Coach Inc Case Preparation Essay Example
Coach Inc. Case Preparation:
Key Facts:
Low cost provider strategy
Focused on matching key luxury rivals in quality and styling while beating them on price by 50 percent or more; competitive advantage
Multichannel distribution model (indirect wholesales to third-party retailors vs. direct-to-consumer sales.
Priorities increase global distribution and improve same-store sales productivity
Build market share in NA, Japan
Raise brand awareness and build share in underpenetrated markets
Increase sales of products targeted towards men
Create an online marketing presence using coach.com, etc
4.2 billion in sales in 2011 (20 percent annual increase)
63 percent were handbags, 27 percent accessories, 10 percent other products
16.7 million to 880 million in net income
2012 direct-to-consumer accounted for 87% of 2011’s net sales, indirect wholesaler had net sales of 540 million
Coach, Inc. in 2012: Its strategy in the ‘accessible’ luxury goods market
1. Describe the macro environment of the luxury goods industry.
Political Factors: The market in China was restricted for some time by the Chinese government
Economic Conditions: the economic downturn in 2007-2009 hurt the luxury goods industry
Sociocultural Forces: healthy/green movement, more conservative with money after the downturn etc
Technological Factors: more ways to talk to consumers, provide brand awareness, and allow consumers to buy (websites, mobile apps, etc.)
Environmental Factors: weather not really a concern in the luxury goods industry
Legal/Regulatory Conditions: none mentioned in the case really, other than the counterfeit laws which are in place to help the luxury goods industry
2. What are the defining characteristics of the industry? What is the industry like?
Defining characteristics of the industry/what is the industry like includes many competitors, growing demand as middle class and upper class expand, diversity in luxury products (using your brand name and attaching it
Key Facts:
Low cost provider strategy
Focused on matching key luxury rivals in quality and styling while beating them on price by 50 percent or more; competitive advantage
Multichannel distribution model (indirect wholesales to third-party retailors vs. direct-to-consumer sales.
Priorities increase global distribution and improve same-store sales productivity
Build market share in NA, Japan
Raise brand awareness and build share in underpenetrated markets
Increase sales of products targeted towards men
Create an online marketing presence using coach.com, etc
4.2 billion in sales in 2011 (20 percent annual increase)
63 percent were handbags, 27 percent accessories, 10 percent other products
16.7 million to 880 million in net income
2012 direct-to-consumer accounted for 87% of 2011’s net sales, indirect wholesaler had net sales of 540 million
Coach, Inc. in 2012: Its strategy in the ‘accessible’ luxury goods market
1. Describe the macro environment of the luxury goods industry.
Political Factors: The market in China was restricted for some time by the Chinese government
Economic Conditions: the economic downturn in 2007-2009 hurt the luxury goods industry
Sociocultural Forces: healthy/green movement, more conservative with money after the downturn etc
Technological Factors: more ways to talk to consumers, provide brand awareness, and allow consumers to buy (websites, mobile apps, etc.)
Environmental Factors: weather not really a concern in the luxury goods industry
Legal/Regulatory Conditions: none mentioned in the case really, other than the counterfeit laws which are in place to help the luxury goods industry
2. What are the defining characteristics of the industry? What is the industry like?
Defining characteristics of the industry/what is the industry like includes many competitors, growing demand as middle class and upper class expand, diversity in luxury products (using your brand name and attaching it