Marketing Management Case Study - Coach Inc.

1547 WordsSep 16, 20117 Pages
INTRODUCTION Coach, Inc. is a designer, producer, and marketer of a prestige line of handbags, briefcases, luggage, and accessories. The company made its reputation selling sturdy leather purses in unchanging, traditional, classic styles, and it remains one of the best-known leather brands in the United States and has a growing reputation overseas. In addition to its main product line, the company offers Coach brand watches, footwear, and home and office furniture through agreements with licensing partners. Nearly two-thirds of company sales are derived from direct-to-consumer channels. These include about 190 Coach stores in the United States, among these, approximately 120 are retail stores and the remainder are factory outlets,…show more content…
1. Threat of Competitors Currently there are very few competitors for Coach and no major competitors of their size. Coach currently has a market cap of $10.6B or just over 22% of the entire Apparel and Accessories Industry. Coach has done an excellent job of establishing their brand to consumers. This has enabled Coach to constantly attract new customers while retaining current customers year after year. Also, unlike its competitors has been able to drive their sales on rising prices which says that consumers are generally not concerned with the price of their products but more on product quality. 2. Threat of New Entrance New entrants into the Apparel/Accessories industry pose an average risk to a company like Coach. Since brand image in this industry is very important, companies that have established themselves as leading brand have a distinct advantage over new companies. Coach has an even better advantage over new entrants into the “affordable luxury” because of the higher price range. This is true because when making expensive purchases people tend to stay with what they know and trust and are less likely to purchase a product they are unfamiliar with. 3. Threat of Substitute Products The threat of substitute products to a company such as Coach is relatively high depending on how you look at the situation at Coach. There are two types of substitute products that could pose a threat to the company: alternative brands and counterfeits. As stated

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