A Case Study on Lady Foot Locker: the Lobo Launch

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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 women’s 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
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Lobo was named the 1994 and 1995 Big east Conference Player of the Year as well as an Academic All-American. Lobo also received the Wade trophy in 1995 as the National Player of the Year.

V. Areas of Consideration

The areas to be considered upon pursuing the study are the following:

A. Reebok’s Lobo Endorsement
Rebecca Lobo’s contract with Reebok enabled Reebok to involve her in product endorsements and advertisements, store appearances, and speaking engagements. However, because Nike (in footwear) and champion (in apparel) were primary sponsors of the WNBA, Lobo could not appear in WNBA games with Reebok footwear unless the Reebok logo was masked on her shoes. Further, Reebok could not feature Lobo in its advertisements or in-store displays wearing her New York Liberty uniform.

B. Target Consumer
LFL targeted the 18-34 year-old active female. According to management, this woman was active in sports, fitness and family life. The 12-17 year-old teen female represented an important secondary market. Management believed that sales occurred across broad age segments, and thus considered the LFL customer to be “ageless”.

LFL executives believed that 12-17 year-old female consumers were increasingly critical to reach because of their present and future buying power. Traditionally, Reebok held a relatively low share of this segment compared to other brands such as Nike and Adidas.

C. Industry

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