Coach, Inc. Marketing Plan
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*
*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*
References: Peter, J. Paul and James H. Donnelly, Jr. Marketing Management: Knowledge and Skills. 9th ed. Boston: McGraw-Hill, 2009. www.bloomberg.com