...majority of people had the same simple and boring luggage design. These two friends saw the opportunity to pursue a new market that offers colorful and patterned baggage designs, and that is how Vera Bradley began. Vera Bradley started producing colorful and unique pattered designs for luggage, bags, sports bags and handbags; and after the success of the first product line and their economic growth, they decide to expand, creating new products such as: wallets, purses, computer and cell covers, scarves, beach accessories, lunch bags and jewelry. The company growth was consistent until 2014 when the revenue of the company fell by 1% and the net income decreased around 15%. The customer traffic was declining and new customers were not buying Vera Bradley’s products anymore. After analyzing competitors, the industry, and the internal situation of the company, there are some recommendations that I would like to develop more in-depth to add those into a new strategic plan that can actually generate profit for Vera Bradley. RECOMMENDATIONS Recommendation 1: Decrease production of certain products on the existing line to have a limited amount of high quality handbags and accessories. Recommendation 2: Expansion of the distribution channels by opening new locations globally, especially Asia due to the growth in the luxury goods market there; and improving e-commerce. Recommendation 3: Make an improvement on their marketing strategy. Recommendation 1: Decreasing production...
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...Michael Kors Ebony Steward Marketing Excelsior College 24 November 2015 Introduction Karl Anderson, Jr was born on August 9, 1959 in Long Island, New York. To people within the fashion industry he is a New York City-based fashion designer of American sportswear. Who is this man that I am referring to? Well that is Karl Anderson, Jr. he is the one and only Michael Kors. His mother married Bill Kors when he was five, and his surname was changed to Kors. His mother told him that he could choose a new first name as well; subsequently he renamed himself Michael David Kors. Michael Kors is a rapidly growing global luxury lifestyle brand led by a world-class management team and a renowned, award-winning designer. Since launching his namesake brand over 30 years ago in 1981, Michael Kors has featured distinctive designs, materials and craftsmanship with a jet-set aesthetic that combines stylish elegance and a sporty attitude. Mr. Kors’ vision has taken our Company from its beginnings as an American luxury sportswear house to global accessories, footwear and apparel company with a presence in over 95 countries. I. Product Michael Kors is a global luxury lifestyle brand with a jet-set aesthetic that combines elements of style, elegance and sport. There are two categories that the products fall in Michael Kors is higher end, fashion that is viewed on the runways and Michael Michael Kors affordable price, comfortable, and everyday wear. i. Tech ...
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...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, jewellery, sun wear, travel bags, watches and fragrance. Coach’s distribution strategy is multi-channel. Coach operates in two segments: Direct-to-Consumer and Indirect. The Direct-to-Consumer segment includes sales to consumers through Company-operated stores in North America...
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...Direct competitors of the company are Vera Bradley: Coach Inc, Michael Kors Holdings and Kate Spade & Company. The case says about Coach that "In 2013, says Coach operated 351 stores and 193 stores full price of factory outlets in North America and maintains more than 1,000 accounts department store wholesale. The company operated 191 stores in Japan and 218 stores in other Asian nations. Coach products were also available in 183 locations in other international markets. The coach also operates e-commerce websites in the United States, Canada, Japan, and China and had information websites in over 20 other countries. All these details make us see that this company is much larger than the Vera Bradley Company and this is normally a major threat....
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...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 player in the United States luxury handbag market is Coach with 36% market share. Coach is the second highest-selling luxury handbag retailer...
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...Analysis……………………………………………………………………….……..……….7-9 Appendix C: Five Forces Analysis……………………….…………………….………….……..…………….9-11 Appendix D: Industry Driving Forces………….………..………………..……………..……....………..11-12 Appendix E: Key Success Factors…..………………………………………………….………...............12-13 Appendix F: Financial Analysis..………………………………………….……..……..…….………………13-16 Appendix G: Resources and Capabilities Analysis (VRIN Test)…….…..…………….…………16-17 Appendix H: Weighted Competitive Strength Analysis…………………….……………………………17 Appendix I: Strategic Group Map…………….………………….……………………..………….……….18-19 Appendix J: Current Strategy…………………………………………………….………………………………….19 Appendix K: SWOT Analysis….…………………………………………………..………….………..….…...19-22 Executive Summary The industry for luxury goods, including handbags and leather accessories, was an extremely competitive market. This industry included three subcategories: haute couture, traditional luxury, and accessible luxury. The entire industry was estimated to be worth about $96 billion dollars in 2013 with large continued growth expected (Appendix A). The accessible luxury segment of the market was growing at a particularly high rate, faster than the rest of the industry. Sociocultural factors, such as the growth in the number of middle-income consumers, greatly contributed to this rise of sales in the market of accessible luxury goods (Appendix B). This increase in middle-income discretionary spending and the growing globalization of the market were factors that drove the luxury goods industry...
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...design and marketing of handbags and accessories worldwide. Its product include handbags, womens and mens accessories, such as money pieces, wristlets, cosmetic cases, key fobs, belts, electronic accessories, wallets, as well as, other leather accessories It is a publicly traded company that began in 1941 as a family owned business. Today, Coach is available in five continents in over 1,000 directly operated stores. Products are also sold at department stores and outlet stores (Coach, 2015). Strengths Coach, Inc. brands itself as the leading luxury leather goods company in the United States. The company began in 1941, so it has over 70 years of designs to use or recreate. Due to the long history, Coach has developed a reputation among for quality products and become one of the most recognized brands in the accessory world. Throughout its history, the company has insisted on quality and value, therefore retaining loyal customers who buy its products. (Coach, 2015). Coach products are available in locations globally including: Directly-owned and operated Coach Retail and Outlet Stores in North America, Asia, and Europe, through Coach website, along with informational websites for over 20 other countries, and Coach stores located within select department stores and specialty retailer locations (Coach, 2015). Coach, Inc. has a wide range of consumers due to the variety of products in a range of prices. Coach products are available at Coach outlet stores, which attracts lower...
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...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...
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...of fine accessories and gifts for men and women. Their product offerings include handbags, women’s and men’s accessories, footwear, outerwear, business cases, sun wear, watches, travel bags, jewelry and fragrance. Coach has been in existence for sixty-four (64) years maintaining the strongest brand in affordable luxury accessories. Coach operates in two segments: Direct-to-Consumer and Indirect. The Direct-to-Consumer segment includes sales to consumers through Company-operated stores in North America and Japan, the Internet and Coach Catalogs. The Indirect segment includes sales to wholesale customers in the U.S. and Asia. Coach’s business model is based on multi-channel international distribution; therefore their success does not depend solely on the performance of a single channel or geographic area. Founded in 1941, Coach has grown from a family-run workshop in a Manhattan loft to premier accessories marketer in the United States. Coach developed its initial expertise in the small-scale production of classic, high-quality leather goods constructed from “glove-tanned” leather with close attention to detail. By the 1980s, Coach had entered into it first mover strategy by growing into a niche maker and marketer of traditionally styled, high-quality leather goods with expanding national brand recognition, selling its products through upscale department and specialty stores, its own retail stores and its direct mail catalog. Its initial strategy focused on being the lowest cost...
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...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...
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...The Wall Street Journal Weekly Review Coach Leans Heavily on Outlet Stores 'Over-Democratization' Potentially Jeopardizes Brand's Image As upscale brands seek to enter or expand their outlet businesses and even produce merchandise specifically for that channel, they face an age-old dilemma: sales growth vs. brand exclusivity. At Coach Inc., COH -1.07%its North American outlet business has grown to 60% of its retail sales in the region from about 30% in fiscal 2006, according to Cowen & Co. analyst Faye Landes. The number of items sold at its outlets has jumped to 73% of its North American retail business from an estimated 38% during the same period, Ms. Landes said. (Wall Street estimates that Coach's North America retail sales account for about two-thirds of its overall sales.) Coach's outlet business in North America is 60% of its retail sales The outlet channel also has become more productive for Coach, generating over $2,000 per square foot, compared with less than $1,400 per square foot at its full-price locations, a reversal from fiscal 2006, she said. "Consumers may increasingly perceive Coach as an off-price brand, which, if valid, could challenge [Coach's] efforts to elevate and transform the brand," Ms. Landes said in a report this week, adding that while most of the retailer's outlet products are made for that channel, they are still easily identifiable as Coach. "Our findings raise a concern of possible over-democratization of the brand which may...
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...A01-06-0007 Graeme Rankine Fossil, Inc.—Global Watches and Accessories While we found that Fossil has very strong brand recognition among teens in the watch category, we believe watches are less important to teens than other accessories in the current fashion cycle. According to our proprietary research, interest in the accessories category declined 19% on a yearover-year basis this Fall following the 16% decline seen this past Spring. Given that handbags continue to sell well across the industry, we conclude that the watch category may be giving up share to other “accessories” including handbags and shoes and possibly non-apparel related goods (e.g., iPods). Confirming our conclusion, we asked students to list their favorite accessories purchased in the last six months and belts and handbags tied for first place with each garnering 26% of the votes. Jewelry came in third place and watches, fourth. In consideration of the above, we are trimming estimates slightly this year and next year. In a related fashion, we are lowering our price target from $23 to $20. With the shares trading near our target, we are reiterating our Market Perform rating on FOSL shares. PiperJaffrey, October 5, 2005 Anna Amphlett contemplated PiperJaffrey’s comments about Fossil. Just three months earlier, PiperJaffrey issued a more bullish report on the company by indicating that it “believed that better times could be ahead for Fossil as the company grows its global portfolio of brands” and that...
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... Ms. Nicola Hudson Company Overview Coach Inc. is an American designer of handbags, leather goods, outerwear, travel goods and accessories for men and women. Coach has been in existence for 64 years maintaining the strongest brand in affordable luxury. Coach primarily operates in the United States, Japan, and East Asia. There are approximately 190 Coach stores in the United States. Of these stores 120 are retail and the rest include factory outlets, catalogs, and an online store. Outside of the United States 175 Coach stores are spread in18 countries. Coach was founded in 1941 as a family workshop with six workers who made small leather goods by hand. One of the workers included Miles Cahn who began running the workshop for its owners in the 1950s. Ten years later Cahn borrowed money to buyout the company’s owners and take possession of Coach Inc. It is under the Cahns’ possession where Coach took more of a conservative, high quality and elegant feel to the leather products as opposed to following trends. But as fashion changed greatly so did Coach’s traditional style, introducing products for specific seasons and trendier styled clothing. By the late 80s the company began a mail order business and specialty stores to help sell its products outside of department stores. During this time Coach also began expanding internationally. The company opened boutiques in England, London and Tokyo, Japan. With...
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...Bridge………………………………………………………………………….15 6.12. Built-to-Change……………………………………………………………………………...15 6. Leading in Global and Multicultural Society……………………………………………….16 7.13. Toxic Emotions………………………………………………………………………………17 7.14. One Minute Management……………………………………………………………………17 7.15. Seven Habits of Highly Effective People…………………………………………………..19 7. Summary…………………………………………………………………………………….20 8. References…………………………………………………………………………………..21 Introduction In March of 1982, two friends were traveling for vacation. While waiting for their flight in Atlanta, they noticed that luggage lacked a feminine appearance. They were all black, brown, or navy. As their wheels began to turn they started coming up with ideas for feminine looking handbags and luggage. Within weeks...
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...VIDEO on FT.com Lionel Barber, Martin Wolf and Vanessa Friedman interview leading figures at the FT luxury summit in Monte Carlo FT.com/luxury-video SPECIAL REPORT | Monday June 15 2009 www.ft.com/business-luxury-2009 Slimming all the rage as belts tighten Haig Simonian investigates the problems faced by luxury goods conglomerates in the current market F or years, equity analysts urged Johann Rupert to spin off tobacco and turn Richemont, the company he chairs and controls, into a “pure play” luxury goods group. In 2008, the independently-minded Mr Rupert finally took heed and returned Richemont’s stake in British American Tobacco to shareholders, leaving his group focused on Cartier jewellery, Montblanc pens and much else. Today, some of the same pundits are regretting the loss of those high and stable BAT dividends, as the world’s luxury goods industry struggles with its biggest challenges in decades. Demand has tumbled virtually across the globe with no clear sign of recovery. Manufacturers from LVMH Möet Hennessy Louis Vuitton, the world’s biggest luxury goods group, to Italy’s Bulgari, find themselves saddled with stubbornly high costs, leaving little room for manoeuvre. Even beauty has proved vulnerable, contrary to the common claim, as figures for L’Oréal and others show. On top of the market problems, the sector faces tough secular change. Globalisation has put a premium on size – but sheer mass risks diluting the exclusivity that is luxury groups’ key...
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