...Coach Inc.’s Internal Assessment Appendix Company’s Vision and Mission Vision: Aim to be the leading brand of leather goods and accessories in affordable luxury market Mission: Ensure that the Coach brand remains a premier, distinctive and easily recognizable brand by delivering a consistent message to the customer through communications (coach.com, global e-commerce sites and social networking sites) and visual merchandising while protecting the brand from counterfeit goods Objectives * drive growth and increase market share by expanding their distribution channels to reach local consumers in emerging markets and leveraging the global opportunities * multichannel distribution model and increase global distribution * improve same store sales productivity and increase sales of products targeted toward men * build market share in North America, Japan through the addition of new stores * Raise brand awareness and build market share in underpenetrated markets such as Europe, Asia and South America * Anticipate consumer changing needs by being “consumer centric” through the use of extensive customer research and surveys to innovate to create customer and shareholder value * matching key luxury rivals in quality and style while pricing the goods at 50 percent or more cheaper than competitors Strategic Objectives Business Level Strategy * Product differentiation – “accessible luxury brand”. It can defend against new entrants since they...
Words: 1905 - Pages: 8
...How to target Chinese luxury consumers Fashion in Macau Date：13/11/2012 Students name: Emma Ling Monica Anni Content Content 2 Introduction 2 1.Market 3 A. Market Size 3 B. Region Size 5 C. Consumption 6 D. Distribution 7 a. The real stores 7 b.The online malls 8 E. Communication 10 a.Why we take point-to-point communication 11 b.When to start point-to-point communication 11 c.How to start point-to-point communication 12 2、Main Players 12 A. Brand summary 12 B. Rank 13 C. Brand development 14 3、Consumer Behavior 15 A. The purpose of consumption 15 B. Region Potential 15 4、Market Segmentation 17 A. Geographic Segmentation 17 B. Demographic Segmentation 17 C. Sociocultural Segmentation 18 5.About Destination Macau 19 Conclusion 21 Sources 22 Appendix 23 Introduction Our group chose fashion as our topic in many luxury category, because we as constumers are concerned about fashion in luxury segment, and the most powerful global luxury goods group is also about fashion. (see “2,Main Players”P12).The most important is that Chinese consumers may most concerned about fashion in luxury segment.Because luxury segment always lead the fashion,so that they can put their new products on the sale. We chose Macau as the analysis city because as one of the special administrative regions of China, Macau has its unique policy and economic model(see Appendix). And because the area is small, it’s...
Words: 5834 - Pages: 24
...• Status of the luxury market today: According to the latest survey of The World Association of Luxury goods, Chinese luxury consumption amount in January this year has up from $8.6 billion to $9.4 billion, accounting for 27.5% of the world. It is expected to 2015, China's luxury consumption will account for 32% of the global market, becoming the world's largest luxury consumer than Japan. With China's luxury consumption ability to continuously release, this brand in China is expected to have obviously large sales growth space. According to Viscoelasticstatistics, large luxury product groups coming to settle in Beijing, Shanghai and Hong Kong. The numbers of shops are now beyond that of Italian and equals to that of London. In previous years, in Shanghai and Beijing, Tod 's, LV, Bottega Veneta, Cartier, Salvatore Ferragamo, Zegna and etc. brands flooded in just a few months. At present, the domestic market possesses nearly two thirds of the luxury brands, estimate in 2013 years or earlier, people can find all luxury brands in domestic market. • The status of LV’s market in China and its strategy: There are about 100 sales outlets of LV watch and jewelry in domestic now. LV bag has opened 39 stores in China now and the sale amount is accounted for nearly 40% of the whole sale amount of LV in the world, which is beyond the Europe,the birthplace of the 19% market share and the 23% market share of USA. A Chinese cinema's manager said jokingly: “If a cinema can earn 20 million...
Words: 1506 - Pages: 7
...SWOT Analysis of Gucci Strengths The strength of Gucci is in its established, very strong brand image and international presence. Gucci has also the ability to control its distribution channels. This is part of Gucci’s defensive strategy in the chain value to capture the value added instead of giving it to the middlemen such as suppliers and retailers. The company has also increased the number of their Directly Operated Stores (DOS) as part of the defensive strategy of taking more control of the distribution process. The 2003 figure showed that DOS accounted for 61.3% of revenues compared to a much lower 32.5% in 1999. Its aggressive strategy accomplished through diversification and communication is also another of Gucci’s strengths. Gucci changed its strategy of carrying a single brand to branching out to a multi brand group. This strategy is also adopted by other conglomerates such as Louis Vuitton and Prada. Some luxury companies use the strategy of focusing only on one brand and add other business segments such as what Armani, Polo Ralph Lauren, and Versace did. Read on Discount Luxury Brands Big luxury brands offer discount and cheap luxury products under tough economic time. This strategy is done in order to allow the positioning of the brand in the industry to differ depending on the number of brands and the number of business segments the company wants to compete in. This is the idea behind focus (mono brand) versus diversification (multi-brand). Gucci Group...
Words: 844 - Pages: 4
...During the last decade, Coach has emerged as America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves, fragrance and fine jewelry. Continued development of new categories has further established the signature style and distinctive identity of the Coach brand. Together with our licensing partners, we also offer watches, footwear, eyewear and fragrance bearing the Coach brand name. Marketing Environment Coach has many competitors but their top three competitors are Dooney & Bourke, Kate Spade and Michael Kors. Dooney & Bourke started in 1975 and is an American made brand; Kate Spade was started in 1993 and is also an American brand and lastly, Michael Kors which was started in 1981, is and American brand. Coach reaches a larger demographic compared too many of their other higher-priced competitors, such as Louis Vuitton, Prada, Gucci, Cole Haan and Dooney & Bourke, because Coach says that they are “affordable luxury”. These competitors are focused on a higher-fashion, higher income demographic than Coach is. Dooney & Bourke and Cole Haan also stress “accessible luxury” which makes them Coach’s key rivals. Coach continues to be one of the best recognized accessories brands in the United States, and is actually the leading American manufacturer and retailer of leather goods, accessories and apparel for women and men. The largest...
Words: 4552 - Pages: 19
...Table of content 1.0 Executive Summary 3 1.1 Objective 1.2 Vision and Mission 2.0 Company Summary 4 2.1 Background 2.1 Company locations and facilities 3.0 Products and Services 5 3.1 Product description 3.2 Competitive Comparison 3.3 Supply and demand details 3.4 Technology needs 4.0 Target Market 7 4.1.1 Target Market Segment Strategy 4.1.2 Market Needs 4.1.3 Market Trends 4.2 Industry Analysis 4.2.1 Industry Participants/Key Players 4.2.2 Main Competitor analysis 5.0 Strategic and Implementation Summary 10 5.1 Marketing Strategy 5.2 Pricing Strategies 5.3 Promotional Strategies 5.4 Distribution Patterns 5.5 Marketing Program 5.6 Sales Strategies 5.7 Sales Forecast 5.8 Sales Program 6.0 Web Plan Summary 13. 6.1 Website Marketing Strategy 6.2 Development requirement Reference 15 1.0 Executive Summary 1.1 Objective This paper will tend to provide a brief introduction of Louis Vuitton, the famous and high price and high reputation luxury brand product originated from France. Later, this paper will further investigate on the information regarding the company’s products and services (product mix) and its marketing analysis and industry analysis in general. The strategies analysis and implementation of the strategies will be demonstrated and website marketing strategies by the company will be discussed as well after the implementation of the strategies plan. Lastly, a brief conclusion will be provided...
Words: 3803 - Pages: 16
...Case 1: Coach Inc. in 2012: Its Strategy in the “Accessible” Luxury Goods Market -Rohan Shetty 1. Competitive Strategies Coach uses a broad differentiation strategy while competing in the handbag and leather accessories industry. Coach differentiates itself from its competitors by marketing itself as an “accessible luxury brand. It offers its buyers a tiered pricing structure with differentiated products. This makes the Coach’s products less price sensitive and also keeps the buyers loyal to their product. Coach also features a diverse line of products, with majority of its revenues coming from the men’s and women’s handbags. Coach also focuses a lot of emphasis on its design, distribution and after sales customer service, and keeps a personal relationship with its customers through the use of E-Commerce. Coach has a one of the most recognized brand in the accessories industry and has maintained its image by providing its customers high end quality accessories. Coach has also been innovating in its design constantly to keep up with the current trends in the fashion industry. Coach also uses feedback from its customers through surveys, which are conducted extensively and impartially to stay ahead of its competitors and providing its customers what they need. Coach also has always kept with the evolving accessories market while keeping its original style. This also has kept is a leader in the retailer industry. Coach has successfully built in differentiating features in...
Words: 464 - Pages: 2
...Luxury Goods Project Jewellery and Watch Sector Stefania ALVARES MEDRANO Marie-Laure GIACOMELLI Anamaria TUDORACHE Nadine STEWART INSEEC Alpes-Savoie, Year 2013-2014 Guidelines Paper assignment – Luxury sector analysis * Select a luxury category. Categories include: Jewellery * Within your category select three brand leaders : Cartier, Chaumet, Chopard * Prepare a SWOT analysis for each brand * Analyze these leaders by discipline: visual merchandising, website, e-commerce (if applicable), social media, customer service, PR, special events, advertising. * Prepare a final report (4-6 pages) on your category ranking your three leaders in order of effectiveness with detailed explanations as to your ranking decisions. Oral Presentation on December 4, 2013 Chaumet “The history of Chaumet dates back to 1780 and is closely interwoven with the history of France. Over five centuries, Paris has been celebrated for the magnificence of its jewellers.” 1. Introduction The Company Chaumet * Category Jewellery and Watches * Parent Company LVMH * Name Chaumet International S.A. * Number of employees 147 * Tagline “Bijoux de sentiment, horlogerie d’émotion” STP * Segment Luxury and Fashion – Jewellery and Watches * Target Group High income/Upper class men and women * Positioning History, tradition and savoir-faire LVMH main data for the Jewellery and Watch Sector History Chaumet is a « maison...
Words: 1528 - Pages: 7
... Structural Assets: The group has expanded through several acquisitions, which have allowed it to take advantage of numerous synergies. It also has infrastructures and systems in place within emerging markets. Knowledge Assets: LVMH possess the design and technical knowledge to create their brands’ products, as well as the entrepreneurial insights of their some 83,000 employees. Relational Assets: LVMH is particularly strong in its relational assets. Its subsidiaries, such as Veueve Clicquot, Fendi and Bulgari have strong brand names and a reputation for quality. Cultural Assets: The group has a tradition of creativity and innovation. Porter’s Five Forces: COMPETITIVE RIVALRY: LVMH’s major competitors include French PPR, Hermes and the Swiss group Richemont. * The main...
Words: 1002 - Pages: 5
...Case 3-4: LVMH: Managing the Multi-Brand Conglomerate 1. LVMH’s diversification represents the group’s strong presence in the luxury goods market as a whole with products from the fashion and leather range, wines and spirits range, watches and jewelry range, perfumes and cosmetics range, and finally the selective retailing range. This strategy aims to claim market share in market segments that are interrelated with the specific customer segment as the common denominator. LVMH is a market leader in some markets and has a decent market share in others and aims to be the leader in the luxury market as a whole where the elite customers can recognize its brands from all of its product ranges and the company plans to build brand loyalty within those customers so that a customer who chooses LVMH for watches for instance, is also inclined to choose an LVMH product for wine and spirits. Diversification also spreads the company’s costs over a number of brands and the revenues as well so that it can always insure good rate of return for investors. 2. For a company like LVMH to compete on a scope that includes champagne, jewelry, fashion, cosmetics, and retailing is logical and even necessary for it to keep a competitive edge because its competitors have implemented the same strategy to fight for market share in the luxury market in all of its segments. The company’s policy aims to build the idea in their customers’ heads that they can always expect the same consistent high-end...
Words: 1843 - Pages: 8
...LVMH in 2004: The Challenges of Strategic Integration. 2004. Stanford SM-123 1. What’s the rationale of LVMH’s creation through merger in 1987? a. The rational of LVMH’s creation through merger is to build the luxury empire and create the largest conglomerate of luxury brands in the world. b. To redefine a bunch of small and fragmented industries into coherent and growing sector, which put into a good position to dominate the markets. c. Arnault believed that the action should be taken quickly when the few “star brands” are still available before others realize it. 2. How do you evaluate LVMH’s corporate strategy and the brand-centric business strategies for the individual businesses? a. Tradition and vision lie with the brand, that the brand generates the energy and motivation. Thus, the independence of individual brands has be guaranteed during the pursuit of cross-brand synergy within LVMH Group. b. LVMH reflected the brand-centric culture. The headquarters flexibly review each brand’s business plan on a case by case basis and are very involved in deciding and assigning financial resources towards the implementation of the strategic plans. c. Strategic integration was established by formal dynamic and was gradually institutionalized. It started with the integration of the Perfume and Cosmetics branch, then created the Fashion group and the Watches and Jewelry branch. All the Wine and Spirites branch were integrated. The Seletive retails arm maintiend decentralized...
Words: 478 - Pages: 2
...That's according to an online survey conducted late last year by The Nielsen Company, a market research firm. It asked 25,000 consumers in 48 countries which luxury brand they would buy if money were no object. Besides Gucci, respondents chose Chanel, Calvin Klein, Louis Vuitton and Christian Dior (other-otc: CHDRF - news - people ). It's easy to see why Gucci reigns. Worldwide sales, though recently tapered, have jumped since Mark Lee became president of the company in 2004, then CEO the following year. In 2007, sales increased 11%; that's on top of a 17% increase in 2006 and a rise of 18.4% in 2005. Gucci is a part of the Gucci Group, which has a number of fashion brands in its portfolio, including Yves Saint Laurent and Sergio Rossi. PPR, a French holding company publicly traded on the Euronext exchange in Paris, owns the Gucci Group. Complete List: World's Most Desirable Luxury Brands Video: CEO Spotlight: Gucci "Gucci manages to offer high fashion and very commercial items," says Michael Macko, fashion director at Saks Fifth Avenue (nyse: SKS - news - people ). "That red and green stripe is some of the most iconic luxury branding ever created, and people want a piece of it." Behind The Brands Born as a leather goods company, Gucci is now most well known for its logo-ed handbags. When the company opened a new 46,000-square-foot store, the largest of its 233 worldwide, on the ground level of the Trump Tower on Manhattan's Fifth Avenue last month, they also launched...
Words: 799 - Pages: 4
...There is a simple saying” the challenges and opportunities are co-existed”. As a new manager, he shall find out what the major challenges and the most valuable opportunities in the chaos, to lead the company into an industry from the right road towards the right direction. Since 2008, the finance crisis has made the whole world economy completely different. The rate of unemployment keeps quite high in most of developed countries, the price of real estate dropped to the historical low in America. Then the following Euro debt crisis again pushes the weak world economy into an unprecedented difficult situation. The fallout from the Greek debt crisis will definitely impact the still weak recovery in Europe, Said Hong Pingfan, the head of the global economic monitoring center of the UN Department of Economic and Social Affaire (DESA) And the a massive aid package and unclear American economy will keep leading to a weaker euro and weaker US dollar in the medium to longer term. So the entire economic environment is not so optimistic, all different industries are being influenced more or less. Comparatively speaking, in fashion marketing, the power of purchasing is relatively reduced since Finance Crisis all over the world. According to the statistics, the Consumer Confidence Index (CCI) has been kept relatively stable in the low level since finance crisis, especially in European countries and America, mainly in the developed countries (Isabella 2010). At same time, it shows the...
Words: 918 - Pages: 4
...Executive Summary The aim of this paper is to discuss the key strategic issues that LVMH faced in Japan and established some future recommendations that can be implemented in order for LVMH to remain successful in the luxury industry. In order to determine the key strategic issues a number of analysis tools were applied to the case study; they include Porter's 5 forces model and SWOT analysis. Louis Vuitton Moet Hennessy, a luxury goods provider is looking to expand their brand dominance in Japan. In the Japanese, LVMH has to deal with economical and cultural uncertainties, the threat of counterfeit products and the relatively high competition, and finally changing tastes of Japanese consumers. LVMH should use their core competencies and limit their weaknesses to overcome the challenges that face the company in Japan. To face their first challenge of economical and cultural, as well as changing tastes uncertainties, the company can hire new designers to develop Asian inspired products. They could also embed the European way of living into the Asian lifestyle. The challenge of eliminating counterfeit products can be combated by creating a unique shopping experience for LV’s customers, and shutting down large counterfeit operations, by cooperating with Chinese and Korean Government Agencies in reducing counterfeit products. Table of Contents Introduction 4 Weak economy 5 Changing taste 7 Competitors 8 Competition – Porter’s 5 forces analysis...
Words: 6216 - Pages: 25
...STRATEGIC MANAGEMENT MGMT E -5000 LVMH Case Analysis By Kavya October 6, 2008 External Analysis for LVMH. Environmental analysis (PESTEL): See Exhibit 1 for comparison of PEST factors: Key findings on the analysis were: * The luxury goods industry was very sensitive to the fluctuation of the economy and any economic drift could have a great influence on its sales. * If the economy was depressed its sales growth went down sharply (e.g. SARS attack 2003) and so did the consumer spending for the luxury goods. * Socio cultural challenge for LVMH was to cater to the needs of the different target customers. (Middle class customers to elite group customers). * Although the luxury market seemed to be dull between years 2001-2003 there was a turnaround and the world economy was recovering enormously and LVMH net sales was still better than the average industry performance. * Positive economic climate (periods of relative prosperity with low interest rates and increased consumer spending), tax cut rates along with the optimistic attitude of the firm all favored the growth of LVMH. * There were enormous growth opportunities in new regions such as China, India and Russia. Inspite of the economic downturn, LVMH’s growth was positive and maintained its leadership position in the luxury industry. As the affluent middle class primarily drives the rapid growth of the luxury goods industry, LVMH needs to monitor them more closely and cater to their needs....
Words: 3633 - Pages: 15
