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Market Opportunity Analysis: Coach Inc. Essay

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Market Opportunity Analysis: Coach Inc.: Is its Advantage in Luxury Handbags Sustainable?

These days, the relative hot discussion never fails to fascinate people whether Coach Company’s advantage in luxury handbags is sustainable. Considering the current situation that Coach is in and the new strategy that Coach will take, we believe that Coach’s advantage in Luxury handbags will be sustainable. Coach is a large, American luxury handbags-made company. In this article, we will first tell some beautiful stories on the background of coach. For another, we will analysis the reason why its advantage is sustainable depending on 4Ps theory. In the end we feel obliged to give some recommendations based on our analysis.
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But now, there are some of the luxury goods called accessible luxury, this kind of luxury specifically targeted the middle income consumers. Coach is one of these companies. There is no denying the fact that 4Ps theory is really important in marketing. The luxury goods industry also has competition. If we want to analysis the advantage in this industry, the Price, Place, Product and Promotion are the key words. The price can choose the different income class. The place directly determines the net sale. The product is the basically point for consumers to decide their purchase. The promotion is the basically way to increase the net sale. In luxury goods industry, the product was the most critical competitive advantage, but now the place and price has become increasingly important.
Product: Just like Coach’s handbags, Coach had famous for produce luxury leather products in the past, but now, the leather accessories by matching key luxury rivals on quality and styling is the key point to get the advantage in product.
Price: Starting at the new CEO Lew Frankfort came, Coach tried to position in the accessible luxury and use more outsourcing agreements to cut the cost. So another “P”, price become much more important. The price neither expensive nor cheap is suitable for middle-class consumer. Not only did Coach's $200-$500 handbags appeal to middle income consumers wanting a taste of luxury, but
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