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.