Mkt 501 Case Study Module 1 Target Market Coach Handbags

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.

Luxury fashion items can be acquired via several different avenues, as well as at several different price points in today’s market. Previously, the only options consumers had for the acquisition of luxury fashion goods was to purchase directly from the retail store; however, now there are an enormous amount of resources for consumers to opt for a used product at a much lower price by shopping on websites like eBay, or by purchasing from the growing amount of high-end consignment stores. Another option that luxury fashion consumers can easily utilize is to buy the item new and at a cheaper price by shopping at outlet stores or discount department stores like Nordstrom Rack and T.J. Maxx. Finally, these consumers have the option to borrow. Websites like BagBorrowOrSteal.com have created hugely profitable businesses by making the latest luxury accessory available to be rented at a cost that is a fraction of what the item would cost if purchased new from the retailer. These options have granted a much larger array of people the opportunity to experience aspects of the luxury lifestyle and the luxury image than ever before.

Previously, mentioned in the brand critique of the brand Kate Spade, the brand competes with Michael Khors and Coach to have the top luxury handbag. As, no person, brand or company is perfect Kate Spade faced a few promotional errors that challenged the company. There are recommended courses of action to correct this short coming. After conducting the customer satisfaction survey, the data shown show beneficial results that help with the satisfaction with different aspects of the brand and support the recommendation. The specific steps are recommended through the analysis and results from challenges faced and the survey, helping the company overcome challenges and achieve success.

Coach experienced declining revenues in 2014-2015 after sluggish brand value. The company abandoned the strategy of discounting after customer demand for promotional products deterred interests in paying full price. Coach made a marketing correction and removed discounting in an effort to increase product appeal. In May 2015, Coach acquired Stuart Weitzman, a leading designer and manufacturer of women 's luxury footwear. Similar to Coach, it is a brand built on offering innovation, relevance, and value to a loyal customer base, and is known for its craftsmanship and quality – merging fashion and function. Coach has a very limited number of men products which weakens the company’s

The Satchel Company’s leather products have a better effective brand. The Satchel brand competes with the other leather products in the UK market and the worldwide market. When evaluating, it might be seen that the market trend is based on the product differentiation. The company products are exclusive, therefore the customers who are willing to buy in this product. According to this scenario, the Satchel’s products are mostly consumed by the Hollywood models.

Limiting the company’s collection of high quality hand bag, purses and accessories, and selecting the products with more popularity, will have a huge influence on their success. The past couple of years the major products from their accessories category were cosmetic cases, eye-glass cases, wristlets, wallets and gifts and paper; on the category of travel and leisure the most popular items were rolling luggage, garment bags, duffel bags, and travel cosmetic cases. Figure 4 shows a reflection of the revenue report on Vera Bradley’s most profitable products and its progress/deterioration of those items through the years.

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.

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.

As the company was established in 1941, they are very experienced in this field. Also, they are one of very few American luxury brands, which can be a strength in the sense that some consumers who prefer American luxury goods, would rely on Coach Inc., since it is the most successful American based manufacturer. Furthermore the very successful company history is an indicator for the very experienced and skilled human resources the company has.

Most women want to express their individuality by the clothes and accessories they flaunt around. Some women seek brand names while others conform to necessities. Nonetheless, the majority of women find it helpful to carry a handbag; whether it is for storing car keys and a wallet or to match an outfit. Every year, handbags are becoming more of a status symbol then a basic essential. This paper will investigate the marketing trends of three different quality grade handbags, which are marketed to three distinct target markets. The first handbags discussed will be high quality handbag, Coco Chanel brand, second is Target brand, Massimo, handbag, and lastly are handbags found at the local Salvation Army. The Salvation Army handbags can

In the recent years since 2010s, its product ranges have been especially diversified, because the company is planning on transition into a “premium lifestyle brand”, meaning instead of defining fashion in handbags, Coach now wants to define fashion in many other things.

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

As mentioned above, Coach is amongst the cost leaders in their market due to their ability to minimize cost by outsourcing all of their manufacturing. This is one of Coach’s greatest strengths because they are able to have their quality products made at such a low price that they can undersell their competitors by about fifty percent and have a different target market. Being able to sell to the top 20 percent of Americans, as opposed to the smaller demographics of their competitors, has been another one of Coach’s biggest strengths (Gamble, 2015, Page 82). With such a strong brand image in the “affordable luxuries” market, Coach found potential in the men’s luxury good market. In 2011, Coach increased their products for men from 2.5 to 5 percent of its global sales and expects those numbers to continue to grow (Gamble, 2015, Page 82). This new market gives Coach an opportunity to use some of the strengths they’ve found in the women 's market such as product differentiation. Product differentiation is one of Coach’s greatest strengths because of its ability to get their consumers in their stores more frequently and make purchases more frequently. “Monthly product launches enhanced the company’s voguish image and gave consumers reason to make purchases on a regular basis” (Gamble, 2015, Page 79). These monthly product were only available for a limited amount of time, which helped increase their perceived value due to

In Japan, the costs of LVMH handbags cost approximately 40% more than in France. This started a growing market to distribute bags from France to Japan for resale at a cheaper price. Arnault believes that the producers of LVMH’s goods need to be unrestrained by financial matters in order to produce extremely high quality products. To keep the brand management of highly priced and high quality goods, LVMH needs to expand to the younger new money of the Asian market. The high quality is also a result of the mentality that “Made in France” is perceived as high western quality. LVMH does not want to lower the labor costs because there would be a similar direction of the quality.

Customers’ needs are directed towards different kinds of purses in term of color, prices, but most importantly, the sizes.