COACH

STRATEGY TO PERPETUATE SUCCESSPrepared & Presented by

Joshua Dopkowski

Hilton DePaoli

Gustavo Martinez

SITUATION ANALYSIS

65 year old company committed to the luxury

handbag and leather accessories industry. Globally

recognized luxury brand.

In 2006 the global luxury goods market is

estimated to be $112B.

49% of global luxury goods produced by France &

Italy.

US companies only account for 14% of global

luxury goods.

Coach revenue has increased by 24% over the last

8 years.

SITUATION ANALYSIS

Primary competitors are Georgio Armani and Dolce & Gabana,

with other notables LVMH, Versace, Prada, Burberry, and Hugo

Boss.

Coach is segmented into tiered distribution with full-price

fashion and flagship stores, factory stores and U.S. wholesale to

retailers.

Coach successfully rivals the competition by offering accessible

luxury to the upper and middle classes.

Coach’s suppliers have low bargaining power.

PROBLEMS & CORE ELEMENTS

Lack of presence in global and emerging markets.• Non U.S. & Japan sales only represented 5% of total sales.

Market segmentation and focus.• Tiered distribution strategy.• Women’s accessories sales concentrated in 35yr – 45yr

age range.• Men’s accessories and outerwear accounted for only 2%

sales

Growth model vs. Brand Equity/Brand Identity.• Ecommerce & tiered stores system.

PROBLEMS & CORE ELEMENTS

Luxury spending is shifting geographically to BRICS

Market volatility in the global luxury market.

Unprepared for future growth markets.

New product lines not performing, Coach not “vested.”

COURSE EVALUATION

Increase store presence domestically and internationally.

Licensing for strategic partnerships and market penetration.

Increase presence in Men’s and Luggage categories.

Aggressive marketing campaign to maintain brand dominance.

Focus on in-store experience and hospitality training.

Formulate and execute operations initiatives designed to

increase efficiency, minimize exposure and support

diversification and distribution to new and existing markets.

CHOSEN STRATEGY

Formulate and execute operations initiatives

designed to increase efficiency, minimize exposure

and support diversification and distribution to new

and existing markets. • PRIMARY DRIVERS:• Manufacturing alliances help control cost structure

and reduce distribution costs in various global markets.

• Focus on distribution strengthens the infrastructure for Coach stores and solidifies relationships with travel retail and retail partners.

• Builds foundation for penetration into emerging markets.