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.