Ch. 7 - Business Marketing

Macy's Department Store is home to thousands of products and brands - Coach included. Coach has it's very own department within the Macy Stores. That makes Macy's a "Reseller" of Coach products. In researching Coach I realized that Coach  doesn't authorize many businesses to sell their products; just a few stores outside of the Coach Stores, Factory Outlets and Coach's Internet Website. But the relationship between Coach and Macy's is still a Business to Business relationship - A Macy's buyer places an order for Coach products from Coach then turns around and offers those products to a Macy's customer.

Another Business to Business relationship Coach has is with it's suppliers - the companies that supply Coach with the raw materials they need to make products like Coach handbags, wallets, belts and other accessories. Those relationships are probably the most important business relationships Coach has, aside from the relationship they have with their customers. It's important for Coach to have good business relationships with their vendors who supply the raw material needed to make their products, without that raw material they can't make their products.

It's also important for Coach to have good relationships with the vendors who supply or maintain the equipment used to make Coach products. Major Equipment like the machines and computer systems used in the production process have to be maintained by professionals who know how to fix them when they go down. The type of equipment used for the production of Coach products are also known as Business Products - all of the equipment used to make products and also the equipment that's used on a daily basis by employees such as computers, fax machines, telephones, supplies, etc.

As I read over this chapter and thought about my company (Coach) I realized that running a business, big or small, really requires you to be good at maintaining good, professional business relationships. The overall goal would be to have a great relationship with your vendors who supply your raw materials but be firm enough with them to make sure your not paying too much for those materials. You want to make sure that you have a great relationship with the vendor who supplies and maintains your office equipment so that when you need something asap you get it and when you need something fixed it's done quickly too - but you want to make sure at the same time your not paying too much for those services either. And on top of that you have to make sure that your making a product that's pleasing and appealing to current and future consumers.

To sum-up this semester with this last blog post I feel like with all of the time I've spent researching my company -Coach- I really did learn allot about not only this retail business but about business in general. I was especially surprised to learn about how Coach moved their factories outside of the US and into other countries to lower their production cost. It was surprising to see the conditions of these factories and to read some of the complaints that workers had - it was disappointing as a buyer of Coach products to learn about how Coach got their start right here in NYC, made tons of money and then decided to move production to China. At the same time I understand that from a business perspective it's a smart move. I also learned a lot about some of the other companies my classmates researched. I found it interesting to learn about McDonald's plan to revamp employee production in an effort to keep customers coming back and I even started using some Burt's Bee products after my curiosity about the company caused me to try some of their stuff - it's great btw. And as for the marketing aspect of this class...well I'm definitely more aware of advertising's that I see everyday and sometimes ask myself...what are they really doing here? Are they genuine and is their ad effective?

As a Business major I feel like I've learned a lot and I enjoyed this class so thank you.

Ch. 8 - Segmenting and Targeting Markets

A Market Segmentation is, in short, a group of people who have a similar need for a product. Marketers need to know who their market segment or target market is before they can successfully market a product. With my company, Coach, I feel like they have 2 separate market segments - they have one that targets women and one that targets men. Whether they are using the geographic segmentation, demographic, psychographic, or geodemographic segmentation I think the group of people they are marketing to is the same in terms of age, income, where they live or what their lifestyles are like. With Coach, marketers are making sure that the young, professional woman know about their handbags and other accessories. Same goes for their men's line - marketers are marketing their men's bags, belts, wallets and accessories to the young, professional man. These are the type of people who are going to buy their products.

Earlier this year I took a trip to Puerto Rico and while there I visited the Coach store in San Juan. This location is always super great to go to because its the biggest Coach store I've ever been to. The store has several rooms that showcase Coach bags, wallets, shoes, cloths and other accessories for both women and men and it's very busy. I'm sure that Coach marketers put a lot of thought into deciding whether or not they would be able to sell Coach products in this area. The area of San Juan is mostly a tourist area. On a daily basis cruise ships come into the San Juan bay and spend a day or two docked their. Passengers are always roaming the streets of San Juan...and one of the busiest stores is the Coach store. I say this because I think that a big part of marketing is also knowing where to place your product in order to have it sell. Coach is defiantly marketing their products to young professionals but they are also marketing their product when they decide to open a store in a particular neighborhood. This neighborhood in San Juan is a great location and a smart move for Coach because I'm sure the store is selling and making money. But I'm sure that Coach would not open a store in a low-income area because marketers know that their product wouldn't sell in that type of area.

Overall, I believe that Coach has already established their market segment and I don't think that will change unless they decide to offer different kinds of products. For example, if they decided to create a baby-bag that would change their market segment. Now they would be marketing to moms. If they decided to offer a coach bag designed for a little girl or a book bag designed for a little boy...now marketers would need to change their market segment to make sure that they are reaching out to parents who have small children. But it seems to me like Coach moves in a very slow pace when it comes to offering new products to its customers. For years they've had the same types of bags reinvented in new colors or changed slightly to sell for a new seasons.

I know that Coach is working on a women's clothing line but I don't believe they will have to change their target market too much - the women that buy their bags will most likely but their cloths too.

Ch. 11 - Developing and Managing Products

Seems like Coach has teamed up with Saint James to offer it's customers a new nautical look for the Summer 2013 collection. These products are not New Products but it's a new collection. Coach doesn't really introduce "new products" like Toys R Us would introduce a new toy for kids or Martha Steward introducing a new crafty kitchen utensil never before seen but designed to make life easier in the kitchen.

Instead, Coach introduces new collections by season and sometimes in-between seasons. Their bags, wallets, scarves, belts and even their shoes are usually a modification of an earlier version. I've noticed that one year they'll introduce a new large tote; the following year the tote will turn into a new Hobo bag; the following year the Hobo bag will turn into a new smaller Cross-body bag.

 Like their tassels

 Blinged Out for a new season

I think Coach is still in its growth stage because it's constantly coming out with new designs and collections. They also add other products to their collections like this nautical inspired shirt. And it's not typical for Coach to add clothing to their line of collections, in fact, I always wondered why Coach didn't include clothing in their collection sooner. But earlier this year Coach hired Sandra Hill to head a design team to begin designing a women's clothing line. But for now consumers will have to settle for the tee-shirts, jackets and small accessories that Coach is most known for. I've also noticed in recent years Coach has been adding more and more shoes to their collections. In the late 1990's Coach came out with a small, weird looking sneaker and since then they've added beautiful boots, ballet shoes and new high-heals and wedges to their collections; and their sneakers have been modified too, their more comfortable and more fashion forward today. I don't think that Coach has experienced a maturity stage yet; even with the discontinuation of some of their bags and wallets - even when they discontinue one item they come out with another to replace it. And although Coach has been the company that flip-flops in sales from year to year they continue to push forward new collections, by joint ventures with other companies and now the new venture into a women's clothing line.

Ch. 16 - Promotional Planning for Competitive Advantage

Coach is just one of thousands of companies these days who use Social Media to reach out to their customers. Facebook is one social media outlet currently being used to market Coach products and to advertise promotions and sales. And when it comes to Marketing Communication it seems to me like advertising and trying to promote your business via Facebook (or any other social media outlet) is a great idea. The potential for mass communication is undeniable - for example - On MY Facebook account, because I am friends with The Coach Store I get all kinds of advertising's posted to my facebook wall. These advertising's include information about new products, new product lines, special Coach events and in store and online sales - all of my facebook friends see this, so the message isn't just getting out to me...it's getting out to all of my friends as well.

Using this form of marketing is effective for informing and reminding consumers but it's not an effective way to persuade the consumer to buy your product. If Coach uses this forum to compare their products to their competitors products and shows the  benefits of buying a Coach bag instead of a Louis Vuitton bag, then it would be more effective in persuading the consumer. Still - the communication process is happening and Coach is able to send their message to the consumer and see if the consumer responds.

Another aspect of the promotional mix that I think has been effective for Coach is  advertising in magazines as a way to inform and persuade consumers to buy their products. Coach has been featured in dozens of magazines such as Lucky, Elle, Glamour and Allure and showing celebrities wearing Coach bags and other products is definitely influential to consumers. But I think it's more important to consider the fact that most young women who buy these magazines are looking for the latest trends and styles to follow so having Coach advertise in these magazines is a smart way to get the word out on your products - because these are the people who are going to go out and buy them.

Ch. 10 - Product Concepts

Leather handbags have always been Coachs' main product - and it's known for being a "Specialty Product".  For the consumer who loves and truly appreciates Coach handbags, substitutions of any kind simply won't do. Coach's "Product Line" is it's handbags and the different styles and versions that have come out over the past 70 years. Over the years Coach has modified several of it's bags to go from big totes to smaller, cross body bags. They did this in an effort to make their bags more functional and appealing to consumers. They've also had style modifications to several bags to keep up with new trends and to reach a new, younger target market.


 

 Coach customers know that when they buy a Coach product the packaging will almost be as pretty as their item...whether it's a new handbag, shoe, watch or perfume, the packaging that's used is always beautiful. The packaging does keep the items in place but I think the style of the packaging is used more as a marketing tool. You don't get just any old box and bag - you get a beautiful branded box with a hand tied bow and a bag that was specially designed for your purchase. It certainly isn't necessary to put these items in such fancy packaging but by doing so they make their products more appealing; they also make their consumers feel like their purchasing a quality product - I think this marketing tool is especially important during the holidays and when a customer is purchasing for a special event.

Coach also offers it's customer a lifetime warranty. As stated on their website - if your product requires repair you can send the item to Coach and they will fix it for you. I, personally have had a Coach bag sent for repair of the zipper which had become warn - I shipped the bag to Coach and within a few weeks I got it back with a new zipper...it also looked like they took some time to clean it as well. I was very happy with this warranty and found it to be a nice perk to purchasing their bag.

Ch. 18 - Sales Promotion and Personal Selling

Now that I've been investigating my company, Coach USA for about 2 and a half months now I've realized that they DO often put some of their items on sale. In an earlier post I mentioned how the only sale I've seen from Coach is during the winter holiday when they offer 20% off coupons. Right now, for example if you go to Coach Outlet Online Sale you will find a Coach sales promotion offering customers 50% off all handbags for the next 17 hours (Please note today's date April 8, 2013). Coach has no history of ever having used rebates, contest and sweepstakes or sampling as a way to attract new customers or get the attention of existing customers.

Coach USA sells directly from their store locations and from their websites to consumer so some of the "Steps in the Selling Process" don't apply - but within those store locations there are "sales people". The theory behind these salespeople is that they are their for your convenience to help you find what you need.

Yeah right, who are they trying to fool?

These sales people are placed in the stores to try to get you to buy more then you need, they want you to spend as much as you can and they all have sneaky ways of getting you to do just that. In visiting the Coach stores I've learned that every sales person has a different approach but we can use the industry standard described in the textbook.

Step 1: Generating Leads - This is when a sales person notices a customer walking into the store.

Step 2: Qualifying Leads - this would be when a sales person takes the time to examine the customer to see what they're looking for and to determine how they can make a sale.

Step 3: Approaching the Customer and Probing Needs: This is probably the most important step for the sales person because this is where they would either succeed or fail. Depending on how they approach the customer will determine whether the customer will be receptive to receiving their help.

Step 4: Developing and Proposing Solution: This is the point where the sales person tells you how a bigger, more expensive bag would look better on you, it'll fit more of your makeup (like if I wear any).

Step 5: Handling Objections: This is where we attempt to negotiate which doesn't really happen with Coach because you can't negotiate the pricing with the sales person. The prices are what they are and the sales person can not change that at Coach.

Step 6: Closing the Sale: At this point you have decided whether or not you are buying that new bag and the sales person is finding out how good they do their job. If they can get you to buy that bag then they've been successful.

Step 7: Following Up: This is another step that I don't think Coach uses. Coach is the kind of company where customers either buy or don't buy and following up with the customer is not usually needed. Coach can assume that customers follow up with the company by coming back to buy more.

Ch. 17 - Advertising and Public Relations

Coach USA typically advertises to get the attention of women between the ages of 19 - 45 - women who have jobs and can pay to buy their product. The "Execution Style for Advertising" is "lifestyle". Their advertisements try to show how well their bags or other products will work for you and fit into your daily life. Their advertisements imply that by buying their products you will be happy, satisfied and feel better about yourself. Of course this is hardly ever true but as a fan of their bags I will say that after purchasing some of their products I do tend to feel happier :)

I suppose that means that Coach is doing their job when it comes to how they market and advertise their products. Most of their advertising can be found in a number of magazines like Lucky and Glamour but you may also find some advertising outdoors on billboards and posters. The Internet is another forum used to advertise their products, you may notice that if you do a search of a Coach product on your computer you will find that product and others in other areas of your computer - like on the side of your email or face book accounts.

I spoke to a family member recently about advertising and she reminded me of a time when companies would do mass mailings directly to consumers homes in order to let them know about their products or sales. Back in the day companies had to advertise in weekly newspapers and circulars. It's funny to see how things have changed and to see how marketing and advertising has evolved.

Ch. 15 - Retailing

Before the spring break holiday I visited the Coach store located at the Queens Center Mall.
The Coach store is a "Specialty store" which (as I've said in my other post) specializes in the production on fine leather goods such as handbags, wallets, & wristlets.
First I'd like to say that the location of the store is great. The mall is in an area which would be considered a "middle class" neighborhood. The stores in mall are all stores that price their products well enough to attract the middle income consumer. Walking into the store I thought the lighting was bright and showcased the items through out the store. A salesman came to talk to me right away which was fine but can often be annoying. I told him that I was only looking and he still continued to show me the newest Coach products like a new spring bag that just came out and a new perfume that smelled really nice. I didn't find him annoying or forceful, I thought he was just trying to let me know that their were new items that I may want to buy - which was smart. That said, I think the "level of service" was high and I agree with the text book chart for a specialty store.
The "assortment of product" for this location in Queens was "narrow". It's a small store and they had a limited amount of products. Earlier this year I went to the Coach store in Puerto Rico and it was huge. The store had 4 separate rooms beautifully decorated. One of the rooms displayed only men's products which were all really nice. I didn't know that Coach had so many men's products until I saw them in that store. I suppose the reason why the store was so big had allot to do with it's location. The store was in a tourist area where not only were there lots of resorts and hotels but also cruise ships dock near by and the visitors tend to flock to these stores. I liked this store so much better.
The "Price" was "moderate to high" in both stores. You can buy a Coach bag for anywhere from $125 to $600. However, I did notice that the Coach store in Puerto Rico had sale items which were up to 50% off...I thought this was insane, I've never seen that kind of sale here in New York.
Overall, I agree with the text book chart that indicates the types of stores and their characteristics. One thing that I found interesting was how the stores change how they look and what they offer to fit the need of the area their in.

Ch. 6 - Consumer Decision Making

In reading through chapter 6 I think the most important part of the chapter is the Consumer Decision Making Process. The process consist of the following 5 steps;

1) Need recognition
2) Information Search
3) Evaluation of alternatives
4) Purchase
5) Post Purchase Behavior

I never thought about this process until I read it...even though this is the process I take when buying things all time...quite interesting.

The need recognition is when a consumer realizes that they have a need to make a purchase. It is the first step that triggers the consumer decision making process, and as a girl it is my favorite.

The second step is the information search. This is the process we as consumers take to investigate the item we want to buy. For example, I just purchased a new refrigerator, but before I picked out the perfect one I went online to check my local stores and found ads that advertised the different brands and models on sale. I was able to get all the information I needed about my new fridge without even going to the store - of course you could also do your information search at the actual stores but looking online is probably the easiest and most convenient way to get the most information you need without actually heading out. The downside to doing your information search online is that you don't have the luxury of being able to "feel" your item.

The third step is the evaluation of alternatives. Now, I don't think that every consumer uses this step, for example, I did use this step when I was doing an information search for my new refrigerator. Before I made my purchase I wanted to see all the different brands and models and I wanted to compare them in quality and price. But when it comes to my company, Coach I don't think that consumers are looking for the alternatives to a Coach bag or wallet. Most of Coach's consumers already know the products, the quality of the products and the price. If your happy with your Coach purchase then chances are you don't need to evaluate alternatives when deciding it's time for a new bag.

The fourth step is the Purchase step. In the case of my company I believe that as a consumer either your buying it or your not. If you've done your information search and determined that the Coach quality and price are right for you then your purchase is pretty simple. You won't go through the "to buy or not to buy" process and internal struggles that other purchases may put you through.

The final step in the Consumer Decision Making Process is the Post Purchase Behavior. If you purchase a product from Coach and end up happy with it then chances are your expectations have been met. You will probably end up returning to a Coach store to purchase other items in the future. If it turns out your not happy with your products then most likely you will either return your item for a refund or exchange or you'll never return to Coach again. Post Purchase Behavior is very important to a business because most businesses count on repeat costumers. They build their business on the loyal customer who loves their brand and products. I think most businesses understand that you can probably sell your products easily but what matters is whether the costumer is happy enough with your product to come back for more...when you have that as a business, your golden.

Ch. 5 - Developing a Global Vision

So, why does a company decide to go global? Well, simply put - to grow their business, to have access to cheaper labor and materials, and to capitalize on new market opportunities.

Growing the business:

Since it's inception in the 1940's Coach spent years building it's brand and business locally though out the United States. As the business grew it opened boutique stores and outlet stores in Denver and Seattle and opened stores in malls throughout New Jersey, Texas, and California. At the same time it introduced new bags in new shapes to target the new customer base. The new product lines were designed to target the women who lived in the South and West were warmer weather made lightweight handbags more desirable. The new line featured handbags in smaller sizes and in lighter spring colors. This new line quickly came to make up 15% of the company's overall sales.

In 1988 Coach began it's international push into global markets opening boutique stores in England, Tokyo and Japan. Coach executives noticed that a large number of it's customers from their New York stores were tourist and knew that international expansion was a must. After 4 years the number of company stores grew to 40 and sales reached $100 million.

In 2011 Coach began a new venture to capitalise on men's products in China. Coach's chairman and chief executive, Lew Frankfort told ft.com the company was eager to capitalise on men's untapped enthusiasm for its products in China, where they account for nearly half of all spending on handbags and accessories.

Expanding Coach's business into global markets have produced new designer lines and a new customer base which has proven lucrative for Coach.

Access to cheap labor and materials:

In China today, small towns have been known to build and staff whole, working factories almost overnight. When factories are up and running, female workers show up to work in them - accepting little pay to provide for their most basic needs like food and clothing. The Chinese government sees these factory towns as money makers but tend not to provide public services like schools, hospitals, or libraries to the people who live and work in them. Although the standards in which factories are run in China have improved in most recent years most people would not believe the continued deplorable working conditions. Most women working in these factories experience a decline in their standard of living and overall health due to the high intensity and adverse environment of these factories. In June 2011 a China-based factory that makes handbags for several accessory brands like Burberry, Michael Kors, and Coach had factory employees strike over complaints about low pay and aggressive and verbally abusive behaviour by factory management. Some employees were forced to work 60 hours per week often sleeping in corner spots in the middle of miscellaneous accessories ready to be assembled just to meet the high demand of output.

In the US, factories are monitored by both the government and independent labor rights organizations which ensure employees have amongst other rights, a decent living wage, safe working environment and bans on forced overtime.

No wonder why Coach and other luxury brands decide to outsource their manufacturing to China and other countries...they don't pay high wages, they make their workers work unfathomable hours and they get away with it because these people need the work and do it with very little resistance. It might make more sense to me as a consumer if the savings were trickled down the pike but that's not the case. Seems like Coach is making bigger profits on the backs of the most desperate Chinese workers. It angers me more to know that most products in the US are MADE IN CHINA, that said, you probably could NEVER go without buying a MADE IN CHINA item.

New Market Opportunities:

The Japanese have long been known for their love of designer bags and accessories - and it looks like Coach has taken advantage of this market. Coach is currently competing in the Global Market with Louis Vuitton and it looks like Coach is catching up. One of their strategies seems to be "pricing"; in China and Japan a small Coach bag starts at around $275 - Louis Vuitton bags average about $870. Coach seems to have won over shoppers with it's new styles and competitive pricing and it's now reaping the rewards with more than 20% of it's global revenue coming from Japan. As of 2011 Coach has 344 retail and 134 factory stores in North America, 174 stores in Japan and 55 in China.

Ch. 4 The Marketing Environment

For 72 years Coach has been selling their designer handbags, wallets, scarfs and accessories all throughout the US and internationally. It doesn't take a genius to figure out their target market is the female consumer between the ages of 25 and 40 (give or take a few years) with a middle-class income rage. Women in this target market are working and earning enough money to spend on a designer handbag.

But in recent years Coach has expanded their products to include a men's line offering stylish slim brief bags, weekender totes, shoes, belts and eye wear. Their target market is also the generation x and generation y consumer between the ages of 25 and 40 something.

Although Coach products are available to all consumers I don't think baby boomers find Coach products appealing. Consumers in this age group are between 49 and 67 years old and are more interested in saving for retirement then on purchasing a designer bag.

Coach USA and that dreaded word..."recession"

A recession is a period of economic activity characterized by negative growth, which reduces the demand for goods and services.

Unfortunately, Coach USA is in the retail industry and during a recession most all retail stores show some form of decline in sales. And because Coach markets it's products to the middle-class consumer, recession is a very bad word for the retail store. 

Unlike supermarkets, discount stores and fast-food franchices during a recession people tend to spend on what they need and not on what they want.

In 2008, in the mist of our latest recession Coach CEO, Lew Frankfort told CNN Money that the high-end business "was not immune from slowing consumer environment" and that "luxury sellers are begining to feel the pinch." The truth is, when times are tough the middle-class consumer starts to think about saving more and spending less.

But having what seems to be the worst of the recession behind us I'm glad to see that Coach has not only weathered the storm but has yet again begun to prosper in the aftermath.

Ch. 3 - Ethics and Social Responsibility

So, how well does Coach USA live up to the question of Ethics and Social Responsibility?   
Not great, but not that bad either. It depends, I suppose on what your personal thoughts are on ethics and social responsibility, and how high of a standard you place on a company brand you enjoy having around.

I will start first with my findings on "Social Responsibility".

The textbook defines "Corporate Social Responsibility" as being a business's concern for society's welfare. Is the company a good corporate citizen? Does it give back to the community to improve quality of life?

Well, Coach USA has The Coach Foundation; a foundation created to support different organizations that empower, educate and support women and children around the world. Coach's Women's Initiative supports programs that encourage personal and economic empowerment such as Dress for Success, Girl Scouts of Greater New York, Girls on the Run, and B Peace for Jobs. Their education initiative supports educational programs such as Free Arts NYC, Autism Speaks, Youth Build Philly and Promise Project. These organizations ultimately focus on serving the community with outreach programs geared toward the success and well being of women and children.

Coach sporadically teams up with celebrities who lend their name to benefit their favorite charity. Sandra Bullock picked her two favorite stunning Coach bags; the Madison Leather Hippie and the Kristin Leather Tote and had a portion of the sales donated to the Beauty Bus Foundation - an organization that helps to care for terminally ill men, women and children.

Rachel Bilson picked her favorite Coach bag from the Poppy Line and had a portion of the sales donated to The Art of Elysium - a not for profit organization that connects actors and musicians with children fighting serious illnesses.

Shortly after the devastation from Hurricane Sandy in 2012 The Coach Foundation announced a $2 million dollar gift to the American Red Cross for the Disaster Relief Fund to help in rebuilding those areas hardest hit by the storm. Living in Queens and having visited Coney Island many times as a child it was nice to see a number of large organizations step in and give at such an important time for New York.



So, we know that Coach USA probably contributes millions yearly to charitable organizations - which is a good thing since those organizations in return, provide so many wonderful services to so many people in need.

But where do they stand when it comes to issues like creating products that are environmentally friendly. Today, so many consumers are more aware of what their buying and what effects those products have on our environment. I know that I personally try to contribute by using cloth bags when I go shopping and limiting the amount of water bottles I buy (I drink allot of water and I'm always on the run so this is a hard one...for most people I think.)

So what does Coach think about making products that are environmentally friendly?

NOT MUCH - from what I found.

In early 2012 Coach introduced a recycled wallet for men made from old baseball gloves; each wallet was hand-made and didn't require the typical manufacturing process. Each wallet sells for about $350, however, not many were made and you can only purchase them at specialty stores.



Coach should not overlook the possibility of creating a line of products that are environmentally friendly. Consumers today are ever-more concerned about the environment and it seems like their competitors are catching on too. Take Big Buddha for instance, they carry a beautiful line of designer bags called the Vegan Handbags. These bags are made of V-Leather - an animal friendly, cruelty free leather like material. Consumers have applauded the company for providing another alternative to the typical leather bag manufacturing process which effects our animals, forest and environment.   

Big Buddha V-Leather Purse

On the matter of Ethics - Our textbook defines Ethics as the standard of behavior by which conduct is judged.

I think it's hard to say if a company is behaving ethically...how would we know for sure that they are? We can only judge them on what we see and know about them. 

We've all heard the stories of big, well known corporations believed to have been performing ethically crashing down in a pile of lies and unethical behavior. I don't think the public knows for sure until something disastrous happens.

I will say that I don't think it's "ethical" for Coach to outsource their manufacturing business to China. I don't think it ok for them to have their products assembled in China and then shipped to the US to sell.

After all....didn't they get their BIG START here in the US? Didn't the US support them and their products and make them into the big company they are today?

                                     

The cheap labor does not equal consumer savings...it only benefits Coach itself. And for that I would say that Coach does not live up to performing ethically. Bring the work back to the US!

Overall, I would say that Coach has succeeded in making quality products that people like and they seem to understand the need to give back to the community. But I have to admit....I don't like the "made in China" label inside my Coach bag - definitely something to think about.

                   





Ch. 2 - Strategic Planning for Competitive Advantage

As I read through chapter 2 I came across the SWOT analysis; a theory in which a company should identify their internal strengths, weaknesses, opportunities and threats. I found this theory interesting and wondered what my companies SWOT analysis would look like - so, after investigating here it goes.

Coach USA's STRENGTHS:

1) Coach is the designer, producer and marketer of a very high standard, high quality line of handbags, wallets, luggage, briefcases and accessories. 

2) It caters to the middle-class consumer which dominates our countries population. 

3) In it's desire to keep up with current marketing strategies it has employed numerous trend-setting designers to contribute to their traditional, conservative , quality driven brand.

4) They have managed to ensure the stability of the company by reaching millions of consumers through their retail stores, online stores, factory outlets and direct mail catalogs. There are also 175 Coach locations outside of the United States - in 18 different countries.

WEAKNESSES

Coach has a very traditional look in the styles they put out. Many of Coachs' handbags have the traditional Coach look decked out in the "C" logo.Trend setting consumers are usually on the lookout for those brands and syles that aren't, well...typical or so easily accessible.  And with Coach stores in every mall, strip mall and outlet consumers may begin to feel like it's just another brand.

OPPORTUNITIES



In an effort to expand the Coach brand it entered into a licensing agreement which allowed its name to be used a line of watches developed by Movado Group. In 1998 through a licensing agreement with Motorola, Inc. a Coach leather phone case was introduced. The following year a line of premium furniture was launched through yet another licensing deal with Baker Furniture Company. Through other license agreements the Coach name was used on items such as footwear, frames and eye wear.

Threats

  

COACH Knockoffs


1) The drive and appeal of luxury, designer handbags has fuelled consumer demand for their counterfeit versions. Aside from the many sidewalk vendors illegally selling counterfeit versions of Coach items, websites like mycheapcoach.com and us-coach-bags.com have been cybersquatting, taking millions in profits from Coach USA. In 2012 Coach was awarded $257 million dollars in a counterfeiting suit with the ability to seize 573 domain names linked to knocking off the popular brand.


PRADA



2) Competition, competition, competition! Keeping an eye on the competition is key in this business - with companies like Gucci, Prada and Louis Vuitton a business is only as good as their products and keeping ahead of the competition can mean success or failure.







Ch. 1 - Overview of Marketing (History & Mission Statement)

History Of Coach USA

Coach was founded in a Manhattan loft in 1941. It started as a family-run workshop where six artist handcrafted a collection of leather goods (wallets and billfolds) using skills handed down from many generations. Soon, consumers began to seek out the quality and unique nature of the Coach craftsmanship.

Since then Coach has expanded with over 500 stores in the United States and Canada and over 300 stores located in Japan, China, Singapore, Taiwan, Malaysia and South Korea - with specialty stores located in Europe, Latin America and Asia.

Mission Statement

(as per the Coach.com website)

Coach seeks to be the leading brand of quality lifestyle accessories offering classic, modern American styling.

Values:

*The Brand is Our Touchstone

The Coach brand represents a unique synthesis of magic and logic that stands for quality, authenticity, value and a truly aspirational, distinctive American style. Everything we make, advocate or engage in reflects the attributes of the brand.

*Customer Satisfaction is Paramount

Our responsibility to our internal and external customers calls for impeccable service to ensure that their needs are always met. By treating customers like guests in our own home, we seek to establish long-term relationships based on trust and satisfaction.

*Integrity is Our Way of Life

Our success is rooted in uncompromising devotion to honesty and fairness where our people, our business and our community are concerned. We stand behind our products, staking our name and reputation on everything that we make.
*Innovation Drives Winning Performance

We constantly challenge ourselves to be the very best we can in every aspect of our business. We strive to be a nimble and flexible organization committed to increasing consumer and shareholder value.

*Our Success Depends on Collaboration

Our brand flourishes through our people. Coach brings together strong, collaborative people in a dynamic culture of mutual respect, support and passion for our brand and product. Our team bands together in the face of adversity and celebrates our victories.

Chapter 1 - Blog 1:

After reading the history and mission statement for Coach USA I found it amazingly interesting that this leather bag manufacturing business started by just a few artist, in a Manhattan apartment, using their own artistic skills to create such beautiful products - I love the entrepreneurial spirit. I love even more the fact that they were so skilled in what they did that it turned into this massive global organization. And as the business grew so did their line of products. Soon, Coach began to offer items such as wallets, wristlets, luggage and other accessories. Through the years Coach has taken on a number of designers - one was  Bonnie Cashin, known in her time as a pioneer in sportswear, Cashin was credited with bringing BRIGHTER color bags to the Coach collection. Cashin also designed matching shoes and eyewear and further expanded the bag collection with coin purses and convenient side pockets. Cashin worked for Coach USA for about 12 years and because of her contribution to the company they were able to run their first ad in the New Yorker in 1963.

Coach USA has a very detailed set of values it adheres to and I believe those values are the reason why the company has had such great success. Centered around customer satisfaction, striving for the best and collaborating with the best in the business are a sure-fire way to success.