Coach Inc. Case Analysis
Six years after deciding to be an independent public company in late 2000, Coach Inc.’s net sales had grown at a compounded annual rate of 26 percent and the stock price had increased by 1,400 percent due to a strategy keyed to a concept called accessible luxury. Coach crafted the accessible luxury category in women’s handbags and leather accessories by differentiating themselves on price, but matching competitors on styling, quality, and customer service. The accessible luxury strategy mirrors a focus (or market niche) strategy based on low costs. Coach concentrates on a narrow buyer segment and outcompetes rivals by having lower costs than rivals and thus being able to serve niche members at a lower price. Management believed that new products should be based on market research rather than on designers’ instincts. Coach utilized extensive consumer surveys and focus groups to gain insight in the market, and ultimately a competitive advantage over competition. Coach’s $200-$500 handbags appealed to both middle class consumers who now were able to afford a taste of luxury, as well as affluent consumers with the means to spend $2,000 on a handbag on a regular basis.
In addition to the above strategies, Coach Inc. has also adopted an aggressive growth tactic of expanding their company-owned stores in the United States and Japan. Going into 2007, Management expected to add 5 factory stores and 30 full price stores specifically in the U.S, and add at least 10 stores in Japan per year. By doing so, Coach hopes of taking advantage of their market potential.
Coach also entered into licensing agreements with Jimlar Corporation, Movado Group, and Marchon Eyewear in attempt to increase their network of...
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...o-Assets |22.9% |27.0% |
|Times '' Interest-Earned |36.3 |23.4 |
Figure 8: SWOT Analysis
Strengths:
-Market research
-Core Competencies in: women’s apparel, customer service, integration
-Strong Financial Position
-Strong Brand Name
-Creativity and Innovation
-Wide Geograhpic coverage
-Alliances, Joint Ventures, Licensing
Weaknesses-
-narrow product line (mens)
-ecommerce
-intellectual property
Opportunities-
-openings to win market share from rivals
-serving additional customer groups or market segments
-online sales
-acquiring rival firms
Threats
-economy
-loss of sales to substitute products (counterfeiting)
- bargaining power of customers or suppliers
Established in 1941, Coach began as a small family run leather goods company. The company grew over time and in the 1980’s opened Coach retail stores. During 1985 Coach was sold to diversified food and consumers group Sara Lee and expanded quickly from there. By the late 1980`s they had expanded into 12 exclusive Coach retail stores including roughly 50 boutiques selling Coach products in department stores. In 1996 Reed Krakoff joined Coach, who was a key player in positioning Coach as an accessible luxury brand. In October 2000, Coach went public under the name of Coach Inc. By 2005 Coach`s revenues tripled as their share price increased more than 900 % since their IPO in 2000. Coach is in the process of deciding to move to foreign markets
Speakers of Sport INC is appearing in court for the filing of a diversity suit against ProServ INC. In the suit one sport agency (Speakers) has brought about charges against another (ProServ) for tortious interference within a business relationship. Speakers INC claims that ProServ INC interfered with their representation of a highly profiled baseball catcher name Ivan Rodriguez by promising him false enrichments of money in endorsements.
To help Coach Inc's. Recovery in the US and wander into China, the association needs to: Help its Marketing and Sales Teams in the US by enrolling in New York and Chicago, 10 experienced specialists with high capability and key capacities for Coach arrangements and promoting force . Another Chinese Marketing and Sales Team-+ of 20 experienced delegates with high capacity and key capabilities for Coach wander into the Chinese market – this gathering will be headed by a Senior Executive on overall obligation from Coach's focal station in New York who brings taking in of the association social order, skeletons and routines.
The company that I chose to research for my company profile paper is on the clothing store Francesca’s. Francesca’s is a boutique like store that contains different women’s fashion trends that range from clothing, jewelry, and shoes. Francesca’s also offers specialty items and gifts that include candles, wall art, and gag gifts (Coltrin, 2010). The reason I chose Francesca’s for this project is because this store interests me. I first started shopping at this store when I was about sixteen years old. The store quickly became very popular for my friends and I as the store offered something that we had never seen before; boutique items for reasonable prices. Francesca’s is becoming increasingly popular among women of all ages that are looking for fashionable one-of-a-kind items without breaking the bank.
Max was negligent in failing to warn of Joe of the hazardous door, which caused Joe’s injury.
He has worked with numerous of the Fortune Global 500 companies as a brand building expert. He has truly mastered consumers’ deepest desires by exploit hot spots in the human brains to compel them to purchase blindly and willingly. As a result, Martin has successfully help launched new products and brands. Martin created this book during the worst economic crisis since the Great Depression. Martin’s main purpose of this book was not getting us to stop purchasing, as that is nearly impossible. “The purpose is to educate and empower you to make smarter, sounder, more informed decisions about what we’re buying and why” (Lindstorm 8). By exposing marketing companies tricks and tactics, consumers would be equipped to battle the war on impulse purchasing in a time of
Cannon knew that his compact echo machine, which he carried under his arm by a single handle, would have to perform competitively in a room filled
A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studio's entire production during a specified period of time or purchase a specified number of major films. Arundel's profitability is dependent upon the price it pays for a portfolio of sequel rights. Our analysis of Arundel's proposal includes a net present value calculation of each movie production company. In order to decide whether Arundel can make money buying movie sequel rights depends on whether the net present value of the production company's movies is higher than the estimated 2M per film required to purchase the rights.
Lululemon, a premium yoga-focused retail chain, serves two market segments. One segment consists of consumers who are characterized as “trendy urban” and the other segment consists of “wealthy” consumers. The “trendy urban” segment, in summary, is fashion oriented or active women who live in metropolitan areas. The “wealthy” market segment is affluent women who live in either urban or suburban areas. As discussed below, these two market segments are defined by differences in demographics, geography as well as behavioral and psychographic characteristics.
Louis Vuitton, Coach, and Dior’s advertisements portray a picturesque scene consisting of simple, yet elegant, details (Coach; Dior; Louis Vuitton). Each ad displays similarly styled handbags with clean lines and only two handles, indicating each company’s desire to keep purses feminine and traditional. The handbags presented are similar to the more traditional style used in the early 20th century, perhaps to invoke a sense of timelessness and luxury. While each handbag advertised consists of differing aspects, it is evident Louis Vuitton, Coach, and Dior are
In the case of Dayton Hudson Corporation, the company fell into a situation of a hostile takeover attempted by the Dart Group in 1987. At that time, Kenneth Macke was the CEO of the Dayton Hudson Corporation and sternly disagreed with letting the company fall into the hands of the Haft’s. Macke’s decision on what could be done to terminate the takeover turned the circumstances over to the hands of the state of Minnesota where Dayton Hudson’s headquarters resided. Macke requested a special session of the legislature to revisit the Minnesota corporate takeovers statute. This proved to work in Dayton Hudson’s favor and a statute was enacted that left the decision of a takeover up to the Board of Directors of the company.
For instance, convenience offerings are low-priced goods that consumers can effortlessly acquire because they are relatively ubiquitous while shopping offering requires the consumers’ effort in comparing and contrasting various brands and retail outlet to find the best product at a good price. Besides, while convenience products are needed on a daily basis, shopping goods may not be required on a daily basis and it has a higher price compared to convenience goods. (Tanner & Raymond, 2010). Furthermore, specialty products are different from convenience and shopping offering because it is more expensive from the previous offerings and it is also not commonly sold in retail outlets. The consumers are few and the products are purchased less frequently, which give it a high margin profit. Finally, unsought offerings are different from all because they could be acquired even when it may be unnecessary at the moment. It is a product of circumstance by any
P&G’s purpose is to provide branded products and services of superior quality and value that improve the lives of the world’s consumers. P&G values their employees through leadership, ownership, integrity, passion for winning, and trust. P&G entices and recruits best people in the world, builds their organization by promoting and rewarding from within, and believes that their employees will always be the most important asset. P&G has many principles such as (1) showing respect to all individuals, (2) valuing differences, (3) inspiring and enabling employees to achieve high expectations, standards, and challenging goals, (4) valuing personal mastery, (5) believing that all individuals can and want to contribute to their fullest potential, (6)
Under Arnault, the company was the world’s leading luxury product group. Arnault believed that LVMH control of retail chains was critical to luxury brand success. The finer points of retailing were believed to be, influencing of the overall image of luxury products, as much as the product attributes.
in this segment are often brand conscious and enjoy the latest fads and trends. They...