Marketing Management Case Study - Coach Inc.

In addition, these companies are able to easily compete in the sports apparel market because the barriers to entry are low. On the other hand, many companies should think twice before entering the market. One reason is the large capital costs that are required to meet consumer demand in the market. In addition to large capital costs, some of the largest companies have gained customer loyalty based on their strong marketing skills. For example, Under Armour, Nike, Adidas, Reebok, ASICS, make new entrants into this industry much more difficult to compete with when these companies have a big share in the market already. According to Exhibit 4 in the textbook, it shows the major competitors and brands in 2013. Nonetheless, competition is intense in the sports industry market but, the high levels of product differentiation can also act as a barrier to entry for many companies because company’s need a high level of marketing to market their brand to consumers.

Competitors in the industry can wreak havoc on the bottom line for a company. With rivals, a price competition usually ensues, which benefits the customers but hurts the competing businesses that share a common strategy. In reviewing rival sellers, many competitors exist within the sports apparel and footwear industry, but most of them are unable to compete with the industry giants, Nike and Adidas. They are well seated in the industry and their sales reveal this ultimate strength, however, Under Armour is putting pressure on these mammoths. In 2015, global sales of sports clothing and footwear equated to $250 billion, of which Nike grabbed $30.6 billion, Adidas held in its grasp $18.8 billion and Under Armour had a much smaller piece of the pie, at $3.9 billion globally. In reviewing these numbers, it looks like Under Armour is really subpar to the industry giants, but this is not exactly the case. Under Armour in the past couple of

Distribution channels consist of organisations where goods pass in the direction of the customer, while producers need to manage their relationships with organisations in order to provide a cost efficient way into the marketplace. Burberry currently has 206 mainline stores, 214 concessions, 49 outlets, and 65 franchise stores (Burberry, n.d). These are located in largely populated, wealthy and tourist attractive cities, this is important as a huge number of the population fall into the Burberry target audience. If Burberry were to open in less wealthy cities, they may not get as much custom and may lose profit. In addition the brand may lose its sense exclusivity and expenditure.

Marketing management is simply referred to as an organizational discipline basically focusing on the practical application of marketing techniques and methods used within an organization or an enterprise and on the management of a firm or an organization marketing resources and activities. There are so many definitions about marketing management but the main key word within its definition is the application tracking and review of a company’s recourses and activities.

While Coach, Inc. has managed to capture a large amount of the market by pursuing a broad differentiation strategy and promoting the company as an accessible luxury brand, they still have some areas to improve upon.

Coach was created by a New York artesian name Miles Cahn in 1941, the company is family owned and crafted it beginning work in a SoHo loft. The company started out with just 12 leather bags

Coach also has very high standards for their brand. Coach states that “The Coach brand represents a unique synthesis of magic and logic that stands for quality, authenticity, value and a truly aspirational, distinctive American style.” ("Coach est. 1941," 2010) They hold accountability to their customers. They also guarantee great service and that their customers’ needs are always met. Coach seeks long term relationships with all their costumers by treating them this way. This is one reason Coach is still around and doing well as a company even with their high prices. They are dedicated to their honesty, trust, satisfaction, and fairness to their consumers, business, and community. They strive to increase consumer and shareholder value. ("Coach est. 1941," 2010)

Our California Institute of Advanced Management consulting team (BECK Consulting) looked into many different areas to gain helpful insight and information for Song & Meng, P.C. Our BECK Consulting group focused on four key areas: online marketing strategies, offline marketing strategies (specifically

The only way we would be able to make any recommendations would be if we could understand what was going on inside the company. The most notable factor was how much of Coach Inc.’s business comes from women’s handbags which can be considered as

Coach’s top competitors are Prada, Gucci, Hermes, Dolce & Gabbana, Dooney & Bourke, Inc., Kate Spade LLC, and Michael Kors, Inc. We feel that we can expand our lead in the ‘accessible luxury’ segment of the upscale

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.

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).

In order to properly discuss Nike’s issues, it is important to first look at the apparel industry and the economy as a whole to determine how Nike compares to it. The apparel industry, more specifically the athletic apparel market, is a very dynamic industry to be in. Because of

Marketing is selling the product goods and service by knowing the needs and wants of the customer and consumer (Kotler P, 2009). Marketing Management expertise has capable of knowing the change of an organisation to manage both the internal and external challenges of environment (Cant M C, et al, 2009). A company needs to classify the customer needs and identifies the demand of the supplying