Question 2: Indicate how Coach need to appeal to consumers in developed as well as emerging markets. Motivate your answer. (Hint: Review Chapter 3 on social, marketing, situational and psychological influences).
Coach Inc.: is its advantage in luxury handbags sustainable?
Coach Inc. is a leading designer, retailer, and marketer of high-quality premium handbags and accessories for women and men with her primary location in North America. Coach was founded by Miles Cahn in 1941 and has successfully transformed into an affordable luxury specialty retailer of men and women handbags, watches, wallets, footwear, jewelry, and eyewear. As a multi-channel industry, Coach has over 300 US stores selling its products in department stores like Macys, outlet stores, online, and through catalogue. Its premium and classic brand focuses on affluent consumers as well as providing lower-priced goods to satisfy the needs of middle-class customers. Since Coach is a luxury market, its major international competitors are Louis Vuitton, Gucci, and Prada.
Coach can appeal to consumers in developed as well as emerging markets by moving beyond the familiar territory of handbags and other products using consumer buying behavior. Most of Coach’s major competitors of various luxury brands include Prada, D&G, Gucci, Louis Vuitton, and Samsonite brands which are either privately owned or owned by European conglomerates.
After years of building a strong reputation for a long lasting, classic handbag, the company realized there was need for change due to the rapid decline in its performance. This decline forced the company to look into the success strategy of its competitors and realized it was possible to be stylish in producing classic leather handbags at affordable prices. Therefore, factors such as social, marketing, situational, and psychological influences can play a major role in the need to appeal to consumers in developed as well as emerging markets....