Coach Marketing Case Study, EMBA, SSU

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Information about Coach Marketing Case Study, EMBA, SSU

Published on February 27, 2014

Author: JoshuaDopkowski



Marketing case study of Coach as the company was in 2007.

COACH STRATEGY TO PERPETUATE SUCCESS Prepared & Presented by Joshua Dopkowski Hilton DePaoli Gustavo Martinez

SITUATION ANALYSIS  65 year old company committed to the luxury handbag and leather accessories industry. Globally recognized luxury brand.  In 2006 the global luxury goods market is estimated to be $112B.  49% of global luxury goods produced by France & Italy.  US companies only account for 14% of global luxury goods.  Coach revenue has increased by 24% over the last 8 years.

SITUATION ANALYSIS  Primary competitors are Georgio Armani and Dolce & Gabana, with other notables LVMH, Versace, Prada, Burberry, and Hugo Boss.  Coach is segmented into tiered distribution with full-price fashion and flagship stores, factory stores and U.S. wholesale to retailers.  Coach successfully rivals the competition by offering accessible luxury to the upper and middle classes.  Coach’s suppliers have low bargaining power.

PROBLEMS & CORE ELEMENTS  Lack of presence in global and emerging markets. • Non U.S. & Japan sales only represented 5% of total sales.  Market segmentation and focus. • Tiered distribution strategy. • Women’s accessories sales concentrated in 35yr – 45yr age range. • Men’s accessories and outerwear accounted for only 2% sales  Growth model vs. Brand Equity/Brand Identity. • Ecommerce & tiered stores system.

PROBLEMS & CORE ELEMENTS  Luxury spending is shifting geographically to BRICS  Market volatility in the global luxury market.  Unprepared for future growth markets.  New product lines not performing, Coach not “vested.”

COURSE EVALUATION  Increase store presence domestically and internationally.  Licensing for strategic partnerships and market penetration.  Increase presence in Men’s and Luggage categories.  Aggressive marketing campaign to maintain brand dominance.  Focus on in-store experience and hospitality training.  Formulate and execute operations initiatives designed to increase efficiency, minimize exposure and support diversification and distribution to new and existing markets.

CHOSEN STRATEGY  Formulate and execute operations initiatives designed to increase efficiency, minimize exposure and support diversification and distribution to new and existing markets. • PRIMARY DRIVERS: • Manufacturing alliances help control cost structure and reduce distribution costs in various global markets. • Focus on distribution strengthens the infrastructure for Coach stores and solidifies relationships with travel retail and retail partners. • Builds foundation for penetration into emerging markets.

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