An In-depth Look At Coach, Inc. - Marketing - Case Study

1304 words - 6 pages

Coach’s Case Study
Coach’s strategy to grow the business
Their strategy focused on meeting quality and styling of their competitors while at the same beating them in pricing by over 50 percent (Gamble & Eastburn, 2012). This yielded them competitive advantage in capturing average income earners with a desire of luxury taste and also rich consumers who possess the means to spend more considerably on handbags.
Also, multichannel distribution model is another element of the company’s strategy which involves indirect wholesale sales (Gamble & Eastburn, 2012). The indirect sales are done to third-party retailers although focused mainly on direct sales to consumers.
Among the flagship strategies of Coach Company were to raise global sales and increase the productivity of same-store sales (Gamble, Petera & Thompson, 2015). There were five key initiatives that were focused on by the company strategies (Gamble & Eastburn, 2012):
· Create market share In Japan by adding 15 completely new locations
· Create market North American Market share by starting new full-priced stores of retail; 15 in number and 25 factory outlets.
· Increase awareness and create market share in markets that have been least ventured into, including South America and Europe and mainly focus on Asia, there were 30 fresh locations scheduled in the region.
· Raise product sales targeted to men. The strategy here is to focus on men’s products in Japan and North America through opening new stores specifically. China’s new shops on the other hand would mainly offer product lines that are dual-gender.
· Increasing the market share and brand awareness through social networking, global ecommerce websites and most importantly the company website;
Challenges faced by coach and preparation
Globalization challenge
This is still a huge challenge to Coach as it continues to expand its brand across the world (Gamble, Petera & Thompson, 2015). An opportunity to for instance sell western women’s clothing in India is a struggle because Indian women have their own traditional wear items (saris) which they consider elaborate and well designed. This is their choice of clothing on formal occasions.
Also, India has local designers like the satya Paul and Tarun Tahiliani that have much more local recognition in brand than most European and American fashion outlets (Gamble & Eastburn, 2012). Coach could only attract customers through their other items like jewelry, watches, and handbags.
The company has had to increase products that have more appeal to them than clothing items (Gamble, Petera & Thompson, 2015). As mentioned, places like India have grown interest in handbags, watches and jewelry. Coach has had to capitalize on this by opening stores and filling them with items whose demand is high based on the region.
Competitors (luxury goods)
There has been rivalry from all divides; home companies ...

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