Why Canada And South America Could Be Viable Places For Business

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mprove inventory policy to reduce amount of time inventory is held from 135 days to at least 100 days by the end of 2016. Conduct research to determine if Canada and South America could be viable places for business. Increase market share by expanding at least 15 stores in Japan and the United States by the end of 2018. Increase sales in the men’s line by opening or converting more stores targeted towards mixed gender locations. conclusion 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. Appendix A – External Analysis A.1 Porter’s Five Forces Rivals: High: Very strong…show more content…
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. Demographic: The average demographic for full price stores is a 35 year old woman, college educated, single or newly married and works for a living. She has an annual discretionary income of $1,100. This demographic accounts for 20% of sales. The average demographic for a factory store is a 45 year old woman, college educated, married with children and works for a living. She has an annual discretionary income of $770. This demographic accounts for 80% of sales. Economic: Being a non-necessity, luxury brand, companies took a hit during the economic downturn. Between 2006 and 2010, poor economic conditions created a .6% decline in industry sales. When customers have less discretionary income to spend, they are less likely to spend money on luxury products. Sociocultural: In the recent years, the desire to appear wealthy has attributed to the increased popularity in luxury products. Also, the desire for luxury goods was promoted by effective advertising and TV programming that promoted conspicuous consumption to middle-income consumers. Middle-income consumers also tend to “reward” themselves with luxury items. Technological: Growing popularity of internet sales.

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