Coach Inc.: Is Its’ Advantage in Luxury Handbags Sustainable?

Topics: Luxury good, Sales, Marketing Pages: 2 (675 words) Published: December 19, 2010
Situation analysis
1. Coach present market position;
Strengths:
* Ability to match key luxury rivers in quality and style but beating them in price by more than 50% * Can serve both middle and high income customers (while the low price and good designs are appealing to the low income customers, the high quality is also a pooling factor to the high income customers.) * Best selling Brand in the industry by 2006 with about 25% market share in the USA and second best selling in Japan with about 8% market share in same year. * Attractiveness of the coach retailed store. A survey in the USA rang coach in terms of store atmosphere, 10th among top rated stores in the USA with a score of 84% not very far from that of Louive vuitton rang first with 88.1% * High customer service standards (replace or refurbish damage hang bags irrespective of their age, home service delivery for customers who can not find what the want at the time of visit.) * Employees training to improve performance.

* Distribution; use of full price stores, factory stores, internet sales, catalog sales, stores in Japan, Wholesaling, international license partners out side USA and Japan. * Use of web site and catalog to let customers see and select products before getting to the stores so as to reduce traffic. * Additional employees during pick periods to avoid traffic and increase customers service and satisfaction. * Use of emails to sent promotional information to selected customers. * Division of full price stores into different categories; Core locations for widely demanded lines, fashion locations for coach best selling and chic specialty, and flagship stores for most sophisticated and highest priced items. * Stare locations are equally a great strength due to their strategic nature with flagship stores located in high profile fashion districts in cities such as New York.

Strengths as shown by figures from financial statements presented; Initial...
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