Coach Inc Handbags: Marketing Strategy Analysis

The following case analysis will assess Coach Inc. and its strategy in the accessible luxury brand goods market. The coach strategy focuses on its luxury rivals in matching key quality styles while offering it at a cheaper price. The company offers most products at a 50% off discount price less than other brands which gives them a competitive advantage pertaining to its customer base. Coach marketed its products to middle –income consumers desiring taste of luxury, but also affluent and wealthy consumers with means to spend considerably more on a handbag (Gamble, 2012. P.C-73) .The Company also has several other strategies such as to increase global distribution, improve same store sales productivity and continue its multi-channel business model which includes indirect whole sales to third party retailers but also focuses on direct consumer sales. Coach has done well in the luxury goods industry but the companies profit margin is still below the levels achieved prior to the onset of a slowing economy in 2007 ( Gamble, 2012. P.C-73.The Company had experienced a decline in sales as they are unsure if the company recent growth could remain constant and maintain their competitive advantage with other successful luxury lines Michael Kors, Salvatore Ferragamo, Prada and Dolce & Gabbana.

Products tend to go through different stages, each stage being affected by different competitive conditions. These stages require different marketing strategies at different times if sales and

Coach is an American New York based company competing in the clothing sector of the consumer goods industry. Its products include leather goods for both men and women. Through exceptional customer service the company maintains and builds a loyal and dependable clientele. Unique designs and branding has distinguished the company from its peers. Peers include but not limited to L Brands Incorporated, PVH Corp., Ralph Lauren Corp., Tiffany & Co., VF Corp., Estee Lauder Incorporated, Kate Spade & Co., Abercrombie & Fitch and Michael Kors Holdings Limited. From fragrances, sunglasses, outerwear, travel bags, men’s belts, wallets and gloves the company has strategically remained relevant in the market place. Coach has been profoundly involved in increasing its global presence in the Asian markets.

They also have informational websites in twenty other countries. In the future, Coach plans to increase international distribution and target international consumers, especially in Asia. They also plan on staying one of the most popular name brand accessory companies in North America. ("Coach est. 1941," 2010)

How is the product positioned relative to the selected target market in the case? Are there other ways to position the product?

Care must be taken no to confuse markets and customers with the addition of new products. The higher-fitting a product is to current market offerings the easier it is for consumers to buy into the product. If studies determine a weaker association, companies must focus on advertising efforts to inform and education consumer markets if they have any hope of successfully promoting brand extension.

In this mature shoe industry, companies compete to satisfy customers in many different ways creating intense competition for market share. It is critical to understand the nuances of strategies between companies in their attempt to compete. In this concentrated industry, a company has to find a way to be different to be successful. In the case of Industry 9, Company I should not worry about competing for price and quality with their competition, instead, they should focus on increasing their marketing efforts. They should take advantage of their celebrity endorsements and showcase these in their advertising.

Coach was established in New York in 1941, as a family run manufacturing business in leather goods. Due to Coach provided superior quality class styles leather goods and opened exclusive retail stores in the 1980’s, it became recognized as a premium brand. In 1985, Coash was sold to Ms. Sara Lee and had a rapid expansion. The expansion was not only opened many more boutiques and exclusive retail stores, but also expanded its product collection to different areas such as accessories, luggage and briefcases. In the late 1980’s, there were 12 Coach exclusive stores other than nearly 50 boutiques selling Coach’s products within large-scale department stores. However, Coach’s sale began to drop as it started to fall behind its competitors in terms

Secondly, I would recommend to leverage the Coach Brand globally for Coach by raising brand awareness and building market share in markets where Coach is under-penetrated, through operated businesses. It is because Coach is a global leader in premium handbags and accessories, and it affects to reinforce the Coach message of affordable luxury.

The focus of our 2 year marketing campaign is the building of the Coach line of handbags. The typical market focus of the handbag business for Coach is geared towards middle class women who have an interest in quality handbags and don’t who mind paying a little more for the quality and prestige of Coach products. While a Coach handbag is certainly a niche item, we feel there is ample room for growth.

Coach* is a standout amongst the most perceived fine adornments marks in the U.S. what's more, in focused global markets.Coach is a main American advertiser of fine adornments and presents for ladies and men. Their item offerings incorporate ladies' and men's packs, frill, business cases, footwear, adornments, sun wear, travel sacks, watches, and fragrance.Coach's dispersion system is multi-channel. Coach works in two portions: Direct-to-Consumer and

Companies also plan which place will be better for their product launching or where they have to distribute their product to get profit.

This paper will look at the chosen area of decision making, which was the Target Segment. This required the analysis of the different target segments available when marketing a backpack in a virtual game (MH Practise, 2016). The target segment, also known as the market segmentation, is a similar group of customers to whom a company wants to appeal to (Lamb, 2016). The purpose of market segmentation is to enable the marketer to tailor to the marketing mix. This will allow the company to ultimately cover various segments in a market. There are numerous ways to segment a market. This can be done through demographic, physiographic, geographic and behavioural segmentations (Pewa, 2016). Throughout the report the target segments

Coach has many strengths and weaknesses. Coach strengths include its wide range of accessories such as its handbags, watches, accessories, cosmetic cases, key fobs, belts, electronic accessories, gloves, hats, scarves, business cases, luggage, eyewear, fragrance, and clothing. It is the leading luxury leather goods company in the United States, with expansion in Japan, China, and Asia. Coach has developed a respected reputation by providing their customers with quality products and its 70+ years of being in business. They do a great job of advertising through press releases, catalogs, internet, and shopping centers. Coach has a larger range of pricing which attracts lower income consumers and wealthier consumers. They also allow their products to be sold at stores (department and full price stores) and online. Coach prides themselves on creating customer value. However, Coach also displays weaknesses as well. They have a limited selection for men and a poor inventory turnover rate. Coach has no direct announcements to the public about the promotion of new products. Their new products first sell at full price which keeps the lower income

Distribution of the products or services is a vital thing of the sales of the organization. What is the customer want about distribution; how they want get their product or services by research all these things will help to get customers.