Ch. 11 Developing and Managing Products

Coach Inc. is known for their ability to offer new ability to offer new products line distributions every month. Offering a variety helps with maximizing profit margins. Presenting new products strategies can help a business pin point were there may be a need or if there is room for improvement. For example Coach has always had their legacy product line. This line is a must for Coach because it delivers almost half or their company’s profit. It’s not a new product to the world but it was first introduced at a coach boutique in the mid 1900’s. Legacy soon evolved into a global iconic piece for all coach stores, becoming a pattern that was splashed across all visuals, as well as all products. When Coach developed and introduced the legacy pattern it immediately became a high in demand must have. A company like Coach really prides themselves on the level of innovation they have always kept me amazed with their attention to details. Making them standout from the rest and influencing customers that their products are a must have, no matter what the competitive market.

Ch. 10 - Product Concepts

　

Product concepts are extremely important to the performance of a company. Coach is a retailer which offers tangible goods. They have mastered product concepts by distributing the importance of each product they offer. Consumer product classification is a helpful tool that consist of a visual breakdown which better assist a company with product development. Branding of a product is key, its an instantly recognizable symbol or name that sets that brand apart from other competitors. Branding can be a sole reason on gaining the interest of a customer. Maintaining a product mix gives a consumer a range of products to choose from. Companies often expand there norm to better suit a diverse crowd. A product line often contains a variety of color, texture, function, size, etc. Coach is a family owned company which has built product loyalty throughout the years, it has stayed true to their products. When you purchased a product from coach, even their co-brand Movado, you have invested in an item that has somewhat a life time warranty. For example if you purchased a bag 6 years ago and the bag happens to be falling apart due to wear and tear you can actually pay a $25 fee and send it to get repaired. If your item can not be repaired they will try to see if they have it in stock to offer a complete replacement but if they cant replace it, you can get a credit for the worth of the bag, its incredible investment. In addition to there product they offer elegant packaging and outstanding service, this build strong customer relationship as well as longevity of a company.

Ch. 17 - Personal Selling and Sales Management

Coach Inc, has many different ways to promote their products their main focus is relationship selling. Getting to know the customers from a more interactive and personal perspective is the key. 80 percent of the customers remain loyal for their products but also for a sense of importance. Customer promotions offers loyal customers the option of coming into the store and buying their favorite picks of the month at 25% off. This is a great tool to securing a solid sale. If you enjoy shopping online you will come across a great promotion, anything purchase under $150.00 will receive free shipping. Promotional sales help to build brand loyalty. Personal selling is a great way to of explaining the features and benefits of a product. This gives a customers a chance to communicate what they are looking for, specific details such as style, texture, color or size. This gives a sales associate a starting point. Coach makes sure to property train their employees to better enhance a sales. By having great customer / employee communication it can help with immediate sale as well as a future sale. Sale promotion offers potential buyers the option of getting a product at low cost. I see this as an excellent form of sampling the product. Coach provides follow up calls. Through this process, coach retains customers data and also records a log of a customers past purchase. Over all I’m also a consumer and I feel like the promotions are the perfect way of offering perks to ensure brand loyalty as well as boost profit margins.

Ch. 16 Advertising, Public Relations and sales promotion

Advertising and public relations work hand and hand in the success of a business. As a successful company, understanding your target market is truly helpful in the decision making of advertising the product. Coach Inc. has always found very creative ways in capturing that very memorable experience for the customer. Always staying true to the American style Coach always captures the essence of that NYC feel. Partnering with many public figures, such as Gwyneth Paltro in the heart of the cit has been a gateway for excellent profit margins. Creating the effortless Chic lifestyle we often lust over can create new possibilities for a sale. Using catch phrases such as “Meet your perfect match our new shoe boutique”. “Bright sunshine and warmer temperatures are just what we needed “ & “Spring is finally here” along with the visual advertisement really brings their bold new collection to life. There public relations department takes care of both positive and negative feed back serves as an intermediary for the company and public. In 2010 Animal rights groups PETA, confronts Coach inc, shareholder outside of a annual company meeting, to discuss there use of FUR, being that a repetitive owns stock share. There claim is for Coach inc, to follow the lead of luxury good company’s in president Tracy Reimen, strongly believes that Coach inc. must immediately stop production on all fur sales. This negative press can really affect Coach’s profit but their true challenge is to respond in a positive way to the negative press.

Ch 15. Retailing

 193 Front St
New York, NY 10038
Neighborhood: South Street Seaport

Retailing play a major role in promoting U.S economy, not only do retailers offer jobs to more than half of our population but it also offers diversity, by properly staffing their stores, attention to detail through visual merchandising and offering the best products. Offering visual opportunity at the very beginning of a customer experience leads to confirm a potential purchase. Mostly all the time when you enter a store you’ve come with your own ideas of what you want to buy, but when stores have great displays it encourages you to buy something totally different.

I recently visited the Coach store at the Seaport location it was a awesome experience. The customer service was excellent, the sales associates were very professional, not pushy and well informed about the bags and other floor products.

Ch. 6 - Consumer Decision Making

 

Consumer behavior accounts for a large portion of sales through any company. Understanding customers needs and wants is essential, we have to keep in mind that a customers decision making can solely be based on there emotional connection to an item. Marketing plays a major role in shifting these thoughts to a positive connection, for example their modern classic spring collection has been introduced, turning up the Bright's also they've recently placed a major focus on color blocking and different unpredictable shades of color. Generation Y is the main audience for the company, valiant, bold and fearst, they understand the need and they deliver. Whether its offering low or high priced leather goods coach takes into consideration the factors that affect decision process. Viewing their potential buyer as a customer , really exploring the outside competitors and staying true to the now trend really helps them deliver long term satisfaction. Coach is fully involved in helping a customers decision making experience hassle free. Due to extensive evaluation they are able target different demographics, pushing there product in countries such as US, Japan, China and Europe through online websites and local boutiques. Information retention also helps deliver as well, and understand the need of the customer values of their goods. Keeping data of customers information helps identify as well as deliver endless possibilities. We have to feedback knowing that is possible if this customer walks out of out store we are able to make a reoccurring connection, perhaps through media, reference groups, online magazines billboard, being assessable and conveniently located can help enhance this experience.

 

Ch. 5 - Developing a Global Vision

Coach’s distribution strategy is multi-channel. There are currently over 400 Coach stores in the United States and Canada, with more expected to open this calendar year. In addition, Coach has built a strong presence in the U.S. through Coach boutiques located within select department stores and specialty retailer locations. In 1999; Coach lanced its online store at www.coach.com. The website has been an extraodinary success to Coach, both domestically and abroad. Currently Coach has 15 websites for target markets outside of North America and has e-commerce enable websites for Japan, Canada and United States.

The Coach International channel represents sales to international wholesale distributors and authorizes retailers. In this channel, travel retail represents the largest portion of their sales. Coach has developed relationships with a select group of distributors that any other handbag company would have a hard time replicating. These distributors sell Coach products through department stores and freestanding retail locations in over twenty countries including South Korea, Australia, southeast Asia, Mexico, Russia, India, France, Greece, and several countries in the Middle East. Coach continues to improve productivity in this channel by opening larger image-enhancing locations, expanding existing stores and closing smaller, less productive stores. After fiscal 2010, Coach entered an agreement with a key distributor to take control of their domestic retail businesses in Singapore and Malaysia. Also, Coach finalized an agreement with an international partner to form a joint venture to expand Coach International business in Europe. First sales from this joint venture began in early 2011.











http://en.wikipedia.org/wiki/Talk%3ACoach,_Inc.