COACH

Coach

Coach

Situation:

Coach is a company known for its leather goods that are durable and long lasting. Coach's handbags are well known throughout the world and women view them as a style statement. Coach operates in an industry which is dominated by big brands, such as Gucci, Prada, Chanel etc.; therefore, it was difficult for Coach to establish itself in the market. It has done a splendid job and has made luxury affordable for everyone. Today, when every company is increasing the cost of their products, and when brands are getting out of reach of almost everyone, Coach has kept its prices nominal so that every person can afford its bags. Low cost does not mean that the quality of these bags poor, but the concept of low cost is the concept of 'accessible luxury.' Coach has pioneered this concept and had made luxury affordable for everyone. With this concept, Coach has managed to capture the market in Japan to a very significant extent. It is Coach's second largest market and represents about 20 percent of its global sales. In Japan, every woman has a Coach bag. Consumers in Japan are brand-centric but are not brand loyal as the American consumers. Frankfort, the CEO of Coach wants to increase the brand awareness and image in Japan; therefore, it has launched a new upscale line named Legacy and has established Legacy stores inside Coach Retail locations.

The company's head designer for handbags believes that if something does not sell, it does not belong to the store; therefore, the company tries to create products that are accepted by the people and that people like . The company poses great importance of information regarding the buyer behavior and the overall business environment to the success of the managerial decision making.

The company is aiming to increase its presence in China, but it faces a tricky situation. It currently has 30 stores in China, which it wants to increase to 80. The company has 3 percent market share in China and 4 percent brand awareness, which should be increased by means of marketing. Louis Vuitton has a strong presence in China which will be a huge hurdle in the way of Coach's success in the country. Coach targets the university educated professional women in the middle class, in China, and if the company manages to increase its market share, it will be a bigger market for Coach than Japan.

Recommendations:

1.Brand awareness: First and foremost, Coach should increase brand awareness. America and Japan are Coach's largest markets, but other countries are not much aware of this 'accessible luxury' which is a hurdle in the company's success. The company should increase brand awareness in order to increase market share in China and other countries.

2.Price according to recession: The Company should take crucial steps for adjusting its prices. Coach has been unable to adapt to recession; therefore, has lost sales. The prices are high according to the worldwide recession which the company should reduce.

3.Introduce new product lines: Coach should research into different low ...