Coach strategic marketing plan by Georgina Roden

M A RKET I NG

ST R ATEGY R E PORT

Figure 1

CONT 1. EXECUTIVE SUMMARY PAGE 4-5

2. FINANCIAL SUMMARY PAGE 6-7

3. THE COACH STORY PAGE 8-13

4. THE MARKET PAGE 14-15

5. THE CONSUMER PAGE 16-17

6. THE COACH CUSTOMER PAGE 18-19

7. COMPETITOR ANALYSIS PAGE 20-23

8. REASONS FOR CHANGE PAGE 24-25

9. COMPANY SWOT PAGE 26-27

10. PORTERS FIVE FORCES PAGE 28-29

11. THE MARKETING MIX PAGE 30-31

12. MARKETING STRATEGIES PAGE 32-35

13. PROMOTIONAL PLAN Figure 2

PAGE 36-41

ENTS 14. COACH DOES DIGITAL PAGE 42-51

THE APP - 43 THE ANNOUNCEMENT - 44 PRE-LAUNCH EVENT - 45 THE LAUNCH - 46 CUSTOMER INCENTIVES - 47 COMPETITORS - 48 DIFFERENTIATION - 49 FINANCIALS - 50 IMPLEMENTATION AND CONTROL - 51

16. COACH ESSENTIALS PAGE 18

THE ANNOUNCEMENT - 54 CAMPAIGN VIDEO RELEASE - 55 UK BLOGGER EVENT - 56 THE LAUNCH - 56 IN-STORE - 57 IMPLEMENTATION AND CONTROL - 58-59

16. NEW RELEASES TIMELINE PAGE 60-61

17. NEW MARKETING MIX PAGE 62-66

18. APPENDICES PAGE 66-73

Figure 3

“The Coach story is an American story, a New York City story of dreams and opportunity that resonates around the world.”

Fig.7

- VICTOR LUIS, CEO, COACH. INC.

EXECUTIVE SUMMARY

The purpose of this marketing strategy report is to identify Coach’s current place within the luxury accessories market and to evaluate their current marketing strategies. The current luxury accessories market will also be analysed, by looking into market size and forecast, consumer behaviour and the market drivers. A wide range of different marketing tools and methods will be used to analyse Coach’s position, in order to create new marketing strategies to increase sales and improve brand equity. Since the start of Coach’s turnaround strategy which began in 2016, one area in particular which will be focused on, is rebuilding Coach’s brand image and continuing the journey of changing the customer’s perspective.

2 Fig.8

F INANCIAL SUMMARY

TODAY, COACH ARE THE LEADING HANDBAG AND ACCESSORIES BRAND IN NORTH AMERICA. NEW MARKETING STRATEGIES ARE NEEDED TO GROW SALES IN BOTH EUROPE AND ASIA. For the past five years, Coach have reported a steady decline in sales in all areas of the business. As of Tuesday 15th August 2017, their shares sank 13.6% after the announcement that sales missed expectations once again. The Company is in need of a marketing strategy to increase sales and re-gain their position in the luxury accessories market in both Asia and Europe. After Coach announced their transformation plan in 2014, the brand has been making radical changes worldwide in order to increase sales, however so far they have struggled to reach their goal. Coachâ&#x20AC;&#x2122;s highest market share was in 2013, where the Spring/Summer marketing campaign was all about the heritage of Coach and the new collection was stripped back to classic and timeless pieces. Their lowest market share was in 2015, which sparked their 2016 turnaround strategy.

Fig.9

In fiscal 2014, Coach had an estimated 23% share of the North American bags and accessories market. Thatâ&#x20AC;&#x2122;s down from over 35% in fiscal 2008. (Market Realist, 2015)

Fig.10

Coach is a luxury accessories and lifestyle brand for both men and women. Since they started as a family run business in 1941 in New York, Coach has made a name for themselves as effortless New York style. Focusing on excellent craftsmanship and the finest leather they are seen as pioneers on the accessories market. Coach remains inspired by its rich heritage, with the spirit of innovation it has had for more than 75 years.

THE COACH STORY “Coach believes in helping young women to find their voices, to sharpen their sense of self-worth, and to seize their full potential.” — MARGARET COADY, EXECUTIVE DIRECTOR, COACH FOUNDATION

(Tapestry, 2018)

INTERNAL MARKETING SITUATION The Brand Onion opposite is showing a more indepth look at Coachâ&#x20AC;&#x2122;s brand values and how these have been expressed through actions. The companies core values are to see possibility in the impossible, nurture authenticity, fuse creativity and logic, and integrate individuality and teamwork.

Shows customers how Coach bags are made

Transparency in social corporate responsibility

Exclusive

Timeless

Easily accessible for customers

Known for quality

LUXURY LIFESTYLE BRAND REFLECTING EFFORTLESS NEW YORK STYLE Quality

Offer Classic And Timeless Pieces

Uses high profile celebrities with a Authentic classic look in campaigns

Be Instantly recognised globally

Individual Offers Personalisation on most products

THE MARKET

RESEARCH HAS BEEN CARRIED OUT ON THE UK ACCESSORIES AND DESIGNER MARKETS, TO GATHER INFORMATION ON THE CURRENT ENVIRONMENT SURROUNDING COACH. The Handbag market grew by just 2.6% in 2016, meaning a slower growth, compared to 5.3% in 2015, due to women making less purchases (Mintel, 2017). 2017 also saw a huge shift in companies withdrawing stores from outlets and wholesale and placing more money into opening new own retail stores. This has also coincided with Coachâ&#x20AC;&#x2122;s new Regent Street store in London which opened later in 2017.

Mintel, 2017

THE CONSUMER

There has been a significant increase in bag purchasers in high-end clothing retailers. The main increase comes from men, with an 18% increase in highend bag sales over the past two years. As the main purchasers of designer handbags, there will be an estimated 2.1% increase in male shoppers ages 25-34. From 2016 to 2021 there will be a significant decrease in 20-24 year olds in the UK and an increase of 25-34 year olds (Mintel, 2017). This will be beneficial to the luxury accessories market as there will be an increase in the core customer and with the correct marketing, more opportunity for increased sales.

Fig.11

TH E C OACH CU STOM ER GEOGRAPHIC Customers Worldwide Live in Urban Locations and Major Cities DEMOGRAPHIC 24-35 Both Male and Female Middle to Upper Class (ABC1) PSYCHOGRAPHIC Personality Traits: Modern, Paired back, Sociable, Unique, Polished Lifestyle: Busy lifestyle, Young Professional, City Worker, Commuter BEHAVIOURAL 1-2 Purchases per Year Extremely Brand Loyal Looks for Quality Environmentally aware

Fig.12-15

7 Fig.16

COMPETITOR ANALYSIS

The strongest competition for Coach at this time are the mid-market brands who are excelling where Coach are falling short. MICHAEL KORS In April 2016, Michael Kors reported their turnover grew by 27% in the UK after expanding their retail network and opening eight new stores within the financial year. In 2016, they relaunched InstaKors, which allows customers to shop directly from Instagram. To evolve with the current market changes, Michael Kors also expanded their menswear offering. RADLEY Radley focused on opening stores in key city locations across the UK in 2016, concentrating on customer experience. The stores will include a gift-wrapping station and a customisation area offering monogramming on leather goods. LONGCHAMP Longchamp are an international brand, who focus on heritage and quality, and are performing well in the UK market. Kate Middleton, Alexa Chung and Katie Holmes are just some of the A-Listers who are regularly seen carrying Longchamp bags as the brand continues to increase profits. Their growth in the UK market continues despite the economic crisis and increased competition.

OVER

MULBE RRY BU RBERRY

CLASSIC & H E R I TA G E R ADLEY

C OACH

THE CAMBRID GE SATCHE L C OMPA NY

DURABLE &

R AT E D The brand perception map shows where Coach fits into the consumers perception compared to their competition. Whilst Michael Kors and Longchamp are seen as â&#x20AC;&#x2DC;coolâ&#x20AC;&#x2122;, the main competition lies within the Classic and Heritage section of the map. This is something which is important to the Coach customer and therefore Coach need to be ahead of their competition with brands such as Burberry, Mulberry and Radley.

MICHA E L KORS

TRENDY & COOL

LONG C HA M P

WELL MADE

Fig.17

REASONS FOR CHANGE

TOO MUCH STOCK GOING INTO OUTLETS AND SALES Coach put a lot of stock into their outlet stores and into the sales. This meant the bag was more accessible and less desirable. Since Coach have reduced the number of outlets and removed their accessories from many major department stores, the brand image needs repairing and re-building. NOT KEEPING UP WITH DIGITAL EXPANSION Coachâ&#x20AC;&#x2122;s competitors all have major online platforms and offer different ways for their customers to shop. Coach is very behind digitally and need to make shopping exciting again for customers.

MISSING OUT ON MENSWEAR OPPORTUNITIES Since the menswear market is now growing faster than the womenswear market, more needs to be done to attract young males to Coach and gain a loyal male following. NOT ENGAGING NEW CUSTOMERS Although Coach has a very clear target audience, their customer is aging and new customers are not finding the brand. The brand needs to be seen as aspirational from a younger age, in order to maintain their customer base and increase sales.

9 Fig.18

COMPANY SWOT

W Lost brand equity Less stock in Department stores Small customer base Crowed market No App for users on the go Competitors are faster at reacting to market changes

Fig.19

Strong heritage Loyal Customers Known for Quality Effortless New York style The Coach Foundation

A SUMMARY OF THE KEY POINTS HIGHLIGHTED IN THE COMPANY SWOT ANALYSIS (Appendix A) The key points raised in the SWOT analysis are very focussed on rebuilding the brands identity and gaining new customers. It has highlighted the importance of customer loyalty in a very competitive market. Other brands within the market are very innovative and appeal to younger audiences, this is where Coach need to improve within the next year.

Enter a younger market Focus on heritage (USP) Re-build brand identity Focus on personalisation Reward loyal customers Expand menswear offering

Fig.21

Fig.20

Customers moved to other brands Fast fashion is available elsewhere Saturated market Less Coach stores in recent years Other brands are more accessible

Fig.22

PORTERS FIVE FORCES

The Porters 5 Forces analysis (Appendix B) shows the strong threat of high street stores offering leather goods at a lower price. The need for fast fashion within the industry today threatens brands such as Coach, who pride themselves in delivering quality, and therefore delivering at a slower rate. The analysis also highlights the moderate threat of existing brands entering the market, as the accessories market continues to grow. These two threats together, show a need to capture a younger market and establish a loyal customer of a younger age. The menswear market is also something which could help Coach to expand their customer base, as menswear is becoming a much larger market, especially on higher priced and quality goods. This is a huge opportunity for Coach, and as competitors have already started to act upon this, Coach need to react quickly.

THE MARKETING MIX COMPANY ANALYSIS PRODUCT The analysis on the product area of Coach has identified the need for a basic range, a range where customers can find classic Coach bags which are timeless and minimal. PLACE The focus for place will be the stand-alone Coach stores and getting more customers through the doors. Each Coach store needs to be a place which is exciting for customers to shop and a place that is set apart from the competition. PRICE The marked down stock which saw Coachâ&#x20AC;&#x2122;s demise was more accessible for customers, however it made the brand seem cheap and less desirable. As Coach are higher priced than their direct competitors, it seems essential to have a slightly lower priced offering, therefore keeping the desirability and still catering for a wider customer base. PROMOTION It has been recognised that promotion for this luxury brand needs to be subtle and classic, keeping the promotion to beautifully displayed windows and simple campaign shots. 30

Fig.23

Fig.24

M AR STR A

K ET I NG AT E GIES

SUM M A RY The purpose of these new marketing strategies is to increase sales and re-build brand equity. In order to increase sales, the segmentation method will be heavily looked at. The analysis carried out on the market, the brand and the consumer has raised the importance of targeting a younger customer. Three marketing strategies will be put in place to target the younger consumer aged 16-34, in particular Females aged 16-24 and Males aged 24-35. These age groups have shown as extremely important for growth especially within the UK market. Achieving this will increase sales and gain more loyal customers. In addition to using the segmentation strategy, it is also important to re-build the brands equity using the differentiation strategy. This will be a more challenging and lengthily process of changing customers perspectives on the brand. This will be achieved by highlighting key political issues which Coach are already focusing on within the business, and bring them to the consumers attention. Two smaller strategies have been identified as being easier and quicker to impliment. These two strategies have been labelled â&#x20AC;&#x2DC;Promotional Planâ&#x20AC;&#x2122; and are being used to increase the brands pursuasion and promotional activity. Two strategies have been looked at in-depth and have been identified as the most important strategies which Coach will need in order to succeed within the UK market.

“As we write our next chapter, we’re building on our heritage of craftsmanship and confident New York style to deliver a complete lifestyle brand for modern lives.”

Fig.25

- JOSHUA SCHULMAN, BRAND PRESIDENT, COACH

PROMOTIONAL PLAN

‘THE COACH FOUNDATION’ FOCUS

Launched in 2008, Coach have given more than $40 million to charities supporting women’s health, education for children in under-served communities, public parks and cultural programs in New York City, and disaster relief around the world. (Coach, 2018)

Fig.26

By using the differentiation strategy, The Coach Foundation will become a focal point in 2018. As Social and Economic issues are becoming increasingly important with consumers, the work which is done at Coach will be advertised to increase awareness and to show the world that Coach care about the people and communities around them. To reflect modern gender issues, there will also be a focus on the gender diversity within Coach to show the number of women in senior roles.

Fig.27

COACH GLOBAL CORPORATE GENDER DIVERSITY

Fig.28

(Coach, 2017)

Fig.30

PERSONAL SHOPPING

Fig.29

ONLINE TO IN-STORE There is an increasing need for convenience when shopping, especially amongst young professionals. Again, using the segmentation strategy, targeting customers aged 24-35 in cities, Coach will offer a personal shopping service. Using either the online website or the new app, customers can choose their favourite products and book a time slot at a store which is convenient for them. The store will then pull out the chosen products, as well as a selection of similar items and best sellers for the customer to look through once they arrive. The benefits of this service will be ease of shopping for customers, allowing customers to have all of their favourite products in one place and paying separately at the personal shopping till to avoid any queues. It will also encourage customers to buy additional items, full sets and gifts. Making it easier, quicker and more time efficient will make it more appealing for customers to purchase multiple items in one visit. The champaign will mainly target males within this age group as they tend to spend less time within a shop.

IMPLEMENTATION AND CONTROL

The Personal Shopping and Coach Foundation strategies will be managed in-house by Coach. A strict time schedule will need to be made and followed in order to maximise the effectiveness of these promotional strategies. The strategies will be heavily based on advertising in-store and online on the Coach website and will be used as a persuasive technique to entice consumers into the store and make a purchase.

CONCLUSION

Although Coach started their turnaround strategy in 2016, the brand has kept a steady profit during this time. Despite the removal of many outlet stores, the brand has continued to sell full price products well. These strategies have been recommended to ensure Coach can see rising profits in the years to come. These new promotional strategies will help to expand their loyal customer base, create positive press, and make for an interesting marketing campaign, in between the high seasons of Spring/Summer and Autumn/Winter.

COACH DOES DIGITAL

To help target a younger customer, aged 16-24, Coach will launch their first mobile shopping app. The younger generation may not have found Coach yet, and there needs to be a bigger digital presence for this to happen. The journey will begin in June 2018 and will finish in June 2019; the app will be released at various stages and will include an announcement, a pre-launch event and the launch itself. This will keep customers engaged, excited and feel part of the growth.

SHOP NEW IN

THE APP Figure 31

NAVIGATION PAGE New In

Read y-

to-W ear

Leat

her

Goo

Bags

The new app will be available on both IPad, IPhone and Android, allowing customers to shop on the go, wherever and whenever theyâ&#x20AC;&#x2122;d like. This will transform the way Coach target a younger customer and will rival competitorsâ&#x20AC;&#x2122; strategies. The design of the app will be simple and visual, including campaign and product images similar to those on the website. In order to determine which images to launch on the app, a data analyst will look into which images have driven the most sales on the website. This is to ensure the app is as successful as possible and creates a sense of unison between all platforms.

THE ANNOUNCEMENT

The initial announcement will come through the Instagram page which will also be shared through Instagram onto Facebook, as this will best target the younger audience and will reach over 9 million followers. It will come from a series of teaser images over one week. The announcement will take place one month before the launch of the app, to raise excitement.

November 2018

Something exciting is coming...

Watch this space...

Figure 32

PRE-LAUNCH EVENT Figure 33

In selected UK stores, customers will be invited in to a private pre-launch party the week before the app is launched, where they will receive a drink upon arrival and receive exclusive offers to use once the app has launched. They will also get a preview of the new collection which will launch with the app, allowing Coachâ&#x20AC;&#x2122;s best customers to plan ahead what they wish to buy. This pre-launch party with customers will aim to increase the sales on the app within the first week of launch and help customers to feel special and a part of the brand. 45

THE LAUNCH

Figure 34

The launch of the app will be announced on Instagram by Coach and by Selena Gomez, who is a brand ambassador and the creator of a collection for Coach. Selena is the most followed person on Instagram, with 134 million followers (See Appendix D). The app will initially be launched in its most basic state, to allow the digital team to monitor performance and deal with any issues which arise.

CUSTOMER INCENTIVES

Once the app has launched, a series of ‘Customer Incentives’ will take place, including discounts for any new customers making a purchase on the app, encouraging customers to start shopping. An initial 10% off purchases made on the app will encourage customers to use the app, whilst still maintaining the luxury image which Coach are re-building.

FRONT

Figure 35

Customers shopping in-store will receive ‘free home delivery’ notes in their shopping bags to use on the app. These will also include ‘refer a friend for 10% off on the app’.

BACK

Previous research discovered that Coach need to step away from heavily discounted stock to protect their brand image. These incentives will help to protect Coach’s newly built image, whilst still offering the customer a discount. 47

COMPETITORS RADLEY - COMPETITOR

Figure 36

MULBERRY -

ASPIRATIONAL It is important to look at both direct competitors and aspirational competitors, as Coach strive to rebuild their image. Previous research has suggested the brand needs to appear more exclusive and premium.

Figure 37

DIFFERENTIATION Competitors such as Radley and the inspirational competitor Mulberry, both have highly rated apps for both iPhone and Android users. Both are very clean, simple and easy to navigate whilst still reflecting the brand values well. However, Coachâ&#x20AC;&#x2122;s main competitors Michael Kors and Longchamp do not offer a shopping app, which allows Coach to stay ahead of the competition and stay relevant within the market. In order to stay innovative, Coachâ&#x20AC;&#x2122;s runway shows will be streamed live through the app to customers who pre-register. Alongside this, new collection launches such as the new Coach Essentials range, will be available to shop first on the app, before the website or stores. The app will also release a personal shopping element, which will allow customers to save product to a wish list, which they can then shop in store at a personal shopping appointment booked through the app. These elements of the app will set coach apart from their competitors and really engage their customers, making it inclusive to all.

Figure 38

FINANCIALS According to Moazed (2016), the estimated cost to launch an app for an established brand can be anywhere between $100,000 - $300,000, with the development process taking 12-20 weeks. It will be estimated that the development process for Coachâ&#x20AC;&#x2122;s new app will be 16 weeks and will cost $200,000. An additional 10 weeks will be allowed for the development of the design, layout and imagery, which will all be done in-house. Within the past five years, Coach have spent an average of $513,000 on advertising and marketing per year (Mintel, 2017). It is therefore achievable financially for Coach to launch the app within one year, whilst also leaving enough funding spare for the advertising campaigns surrounding the new launches and any issues which arise. 50

IMPLEMENTATION AND CONTROL As with all technology, no matter how much planning goes into the launch, there will always be problems which were not anticipated. In order to minimise faults, the app will launch through a series of different stages. Once the performance of each stage is satisfactory, the next stage will be released. This will also help to keep the consumers engaged with the app. Appendix E shows a model by Moazed (2016) which looks at the best way to launch an app. It explains how taking on manageable sized chunks works better than trying to launch everything at once. Another issue which may come with the launch, is not as much activity as projected. The launch activity schedule will help to eradicate this issue by raising awareness and involving the customer at every stage of the launch.

Figure 39

C OACH ESSENTIALS

A CAPSULE RANGE OF EVERYDAY ESSENTIALS FOR BOTH MEN AND WOMEN.

Focussing on creating timeless and classic pieces and showing the quality which coach have maintained over many years.

In Co a tr o d uc ch E i ng Fo cu s s en tia ss i n g o ls cre time a t i ng n le s s clas a a n d s ic p i n d e s ho wing ces qu a l it y t he wh co main a c h hav ich tain e ed ma n y ye ov e r ar s.

C OA

NT ESSE

IA L S

Figure 40

Figure 31

The new collection will feature new labels which includes the name ‘Coach Essentials’ and a brief description of what the new range is. This is to set the range apart from the main range peices and to attract the customers attention. 52

Research into the buying behaviours of designer handbag customers, has shown that a large portion of consumers, look for something which is going to last when purchasing from a luxury brand. Releasing a range of â&#x20AC;&#x2DC;timelessâ&#x20AC;&#x2122; styles will give these customers a range of handbags which are transitional and versitile.

Figure 42

THE ANNOUNCEMENT

The announcement of the new collection will be on all social media platforms. This will be the best way to reach the Coach customer and ensure they are aware of the new product line. In order to raise excitement and reach a new customer, a competition will be held on Instagram and Facebook. One customer and three friends will get the chance to win tickets to the blogger event the following month. In order to enter the competition, the customer will need to tag three friends on the post who they think will love the new range, and explain why they would like to attend the event. This will not only introduce new consumers to the brand, but will also raise awareness of the brand to a younger audience.

Figure 43

CAMPAIGN VIDEO RELEASE

The campaign video will feature models with the new collection, it will be in a studio setting with a simple background allowing the product to shine through and reflect the purpose of the new range. The campaign video will appear on the website and social media platforms, as well as a shorter version appearing on television in the UK.

Figure 44

UK BLOGGER EVENT

Figure 45

Figure 46

Figure 47

Three days before the launch, a blogger event will be held. This will generate coverage and create excitement around the new product line. This event will particularly reach the younger generation customer which Coach need to capture.

THE LAUNCH In March 2019, the new collection will be launched on the new Coach app. Customers of the app will be able to shop the collection 24 hours before general public, in order to encourage consumers to engage with the app. This will also allow customers to feel special and valued by the brand. 56

IN-STORE Figure 48

The collection will be placed at the front of the store on a centre table to entice customers into the store. Both Men’s and Women’s will be placed on the table to attract both sets of consumers. The window displays will have large graphics from the campaign and showcase some key pieces. During the month of the launch, Coach will also offer free in-store personalisation in the flagship on London’s Regent Street.

Figure 49

Figure 50

IMPLEMENTATION AND CONTROL 58

Figure 51

In order to minimise the financial impact, the range will be created using existing product options, therefore the number of options for the season will remain the same. This will also minimise risk if the range does not perform as expected. Due to the neutral colour palette of the collection, once the collection has a high sell-through rate, it can be paired back with existing collections on the shop floor to allow for next seasons stock. If the collection is successful, the range will carry on through the following seasons, taking on slightly new colour palettes each time.

16 Figure 52

NEW LAUNCHES TIMELINE

18TH JUNE 18

27TH AUGUST 18

DESIGN OF THE APP WILL BEGIN

THE START OF THE APP DEVELOPMENT PROCESS

17TH DECEMBER 18

12TH JANUARY 18

THE ANNOUNCEMENT OF THE NEW COACH APP

PRE-LAUNCH EVENT

16TH JANUARY 18

4TH FEBRUARY 18

THE LAUNCH OF THE APP

THE ANNOUNCEMENT OF COACH ESSENTIALS

18TH FEBRUARY 18

6TH MARCH 18

CAMPAIGN VIDEO RELEASE

UK BLOGGER EVENT

9TH MARCH 18

10TH MARCH 18

COACH ESSENTIALS WILL LUANCH ON THE APP

COACH ESSENTIALS WILL LAUNCH IN-STORE AND ONLINE 61

NEW MARKETING MIX

Figure 53

Place

The Coach Essentials range will initially be exclusive to the UK market. This will create excitement over exclusivity and allow Coach to trial the product before selling to a larger market such as North America. The Coach App however will be available to use worldwide and will bring Coach into the 21st century rivalling the innovation of their competitors.

Price

The pricing for the Coach Essentials range will be slightly lower than main range products due to the basic and minimal nature of the product. This will help to expand the customer base to incorporate a younger consumer, whilst maintaining Coachâ&#x20AC;&#x2122;s aspirational status. Through the new Coach App, customers will be offered free delivery and 10% when they refer a friend. This gives customers a reason to buy without heavily discounting product, which previous cheapened Coachâ&#x20AC;&#x2122;s brand image.

Product

The demand for a simple, minimal and high quality range has been made clear within the research carried out. It has become apparent that there is a gap within the market where the new Coach Essentials range can perform well and deliver newness to the consumer. The range of Coach Essentials will initially be a limited range of solely key pieces. This will leave the opportunity to expand the range if sales are impressive. The new labelling for this product will deliver a point of difference for the consumer and is expected to drive excitement.

People

The Coach consumer has been analysed in-depth and comprehensive research has also been carried out into the new consumers which Coach need to reach in order to increase sales. The new product range has been formed around exciting existing customers whilst also enticing new customers to purchase with the brand. The Coach App has been formulated to attract the younger consumer needed to boost sales performance, as well as giving existing customers a new and easier way to shop.

Persuasion

The new product launch will give the consumer a new reason to shop with Coach. The marketing behind Coach Essentials will raise enough press to attract the customerâ&#x20AC;&#x2122;s attention and reinforce the Coach brand name within the consumerâ&#x20AC;&#x2122;s mind. The new Coach App will allow for an easier shopping experience and

Promotion

Both launches will be an exciting opportunity to gain valuable press coverage and deliver new marketing campaigns to the customer. Different promotion techniques will be used for both, allowing for more consumers to be reached. Promotional activity online will focus on the new Coach App, whilst in-store will have a larger focus on the new Coach Essentials range. Along with in-store posters, new product labelling and promotional leaflets, the stores will be showcasing the new product range in exciting window displays, reflecting the minimal and modern new additions. 64

Figure 54

APPENDICES

APPENDIX A

In-Depth SWOT Analysis Strengths -

Coach have a very strong heritage and can boast 75 years in the leather goods business. They also started out as a family run business, which appeals to many people worldwide and makes the brand feel more personal. Since their 2016 turnaround strategy began, Coach has decreased the amount of stock they mark down and removed a lot of product from department stores. This has left only the loyal customers left purchasing. Since they are still making a profit and sales have remained relatively stable for the past two years, this shows that Coach do have an extremely loyal customer staying with the brand. The brand started in New York and still uses the strap line ‘Effortless New York Style’ in marketing campaigns today. As New York is seen as one of the biggest fashion capitals in the world, this shows the brand as current, modern and on trend. As well as being extremely transparent on ethical and sustainability issues, Coach also have ‘The Coach Foundation’ which gives a significant amount of money to charity each year and help young women achieve their dreams. This is something which sets them apart from their competitors and something which is extremely relevant today.

Weaknesses -

Since Coach were placing too much stock in outlets and the bags became readily available, the brand lost some of its brand equity as the bags were not seen as exclusive, premium or unique. They have less stock in department stores, meaning the brand is also not as obvious to the customer any more. Although loyal, the customer base is now very small and needs re-building which can be extremely hard. The market is extremely crowed with other brands entering new products regularly. There is also no feature for customers to shop on the go, compared to their competitors Coach are not very innovative on the technology side and seem quite behind the other brands, making it harder for customers to shop and less appealing to the younger generation.

Opportunities -

As the younger generation may not have found Coach yet, there is an opportunity to enter the younger market and gain new customers through the use of Apps, Social media and

Coach are not very innovative on the technology side and seem quite behind the other brands, making it harder for customers to shop and less appealing to the younger generation.

Opportunities -

As the younger generation may not have found Coach yet, there is an opportunity to enter the younger market and gain new customers through the use of Apps, Social media and making it more appealing for the younger audience to make their first purchases. A strong USP which can be focused on is their heritage and experience in making leather goods. This can increase the consumers trust in the brand and increase customer loyalty. Unless the competitors have the experience behind them, it is impossible to create this amount of trust for a new brand, helping Coach stand out from the others. As menswear is set to grow faster than womenswear in the coming years, Coach could expand on their menswear offering and really get the most out of this market for the years to come. As personalisation is also becoming a bigger trend, this can be something which Coach focus on more. They already offer personalisation, however it could be something to focus on and make easier for the customer.

Threats -

In the past years, Coach have lost some of their customers to brands like Michael Kors and many other brands in the market are doing extremely well in the UK market. Brands such as Michael Kors are also very popular with the younger market which Coach are yet to penetrate, and therefore other brands have a large presence within the wider market. As fast fashion become increasing popular still, other high street retailers will be able to deliver the trends quicker for a much lower price tag. As the market is so saturated, the threat of other brands stealing customers is constant and the market very quickly changes. As there are less Coach products in department stores, the threat is strong of customers not being able to find the brand, and customers not seeing the brand enough to remember to shop there.

APPENDIX B Porters 5 Forces Threat of New Entrants -

The threat of new entry into the market is fairly low for new and unestablished brands. Real leather goods are expensive to make and take a lot of attention to detail when developing real leather bags, from both the sustainability and ethical point of views. Threat of new entrants into the market from well established brands from other sectors is high. The luxury accessories market is continuing to grow in the UK, making it very appealing to other brands considering entering new products.

Bargaining Power of Supplier -

For genuine leather goods, the supplier holds a lot of power, as there are a very large amount of checks have to take place when working with animal products. Coach are very transparent over their sustainability and ethical practices and work closely with their suppliers to ensure all Coach standards are met. It would be very costly and time consuming to change suppliers.

Bargaining Power of Consumers -

When a significant amount of Coach products were placed in Outlet stores, the customer was used to shopping Coach with discounts and would rarely shop full price. This was the main problem in 2015 when the brand was struggling with profits. Since the amount of marked down stock has now dramatically decreased, the Coach customer is learning to shop full price and look for exclusivity instead of deals. As there is now less stock marked down, the customer base has become smaller, however the most loyal customers are left, giving Coach a very strong customer base.

Threat of Substitution -

As high street brands are offering cheap goods in real leather, the threat of substitution is now very high. The customer has to want the Brand itself to purchase these goods at a higher price. Other brands within the market have more ways of shopping on the go, with high functioning Apps and mobile websites. Coach is known for quality, and therefore there isnâ&#x20AC;&#x2122;t much threat in this area, as they can boast 75 years in the genuine leather business, which many brands around today within the market cannot say.

Competitive Rivalry 68

The Mid-Luxury accessories market is very saturated with highly established brands and a lot of innovation. Less stock in department stores compared to their competition, meaning customers have to enter a stand-alone Coach store, specifically looking for that one brand. As other brands are in more department stores, Coach may not be at the forefront of the

higher price. Other brands within the market have more ways of shopping on the go, with high functioning Apps and mobile websites. Coach is known for quality, and therefore there isnâ&#x20AC;&#x2122;t much threat in this area, as they can boast 75 years in the genuine leather business, which many brands around today within the market cannot say.

Competitive Rivalry -

The rising menswear market has already been acted upon in brands such as Michael Kors, who have recently opened a new Regents Street store with a greater proportion allocated to menswear, including a wider range of man-bags.

APPENDIX C The Marketing Mix – 4 P’s Product -

The largest area of Coach, accordingly to their 2016 sales breakdown is their Women’s handbags, which takes up a huge proportion of their sales. Their next biggest category is Men’s bags, this confirms that Coach are known for their bags and leather goods. Within bags, Coach have two ranges, Main Range and Coach 1941. The 1941 range is a higher priced range of more fashionable bags. This range tends to reflect the current trends better than main range and are quirkier, more confident designs. After looking at competitors, it seems Coach are missing a basics range, of classic designs potentially of a slightly lower price point. A range which reflects their signature look and is set apart from main range.

Place -

Since Coach have taken stock out of department stores, they need to work hard on getting customers into their stores and shopping online. Their stores needs to be an interesting and exciting place for customers to want to shop there. As personalisation is available both online and in-store, there needs to be more incentive for customers to enter a coach store. Coach is already selling worldwide and are doing extremely well in the North America market, which is where the brand started. A focus needs to be put onto Europe and Asia, as these are the markets in which Coach are being over shadowed by other brands.

Price -

Compared to other brands within the market, Coach are generally higher priced. Their direct competitors, Michael Kors and Radley are selling similar style bags, of a similar size for much less. Although Coach are higher priced than their competitors, offering a lower priced range in the UK could be extremely beneficial as other UK retailers are having to put their prices up due to Brexit and the weak currency. As Coach are based in North America, this could be a chance to compete with UK brands and entice customers in.

Promotion -

Too much promotion was what saw Coach have a decline in sales in 2015. Having many bags in the sales and advertising quite heavily saw the bags seem less exclusive to customers. Promotion of the brand will need to be done in a subtle way and will need to look high end and luxury. With more stand-alone stores being introduced, window displays will be key to promote new ranges and new products.

less. Although Coach are higher priced than their competitors, offering a lower priced range in the UK could be extremely beneficial as other UK retailers are having to put their prices up due to Brexit and the weak currency. As Coach are based in North America, this could be a chance to compete with UK brands and entice customers in.

Promotion -

APPENDICES

APPENDIX D

Comparing the Followers of Selena Gomez and Coach on Instagram

APPENDIX E

Deciding on the Agile Process

Waterfall development depends on having a clear documentation process laid out up-front, before the development process begins, and closely following that process. With agile development, there’s hardly any documentation before starting development. Developer’s works in 1- or 2-week sprints and figure out code as they go.

Source: Moazed, 2016

Choosing a Strategy Good, Fast, and Cheap. You can pick any two for your project, but you can’t have all three.

Source: Moazed, 2016

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To visit this publication online, please visit: https://issuu.com/georginaroden By Georgina Roden (P14162823)