case teaching note 8 Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable? Overview In the six years following its October 2000 initial public offering (IPO)‚ Coach Inc.’s net sales had grown at a compounded annual rate of 26% and its stock price had increased by 1‚400% as a result of a strategy keyed to “accessible” luxury. Coach created the “accessible” luxury category in ladies handbags and leather accessories by matching key luxury rivals on quality and styling‚ while beating them on price
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Situation analysis 1. Coach present market position; Strengths: * Ability to match key luxury rivers in quality and style but beating them in price by more than 50% * Can serve both middle and high income customers (while the low price and good designs are appealing to the low income customers‚ the high quality is also a pooling factor to the high income customers.) * Best selling Brand in the industry by 2006 with about 25% market share in the USA and second best selling in Japan
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percent. TARGET MARKET DISCRIPTION men and women aged between 20s- 40s who possess mid to high levels of disposable income‚ seeking distinctive‚ easily recognizable‚ accessible luxury products that are relevant‚ well made‚ and provide excellent value (2012‚ 03). Mkt 501 Case Study Module 1 Target Market Coach Handbags. StudyMode.com. Retrieved 03‚ 2012‚ from http://www.studymode.com/essays/Mkt-501-Case-Study-Module-1-942364.html http://coachinc.wordpress.com/assignment-1/brand-positioning/competitor-analysis/
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Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable? Executive Summary Coach Inc.: Is Its Advantage in Luxury Handbags Sustainable? Company History ▪ Founded in 1941 by Miles Cahn‚ a leather artisan‚ who began producing women’s handbags; simple in style and resilient to wear and tear. ▪ Even after 40 years of business‚ coach was able to grow at a steady rate by setting prices about 50% lower than most luxurious handbags‚ adding new models and establishing accounts with retailers
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characteristics of the luxury goods industry? What is the industry like? A luxury brand may have profound influence on an overall product strategy since its position may determine how the company is going to make its next step. A luxury brand like Coach epitomizes elegance and combines classic beauty with modern design. According to John E. Gamble‚ not only has Coach become one of the most respected and known brand names in the ladies’ handbags and leather accessories luxury brand industry‚ it is
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Business policy Coach Inc INTRODUCTION Coach‚ Inc is a marketer of fine accessories and gifts for women and men. The company is engaged in designing‚ wholesaling and retailing of handbags and accessories. Its product portfolio includes handbags‚ women’s and men’s accessories‚ footwear‚ jewelry‚ apparels‚ business cases‚ eyewear‚ and related products. Coach is involved in the sale related activities of its merchandise through factory stores and retail stores in the US and Canada
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Case Study 7: Coach Inc. in 2012: ITs strategy in the accessible luxury goods market __GROUP 8_ GROUP MEMBER Name Class Roaster ID Student ID Nguyễn Hải Anh AFA54A 01 11120068 Tạ Yến Ngọc AFA54A 29 11122843 AFA54A 31 11123066 Nguyễn Ngọc Phương AFA54A 32 11123139 Phạm Trung Thành AFA54A 36 11123531 Trần Ngọc Trung AFA54A 45 11124302 Vũ Ngọc Diệp AFA54A 05 11120600 Trần Quang Hiếu AFA54A 17
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Coach Inc. Q2 Coach incorporated a differentiation focus strategy to make luxury goods (luxury handbags) industry more attractive for itself. Coach entered into agreements with other companies providing rights to them to manufacture and market Coach Brand products. Royalties from such integration helped Coach to boost up their sale by 4 to 5 % in year 2006. The vital part of their business strategy was a business model focusing on frequent launch of their new product which in
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high quality handbags that will impress customers. This will help Coach to continue to grow and prosper. New designs will help attract more customers to buy Coach products. The company can only benefit with new and unique products in the market. If Lew Frankfort can continue to do this Coach can be a leader in the market‚ which will help the company grow. Second‚ brand awareness should be increased. It can be increased through social media and e-commerce sites. This will help Coach be well known
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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
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