Coach †The Leading Consumer-centric Corporation Essay Example for Free

groom The Leading Consumer-centric Corporation EssayAbstractFashion trends are sensitive, and customers are unpredictable. It makes fashion industry take a passing competitive market. To survive and thrive, fashion companies need distinctive strategies. It seems aspiring besides not many firms can achieve. As an exception, Coach proves its triumph in this challenge by not walking through the same way as others rivals (e.g. Gucci, Louis Vuitton, Prada, and Hermes) have done. Coach has created a customer-focused model and a result-driven outline to lead its business to overcome crisis and expand market. Even though there still have many challenges in the fashion sector, Coachs dodging seems to be sustainable.Coach The Leading Consumer-centric CorporationCoach was a family-run company founded by Miles Cahn in 1941 in New York (Coach, 2012). Coach was famous for traditional crafted welt goods, but keeping the classic styles drove it to dramatically lose market share. Base d on the excellent management of Chairman Lew capital of Kentucky, Coach shifted from a formal leather division of Sarah Lee Corp. to a fashion-oriented send name and a customer-centric corporation (Boorstin, 2002). Coach has thrived not only in North America but also in Japan, China and other countries (Coach, 2012 Tsukahara, 2011). Therefore, Coachs strategy is sustainable. Successful Management in Turbulent Economic ConditionsThe secret formula for Coachs success simply comprises two components. First, it is the perfect collaboration between Lew capital of Kentucky (Chairman and CEO) and Reed Krak finish (President and Executive Creative Director). Since Frankfort took his office, he implemented some(prenominal) typical reforms created customer database to examine consumer behavior, built multichannel distribution system (retail ancestrys, factory outlets, boutiques, and online store), and hired Reed Krakoff to refresh Coachs product design (Slywotzky, 2007).Krakoff do a re volution in Coach conventional product lines by using new materials, shapes, styles, and colors to attract more customers but not release its loyal fans (Slywotzky, 2007). Second, consumer-focused strategy makes Coach stand out. Based on customer information that is collected through mixed angles, Coach can sooner target problems and quickly adjust. In a nutshell, Coachs success derives from a blend of understanding the consumer, being results-driven and at the same time anticipating when fashion is chance (Karimzadeh, 2004). What Makes Coach Different From its Competitors?Coach chooses to work on in its own way. First is selling luxury for the mass (Gogoi, 2005). Coach sets product prices 50% lower than Gucci or Louis Vuitton to attract cost-conscious customers (Takahara, 2008). Coachs numerous product lines satisfy diverse market segments based on ages, regions, and cultures. However, product quality must be maintain to be considered as luxury goods (Slywotzky, 2007). Second is the customer-driven operating model. Coach spends around five million U.S. dollars annually on market research to collect customer information through private interviews, telephone surveys, competitive analysis, and in-store product tests (Slywotzky, 2007). By putting customers into operating process from input (what customers desire) to output (product testing), Coach can switch its products to satisfy customers requirement or increase output of favorite products (Slywotzky, 2007).For example, Japanese customers usually commute to work, so they prefer small bags (Tsukahara, 2011). Moreover, database shows that customer usually visits store every month so Coach launches its new products monthly to attract customers and give them more new choices (Slywotzky, 2007 Tsukahara, 2011). Third is the tight management. The executives check sales physical process of each store daily and frequently review each business unit as well as the total business planning (Boorstin, 2002). Lew Fr ankfort even visits stores a few times a week to check their operating theaters and directly evaluate customer responses (Slywotzky, 2007).Fourth, Coach has a flexible production process by using 100% outsourcing in 16 countries around the world (e.g. Vietnam and China), which neither Gucci nor Louis Vuitton is interested in (Karimzadeh, 2004 Tsukahara, 2011). This also helps Coach cut off fixed costs, and reduce time consuming from production to sales operation. Fifth, Coach has a huge multichannel distribution system 500 stores in U.S and Canada, 300 direct-operated stores in Japan, China, Singapore and the like, a set of boutiques in particular department stores and an online website coach.com (Coach, 2012). This provides more opportunities for Coach to expand business globally. Coach Strategy is SustainableIn this highly competitive market, Coach has its own weapon to be considered sustainable understanding customers and building a solid business structure. With a huge databas e of 9.7 million families from divers(prenominal) viewpoints (Slywotzky, 2007), Coach knows how to make its products fit with customer demands or even how to set reasonable prices. For example, a survey before launching the New Hamptons Lap Satchel revealed that customers were impulsive to pay 328$ for this product, which was 30$ higher than prediction, then Coach immediately reprinted the price tags and sales augmented (Slywotzky, 2007).Moreover, with the close management as described above, Coach runs its operation sensibly by focusing on any detailed changes in sales and customer behaviors. Besides, Coach has a diversified product category (handbag, wallet, suitcase, accessories, perfume, and clothes) with various designs and an enormous distribution channel to help Coach approach many different market segments. In an interview with Fox Business in 2011, Frankfort was confident that Coachs strategy was sustainable in that turbulent time, he only concerned about the macro econom y the slowly second economic recovery might affect consumer confidence in purchasing decision.ConclusionTo gain market share, Coach chooses a unique way to operate Coachs customer-centric model, together with the perfect combination of logic (represented by Lew Frankfort) and magic (symbolized by Reed Krakoff), help Coach thrive in such(prenominal) a very competitive fashion industry. Even though there might be many forthcoming challenges, Coachs strategy is sustainable because understanding customers helps Coach identify risks sooner and respond faster.ReferencesBoorstin, J. (2002, October 28). How Coach got hot The maker of the indestructible purse finally considers style. CNNMoney. Retrieved on Oct.25, 2012 from http//web.ebscohost.com/ehost/detail?sid=2f9ec3fa-9541-4044-87e1-2ddd37107d03%40sessionmgr112vid=1hid=127bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3ddb=bthAN=7567234. Coach (2012). Coach financial tear sheet. Retrieved on Oct. 25, 2012 from http//phx.corporate-ir.net/Tearsheet.ash x?c=122587. Gogoi, P. (2005, November 28). Selling luxury for the masses. Bloomberg Businessweek. Retrieved on Oct. 25, 2012 from http//www.businessweek.com/stories/2005-11-28/selling-luxury-to-the-masses. Glick, A. (Interviewer) Frankfort, L. (Interviewee) (2011). Coach evolving its base with poppy. Retrieved on Oct. 25, 2012 from http//video.foxbusiness.com/v/3951579/coach-evolving-its-base-with-poppy/. Karimzadeh, M. (2004, evidence 1). Riding Coachs express No signs of slowdown as luxe brand zooms. Womens Wear Daily. Retrieved from http//www.wwd.com/fashion-news/fashion-features/riding-coach-8217-s-express-no-signs-of-slowdown-as-luxe-brand-zooms-695558?full=true. Takahara, K. (2008, September 12). Coach builds brand of affordable luxury goods. The Japan Time Online. Retrieved on Oct. 25, 2012 from http//www.japantimes.co.jp/text/nb20080912a3.html.Tsukahara, M. (2011, November 26). A study of brand/ Coach keeps on riding high. The Daily Yomiuri. Retrieved on Oct. 25, 2012 from http//www.yomiuri.co.jp/dy/business/T111121007083.htm. Slywotzky, A. J. (2007). The upside of strategic risk. In Oliver Wyman Journal. Retrieved on Oct. 25, 2012 from http//www.oliverwyman.com/pdf_files/OWJ-UpsideofStratRisk.pdf.