Coach Handbag analysis Essay

Company overviewDesigning and marketing of accessories and gift products for women and men. The company primarily operates in the US and Japan. It is gafferquartered in New York City, New York and employed 18,000 people as of June 30, 2012. 36% market share as accordance of MarketlineIn just two years (20032005), perambulators market share has increase from 18 percent to 23 percent. TARGET MARKET DISCRIPTIONmen and women aged between 20s- 40s who possess mid(prenominal) to high levels of disposable income, seeking distinctive, easily recognizable, accessible luxury products that are relevant, well made, and provide slight value(2012, 03). Mkt 501 Case Study Module 1 Target Market Coach Handbags. Retrieved 03, 2012, http//coachinc.wordpress.com/assignment-1/brand-positioning/competitor-analysis/ Product life-time CycleShorten new-product cycle time (releases every four to five weeks, up from twice a year). Learn through multiple new-product variations (12 to 28 per release, up f rom two to three). http//mmoore.ba.ttu.edu/ValuationReports/Coach.pdfSWOT ANALYSIS MARKETLINE UNDER rig 2STRENGTHSStrong focus on the handbags category Consistent revenue and profit growth Multi-channel dispersion strategy WEAKNESSESDependence on independent manufacturer for procuring merchandise OPPORTUNITIESExpanding presence in China articulatio ventures with international partners in EuropeIncreasing online salesTHREATSCounterfeit goodsBan on advertising of luxury products in ChinaIntense competitionstartedMISC INFOCoach was launched in 1941 in a noggin in New Yorks Soho district by a leather craftsman named Miles Cahn, who created ladies purses designed in elegantly understated black or br ingest and featuring simple brass turnlocks and little other decoration. The bags were dearly-won but so well made that they were considered an excellent value. Coach was able to present the brand from head to toe, including products from hats and outerwear to handbags and accessories. O ne major breakthrough was the wristlet, a zippered rectangular bag just 4 by 6 inches.This new product grew out of Coachs research into how women were using their purses. Coach spends over $5 million per year on marketplace testing of new products research shows that the best Coach customers visit the store every four to five weeks. This dictates the rhythm at which Coach rolls out its own products and floor-set changes.