Coach Handbag analysis
Coach Handbag analysis
Designing and marketing of accessories and gift products for women and men. The company primarily operates in the US and Japan. It is headquartered in New York City, New York and employed 18,000 people as of June 30, 2012. 36% market share as accordance of Marketline
In just two years (2003–2005), Coach’s market share has increased from 18 percent to 23 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/ Product Life Cycle
Shorten new-product cycle time (releases every four to five weeks, up from twice a year). Learn through multiple new-product variations (12 to 28 per release, up from two to three). http://mmoore.ba.ttu.edu/ValuationReports/Coach.pdf
SWOT ANALYSIS – MARKETLINE UNDER COACH 2
Strong focus on the handbags category Consistent revenue and profit growth Multi-channel distribution strategy WEAKNESSES
Dependence on independent manufacturer for procuring merchandise OPPORTUNITIES
Expanding presence in China
Joint ventures with international partners in Europe
Increasing online sales
Ban on advertising of luxury products in China
Coach was launched in 1941 in a loft in New York’s Soho district by a leather craftsman named Miles Cahn, who created ladies’ purses designed in elegantly understated black or brown and featuring simple brass turnlocks and little other decoration. The bags were expensive but so well made that they were considered an excellent value. Coach was able to present the brand from head to toe, including products from hats and outerwear to handbags and accessories. One major breakthrough was the “wristlet,” a zippered rectangular bag just 4 by 6 inches.
This new product grew out of Coach’s research into how women were using their purses. Coach spends over $5 million per year on marketplace testing of new products research shows that the best Coach customers visit the store every four to five weeks. This dictates the rhythm at which Coach rolls out its own products and floor-set changes.