Week 8: Pricing/ Channels and IMC
Last weekend, one of our old friends from China visited us. When we went to MOA as one activity for his visit, he purchased a few handbags from the Coach store there for his bringing home gifts. I think there are several reasons for him to picking up Coach: “American” brand, Luxury brand, affordable. Therefore, Coach was a very strongest fashion brand among the more mass-oriented luxury brands purchased as gifts or by style oriented customers. 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.
I have a few of Coach products, most purchased at promotion prices since I like to have good stuff but not like to pay too much. I remember that the first bag I purchased is during Thanksgiving promotion sales and afterwards I received coupons which typically give 30% discount for a limited time frame.
1. Reflect on a firm or product you like which you believe is highly effective in bringing all the elements of the Mix together to create beautiful symphony for their consumers.
Coach is one of the brands I like the most. I think it is highly effective in bringing all the elements of the Mix together to create beautiful symphony for their consumers, like myself.
2. Who are the target audience for the company's market offerings?
Customers who like to have some luxury handbags for themselves or as gifts, but have limited budgets.
3. What are the tangible products the company offers?
4. How does the company utilize price, and place to enhance the value of its offerings and why do you think there choice work well together?
Coach's products were known for their high quality, but were priced lower than other designer products, such as LV, Gucci, Prada, Hermès, Channel, etc. Coach products are available through its stores, outlets and other licensed channels. However, you can not buy Coach products from discount stores, such as Marshalls. By doing this, Coach does differentiate itself from its competitors, such a Micheal Kors. When a product appeared in discount stores, its brand position may be eroded. However, Coach does price discount only for special times (such as Thanksgiving sales) and for some customers in their database.
5. Does the company have a unique approach to communications with their target audience? How is the approach well suited to the other elements of their mix?
Coach has a unique approach to communications with their target audience. Coach engages in several consumer communication initiatives, including direct marketing activities and national, regional and local advertising. As part of Coach's direct marketing strategy, it uses its database consisting of multimillion active U.S. households. Catalogs and email contacts are Coach's principal means of communication and are sent to selected households to stimulate consumer purchases and build brand awareness. The rapidly growing number of visitors to the www.coach.com online store provides an opportunity to increase the size of this database. I received email from Coach from time to time on its new designs or promotions. This increased its brand and product awareness and also attracted potential customers, either who like new styles or like to purchase at a discounted price. In the same time, this will not hurt its luxury brand position.
No comments:
Post a Comment