Tui Mkt501 Case 1

Coach challenges and solutions |

MKT501 |

Danny Penzellna |

4/23/2011

4/23/2011

Contents

Key challenges faced by Coach 2

Important factors of Coach’s customers 3

Conclusion regarding Coach’s driving choice 4

Bibliography 6

Key challenges faced by Coach

Coach was started as a partnership in 1941 called the Gail Manufacturing Company. It began as a small Manhattan, New York business that produced leather merchandise for a small profit. In the 1960s, Miles Cahn discovered a unique but, complex method for treating leather to make it soft, strong, and durable. From then on, Coach started producing handbags (mainly geared toward woman) which was made from sturdy cowhide using the complex method. At the time most handbag producers were using thin leather pasted over cardboard material. This quality production and increase in product price placed Coach in the luxury leather product category ever since.

From inception Coach has steadily increased its distribution demographic. Their long-term strategic plan continues to be “to increase international distribution and target international consumers, with an emphasis on the Japanese consumer.” (Coach Inc., N.D.) While the company continues to maintain a loyal and strong consumer base, the accessory’s industry has some inherent risk that expanding would increase. A typical inherent risk of the accessories industry is the tough competition that emerges when each label puts out its newest line. A risk within the industry increased by expansion into foreign markets is, the brand name will not carry the same weight abroad and the foreign preference may be unfamiliar. (smart woman securities, N.D.)

Coach Inc. prides itself as a designer and marketer of modern American classic accessories. The company produces an array of products which include Handbags, Shoulder Bags, Backpacks, Luggage, Sunglasses, Wallets, Tote Bags, Sling Bags, Shoes, Jewelry, Coin Purses, Briefcases and Hats. They distribute their...