Target Market Coach Handbags Essay Example

those individuals who want the best and newest handbags that the industry has to offer. The last target market can be defined as those customers who have already purchased Coach handbags. These women already enjoy the prestige that goes along with owning a luxury handbag. (Coach Company Profile, n. d. ; Foster, 2006). Economic Environment Influences on Coach Handbags Customers are definitely influenced by the changes in the economy when it comes to making purchases.

There are two very different groups of individuals that purchase Coach handbags. There are those that have to have luxury items and will continue to make these purchases including Coach handbags regardless of the current economic situation either because they can continue to afford them or because they want to continue to live a life that includes the purchase of luxury and high end products. (Marsh, 2009). Then there are those individuals who once were able to afford the Coach handbag might think twice about another purchase if their financial situation has changed.

These new spending habits will most likely not be permanent. Those valued and loyal customers of the Coach brand will continue to make purchase once their financial situation returns to what it was prior to the economic down pour. (Hamm, 2008). Most consumers will make purchases based on value and not the quality and price. Value will be judged by preferences and a alternatives. There are many current customers who once would have paid full price for a Coach handbag who will now look for the discounted priced products. (Bix & Taylor, 2011). Social Environment Influences on Coach Handbags

When a person mentions the brand name Coach

there is an image that comes to mind of a sophisticated professional carrying a stylish handbag because the brand is intricately associated with quality, tradition, and prestige. Social environments play a vital role on consumer purchases. There are many individuals who want a life style that they are unable to achieve. There are many times when consumers make unrealistic purchases just to fit in with their group of friends. Having a luxury handbag that has a brand name such as Coach can place a social status on an individual.

When others see someone with a Coach bag there is an assumption that the person is wealthy. (Coach Inc, 2011). The social influences of Coach purchases is tied to the brand name and having the self esteem that goes along with being able to afford the purchase. Quality and Brand of Coach Handbags Coach is the manufacturer of a collection of handcrafted leather goods that are considered high in quality and unique in craftsmanship. Coach strives on their continued high standards that are required for the materials and workmanship that go into their handbags.

The Coach brand is attributed their reputation and is considered one of the leading high-end handbag provider. The Coach brand is considered a “unique combination of their original American attitude and design, their heritage of fine leather goods and custom fabrics, their superior product quality and durability and commitment to customer service” (Coach Company Profile, n. d. ). Coach has materialized as one of America's distinguished designers and manufacturer of fine handbags for women. The Coach brand has been developed over time from the signature styles and unique character that the handbags

posses. (Corkindale, 2008).

Coach has a very strong brand image. They continue to gain new customers and because of devotion and loyalty they are able to keep repeat customers. Brand image can be considered everything to customers when searching for a handbag. Industries that manufacture handbags must be able to provide what is considered a “chic service”, while continuing a “thriving business” (Foster, 2006). Due to the brand image that Coach has they are able to introduce new and more risky handbags with the confidence that most current consumers will continue to purchase their handbags whether a new product is a success or failure.

The quality and brand of Coach handbags is what makes them a wanted commodity by individuals who can afford them as well as those who are unable to afford a handbag. (Coach Company Profile, n. d. ; Corkindale, 2008). There are many individuals who will purchase items because of the brand name regardless of the quality. Coach offers both brand and quality but to some consumers the brand is more important. There are also many consumers who preference the store name that the Coach handbags is from.

The same bag might be available at a non-luxury store for the same price but certain groups of individuals would not purchase that handbag because it was not from a high-end store like Nordstrom’s or directly from a Coach store. Distribution of Coach Handbags The corporation operates through two distribution channels and is considered multi-channeled. Consumers are able to receive handbags directly from the organization or by an indirect method of distribution. There are currently more than 400 Coach stores in the United States

and Canada.

There are Coach boutiques located within selected department stores and specialty retailer locations as well as distribution through the on-line store. There is a goal to increase distribution on a global level. Coach handbags are distributed in Japan. “With a global vision in place, Coach is available at over 900 department store locations in the US, 182 international department stores, retail store and duty free shop locations in over 20 countries, 161 department store shop-in-shops and retail and factory store locations operated by Coach Japan, Inc. (Coach company Profile, n. d. ). The direct-to-customer means of distribution can reach consumers through retail and factory stores, and the Internet. There are more than 100 “shop-in-shop” and flagship retail stores that provide consumers with an atmosphere of luxury and sophistication. Coach’s on-line store is able to provide customers the convenience of making purchases without having to visit a store. This also allows customers to compare handbags more efficiently and with ease since it provides a faster means than going to a Coach location.

The indirect distribution method consists channel of US and International wholesale and Business-to-Business transactions since Coach sells its handbags to over 900 high-end department stores, such as Nordstrom’s, Saks Fifth Ave, and Macy’s. (Coach Company Profile, n. d. ). Price of Coach Handbags “Coach handbags are positioned as "accessible luxury" and range from $138-$798, below the prices of European brands such as Louis Vuitton, Gucci and Prada, but above brands such as Nine West” (Foster, 2006).

Since the target market is defined by distinct groups of individuals part of the target market is concerned with getting Coach handbags at a discounted or

bargain price. Coach’s outlet stores have performed better than its full priced stores. For consumers who are searching for the discounted or bargain price on Coach handbags only have the opportunity to make purchases at a factory outlet because handbags do not go on sale at the as products at the full-price stores. With the current economy many women are looking to make their purchase at a discounted or sale price. Women in the US have been trained to expect to be able to find a bargain if they either go through the hunt or wait for a point late in the season or are willing to buy something after the season" (Foster, 2006). Although many consumers will look for the bargain price there is the other target market that will not want last years handbag styles and will purchase at the full price. Coach should not deviate from their normal strategies by looking to discount handbags at their full priced stores. Promotions should be kept at their outlet stores only since there is still a market at their full priced stores.

By deviating from their normal selling strategies there is a chance that a discount could be given to consumer who would have purchased the handbags at the full price. (Corkindale, 2008). Competitive Environment Coach has to compete with other organizations that sell luxury handbags. Their top competitors include Dooney & Bourke, Dolce & Gabbana, Prada, Gucci, and Louis Vuitton, as well as others. In order to keep their competitive advantage Coach has released a new line of lower priced handbags. These are priced at $260, which is about twenty percent less than their

other line of handbags.

These bags were meant to open the target market to a younger consumer who would normally not purchase the bag due to the high cost. (Berfield, 2009). There are other alternatives that consumers can chose to purchase but the brand and quality of Coach’s handbag is what make the product wanted by women around the world. Conclusion Coach has made its mark as one of the leading providers of superior quality handbags. By identifying the right target markets and through their distribution methods they are able to successfully sell their handbags.

Coach has a strong brand that has created an image that is capable of selling handbags to new customers while retaining their loyal customers. They are also capable of reaching new markets. The current economic situation is a concern for the organization but with proper marketing as well as identifying the proper consumers the over-all success of the organization can be maintained. Their distribution methods are wide and varied. Although consumers are spending less on average there are still those who thrive on having the newest and best products that the market has to offer.