lacoste, they are not aware of its latest
brand campaign3. As a result a lot of people think of Lacoste as an old, classic and
aristocratic3 brand all of which usually do not resonate with the youth.

Another thing about the Lacoste merchandise is that their fit is not suitable for most Indian
body types. Their clothes come in 3 types of fit: regular fit, slim fit and Italian fit. The regular
fit is the most popular amongst Indians since it is best for the Indian body but the slim and
Italian fits do not suit Indians3 and hence a rarely ever bought by people. Accessories are a
popular section amongst Indians since they are in low involvement, high brand value zone
where most of India’s youth feels comfortable.

4.2 Glocalization of promotion for Lacoste


Considering the arguments for glocalization and globalisation, it is interesting to see that
Lacoste could do well with a glocal strategy in India. The way Lacoste is perceived over the
world does not help in a country like India. Lacoste is a brand with an exquisite history and
they try to tap that history in every product they make. However, for Indians conspicuous
consumption is a part of their culture and they do not understand the concept of heritage
luxury.

3
See Annexure 4
4
See Annexure 1 for cultural analysis.

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
A global brand with cross-cultural differences can tailor their messages more effectively for
the localities. Lacoste is a casual sportswear brand which promotes a lifestyle that is
sophisticated and relaxed. The global promotion strategy used by Lacoste consists of print
advertisement in which American models feature wearing Lacoste clothes. These
advertisements are trying to communicate Lacoste’s new and youthful image. The people in
India are however unable to associate with the imagery in these ads since they do not match
Indian culture. Indians are able to associate with the perfume ads.

As a rule Lacoste, uses a global strategy across the 115 countries it is present in. Some people
argue that Lacoste’s strategy is more heavily influenced by their customer in the US than by
any other country. This can be seen by the fact that their latest tagline is ‘Unconventional
Chic ( (BETC Luxe, 2011). So far in the past, whenever Lacoste came up with a new
promotional campaign, the tagline has always been in French (‘Un Peu d’Air Sur Terre’; ‘Les
crocodiles sont belles’). However, when the latest campaign was launched in 2011, the
models used were American and their tagline was in English.

Seeing as Lacoste is trying to target today’s youth, they have to make some changes in their
strategies to create awareness about the brand as well. In US, Lacoste has completely shut
down its print advertisement and put its entire advertising budget into social media and online
promotion. Lacoste spends $12 million a year on marketing in the U.S., according to TNS
Media Intelligence, and all of that has gone online. Lacoste says its biggest market, 18- to 34-
year-olds, isn't heading to newsstands anymore, so the brand is placing display ads on sites
such as Facebook, video streamer Hulu, radio player Pandora and Condé Nast digital media
(SZMYDKE, 2013).

There is a major field in which Lacoste can glocalise its communications. In India what
motivates people to buy from a particular brand is very different from what motivates people
in the west. People in India are always looking for deals and offers. Something that gives
them more value than expected out of a given amount of money will always attract them to it.
However with super premium brands the value which they are looking for may be different
from what they look for in a mass market brand. In a super premium brand they want good
quality but they also want social standing and its good image to rub off on themselves.

Lacoste is a historic super-premium brands. In some parts of the world, such as China, it is
even perceived as a luxury brand. In order for Lacoste to promote itself in India, it needs to
promote this image of the brand as opposed to their latest campaign of ‘Unconventional
Chic’. Also their vehicles still need to be more traditional than new media. In India, even
though internet awareness is caching up, people still look for advertisements of their
purchases in traditional media such as newspapers and magazines.

5 Conclusions

This paper has explored the possible ways of glocalization of promotion for a brand like
Lacoste in India. In this process glocalization of brands in various sectors was studied within
India. Also, rationale behind glocalization of a brand was understood and applied to Lacoste. It
was found that the main need from glocalization derives from the fact that the same consumer
segments across the world have different needs and wants. In order to meet the needs of the local

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Surbhi Mittal
Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
community, companies need to tweak their marketing mix a little. For most apparel and retail
brands it is the easiest option to tweak promotional mix.

The best way to localize a promotional mix in order to match the needs of the people is to have
public relations and sponsor events in the country which match the countries tastes. The
advertisements can also be glocalized by featuring a local brand ambassador to advertise the
brand’s image in the country. All the elements of the promotional mix work in tandem to produce
the brand’s image as it does.

The glocalization of promotion for brands in India has to be studied much further in detail. This
brand is limited just to one brand which is Lacoste. Also, the literature reviewed is limited to
mostly fashion brands. This is an exploratory study. Hence, the suggestions made in the paper
need to be tested in order to form a framework for the brands which plan to glocalize. The
potential for glocalization of brands in India is huge since Indian market it very different from the
rest of the world and India is a growing market. Therefore, glocalization is an upcoming strategy
for global brands in India.

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

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2012-2014
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Masters of Arts in Fashion Marketing
2012-2014
of-media-ethics-from-an-african-perspective/
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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

ANNEXURE 1
Culture is one of the major factors which affect the beliefs that are formed by people. Hofstede (2001)
defines culture as “the collective programming of the mind which distinguishes the members of one
group or category of people from another.” Hannerz (1992) argues that culture consists of an
“invisible” dimension – predominant and shared values or social norms. The “visible” dimension
highlights “the different ways in which ideas and modes of thought are made public and accessible to
the senses” (Hermans and Kempen, 1998) e.g. forms of art or media, interstate highways, particular
kinds of food, speech, fashion, music, brands). Finally, Hermans and Kempen (1998, p. 1116) note
that the degree of cultural knowledge shared varies by subgroups When people are exposed to
multiple cultures they realise the role culture plays in their lives (Schiffman & Kanuk, 2009). For
example, brushing teeth with flavoured toothpaste requires realisation that in some culture it might be
considered right to not brush teeth at all.

Figure 1: A theoretical model of Culture's Influence on Behavior (Karahanna et. al., 2005)

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014
ANNEXURE 2

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

ANNEXURE 3

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Glocalization of promotion mix as a repositioning strategy
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2012-2014

ANNEXURE 4

Age
Frequency Percent Valid Percent Cumulative
Percent

18 to 24 20 54.1 54.1 54.1

25 to 34 9 24.3 24.3 78.4

Valid 35 to 44 6 16.2 16.2 94.6

45 and above 2 5.4 5.4 100.0

Total 37 100.0 100.0

Gender
Frequency Percent Valid Percent Cumulative
Percent

Male 21 56.8 56.8 56.8

Valid Female 16 43.2 43.2 100.0

Total 37 100.0 100.0

Annual Income in INR * Do you prefer full price or sale? Crosstabulation


Count

Do you prefer full price or sale? Total

Full price Sale

Below 1 lakh 4 1 5

1 to 5 lakh 3 6 9

Annual Income in INR 6 to 10 lakh 5 3 8

11 to 15 lakh 5 3 8

Above 15 lakh 6 1 7
Total 23 14 37

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

Annual Income in INR * Price Crosstabulation


Count

Price Total

2 3 4 5 Expensive

Below 1 lakh 0 2 1 2 0 5

1 to 5 lakh 0 0 3 5 0 8

Annual Income in INR 6 to 10 lakh 0 3 3 2 0 8

11 to 15 lakh 0 3 2 2 1 8

Above 15 lakh 2 3 1 1 0 7
Total 2 11 10 12 1 36

Occupation * Do you prefer full price or sale? Crosstabulation


Count

Do you prefer full price or sale? Total

Full price Sale

Service Sector 3 3 6

Corporate Sector 6 7 13
Occupation
Own Business 5 1 6

Other 9 3 12
Total 23 14 37

Occupation * Price Crosstabulation


Count

Price Total

2 3 4 5 Expensive

Service Sector 0 0 2 4 0 6

Corporate Sector 0 6 2 3 1 12
Occupation
Own Business 2 2 1 1 0 6

Other 0 3 5 4 0 12
Total 2 11 10 12 1 36

Gender * Do you prefer full price or sale? Crosstabulation


Count

Do you prefer full price or sale? Total

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

Full price Sale

Male 12 9 21
Gender
Female 11 5 16
Total 23 14 37

Gender * Price Crosstabulation


Count

Price Total

2 3 4 5 Expensive

Male 1 8 4 6 1 20
Gender
Female 1 3 6 6 0 16
Total 2 11 10 12 1 36

Age * Do you prefer full price or sale? Crosstabulation


Count

Do you prefer full price or sale? Total

Full price Sale

18 to 24 14 6 20

25 to 34 5 4 9
Age
35 to 44 3 3 6

45 and above 1 1 2
Total 23 14 37

Age * Price Crosstabulation


Count

Price Total

2 3 4 5 Expensive

18 to 24 1 4 5 9 0 19

25 to 34 0 3 3 2 1 9
Age
35 to 44 1 3 1 1 0 6

45 and above 0 1 1 0 0 2
Total 2 11 10 12 1 36

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

Crosstab
Fit Total

Good 2 3 4 5

Count 1 1 2 0 1 5

% within Annual
20.0% 20.0% 40.0% 0.0% 20.0% 100.0%
Below 1 lakh Income in INR
% within Fit 33.3% 10.0% 12.5% 0.0% 33.3% 13.9%

% of Total 2.8% 2.8% 5.6% 0.0% 2.8% 13.9%

Count 2 1 3 1 1 8

% within Annual
25.0% 12.5% 37.5% 12.5% 12.5% 100.0%
1 to 5 lakh Income in INR

% within Fit 66.7% 10.0% 18.8% 25.0% 33.3% 22.2%

% of Total 5.6% 2.8% 8.3% 2.8% 2.8% 22.2%

Count 0 1 6 0 1 8

% within Annual
Annual Income in 0.0% 12.5% 75.0% 0.0% 12.5% 100.0%
6 to 10 lakh Income in INR
INR
% within Fit 0.0% 10.0% 37.5% 0.0% 33.3% 22.2%

% of Total 0.0% 2.8% 16.7% 0.0% 2.8% 22.2%

Count 0 4 3 1 0 8

% within Annual
0.0% 50.0% 37.5% 12.5% 0.0% 100.0%
11 to 15 lakh Income in INR
% within Fit 0.0% 40.0% 18.8% 25.0% 0.0% 22.2%

% of Total 0.0% 11.1% 8.3% 2.8% 0.0% 22.2%

Count 0 3 2 2 0 7

% within Annual
Above 15 0.0% 42.9% 28.6% 28.6% 0.0% 100.0%
Income in INR
lakh
% within Fit 0.0% 30.0% 12.5% 50.0% 0.0% 19.4%

% of Total 0.0% 8.3% 5.6% 5.6% 0.0% 19.4%


Count 3 10 16 4 3 36

% within Annual
8.3% 27.8% 44.4% 11.1% 8.3% 100.0%
Total Income in INR

% within Fit 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 8.3% 27.8% 44.4% 11.1% 8.3% 100.0%

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Glocalization of promotion mix as a repositioning strategy
Masters of Arts in Fashion Marketing
2012-2014

Crosstab
Fit Total

Good 2 3 4 5

Count 0 2 2 0 2 6

% within
0.0% 33.3% 33.3% 0.0% 33.3% 100.0%
Service Sector Occupation

% within Fit 0.0% 20.0% 12.5% 0.0% 66.7% 16.7%

% of Total 0.0% 5.6% 5.6% 0.0% 5.6% 16.7%

Count 2 2 6 2 0 12

% within
16.7% 16.7% 50.0% 16.7% 0.0% 100.0%
Corporate Sector Occupation

% within Fit 66.7% 20.0% 37.5% 50.0% 0.0% 33.3%

% of Total 5.6% 5.6% 16.7% 5.6% 0.0% 33.3%


Occupation
Count 0 1 4 1 0 6

% within
0.0% 16.7% 66.7% 16.7% 0.0% 100.0%
Own Business Occupation

% within Fit 0.0% 10.0% 25.0% 25.0% 0.0% 16.7%

% of Total 0.0% 2.8% 11.1% 2.8% 0.0% 16.7%

Count 1 5 4 1 1 12

% within
8.3% 41.7% 33.3% 8.3% 8.3% 100.0%
Other Occupation

% within Fit 33.3% 50.0% 25.0% 25.0% 33.3% 33.3%

% of Total 2.8% 13.9% 11.1% 2.8% 2.8% 33.3%


Count 3 10 16 4 3 36

% within
8.3% 27.8% 44.4% 11.1% 8.3% 100.0%
Total Occupation

% within Fit 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 8.3% 27.8% 44.4% 11.1% 8.3% 100.0%

Crosstab
Fit Total

Good 2 3 4 5

Count 1 5 10 3 1 20

% within Gender 5.0% 25.0% 50.0% 15.0% 5.0% 100.0%


Male
Gender % within Fit 33.3% 50.0% 62.5% 75.0% 33.3% 55.6%

% of Total 2.8% 13.9% 27.8% 8.3% 2.8% 55.6%

Female Count 2 5 6 1 2 16

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Glocalization of promotion mix as a repositioning strategy
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2012-2014

% within Gender 12.5% 31.2% 37.5% 6.2% 12.5% 100.0%

% within Fit 66.7% 50.0% 37.5% 25.0% 66.7% 44.4%

% of Total 5.6% 13.9% 16.7% 2.8% 5.6% 44.4%


Count 3 10 16 4 3 36

% within Gender 8.3% 27.8% 44.4% 11.1% 8.3% 100.0%


Total
% within Fit 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 8.3% 27.8% 44.4% 11.1% 8.3% 100.0%

Crosstab
Fit Total

Good 2 3 4 5

Count 2 6 7 2 2 19

% within Age 10.5% 31.6% 36.8% 10.5% 10.5% 100.0%


18 to 24
% within Fit 66.7% 60.0% 43.8% 50.0% 66.7% 52.8%

% of Total 5.6% 16.7% 19.4% 5.6% 5.6% 52.8%

Count 1 3 4 0 1 9

% within Age 11.1% 33.3% 44.4% 0.0% 11.1% 100.0%


25 to 34
% within Fit 33.3% 30.0% 25.0% 0.0% 33.3% 25.0%

% of Total 2.8% 8.3% 11.1% 0.0% 2.8% 25.0%


Age
Count 0 1 4 1 0 6

% within Age 0.0% 16.7% 66.7% 16.7% 0.0% 100.0%


35 to 44
% within Fit 0.0% 10.0% 25.0% 25.0% 0.0% 16.7%

% of Total 0.0% 2.8% 11.1% 2.8% 0.0% 16.7%

Count 0 0 1 1 0 2

% within Age 0.0% 0.0% 50.0% 50.0% 0.0% 100.0%


45 and above
% within Fit 0.0% 0.0% 6.2% 25.0% 0.0% 5.6%

% of Total 0.0% 0.0% 2.8% 2.8% 0.0% 5.6%


Count 3 10 16 4 3 36

% within Age 8.3% 27.8% 44.4% 11.1% 8.3% 100.0%


Total
% within Fit 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

% of Total 8.3% 27.8% 44.4% 11.1% 8.3% 100.0%

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2012-2014

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