Coach: Riding the Wave of Premium Pricing Synopsis Coach is the number one seller of handbags in the U.S., selling $5 billion company worth of handbags every year. All financials have grown vigorously in the past four years. Coach has achieved this success through value-added pricing. What makes its products worth more? Quality (materials, workmanship), design/style, and above all, the value of the brand as a status symbol do. The bags are pricey, but they are moderate to even cheap when compared to the higher-end handbags from Prada and Gucci. Its aspirational but within reach. The problem the company now faces is that it is losing share in the U.S. (two years in a row). Various factors contribute to this, including increased competition. But there is also criticism that Coach may have overestimated just how high price customers are willing to pay. This case examines the challenges a premium-priced brand faces as it becomes popular across demographics. When you work on this case, you may need to pay attention to the information available to customers, including department stores, the Coach website, the Coach outlets, eBay, and other sites. Also, look at competitive offerings. Search additional information (at least five articles using google search) for this brand, use charts, graphs, pictures or photos to illustrate your idea to answer the following four questions: Examine Coachs product lines and discuss Coachs strategy of product line pricing for its vast product line. Use the knowledge learned from chapter 9, explain how price affects customer perceptions of the Coach brand, given the brands positioning and competition in the market. Use the knowledge learned from chapter 10, examine Coachs channels structure and discuss the potential channel conflicts and the positive and negative impact of Coachs outlet on its branding. In your conclusion, provide your recommendations to Coach in terms of pricing, channel restructuring and brand building. Grading Rubric for Writing Assignment / Case Analysis Item: Expectation Focus: Purpose Purpose is clear Main idea Clearly presents the main idea and supports it throughout the paper. Organization: Overall Well-planned and well-thought out. Includes title, introduction, subtitles which are consistent with the questions being asked for, the statement of the main idea, transitions, and conclusion. Organization: Paragraphs All paragraphs have clear ideas with details, are supported with examples and have smooth transitions. Content Exceptionally well-presented and argued; ideas are detailed, well-developed, supported with specific evidence & facts, as well as examples, which are directly relevant to the questions being asked for. It is important that you include charts, graphs, photos, pictures, and tables as examples of evidence to support your argument. Style: Word choice, Tone Have a unique style of writing, suited to the audience and the paper holds the readers interest with ease. Both MLA and APA are acceptable. Grammar & Mechanics Excellent grammar, spelling, syntax, and punctuation. Reference Clearly cite the source of information without any error. More specifically, sources are exceptionally well-integrated to support claims or argument in the paper.
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