History And Growth Of Coach Company

The luxury market is growing fast in China and India due to the rapidly increasing wealth levels and standard of living gains. Coach must keep in mind the different cultural backgrounds of each country and take that into account when designing and marketing new products and lines.

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.

and, even if successful, such alternative actions may not allow us to meet our scheduled debt service obligations. In the absence of such operating results and resources, we could face substantial liquidity problems and might be required to dispose of material assets or operations to meet our debt service and other obligations. These restrictions may limit the ability to engage in acts that may be in company’s long-term best interests, and may make it difficult for the company to execute their business strategy successfully or effectively compete with companies that are not similarly restricted.

In the luxury goods industry, the rapid development has brought the market more brands and the latest design products. Industry matures has caused the accelerated development of a wide range of luxury goods (Chiari, 2009). However, one thing was constant, no matter how much increased production costs, the large luxury brand of origin will not be transfer. Long cultural history is an integral part of the luxury brand, and the origin of products have also brought a certain cultural value for luxury goods (Heine, 2012).Especially for Asian consumers, it seems that in the far west, craft superb tailoring and rich cultural history of the western area are the pursue of Chinese consumers (Sombart, 2001).Louis Vuitton 's president has said that (2013), “when customers buy our products, they expect Western quality. The mystery of the origin of our brand is closely linked with our brand”. Although with the close of trade, many luxury goods in the production and sales process will cooperation with other country’s companies, the final product definitely launch in the country of origin. Gucci is a legendary brand in Florence (Italy), and it will also strictly control the production done in Tuscany (Italy), to ensure pure and high-quality products (Gucci, 2015). Therefore, a regional feature has brought an intangible value and more local cultural characteristics to the luxury goods.

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

Coach is a one of recognizable American luxury brand which provide classic American style products. Coach’s history was begun as family-run s mall shop which sell handmade leather goods in Manhattan in 1941. Their well quality products greatly expanded, and Coach prominent a position as a luxury brand. They produce highest standard materials and it makes their value, today we can still see this integrity for not only for products but also customer

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.

Growth has been fueled by Coach’s niche as being ‘accessible luxury’. While Coach does not have the prices of most of its high-end competition, it is regarded throughout the industry, and most importantly by consumers, as being equal in quality to much more expensive brands.

A marketing strategy is important for any product, and a big part of that strategy is the distribution elements and channels (Distribution, 2009; Marketing, 2011; Timberlake, 2012). Coach is very selective about how they distribute their products. They have authorized stores and outlet stores, as well as catalogs and a company website (Coach, 2012). They also allow some department stores to carry their products, as well as catalogues and specialty stores (Coach, 2012). A few duty free locations also have Coach bags (Coach, 2012). This is clearly stated on their website in an effort to dissuade people from purchasing a Coach handbag in a way that is illegal. It can also help prevent people from purchasing something they think is a Coach handbag but finding out later it is a copy or a fake. The target market for Coach is generally upscale, so Coach does not want the less expensive chain retailers carrying its product. There should be some exclusively with the Coach brand, and that can only be created and maintained by controlling what stores and locations can carry the Coach brand. Doing this allows the company better marketability when targeting specific groups or areas of a target market, such as upscale consumers.

both the U.S. and international markets. China represents one of the fastest growing countries for

Coach created the “accessible” luxury category in ladies ‘handbags and leather accessories by matching key luxury rivals on quality and styling, while beating them on price by 50 percent or more. Beyond its winning combination of styling, quality, provided by its employees contributed to its competitive advantage.

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

Coach is the manufacturer of a collection of handcrafted leather goods that are considered high in quality and unique in craftsmanship. Coach strives on their continued high standards that are required for the materials and workmanship that go into their handbags. The Coach brand is attributed their reputation and is considered one of the leading high-end handbag provider. The Coach brand is considered a “unique combination of their original American attitude and design, their heritage of fine leather goods and custom fabrics, their superior product quality and durability and commitment to customer service” (Coach Company Profile, n.d.). Coach has materialized as one of America's distinguished designers and manufacturer of fine handbags for women. The Coach brand has been developed over time from the signature styles and unique character that the handbags posses. (Corkindale, 2008).

Signified by two interweaving C’s, Coach Inc., has established itself as a fashion brand structured around modern designs and quality leather. Founded in a New York City loft in 1941, Coach has consistently delivered its customers luxury leather goods backed by great customer service, which has helped lead to its success 73 years later. Coach has attributed much of their success to modern designs and integrated marketing strategies, which keep their customers involved. Primarily focused on women’s handbags, Coach has started expanding its market to men’s apparel and shoes in recent years. A well-established reputation and business, Coach still have many areas to improve upon, and these opportunities will be explored in this paper.

Handbags sizes and colors appeal to shopper’s taste and are instrumental in helping them make fashion statements.” (Sheppard, 2014). The size of the bag should be kept in mind and it should not exceed ten percent of the wearer’s weight. Straps should be made adjustable and wide enough to create convenience for the customers. As the comfortability of the handbag is considered quite essential in building up the brand image and allowing customer retention and repeat purchases from the