Posted: May 25th, 2022

Coach Channel Management Analysis Essay

Coach Channel Management Analysis

Coach Inc., Distribution Channel Analysis

Don't use plagiarized sources. Get Your Custom Essay on
Coach Channel Management Analysis Essay
Just from $13/Page
Order Essay

Company Description and Overview

Coach Inc., (NYSE:COH) is a globe leader in fine accessories and gifts market, and one of the most profitable competitors in the leather goods and luggage manufacturing globally. Coach generated $4.76B in Revenues in their latest full fiscal year and earned a Net Income of $1.04B. Coach is a highly profitable business, earning 21.77% Net Profit Margin, 30.44% Operating Margin and 33/12% Return on Assets (ROA) in addition to a Return on Average Equity (ROE) of 51.3%. An eleven year financial ratio analysis is include in Appendix A, Coach Inc., Ratio Analysis. These financial accomplishments are significant given how consolidated the fine accessories and gift markets have become in recent years with the company reporting that their own market research shows the overall industry consolidating at a negative growth rate of 9.6% from 2007 to 2012, with continued consolidation, dropping 2.4% from 2012 to 2017(Coach Investor Relations, 2012). Industry analysts are predicting that there are approximately 4,700 companies competing in this industry today and that in the U.S. alone the manufacturing and sales of leather handbags and accessories generates $1.8B in profits (IBIS Research, 2012). Coach has less than 1% market share of the global industry, yet has significant market share in the affluent (over $100K income) buyers located in North America, Asia and throughout the Middle East, which is growing rapidly as a source of revenue for the company (IBIS Research, 2012). Coach is unique in that it competes across a wide variety of product categories in the high-end of the market, taking on significant inventory risk by sourcing men’s and women’s handbags, accessories including business cases and backpacks, in addition to footwear, jewelry and sunwear for women and men. The company has also successfully move into fragrance and watches, two product lines generating well over 50% gross contribution margins per the company’s latest financial statements (Coach Investor Relations, 2012).

Coach relies on a Direct-to-Consumer and Indirect channel strategy, which gives them greater visibility into customer demand while at the same time concentrating the company’s focus on key markets (Coach Investor Relations, 2012) . The company has stores in Japan, Hong Kong, Macau, mainland China and North America and continues to enjoy success in the Middle East with this Coach catalog and Internet-based e-commerce strategies (IBIS Research, 2012). Coach operates 345 retail and 143 factory-based stories in 20 countries (Coach Investor Relations, 2012).

Market and Competitive Analysis

Coach continues to gain profitable sales and is able to attain significant sales due to the high level of customer loyalty and brand value that its products provide. The company satiates that 65% of sales are from returning, loyal customers, which is the highest repurchased rate of any retailer in their competitive arena (Coach Investor Relations, 2012). In evaluating the competitors in this market, industry analysts have commented how fragmented its structure is, and how differentiation through customer experience and breadth of products is critical for success (IBIS Research, 2012). Coach has been able to grow to a $4.9B corporation due to making their business excel on these dimensions. Competitors most prevalent include American Apparel and Tandy Brands, in addition to private-label suppliers for mass merchandisers including French conglomerate Carrefour, United Kingdom-based Tesco and Wal-Mart. These three mass merchandisers are increasingly sourcing low-end knock-offs of Coach-based designs, changing the labeling and packaging to alleviate potential copyright infringement (IBIS Research, 2012). The next effect of their competitors continually pursuing a low-end pricing strategy is a net reduction in the total revenue for the industry as was shown in the introduction of this analysis. Price wars are breaking out on low-end products that Coach sells, further accelerating the commoditized of this industry as well (Coach Investor Relations, 2012) (IBIS Research, 2012).

Based on an analysis of the industry from IBIS Research (2012) and from the financial statements from Coach, the graphic shown to the right has been created.

Figure 1: Analysis of the Leather Goods and Luggage Manufacturing Industry


(Coach Investor Relations, 2012)

(IBIS Research, 2012)

Current Distribution Structure and Strategy

Coach currently selling through a classical multitier distribution channel structure, relying on 345 retail and 143 factory-leased stores in the U.S. alone and also maintained retail locations in 20 countries (Coach Investor Relations, 2012). Coach is the dominant high-end retailer of gifts and accessories in Jana where the typical customer earns in the top ten percent of income in that nation (which is equivalent to North American incomes over $150,000 a year)(IBIS Research, 2012). Due to this affluent and highly loyal customer base, Coach can afford to operation 169 department store shop-in-shops that are based on alliances with Japanese department stores (IBIS Research, 2012). Un addition the company has over two dozen factory stores in Japan and over a dozen factory stores in Hong Kong, Macau, and mainland China.

The following is an overview of their current distribution channel strategy:

Coach Inc., SWOT Analysis

Coach continues to be successful in a highly commoditized industry due to the following strengths, and the unique approach the company is taking to address weaknesses and threats. The opportunities are also very significant for the company, which could easily lead to Coach being over $5B in revenue by 2015 according to financial analysts’ forecasts (IBIS Research, 2012). The following is a list of the strengths, weakness, opportunities and threats of Coach:


Excellent brand recognition and a defensible position as an “affordable luxury” brand with the broadest product portfolio of the industry (IBIS Research, 2012).

Highly profitable and able to quickly design then source from suppliers unique and differentiated products, despite a weak global economy.

Excellent multichannel management and the ability to balance department stores in their channel mix without resorting to price wars.

65% of customers return to purchase additional products (Coach Investor Relations, 2012).


Highly dependent on foreign suppliers and an unstable supply chain for many of their products (IBIS Research, 2012).

Competing in an industry that is known for price wars and rampant consolidation, Coach has no low-end product liens they can counter with that also deliver their high gross margins.


Strong brand recognition and aspirational sales in China; this represents the single largest potential to Coach and could lead to them being a $5B company by 2013.

Joint ventures with global partners throughout Asia, the Middle East and Europe also show significant potential (Coach Investor Relations, 2012).

Strong catalog and e-commerce sales globally with the Middle East being one of the leading regions of sales through these channels.


Pervasive threat in the industry are counterfeit goods, which are according to IBIS Research responsible for the company not being $5B in sales already

(IBIS Research, 2012).

Exceptionally strong price competition throughout North America, with competitors often partners with mass merchandisers including WalMart to gain distribution while lowering price.

Proposed Distribution Structure and Strategy

Coach will increasingly be competing with mass merchandisers who will increasingly attempt to drive down prices and force consolidation of the industry. The aspirational value of the Coach brand is very strong, and will continue to drive consumers in Asian nations especially to save nearly 30% of their monthly incomes to buy a stylish handbag or briefcase, a common practice in the emerging economies of China (IBIS Research, 2012). Second, Coach is not addressing the customization segment of their business as well. Creating a separate channel called My Coach, which would personalize items for the high-end consumer, could deliver 60% or greater gross margins. The proposed multichannel strategy is defined below with MyCoach designed to capture higher-end customization sales, thereby protecting gross margin and the Indirect channel organization given the role of managing products to the highest profit and sales possible across factory outlets, company-owned stores and department stores.

Marketing Strategy Recommendations

These recommendations are specifically designed to give Coach the agility it needs to stay profitable while also combating the severe price erosions occurring in their industry today. The Channel Management — Indirect group will concentrate on managing each of the Coach products to their maximum level of profitability, taking into account which stage of the product lifecycle they are in, what the demands are in regional markets, and how critical the need is to combat mass merchandisers discounting by selling specifically to the loyal Coach installed base. The MyCoach initiative is specifically designed for the top ten percent of the Coach installed base globally, giving them the chance to further solidify their loyalty to the brand and create truly unique products just for their use. This is the epitome of effective branding, as it gives the long-standing loyal, and very affluent buyers a chance to immediately define their identities with the brand. As Coach is highly aspirational, more and more customers will seek to be included in the MyCoach channel programs and sales.


Coach Investor Relations (2012). Investor Relations. Retrieved August 13, 2012 from Coach Investor Relations and Filings with the SEC:

Luggage & Leather Goods Stores Industry (NAICS 44832). (2012). United States Luggage & Leather Goods Stores Industry Report, IBIS Research. New York, NY. 1-92.

Appendix A: Coach Inc., Ratio Analysis

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment  Help Service Works

1.      Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2.      Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3.      Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4.      Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essaysmile and order essay PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!

order custom essay paper

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.