Coach Inc.: From Staid to Stylish
|
Case Code: BSTR235 Case Length: 23 Pages Period: 1941-2006 Pub Date: 2006 Teaching Note: Available |
Price: Rs.500 Organization: Coach Inc. Industry: Aviation Countries: USA Themes: Textile, Apparel, and Accessories |
Abstract Case Intro 1 Case Intro 2 Excerpts
"We've been enjoying a sweet spot. We created a lane called accessible luxury and it feels like a superhighway."
- Lew Frankfort, CEO of Coach Inc., commenting on the positioning of the Coach brand, in December 2005.
"The Coach brand represents a unique synthesis of magic and logic that stands for quality, authenticity, value and a truly aspirational, distinctive American style."
- Reed Krakoff, president and creative director of Coach Inc., in May 2004.
"I don't know how you find a story that's accelerating sales growth on the top line at the same time as expanding margins as much as these guys."
- Michelle J. Picard, investment analyst, Geneva Capital Management Ltd., in July 2003.
Introduction
In April 2006, Coach Inc. (Coach), a New York-based designer and marketer of superior quality, 'modern American classic' accessories, featured among the 21 top luxury fashion brands in the US in the '2006 Luxury Brand Status Index Survey of Luxury Fashion Designers' (LBSI) conducted by the Luxury Institute. The survey rated the top luxury fashion brands in the US, which included popular fashion houses like the Gucci Group (Gucci), the Hermès Group (Hermès), Giorgio Armani S.p.A. (Armani), LVMH Moët Hennessy Louis Vuitton S.A. (LVMH), The House of Chanel (Chanel), and Prada S.p.A. (Prada).
Coach was one of the few 'American' brands to have featured on the index, as the luxury products market in the US was largely dominated by European fashion labels. However, although Coach was recognized as a luxury brand, it had a unique positioning in that the prices of its products were significantly lower than other high-end fashion labels. According to the Luxury Institute, Coach was "the strongest fashion brand among the more mass-oriented luxury brands purchased by wealthy consumers" in the US. Coach, which was started in 1941, was one of the oldest handbags and accessories brands in the US. Over the years, the company became well known for its sturdy and high-quality leather handbags and accessories.
By the time Sara Lee Corp. (Sara Lee)7 bought the company in 1985, Coach had become a premium leather accessories brand in the US. Under Sara Lee, Coach underwent a major expansion and entered the overseas market. However, by the early 1990s, Coach had lost some of its cachet, as other premium brands offered customers products that were 'hip and trendy'. In contrast, Coach was mainly known for its classic and staid designs. In the late 1990s, Coach underwent a transformation under the management of its then CEO, Lew Frankfort 8(Frankfort), who, along with the company's president and creative director, Reed Krakoff (Krakoff), undertook certain measures that helped the company revive its image in the market. By the end of 2005, the company was in a strong financial position, and its revenues in 2005 were more than three time its revenues in 2000....
Buy this case study (Please select any one of the payment options)
| Price: Rs.500 |
Price: Rs.500 | PayPal (11 USD) |
