Strategic Initiative 2019-2020
contents: Company Overview 06 Market Overview 13 Distribution 17 Communication and Promotional Activities 18 Current Target Market 22 Omnichannel Audit 26 Retail Space Audit 28 Strategic Initiative 30 Features 32 Supplier 34 Market Analysis 36 Proposed Target Market 37 In Store Experience 40 Interactive Bar & Drink Menu 42 Operational Plan 44 Promotional Plan 48 Financial Plan 56 Conclusion 60
INTRODUCTION: The Coach brand represents a blend of classic American style with a distinctive New York spirit, offering a design that is known for a distinctive combination of style and function. Over the past few years Coach has repositioned its brand in order to change the perception of its brand from , easily accessible to a high end luxury retailer. This project explores and proposes a strategic initiative that combines technology and further developing our relationship with the male demographic. Our concept of “The Coach Public House� is a blend of retail store, bar and lounge. The goal is of this unique space is to create the Coach lifestyle experience for their male customer. We hope that this initiative will not only drive more sales but build a better relationship with our growing male demographic.
ABOUT COACH INC. Coach is a leading New York design house of modern luxury accessories and lifestyle collections. Founded in 1941 as a family run workshop in Manhattan, Coach caters to consumers that seek out quality and unique nature of Coach craftsmenship. Coach continues to carry out the same high standards for materials and workmanship. Coach is a publicly traded company listed on the New York Stock Exchange, traded under the symbol COH. In fiscal 2016 , Coach’s current revenue was $4,491.8 million. The sales mix was as follows; 53% womens handbags, 16% womens accessories, 16% mens and 7% from other lifestyle categories. The Stuart Weitzman brand represented 8% of Coach, Inc. sales in fiscal 2016. Company Structure Victor Luis - Chief Executive Officer Stuart Vevers- Executive Creative Director Todd Kahn- President, Chief Administrative Officer and Secretary Sarah Dunn- Global Human Resources Officer Andre Cohen- President, North America and Global Marketing Ian Bickley- President, International Group 06
HISTORY 1941
The company is founded as a family-run workshop, making small leather goods in Manhattan.
1946 - 1950
Miles Cahn and his wife Lillian Cahn, leather manufacturing owners, join Coach. The Cahn’s eventually take over the business.
1960 - 1961
Cahn drew inspiration from baseballs gloves, he wanted the leather to mimic the effect the glove gets by making it stronger, softer, more flexible and deeper in tone. Lillian Cahn brought the idea of designing women’s handbags to supplement the factory’s low-margin wallet production. The purses were given the name Coach.
1985
The Cahn’s decided to sell Coach to Sara Lee Corporation. Taking over leadership of Coach as President was Lew Frankfort. Sara Lee promised that it would continue to operate Coach in the way in which it had always been run.
1986 - 1999
At this time Coach was operating 12 stores, along with nearly 50 boutiques within larger department stores. The company also began it international reach buy opening boutiques in England and Japan. By 1992, the product line was also expanded to include outerwear and luggage. Around 1997, Coach entered its first licensing agreement and entered e-commerce with the launch of coach.com
2000 - 2001
Sara Lee sells 17 percent of the newly named Coach Inc. to the public through IPO. The company also launched what would become an iconic ook, the Coach Signature collection. This collection features a bold double C design.
2013
Stuart Vevers was announced as the new Executive Creative Director.
2015
Coach acquired Stuart Weitzman, a leading designer and manufacturer of women’s luxury footwear.
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MISSION & VALUES At Coach, we believe an inspirational and modern work environment is where exceptional talent thrives. We nurture a culture infused with creativity, innovation, entrepreneurship, learning and achievement to allow our people to always bring their best. We are inspired, talented, and diverse individuals who work collaboratively to drive the continued success of our brand. And, we know the Coach culture is truly a reflection of our Coach people—both who we are and who we strive to be, simply defined by our Coach Values. WE SEE POSSIBILITY IN THE IMPOSSIBLE. We pursue our passions with tenacity to innovate a new way forward. We challenge assumptions with optimism for what could be. We embrace our curiosity and welcome the unknown. WE NURTURE AUTHENTICITY. We stay true to who we are. We say what we do, do what we say and hold each other accountable, and build genuine, rewarding relationships—with customers, partners and each other. WE INTEGRATE INDIVIDUALITY AND TEAMWORK. We are high-performing individuals who work together for the greater good of Coach, Inc. We encourage personal initiative and invite a diversity of perspectives. We take responsibility for delivering excellence—as individuals and as a team. WE FUSE CREATIVITY AND LOGIC. We trust our emotions and imagination to propel us onward. We use judgment to connect instincts and logic. We learn from our experience. 09
FUTURE GROWTH PLANS Coach has been making strides in order to ensure that their growth is constant. Coach is building upon their strong brand and business equities to transform into a global modern luxury brand, present a clear and compelling expression of the Coach woman and man across all product categories, store environment and brand imagery. They are also leveraging the global opportunity in order to raise brand awareness and to build market share in markets where Coach is underpenetrated. Future plans include gaining more attention from the men’s demographic. Opportunity by opening new standalone and dual gender stores and broadening the men’s assortment in existing stores. Accelerating the development of our digital programs and capabilities in North America and worldwide, reflecting the change in consumer shopping behavior globally. Our intent is to rapidly drive further innovation to engage with customers in this channel. Key elements include www.coach.com, our invitation-only outlet Internet site, our global e-commerce sites, marketing sites and social media.
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SWOT ANALYSIS STRENGTHS
Strong focus on the handbags category Dedicated design team Multi-channel distribution strategy It’s a vertically integrated company, with control over its own manufacturing and distribution
WEAKNESSES
Dependence on independent manufacturers for procuring merchandise Still rebranding from the past
OPPORTUNITIES
Growing US apparel market Growing US footwear market Increasing online sales
THREATS
Intense competition Slowing Chinese luxury goods market Counterfeit goods
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MARKET OVERVIEW Luxury leather goods accounted for a small share of overall volume sales of bags and luggage in 2016. Despite the small volume shares, luxury leather goods represented 57% of total retail value sales in bags and luggage due to the high average unit price. The average unit price of luxury bags was USD965 in 2016 whilst the average unit price of overall bags was USD32 in the same year. The unit price of luxury travel goods was USD2,248, whilst the average unit price of luggage was USD165. Luxury leather goods registers current retail value growth of 2% to reach USD15.6 billion in 2016. Luxury travel goods registers the strongest current retail value growth of 4% in 2016. Michael Kors Holdings maintains its leading position, with 24% of retail value sales in 2015. Luxury leather goods is expected to register a retail value CAGR of 2% at constant 2016 prices over the forecast period. By category, women’s luxury bags is by far the largest category in luxury leather goods, holding a 78% value share in 2016. Women’s luxury bags registered current value growth of 2%, to reach US12.1 billion in 2016. Men’s luxury bags is the second largest category, holding 8% value share. Men’s luxury bags also showed growth of 2% in current value terms, partly thanks to the growing interests in fashion amongst male consumers. Men have become more inclined to purchase stylish accessories due to their greater availability, changing styles at work, demographic shifts and new societal norms on grooming. Internet retailing saw the fastest growth in distribution channel in luxury leather goods category, up by 15% in current value in 2016 to reach a 9% value share. Luxury brands are operating their own e-commerce sites as well as working with department stores and e-retailers to sell their products online.
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Prestige Pricing
Mass Market
Exclusivity
Affordability
CURRENT POSITIONING IN THE MARKET Luxury leather goods in the US is highly diverse and competitive. Coach was the fifth largest player in the US luxury goods market, holding 3% of US luxury goods sales in 2015. Coach faces increasing competition from growing US luxury brands such as Michael Kors, Tory Burch and Kate Spade and its sales declined by double digits from 2012-2015. By category, Coach’s value share in luxury leather goods fell to 15% in 2015, compared with 27% in 2012. Whilst Coach operates at the retail and wholesale level, its wholesale operations performed negatively due to poor performance of department stores. Low store traffic and long-term discounts at department stores negatively impacted Coach sales. The Coach Men’s department has seen an increase of 4% total in the past 3 years, growing from 14% of the business to 16% (2013 to 2016). With this in mind, Coach has began to devote more focus on the Men’s department. There is a great deal of opportunity for growth. Moving forward, Coach will further invest in the shop-in-shop retail format and plans to restructure its wholesale channel by closing about 25% of doors by the end of FY2017. Also, the company will close a number of outlet stores and reduce discounted online sales to minimise its decrease in sales, and plans to focus more on enhancing its brand image and value. 14
COMPETITIVE ANALYSIS Kate Spade Even through Coach’s recent acquisition, Kate Spade will remain a strong competitor for Coach due to similar product categories, price points and positioning in the market.
Michael Kors Micheal Kors has been a competitor for Coach since the the early 2000s. At this time both brands were booming but soon suffered from a diluted brand image. Both brands now remain competitors as they try to rebrand and reimagine their place in the market for the future.
Burberry Burberry is often seen as the ultimate in in-store experience and technology from a luxury heritage brand. It would be very possible for Coach to reach this same level and become their American heritage counterpoint through the uses of tech and appealing to the millennial generation.
Louis Vuitton As Coach aims to raise their price points and focus on higher price sales, Louis Vuitton will act as an aspirational luxury competitor.
Gucci Gucci will also be an aspirational competitor because of product/price point but with a specific focus on their appeal to millennial consumers. 15
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DISTRIBUTION Coach offers its merchandise for sale through the following methods of distribution: (1) Coach retail stores (2) Coach outlet stores (3) Authorized department stores (4) Authorized specialty stores (5) Limited duty free locations (6) The Company’s e-commerce sites Coach does not have individual distributors and is not available through house parties. As of July 2016, there were over 430 Coach stores in North America and 520 international locations including approximately 40 in Europe and 480 in Asia. Coach is available in approximately 1,000 department store locations in North America and approximately 600 international wholesale locations in approximately 55 countries. As for our wholesale accounts, Coach has boutiques located within select department stores and specialty retailer locations in North America and Europe. Distributor-operated shops in Asia, Latin America, the Middle East, and Australia. Coach has several licensing deals for watches, shoes, eyewear, and fragrances. Coach has had a footwear licensing agreement with Jimlar Corporation since 1999. Coach also has had a licensing agreement with Luxottica Group for sunglasses since 2012 and with Movado Group for watches since 1998. Coach, Inc. (COH) was one of the first luxury brands in the US to go online. It’s also ranked among the top luxury brands available online. The company currently operates e-commerce websites in the US, Canada, Japan, and China.
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COMMUNICATION & PROMOTIONAL ACTIVITIES In fiscal 2016, advertising expenses for the company totaled $202.2 million. Advertising costs include expenses related to direct marketing activities, such as direct mail pieces, digital and other media and production costs. Coach’s marketing initiatives are made up of traditional print ads, email, and billboards, along with more digital endeavors through social media. They devote a large part of their marketing budget to working with brand ambassadors that align with their targeted customers. They recently signed a 10 million dollar deal with Selena Gomez. Coach also has an exclusive influencer program where they work with specific social media stars, gifting them with pieces from the newest collection, inviting them to shows, and shooting them in editorial pieces. Coach has also begun to focus on experiential marketing, hosting events for store launches such as the recent launch of their new location in Milan. They also invited exclusive influencers and celebrities to attend, encouraging them to post on social media. Coach has not fully tapped into viral marketing, however their digital presence is growing and continuing to be their top marketing initiative. 18
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BRAND AMBASSADORS Coach has partnered with several influencers and celebrities that connect with their brand organically. They have approached specific personalities for specific brand categories. For the Women’s sector, Coach has worked with actress Chloe Grace Mortez and celebrity Selena Gomez. Chloe has starred in several Coach campaigns and videos, bringing a youthful touch to the brand and attracting a younger audience. While Selena is a world renowned superstar, lending her 120M instagram followers and influence to the Coach name. Gomez has also collaborated with Coach in creating new and exclusive pieces, posting on her social media about new products and at Coach fashion shows. Gomez was quite the investment for Coach as they signed a 10M dollar deal with the starlet. In regards to their men’s department, Coach has only just recently begun to give attention to their men’s collection. They most recently announced that actor James Franco will be the face of their new men’s fragrance. Coach has worked with Franco’s younger brother Dave Franco in the past, along with singer Kid Cudi and and Zayn Malik. Each of these men bring an edge to the Coach brand, and target a younger and less traditional male customer. Coach has seen a great deal of success through these partnerships, particularly with Selena Gomez. After the announcement of this collaboration, Coach’s stock immediately went up by .56%. With the right partnerships, the opportunity for sales are exponential. 20
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CURRENT TARGET MARKET Age 20-40 Gender Women and Men Income $65,000+/year Education College Educated Location Large Cities 22
Coach’s primary target market is men and women aged between 20s- 40s who possess mid to high levels of disposable income, seeking distinctive, easily recognizable, accessible luxury products that are relevant, well made, and provide excellent value. The appeal of Coach to these customers lies in its original American attitude and design and rich heritage of fine leather goods. Coach products typically attract premium customers, aspirational luxury shoppers or designer wannabes looking to step into the luxury market. Coach also appeals to shoppers that splurge on the occasional luxury purchase. Our customer values luxury goods but also values a good price. These customers are high earners but are not yet rich (HENRYs). The largest demographics for our customer is in the United States, China and Japan. At the moment, Coach has a female dominated customer base.
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Name: Stephanie Turner Age: 25 Income: $75,000/year Education: NYU BFA, Advertising Location: Austin, Texas
Stephanie is a recent graduate from NYU with a BFA in advertising who has recently entered the workforce. Currently, she lives in Austin, Texas where she works as a Junior Creative Director at a middle sized Ad Agency. She is not married but has been in a relationship for about 6 months. She tries to live an active lifestyle and expressing herself is important through fashion. Stephanie values good style at a valuable price. In her free time she likes to go to cafes with her friends and has recently started dabbling in photography. Outside of work, Stephanie enjoys using technology for leisure, this includes keeping up with her favorite influencers on instagram, watching beauty/ lifestyle gurus on youtube and keeping up with the latest news on the CNN app. Latest Purchases from Coach:
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Name: Maxwell Andrews Age: 34 Income: $160,000/year Education: Harvard Location: Greenwich, Conneticut
As a stock broker living in Connecticut with his wife of 2 years, Mawell commutes to wall street everyday. He is always looking for a travel bag that is stylish but durable for his commute. In his free time he likes to golfing with his college friends at the country club. He values a good style which is also largely influenced by his wife. Due to his financial background he likes to shop for good quality products but with a justified price. Maxwell never leaves the house without his fitbit on his wrist and IPhone in hand. Maxwell is always on the look out for the latest technology and is quick to incorporate these new gagets into his everyday life.
Latest Purchases from Coach:
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OMNICHANNEL AUDIT
6,757,285 Likes
Post once every 1-2 days Mostly product shots that lead the customer to the website to buy the products, some event shots.
661 K Followers
1-3 times a day Same posts from Facebook and Instagram. Posts about product, lookbook photo, coach events, runway shots, and behind the scenes.
1.9 M Followers
1-2 times a day Posts about product, lookbook photo, coach events, runway shots, and behind the scenes
72,560 Followers
Boards based on products, heritage, men, gifts, collaborations, collections, and clothing
159,837 Followers
Once a day everyday
51,552 Subscribers
Once every month or two Runway show, mini fashion films
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Coach.com is the companys brand/e-commerce site. Customers can come here to shop the latest collections and find what ever Coach product they are looking for. The website is easy to navigate and it divided into categories including; New, Women’s, Men’s, Coach 1941, Personalized, and Sale. Each category then has subcategories to simplify the search by product. Customers can also utilize the search bar to find the product they are looking for. Coach.com also allows customers to create a personalized account that saves your past purchases and emails them newsletters and promotions with the brand. The site enables pop ups to encourage email sign up. The site also features a store locator, making it easy for customers to find a Coach store near them. If customers have any questions or need help, we have a chatbox for individual help.
After struggling for a few years, Coach has been able to regain their status due to a their transition of hiring a new CEO and Creative Director. Seeing the success of sales in women’s, the brand sees an opportunity to increase the male coach demographic attention. Integrating technology is another opportunity the brand sees. Already active in many social media platforms with highly viewed content could be an easy transition to connect with the male customer.
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RETAIL SPACE AUDIT
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Coach has been taking advantage of their retail spaces and making them one of kind, visually. The experience in the retail environment is now customer experience driven so making sure you grab and keep your customers attention is harder than ever. Recently, Coach revamped their NYC flagship and has made the customer experience more seamless. The 3,720 square feet of selling space is intimate and has a luxurious feel with an emphasis on technology. All employees will now be outfitted with mini-iPads to help expedite the shopping experience — there are no cash registers in sight. The goal of the “lab” is to establish the right balance of elevating the company’s reputation within the luxury market while still maintaining its strong brand ethos.Subtle design elements, such as end-cut wood flooring used in the original Coach factory and a chandelier that mimics the light on a traditional coach wagon, provide nods to the company’s history. Multi Room Floor Plan because each distinctive space is its own “shopping destination” organized by category due to the brands larger product assortment. “The men’s selection possibly had the biggest transformation, doubling in selling space and even receiving its own entrance on 16th Street. “We want it to feel like you’re in a men’s shop when you are in the men’s shop...Rich wood fixtures and leather accents distinguish the space from the store’s otherwise more feminine aesthetic. Della Badia estimates that on average, men’s makes up about 20 percent of store sales.”
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STRATEGIC INITIATIVE The Coach Public House is a blend of retail store, bar and lounge. The goal is of this unique space is to create the Coach lifestyle experience for their male customer. It will serve as a haven in the city; serving signature and customizable cocktails with downtown views and technology driven personal shopping. This seamless and “one of a kind” store will be achieved through the integrated technology, touching everything from the store to the customer experience.
Justification
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The main objective of Coach Public House is to connect with the male customer that Coach is currently targeting. Coach has dedicated majority of their company’s focus to their women’s department. However, the men’s luxury leather goods market is positioned to grow in the next 5 years. We believe this is an ideal opportunity for Coach to develop their men’s department. In order to truly cater for the male customer, Coach needs to provide a uniquely men’s experience. The long term goal of this initiative is to build a global community of Coach men, building the brand name into an aspirational lifestyle brand. While this experiential space will not result in direct sales, it will develope a relationship with their targeted customer. That relationship is key to future sales, most likely through e commerce. This will target the crucial first step in any purchase, the decision of where to buy. By creating this subconscious bond through a lifestyle based space, Coach will build a genuine connection with customers, resulting in long term sales growth.
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Touchscreen Bar
FEATURES: Coach Men’s App The Coach Men’s App will be the hub for all technology throughout the store. When the customer downloads the app, they will be prompted to create a profile including demographics, and payment methods. The customer will have access the app on their phone or using the in store screens, creating an integrated experience in and outside of the store. Associates will also be able to access to each customer’s profile, and will be notified when a recognized profile enters the store. Associates will be able to see previous purchases, items that were tried on but not purchase, or items that have been left in their online shopping cart, allowing for the swift and personalized service the male customer is searching for. Customers will also be able to search other profiles and see any ‘liked’ items, products left in their e-cart, and products tried on but not purchase, the perfect tool for any wife or girlfriend looking to shop for their loved one! The app will be an important tool for the company as it collects useful data for retail management, product development and customer experience teams.
The Coach Public House touchscreen bar is a traditional bar with a modern twist. It features the Sony Xperia Touch, a touch screen that is projected directly onto the bar. Each seat of the bar will have an individual ‘screen’ for customers to sit, relax, order a drink and shop. The Xperia Touch is controlled using an Android smartphone, so as long as the customer has the Coach Men’s App on their phone and is logged onto their profile, the Andriod will be able to recognize that member as they take their seat, automatically pulling up their user account on the bar screen, welcoming them with the drink menu and shopping options. If a customer does not have an account, it will prompt them to join or sign in when sitting. This will allow for a consistent experience and for Coach to gather valuable data about their male customers. Customers must pay through the screen, as there will not be traditional cashier machines in store. However it is important that we keep the member joining process, requesting only name, number, email and credit card, so that we do not completely overwhelm the customer. Once the customer has accessed their profile, they will have access to the drink menu, where they can choose from signature cocktails or customize a drink. They will also be able to access the Coach Men’s App shopping page. They will be able to request items directly to a fitting room, or purchase on spot and have the item wrapped and brought to their seat. This feature will allow for customers to take their time while they drink and shop, or purchase quickly and have the item brought to them immediately. Customers will also be able to access the Coach Men’s Jukebox. The playlist will feature nearly 1,000 songs that align with the Coach men’s lifestyle, and will allow customers to queue songs and further customize their experience. 33
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The SONY Xperia Touch is the unique piece of technology that will be used transform the traditional bar space in Coach Public House into an intelligent and integrated experience. The Xperia Touch is at it’s core, a smart projector that responds to touch points. While it’s initial intent is for home use, we have spotted an opportunity to integrate this unique ‘screenless’ style of tech into an experiential retail space. Bringing innovation into Coach is key to growing as a modern company. The Sony Xperia Touch has the ability to turn “a flat wall, table, or even your floor into an interactive screen. With short-throw projection, Wi-Fi® connection, and state-of-the art touch functionality, this portable projector adds a whole new dimension to your home.” As mentioned before, the Coach Men’s App will be downloaded onto each Andriod and displayed on the bar using the Xperia Touch, allowing customers to navigate through the app directly on the bar. Alongside the Sony Xperia Touch, we will offer hand held screens at the lounge spaces away from the bar. Continuing the same experience through the Coach Men’s App, but with the ability to walk around, find a seat or shop with the device.
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MARKET ANALYSIS Over the last few years, men made more purchases of clothing and apparel accessories to keep their appearance more in line with the latest fashion trends. Popular accessories marketed to men vary from traditional items such as cufflinks, ties, belts and watches, to more modern footwear, leather goods, wallets, bags, eyewear, sunglasses, bracelets, hats/caps, gloves and socks. Luxury leather goods registers current retail value growth of 2% to reach USD15.6 billion in 2016 Sales through internet retailing and off-priced retailers are seeing impressive growth. Luxury travel goods registers the strongest current retail value growth of 4% in 2016. Luxury leather goods is expected to register a retail value CAGR of 2% at constant 2016 prices over the forecast period. Other retailers who are employing this type of initiative include Ralph Lauren with Ralphs Cafe, Denver Bike Cafe , and REI with a store that also features a climbing wall. Rather than attempting to drive profits the way traditional retail businesses function, these stores’ primary role is as a marketing vehicle. Placed in hightraffic areas in major cities that draw visitors from far and wide, the objective is to bring in shoppers and generate excitement for the brand. An in-store purchase isn’t necessary for success as the bigger idea is to establish a lasting relationship with customers who can buy Coach products.
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PROPOSED TARGET MARKET Gender: Male Age: 24-55 Income: $57,000-$165,000/year Education: College Graduate Location: Metropolitan areas HENRY’s (High Earners but Not Rich Yet) Coach products typically attract premium customers, aspirational luxury shoppers, or designer wannabes looking to step into the luxury market. The proposed target customer for the Coach Public House is a combination of Gen Y, or millennials, and X. It was important for Coach to target a broad audience in terms of age as Gen X is majority of their current customer and Gen Y is their future customer.“Millennials have been described as the ultimate consumers, accounting for approximately 30 percent of the population and spending an estimated $200 billion annually”.
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Name: Oliver Walsh Age: 36 Income: $300,875/year Occupation: Senior Trader on Wall Street Education: Duke University Location: Chelsea, New York
Oliver is not much of a shopper due to his busy work schedule, he would much rather spend time with his wife or friends on his free time. He enjoys the finer things in in life but looks for them at a reasonable price due to his finance background. When he is not at work, he loves to play tennis with his good friends or spend time taking cooking classes with his wife. When he does shop, he looks for items that will last a while and looks for classic pieces in order to build up his wardrobe. Technology is important to him because of the convenience it brings to his life. He uses his favorite gadgets (iPhone, MacBook Pro, and FitBit) to stay current with the news/stocks, keeps track of his health, and order anything (from coffee to office supply) with a click of a button with no interruption. Latest Purchases from Coach:
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Name: Elijah Hughes Age: 27 Income: $93,875/year Occupation: Brand Director Education: Boston University Location: Dumbo, New York
Elijah, or Eli for short, is invested in style, technology and art. Working in a creative field has influenced his style and his focus on branding informs the companies he chooses to support. He looks for brands that tell a story he can connect with. Eli is constantly looking to innovate all aspects of his life by integrating technology in, even if it sometimes fails, he is passionate about tech and loves to try the newest thing. In his free time, Eli focuses his energy on his photography instagram which he posts photos from the city and his travels. He currently has 52K followers and hopes to continue to build his photography careers as it always teaches him something new, and can be valuable in pushing his branding career and skills. Overall Eli is a very passionate and driven man looking to share stories and innovate. Latest Purchases from Coach:
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INSTORE EXPERIENCE The Coach Public House will be located inside the Coach Flagship located in the Financial District in New York City. Customers will take the elevator up to The Coach Public House. First, they will be met with a lounge area where they can sit down , relax, order a drink and shop. This space will also be equipt with a full bar that will feature a Sony Xperia Touch Bar. Our customers will feel like they are in a luxurious bar where they can order a drink and hang out. We also have a playlist that they can browse through and pick the sound track to fit their mood. We also have a shopping section that will have limited merchandise to ensure the space feels like a place to enjoy the Coach Experience without being overwhelmed with stuff. 40
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INTERACTIVE BAR SCREEN
DRINK MENU
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OPERATIONAL PLAN Operations for this new store initiative will begin with location scouting in the Financial District of New York City. Once the location is set, construction teams along with the new store opening team at Coach will begin renovations on the space. Renovations will include installing the custom bar, built in shelving, custom decorative wood walls, stained concrete, lighting and dressing rooms. The visual merchandising team would then complete the store with the installation of furniture and decor. While this process is taking place Coach Public House partner with an app development company to create the Coach Men App that will be displayed on the interactive bar and iPads throughout the store. During this time, Coach would also be in contact with the city to obtain a liquor licence and vendors to supply the alcohol, glassware and all other bar supplies. Once the space is complete, Coach would partner with an IT team to purchase and install the Sony Xperia Touch systems that will be installed in the custom bar. This IT team will also be responsible for training the Learning and Development Team at Coach to use this new technology. From there, the Human Resources team at Coach will hand select bartenders, sales associates, and tech leads to work at Coach Public House. The new store team will be trained extensively by L&D to use the Sony Xperia Touch systems. At this point, Coach Public House will be operationally ready for the grand opening event and business from then on. If any issues arise post opening, the store team will be able to take advantage of an IT help line and contacts from Sony support.
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OPERATIONAL PLAN PRE LAUNCH March ‘19 April ‘19
Finalize Location Market Research Tech Sourcing Contact Seller Renovation Visual Merchandising App Development Liquor License Bar Supplies Xperia Installation IT Training of L&D HR Employee Training L&D Training Employee Plan Grand Opening Merchandise Troubleshoot/Repairs Inventory Restock
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PROMOTIONAL PLAN The pre launch promotions will start in September, two months prior to the launch. The goal is to to create a sense of mystery and buzz for the Coach Public House, a retail experience like no other. The pre launch promotions will be focused on viral marketing through a highly curated video, accompanied by press and suspenseful but informational email newsletters. Within the past 5 years, Viral Videos have become one of the most successful marketing initiatives online. Particularly among the target audience we have proposed for the Coach Public House. Combining this research, we have decided that overall a successful video for Coach will depend on the relevance, craftsmanship, and relatability of the video. Working with their in-house marketing team, they will create three separate 2 minute videos that will be released throughout the pre launch phase. The videos will focus on the experiential basis of the store. One video will display the tech aspects of the store, showing the interactive bar in action. While the other two will approach with a lifestyle perspective, showing the target customer getting off work and heading to the Coach Public House. The viral video created will launch on Youtube and the first 10 second snip immediately be shared on Instagram and Twitter while the entire video will be posted to Facebook. Snips of the videos will continue to be shared throughout the pre launch months. Other posts will include photos of what the store will look like and its capabilities. The pre launch promotion will post on social media every 3-4 days about the store grand opening.Email newsletter each week of the month prior. The first email will also be of the viral video. While the next set of newsletters will be article esc pieces about the production of the store, from featured technology to interior design to the new app to shopping. 48
The launch of the store will occur in November 2019. There will be an initial launch party at the Coach Public House. It will include social media influencers, celebrities, and press who will bring the correct attention to the store. The attendees will be invited personally with invites sent to them on an Ipad mini. The party will have endless cocktails, a photobooth, personal shopping, DJ and a coach gift bag with new items from the Fall 2019 Men’s collection. The launch party it will be streamed throughout their Snapchat, Facebook Live, and Instagram Live. Also, photos and videos of the party will be posted throughout the event and the following week. The posts will show the guests interacting with the technology to build customer interest. Coach will encourage customers to come into the store and experience the technology themselves the next day. This encouragement will be through social media, email, and a press release from different news outlets. During the post launch, Coach will continue to post videos and images on Facebook, Twitter and Instagram to continue the interest. Coach will release a new set of 2 minute long videos featuring the production of the store accompanied by an interview with the creative director, team, and influencers relevant to the Coach Public House target customer such as Bradley Cooper, The Weeknd, and George Clooney at the store. One important aspect will be to get customer feedback on the technology in order to improve performance. To make sure the customer comes back, Coach will implement reminder updates through the app profile of the customer. The Coach Public House will host special events to draw customers back into the store. 49
SOCIAL MEDIA POST
Facebook 50
Instagram 51
Twitter 52
GIF #1
GIF #2
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PROMOTIONAL PLAN
PRE LAUNCH March ‘19 April ‘19
Facebook Instagram Twitter Snapchat Youtube Email Press Event App Reminders
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FINANCIAL PLAN As mentioned before in the placement of Coach. the Coach Men’s department has seen an increase of 4% total in the past 3 years, growing from 14% of the business to 16% from 2013 to 2016. With the launch of Coach Public House, we are predicting the Men’s sector of Coach’s business is by 4% in the first six months, reaching 20%. Projecting a 7% growth total for the year reaching 23% of Coach’s business. and a long term growth of 15% in the following 3 years, making it 38% of Coach’s total business. As The Coach Public House is heavily focused on building brand equity and evolving Coach into a luxury powerhouse, it will also affect their intangible assets such as customer relationship and trade name net worth. Previous Customer Relationship Growth 2016- net worth of 48.9 M 2015- net worth of 53.9 M 2014- not measured Previous Trademarks and Trade Name Worth Growth 2016- net worth 276.8 M 2015- net worth 276.8 M 2014- not fully measured. Through the experience provided by the Coach Public House, we expect the customer relationship worth to grow to 55 M (1.12%) within the first 6 months with a long term goal of 67M (1.37%) in the following 3 years. Similarly we predict the trademark and trade name worth to grow to 279.9 M (1.01%) in the first 6 months and to 286.2 M (1.03%) in the following 3 years. This growth will be measured in many ways; from the increase of social media following and brand mentioning, to the increase of store foot traffic, the increase of brand worth perception and of course the increase of sales.
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FINANCIAL PLAN
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CONCLUSION The Coach Public House is an opportunity for Coach to reach many goals; connect with their targeted male customer, build unique consumer relationships, and introduce innovative and technology into the retail environment. Coach Public House will elevate the Coach name to not only one of the top luxury retailers in the United States but one of the most innovative and tech savvy retailers, aligning them with the most luxurious and innovative brands to date. If successful, the Coach Public House will boost sales, specifically in the men’s department and growth in their brand name net worth. It will also allow Coach Public House to grow throughout the US, to cities like Seattle, San Francisco, London and Austin TX. Bringing the Coach experience to men all around the US, with opportunity for global growth.
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REFERENCES ENGADGET https://www.engadget.com/2017/02/27/sony-xperiatouch-projector-hands-on/#/ SONY MOBILE https://www.sonymobile.com/us/products/smartproducts/xperia-touch/specifications/ https://www.sonymobile.com/us/xperia/ INDUSTRY INSIGHT http://info.raptmedia.com/blog/industry-insight-whyvideo-marketing-is-key-to-capturing-millennialsattention ADWEEK http://www.adweek.com/digital/cause-relatedmarketing-millennial-mindset/ WEBPAGE FX https://www.webpagefx.com/blog/internet/science-ofviral-infographic/ FAST COMPANY https://www.fastcompany.com/3032401/a-scientificapproach-to-creating-insanely-viral-videos PSYCHOLOGY TODAY https://www.psychologytoday.com/blog/youilluminated/201403/the-science-viral-videos
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Created By: Catherine Batres , Lilly Brasili , Rachel Hickman , Shani Tsfoni FASM 415 - Non Traditional Retailing - Professor Grace Canepa Savannah College of Art and Design Spring 2017