Coach, inc. marketing plan assignment

Revenues increased from $2. 62Billion in 2007, to reach $3. 23Billion in 2009. With handbags accounting for 62% of revenues, handbags contributed $2, 002, 910, 000 to Coach’s business. Growth has been fueled by Coach’s niche as being ‘ accessible luxury’. While Coach does not have the prices of most of its high-end competition, it is regarded throughout the industry, and most importantly by consumers, as being equal in quality to much more expensive brands. *Corporate Mission* ??? Coach seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling.

The Brand is Our Touchstone. Customer Satisfaction is Paramount. Situational Analysis (SWOT) Strengths ??? Coach maintains very high brand equity within the market. Coach is known for producing items of exceptional quality. Coach has proven that, even in a down economy, customers are willing to pay for quality. The perceived value of a Coach bag has helped Coach to weather the financial downturn. Coach consistently outperforms the market. Being and aspirational brand, combined with the value consumers seek, has lead to year over year growth, and an increase in same store sales the past 3 years.

Buyers willing to pay for quality Patriotic buyers seeking American luxury goods Customers in this market segment are seeking quality handbags that carry a prestige about them at a good price. These customers are willing to pay for quality. Coach’s reputation for product quality and value for the price has it positioned very well. The trend heading into 2010/2011 is for there to growth in the low end luxury line. Product Strategy ??? The Strategy for this campaign is to continue the focus on the Poppy line of Coach bags, while growing the ‘ accessible luxury’ segment.

We plan to highlight the sub-$350 hand bags in our portfolio, winning new customers and moving customers to Coach from our competition. Distribution Strategy ??? The distribution strategy for this campaign will be to utilize existing channels, while increasing exposure at our lower-end retailers such as Macy’s, Dillard’s, Filene’s, and the Coach Factory Stores. Promotional* Strategy* ??? Continue print ads in fashion magazines Maintain Coach Boutique stores at Nordstrom, Bloomingdale’s, et al. Increase Coach footprint in growth stores: Macy’s, Filene’s, Dillard’s Continue highlighting ‘ Poppy’ line

The market opportunity is over $220m. 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. With the soft economy, we feel that Coach is poised for growth in the low-end of our product line, and we are in a favorable position over or competitors.