COACH By: Frances Thoresen & Kristin Young
Coach: an american story • Coach began more than a century ago as a family-run workshop in a loft in Manhattan. • The workmanship was passed down from generation to generation. Soon people were seeking Coach’s high standards of fine leather goods. • Coach’s first handbag was inspired by the baseball glove. The family wanted the soft feel of the leather and it’s ability to grow stronger after time. • Today, Coach is considered a classic part of the landscape of American design.
Coach's Philosophy • Started with 12 simple, classic, and practical bag designs – Coach now introduces new styles and collections every season. • Each product design strives to find a balance between functionality and aesthetics. • Coach selects only the top ten percent of leathers for their tactile quality, strength, character and grain. • Their method of slow curing brings the natural markings to the surface, which makes every Coach product original and unique.
Strengths • Has an “All American” brand image/equity • Sold in department stores as well as coach retail stores and coach.com • For higher end handbags, fairly reasonable prices • Keeps classic styles while exploring current trends • Recently expanded into new market areas (ex – Coach Baby, more men’s products, iPod accessories, etc) • Good advertising throughout all seasons (seasonal catalogs, updated website) • Gift ideas on website and in store for all price ranges • Coach outlet stores
Weaknesses • Coach stores and retail areas can be intimidating to some shoppers • Some of the classic designs or prints can be repetitive • Might be losing loyal customers because they are becoming more popular and more common (ie – “everyone” has a coach handbag) • Some “limited edition” merchandise cannot meet consumer demand • Staff is snobby, snooty, and uptight; persistence can be annoying • Authentic looking knock-offs
Opportunities • TV commercials • Promotional sales • Coach credit cards, possibly a Visa • Point reward system similar to Nordstrom Rewards or Banana Republic • Expand coach outlets • Home décor (sheets, table linens, dishes, vases, decorative pillows) • Jewelry other than watches (compete with Tiffany’s) • Make stores more welcoming • Continue to stretch and fill their product lines
Threats • Dooney & Bourke – signature style • Kate Spade – classic styles • Juicy Couture – trendy styles • Burberry – higher end coach products • Chanel, Gucci – sunglasses • J Crew – scarves, coats, boots & shoes, umbrellas • Gap Kids – children’s & baby products
Oregon Locations • Washington Square: • Nordstrom • Meier & Frank • Coach store • Downtown Portland: • Meier & Frank • Nordstrom • Pioneer Place Coach store • Bridgeport Village Coach store • Lincoln City Coach Outlet
Coach's Future? • Coach is growing globally – specifically, they are reinvesting profits into the Japanese market due to the high demand luxury goods • Outsourcing different aspects of their production line to become more cost efficient and increase profits • “But it's quality control over products, not country of origin, that draws in customers and allows the company to flourish” • Sales growth and margin expansion have been phenomenal in the last few years • Coach can continue to expand their products to cater more to men, promote their children’s and baby’s lines, as well as their pet line (people are spending more their dogs now – “purse dogs” – Paris Hilton)
Sources • www.coach.com • Principles of Marketing textbook • http://biz.yahoo.com/fool/050912/112654924918.html?.v=2