Coach, Inc. Marketing Plan

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  • Topic: Marketing, Outlet store, Outlet malls
  • Pages : 8 (2747 words )
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  • Published : April 25, 2010
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Coach Marketing Plan
June 2010 – June 2012
BUS 620: Final Group Project
March 8, 2010

*Executive Summary *-
The focus of our 2 year marketing campaign is the building of the Coach line of handbags. The typical market focus of the handbag business for Coach is geared towards middle class women who have an interest in quality handbags and don’t who mind paying a little more for the quality and prestige of Coach products. While a Coach handbag is certainly a niche item, we feel there is ample room for growth. Coach’s top competitors are Prada, Gucci, Hermes, Dolce & Gabbana, Dooney & Bourke, Inc., Kate Spade LLC, and Michael Kors, Inc. We feel that we can expand our lead in the ‘accessible luxury’ segment of the upscale bag market. The market opportunity we see is well over $200m. Handbags represented 62% of Coach’s total revenue in 2009, and though that is a large number, we feel it can be expanded. This segment is growing, and poised for even further growth, which we want to capture. The initial investment in this campaign is $50m, which equates to 2.25% of 2009 handbag sales. We foresee a full return on investment within the last quarter of the first year. At year two, we estimate a 4.4-fold return on the original $50m investment, equating to $221m increase in revenue, and well as a market share gain of over 13% for this segment. Our Poppy line will fuel a significant portion of this growth through our reseller channel, mainly Macy’s and Dillard’s, Coach-branded stores, and the Coach Boutique locations within our upscale department store partners. Incremental increases will be seen at the Coach Factory Outlet stores, but this product line is not in need of heavy discounting to incentivize customers to purchase. Table of Contents

Introduction* *……………………………………… * *4 * Corporate *Mission* *………………………………* *5 * Situational Analysis (SWOT)*………………….* *5 Marketing Objectives* *……………………………* *7 Target Mix* *…………………………………………* *8 Product Strategy*…………………………………* * *8 * Distribution Strategy* ……………………………* *8 * Promotion Strategy* * *………………………………* *8 * *Pricing Strategy* *…………………………………* * 9 Risks *………………………………………………* * *9 Key Issues *……………………………………… * * *9 10.Budget *………………………………………….. * * *9 11.*Monitoring *………………………………………* * * *10 12.Summary *…………………………………………* * *10 13.*References *………………………………………* * * *12 14.Appendixes …………………………………….* * *13*-15 Introduction -

Coach was founded in 1941 and is engaged in the designing and marketing of fine accessories and gifts for women and men in the United States as well as internationally. The company’s primary products include handbags, women’s and men’s accessories, footwear, jewelry, wearable goods, business cases, sun wear, travel bags, fragrances, and watches. Its accessories product line comprises women’s small leather goods, including money pieces, wristlets, and cosmetic cases; men’s small leather goods comprising wallets and card cases; novelty accessories, such as time management and electronic accessories; key fobs and charms; and women’s and men’s belts. The company’s wearable’s product line consists of jackets, sweaters, gloves, hats and scarves, including cold weather and fashion goods for women. Its business cases product line includes computer bags, messenger-style bags, and totes for men. Coach, Inc. also offers luggage and related accessories, such as travel kits and valet trays; jewelry, including primarily bangle bracelets; and fragrance products comprising perfume sprays, purse sprays, perfume solids, shimmer powder, body lotion, and lip gloss. The luxury brand sells its wares through some 930 department and outlet stores (in the US and more than 20 other countries), catalogs, and website, coach.com. Though the economic downturn worldwide has been affecting business since 2007, Coach has still seen growth. From 2007 through 2009 Coach‘s revenues are up...
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