A Case Study On Lady Foot Locker: The Lobo Launch

I. Statement of the Problem Based upon the critical issues stated in the case, Wyatt wondered if LFL should consider bringing a Lobo shoe to market in partnership with Reebok. Was there retail potential in a signature product built around an emerging professional womens player such as Rebecca Lobo? Did it make sense financially? II. Objectives of the Study This study seeks the following objectives: - to be able to understand the market potential of LFL shoes in partnership of Reebok - to determine the profitability of the partnership and the launch - to know whether the decision of being partners with Reebok on the Lobo launch was a good idea III. Scopes and Limitations of the Study The study includes the current situation of Woolworth Corporation, the LFL, its consumers and Reebok. The nature of the company LFL., the organizational background of the company and the different strategies that the company has already done to the specific product line of athletic shoes and apparel, are also some scopes included in the study. The study however, is limited with only secondary data based on personal interviews and field research and was written solely as a basis for class discussion rather than to illustrate either effective or ineffective retail and marketing strategy practices. This study has recommendations and points of view that are based from my own perspectives and thinking as a marketing student. IV. Nature of the Research A. Woolworth Corporation Woolworth Corporations Athletic Group included LFL, Foot Locker, World Foot Locker, Kids Foot Locker, Champs Sports, Going to The Game and many more. The athletic group, Woolworths largest and most profitable business unit, operated 3,588 stores in North America, Europe, Asia and Australia and led the industry in sales of branded athletic footwear and apparel in the US. As part of its growing strategy, the Athletic Group had continually introduced new store

Case 13 Lady Foot Locker 1. Preparation Have a table writer: 2. Analyze and Record Problems and Their Core Elements Time? February 1997 Give outline & introduce discussion: Bill Wyatt, general merchandise manager at Lady Foot Locker, is faced with a decision about launching a campaign with signature products. The campaign should be based on a celebrity endorsement with Rebecca Lobo (most popular baseball player in the WNBA). The collection is intended to be made in cooperation with Reebok. LFL is part of the Woolworth Athletic Corporation, GM is Kathy Daveport Who are we? Consultancy for foot locker - Support Bill and his team in his decision making and prepare for meeting with Kathy and Reebok What industry are we in? Women Sports footwear Who are our customers? End customers, as LFL is a retailer 3. Analyze and Record the Current Situation Facts Phase I. Environment Economic Environment: Nope Social E.: Sales for women shoes are not as great as for mens or kids shoes (does anybody think social factors are a reason?). Political E.: nope Environmental E.: nope Technological E.: There are many innovations with cushioning technologies. What is your opinion, is every special cushioning technique really an innovation or a me-too USP? Legal E. nope

Phase II. Industry General: Total athletic footwear sales going down (to est. 324 pairs in 1997)

percent of total footwear going down does anybody know the reason? Experts say that there is a shift to sandals and casual footwear Is the industry mature and what does this mean for competition? How do companies try to increase sales? o Segmentation has increased (70s and 80s basketball, tennis, running, and fitness) and it has become more important in which segment one competes o Differentiation o Branding (incl. Celebrity endorsement) What are the main industry suppliers and do they use celebrity endorsement?:

Key Issues: Management

Retail and Marketing Strategy; Sports Marketing; Celebrity/Product Endorsement; Retail

Case Description: Bill Wyatt, general merchandise manager at Lady Foot Locker, a national chain of athletic footwear and apparel stores, is faced with the complex decision of whether to partner with Reebok and launch the Lobo I, a women's-specific basketball shoe endorsed by Rebecca Lobo. Loba had played at the University of Connecticut and on the 1996 U.S. Olympic Basketball team and is now sponsored by Reebok as a member of the WNBA's New York Liberty. Recent introductions of similar women's-specific basketball shoes by well-known brands such as Nike had not been successful. Within the context of a dynamic industry characterized by declining basketball shoe sales, increasing sales of substitute footwear such as casual and hiking shoes, and an ever-fickle teen market, Wyatt and his management team must now weigh factors for launching the Lobo I against numerous reasons why such a launch shouldn't be pursued. (WRC) Student activists and several labour unions had founded the WRC to ensure that shoes and apparel manufactured overseas were not produced under sweatshop conditions. Knight was upset because Nike had helped found and was an active supporter of a rival organization, the Fair Labour Association (FLA). The FLA took a different approach to establishing fair wages and working conditions in the overseas shoe and apparel industry. What were the key issues in this dispute? Which organization, the WRC or FLA, offered a more effective way to set and enforce labour standards for multinational corporations like Nike?