...Capabilities and CompetitivenessCoach Inc. in 2012: Its Strategy in the ”Accessible” Luxury Goods MarketPengajar: Dr. Herris Simandjuntak, MM Mulyadi 13/361034/PEK/19234 EKSEKUTIF B ANGKATAN 27 C PROGRAM STUDI MAGISTER MANAJEMEN FAKULTAS EKONOMIKA DAN BISNIS UNIVERSITAS GADJAH MADA JAKARTA 2015 | Latar Belakang Pertama kali Coach didirikan pada tahun 1941, sebagai perusahaan keluarga manufaktur untuk barang kulit. Seiring waktu Coach menjadi diakui sebagai merek premium yang menyediakan barang-barang kulit kualitas unggul dalam gaya klasik, hingga di tahun 1980 dibuka toko Coach eksklusif. Coach dijual ke Sara Lee pada tahun 1985 dan mengalami peningkatan yang pesat. Portofolio produk Coach diperluas bukan hanya tas kulit namun mencakup, aksesoris, bagasi dan tas kerja dan banyak toko Coach eksklusif dan butik dibuka. Pada 1980-an sudah ada 12 toko Coach eksklusif serta sekitar 50 butik yang menjual produk Coach dalam department store. Seiring waktu Coach tertinggal pesaingnya dalam hal trendiness dan penjualan pun mulai menurun, pada tahun 1996 Reed Krakoff bergabung dengan Coach sebagai new creative director dan ia berperan dalam membuat posisi Coach sebagai 'brand`` mewah yang mudah didapatkan. Harga adalah sumber keunggulan kompetitif Coach di merek pasar mewah, secara kualitas dan gaya tetap bersaing namun harga 50% atau lebih dibanding pesaing. Pada Oktober 2000, Coach go public dengan nama Coach Inc Pada tahun 2005 pendapatan Coach`s tiga kali lipat dan harga saham...
Words: 1333 - Pages: 6
...1 Executive summary Coach, Inc. is an upscale American leather goods company known for women’s and men’s handbags, as well as items such as luggage, briefcases, wallets and other accessories (belts, shoes, scarves, umbrella…). The firm was founded in 1941, in a loft in New York as a partnership called the Gail Manufacturing Company. As of July 2, 2011, the company operates in over 20 countries with more than 1,100 retail stores and around 15,000 employees worldwide. Today, Coach Inc. has distribution, product development and quality control operations in the US, France, Italy, Japan, Hong Kong, China and South Korea. From 2001 to 2011, Coach launched a series of activities to take great control over the brand in the Asian markets, and it also accelerated its European expansion with the help of its European joint venture partner in 2011. Continuous innovation and affordable price are two keys for Coach to conduct international business. In addition, owing to its multi-channel retail network, Coach, Inc. has successfully enhanced its brand image all over the world. Luxury goods industry is highly competitive due to a low marketentry barrier. It has experienced ups and downs during the 2000s. And in recent years, the industry has recovered and developed rapidly. More and more luxury goods corporations have expanded their operations in emerging markets through Internet and e-commerce. The future outlook of this industry is optimistic. The competitions in the...
Words: 8590 - Pages: 35
...Coach Inc., Marketing Strategy Carol Berry BUS 330 Principles of Marketing Instructor: Benjanette Matthews April 16, 2012 Coach Inc., Marketing Strategy Marketing is extremely important to a company’s profitability. This is why management must incorporate the basic marketing strategies and apply them in all aspects of their business practices. According to our text, marketing is “The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return.” (Principles of Marketing for Ashford University, 14th Edition. Pearson Learning Solutions p. 5). I will look at the Coach Inc., because it is one of the most recognizable companies in the world and it just so happens to be one of my very favorite brands. Coach is able to target its market consumers and then satisfying their needs. In this essay I will focus on Coach’s basic marketing strategies that they have put into place and what it means to their customers. Coach was established as a family run workshop in 1941 in a small Manhattan loft. Miles Cahn joined the company in 1946 and by 1950 Cahn was running the entire business himself for the family. Coach is known for its sturdy cowhide luxury purses. This will and is the company’s signature trademark. “Handbags were 64% and Women’s accessories made up 20% of their sales in 2005.” (Coach, 2012) “Marketing is all about creating value for the customer. The five core customer and marketplace...
Words: 1518 - Pages: 7
...Table of Contents Executive Summary 3 Industry Success 3 Coach Strategy 3 Company and Industry Overview 4 Company Overview 4 Industry Overview 5 Apparel and Accessories Industry 5 Luxury Products Industry 5 Michael Porter’s five forces model 8 Competitive Force 1: Rivalry among Competing Sellers (Moderate) 9 Competitive Force 2: Threat of New Entrants (Low-Moderate) 9 Competitive Force 3: Threat of Substitute Products (Moderate-High) 10 Competitive Force 4: Bargaining Power of Suppliers (Low) 10 Competitive Force 5: Bargaining Power of Buyers (Low) 11 Industry Driving Forces 11 Increasing Globalization 12 Marketing Innovation 12 Changing Societal Concerns, Attitudes, and Lifestyles 13 Key success factors 13 Cost 13 Quality 14 Brand Image 14 Competitive strategy analysis 14 Vertical Integration 15 Transaction Cost Economics 15 Cooperative Strategies 16 Offensive Strategies 16 Defensive Strategies 17 First Mover Advantages 17 Financial Effects 17 SWOT Analysis 18 Strengths 19 Good Position – Strong Brand Image of “Affordable Luxury” 19 Excellent Customer Service 19 Strong Performance despite Weak Economy 19 Comprehensive Distribution Channels 19 Strong Financial Position 20 Weakness 20 Geographic Concentration 20 Dependence on Independent Manufacturers for Procuring Merchandise 20 Declining Operating Margins 20 Opportunities 20 Expanding Market 20 Joint-venture 21 Gaining Higher Revenue by Increasing Online Sales 21 Threats 21 Counterfeit...
Words: 7113 - Pages: 29
...INTRODUCTION Background in Brief: Coach was first established in 1941, as a small family run leather goods manufacturing business. Over time Coach became recognized as a premium brand that provided superior quality leather goods in classic styles and in the 1980`s it opened exclusive Coach retail stores. Coach was sold to Sara Lee in 1985 and experienced rapid expansion. Coach`s product portfolio was expanded to include, accessories, luggage and briefcases and many more exclusive Coach stores and Boutiques were opened. By the late 1980`s there were 12 exclusive Coach retail stores as well as approximately 50 boutiques selling Coach products within lager department stores. While Coach initially grew it started to lag behind its competitors in terms of trendiness and sales began to decline. In 1996 Krakoff joined Coach and he was instrumental in positioning Coach as an ‘accessible luxury brand`` for it was understood that price was a source of competitive advantage for the brand in the luxury market. In October 2000, Coach went public under the name of Coach Inc. By 2005Coach`s revenues tripled and their share price increased more than 900 % since their IPO in 2000. The Organization Today: Coach is one of the most recognized fine accessories brands in the U.S. and in targeted international markets. Coach is a leading American marketer of fine accessories and gifts for women and men. Their product offerings include women’s and men’s bags, accessories, business cases, footwear...
Words: 3864 - Pages: 16
...Faculty of Business, Environment and Society Assignment Brief Module Title: Managing Business Assignment Number One Module Code: 244SAM Assignment Title Coach Inc. Submission Date: 29/01/2016 (FT) 03/02/2016 (PT) Module Leader Jasper Tham Module Team N/A Submission Submission through Time and Place: Turnitin no later than 23:55 on the above date. Module learning outcomes being assessed LO1. Explain and assess the nature of the changing business environments. LO2. Propose, evaluate and communicate strategic options available to an organisation. Assignment Information This individual assignment requires you to write a 2500 word original assignment answering the following question/s: Task Consider the case of Coach Inc. in regards to its business strategy in the luxury goods market. Coach Inc. case is a popularity brand among young adult women. Industry statistics presented in the case indicated that young professionals are among the most frequent purchasers of “accessible luxury” goods such as Coach handbags. The case contains ample information for conducting an industry analysis and company situation analysis. You will be able to conduct an industry analysis (dominant economic characteristics, driving forces, five competitive forces and key success factors) and use the tools for company situation analysis (assessment of how well Coach’s strategy is working and SWOT analysis). The information in the case...
Words: 1974 - Pages: 8
...Is Coach, Inc. The Next Investment? Table of Contents Section Page Number Executive Summary 3 Introduction 4 Background 4-5 Financial Analysis Results 5-6 Discussion of Results 7-14 Conclusions and Recommendations 14-15 References 16 Executive Summary This paper presents a recommendation to an investor as to whether or not he / she should invest in Coach, Inc. (Coach), a publicly traded company on the New York Stock Exchange (COH). Coach is a retail company specializing in luxury goods and accessories for both women and men. Although Coach has been a major player in the leather handbag industry for several years, it’s most recent shortfall against expectations could serve as an indicator of competitors gaining considerable market share and potentially introducing undesirable risk to an investor. The analysis in this paper will provide investment guidance by evaluating Coach’s financials statements and financial performance against its competition and industry. It will express how Coach’s most recent annual report in comparison to prior performance signifies investors should hold off from moving on Coach’s stock in the near future. Should You Invest in Coach? Introduction As an aficionada of women’s luxury accessories, I found myself turning to some more affordable luxury brands such as Coach in my early 20s. More than a decade later, I am still a major fan and consumer...
Words: 3029 - Pages: 13
...Company Background of Coach Business Strategy – BU-4193 Marie Kight January 20, 2013 History Coach, Inc. is the manufacture of the leather good company that got its start from manufacturing small leather goods. They’re known for ladies handbags, luggage, briefcases, wallets, and other accessories. Coach was founded in 1941 in New York City with a partnership called Gail Manufacturing Company. They began as a family-owned business with six leatherworkers that made small leather such as wallets and handbags. In 1946 Miles and Lillian Cahn joined as owners being very knowledgeable about the leatherwork business. By the 1950’s the Cahn had taken over the Coach business and was running it by themselves. In 1960 Cahn hired Cashin a well-known fashion designer who worked for Coach from 1962 to 1974 in which she brought their design out to the world. She instituted the coin purse and brighter colors as opposed to the brown and tan color they were using. She also designed matching shoes, key chains, eyewear, and the silver toggle that became Coach hallmark. In 1963 because of their success they were able to run their first ad in the New Yorker. In 1970 they ceased the production of their handbags in New York and moved and changed their name to Coach Products, Inc. From the 70’s to the 80’s Coach products was in very high demand and with a new vice president they started a mail-order business and specialty stores. Because the sales increased...
Words: 974 - Pages: 4
...During the last decade, Coach has emerged as America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves, fragrance and fine jewelry. Continued development of new categories has further established the signature style and distinctive identity of the Coach brand. Together with our licensing partners, we also offer watches, footwear, eyewear and fragrance bearing the Coach brand name. Marketing Environment Coach has many competitors but their top three competitors are Dooney & Bourke, Kate Spade and Michael Kors. Dooney & Bourke started in 1975 and is an American made brand; Kate Spade was started in 1993 and is also an American brand and lastly, Michael Kors which was started in 1981, is and American brand. Coach reaches a larger demographic compared too many of their other higher-priced competitors, such as Louis Vuitton, Prada, Gucci, Cole Haan and Dooney & Bourke, because Coach says that they are “affordable luxury”. These competitors are focused on a higher-fashion, higher income demographic than Coach is. Dooney & Bourke and Cole Haan also stress “accessible luxury” which makes them Coach’s key rivals. Coach continues to be one of the best recognized accessories brands in the United States, and is actually the leading American manufacturer and retailer of leather goods, accessories and apparel for women and men. The largest...
Words: 4552 - Pages: 19
...Coach Inc. in 2012: A Case Study Analysis Wehneh Tidoe Wilmington University Dr. Hoehn Coach was founded in 1941 by Miles Cahn who was a leather artisan. The handbags that Cahn and his family created separated them from the competition because these bags were resistant from wear and tear. The company grew a following based on the bags classic styling. And time progressed; the company was able to grow due the prices of the goods being about 50 percent lower than other luxurious brands. The company was also established with large retailers as well as their own company store (Eastburn, 2013). Problem Statement Coach was sold to a diversified food and consumer goods producer named Sara Lee after 44 years of family management. Although the company maintained its strong reputation with its consumers, after a while the consumer’s preference began changing. The company’s classic style did not appeal to those who were looking for the Italian or French look. Since Coach had already developed a fan base once the company was purchase by Sara Lee, the company did nothing to change the products or pricing. Once other designer brands emerged, Coach’s best performing stores rapidly declined in sales. Strategic Analysis Coach began building its strengths years after it was purchased by Sara Lee in 1996. Reed Krakoff was hired as Coach’s new creative director. Krakoff’s first plan of action was to produce new products based on market research. The responses...
Words: 880 - Pages: 4
...Coach Inc Case Preparation By Valentine013 | October 2013 Zoom InZoom Out Page 1 of 3 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...
Words: 321 - Pages: 2
...CANTYA ANINDITA P. 387128/20851 KELAS B Coach Inc. in 2012 : its Strategy in the “Accessible” Luxury Goods Market Coach didirikan pada tahun 1941 di New York City pada tahun 1941, berkantor pusat di Manhattan. Pada tahun 1962, Bonnie Cashin, perancang busana terkenal cukup pada saat itu, dipekerjakan pada Coach, yang kemudian ternyata menjadi titik balik besar dari perusahaan tersebut. Dia merevolusi desain produk dengan menambahkan dompet koin, kantong samping, dan warna cerah ke tas. Coach terus berkembang pesat dan mengalami waktu yang baik dari tahun 1970-an sampai 1980-an. Pada tahun 2000 perusahaan ini menjadi perusahaan public yang terdaftar di Bursa Efek New York. Pada tanggal 2 Juli 2011, perusahaan ini telah beroperasi dilebih dari 20 negara dengan lebih dari 1.100 toko ritel dan sekitar 15.000 karyawan diseluruh dunia. Dari tahun 2001 hingga 2011 Coach meluncurkan serangkaian kegiatan untuk menguasai pasar asia dari merk lain dan juga mempercepat ekspansi ke eropa dengan bantuan mitrausaha di eropa pada tahun 2011. Inovasi yang berkesinambungan dan harga yang terjangkai adalah 2 kunci utama Coach untuk melakukan bisnis internasional. Selain itu karena jaringan multi channelnya, Coach Inc berhasil meningkatkan brand awareness di seluruh dunia. Sebagai emerging market, Cina telah menarik investasu...
Words: 1104 - Pages: 5
...COACH CASE STUDY 1. INTRODUCTION Coach Inc. is a North American company established in 1941 that designs and sells luxury goods and has a rich heritage defining classical American style. Although they offer a wide range of products, Coach is worldly known for their bags and leather accessories for women. Coach has been able to position itself as a Premium Brand, being its competitive advantage the offering of “affordable luxury products” with a great heritage achieved since their establish date. It’s product offering consist on: handbags, shoes, wallets, wristlets, watches jewellery and outwear for women and bags, wallets, tech belts and outwear for men, with a price range of ₤35 (a key ring) to 2,880 (a handbag). (Coach, 2013) It is a really successful company both in New York and Japan and has recently expanded its distribution channel to Europe (France, UK, Ireland, Italy, Germany, Spain and Portugal) and China. This brand finds an opportunity to sell its products in these countries and so increase its target market and establish close to customers. This internationalisation is achieved by alliances with department stores in the objective countries. Distribution channel or marketing channel: “ Consists of a set of independent business organizations that help make a product available for consumers or business” (Rath et al., 2012). Focusing on Coach’s distribution strategy, the company follows a multi-channel distribution policy. Current year, Coach had...
Words: 2801 - Pages: 12
................................................................................. 11 Short-Term Recommendations ....................................................................................12 Long-Term Recommendations.....................................................................................13 Conclusion ...................................................................................................................14 Bibliography ................................................................................................................16 2 Executive Summary Company Overview Coach, Inc. is a preeminent US-based leather goods and accessories company providing diversified merchandize comprising handbags, wallets, men’s and women’s accessories, outerwear, scarves, fragrance, just to name a few. The firm was founded in 1941, and it was in 2000 that Coach became a publicly traded company listed on New York Stock Exchange. As of...
Words: 3806 - Pages: 16
...Case 1: Coach Inc. in 2012: Its Strategy in the “Accessible” Luxury Goods Market -Rohan Shetty 1. Competitive Strategies Coach uses a broad differentiation strategy while competing in the handbag and leather accessories industry. Coach differentiates itself from its competitors by marketing itself as an “accessible luxury brand. It offers its buyers a tiered pricing structure with differentiated products. This makes the Coach’s products less price sensitive and also keeps the buyers loyal to their product. Coach also features a diverse line of products, with majority of its revenues coming from the men’s and women’s handbags. Coach also focuses a lot of emphasis on its design, distribution and after sales customer service, and keeps a personal relationship with its customers through the use of E-Commerce. Coach has a one of the most recognized brand in the accessories industry and has maintained its image by providing its customers high end quality accessories. Coach has also been innovating in its design constantly to keep up with the current trends in the fashion industry. Coach also uses feedback from its customers through surveys, which are conducted extensively and impartially to stay ahead of its competitors and providing its customers what they need. Coach also has always kept with the evolving accessories market while keeping its original style. This also has kept is a leader in the retailer industry. Coach has successfully built in differentiating features in...
Words: 464 - Pages: 2
