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					COACH
Kyle Baggett
Lesli Brown
Jessica Whitaker
Adam Yeatts
BRIEF BACKGROUND
   COACH was founded in 1941
   6 artisans in New York
    started the collection of
    leather goods
   Inspired by a baseball glove
    and considered a classic in
    American design
   Licensing partners for shoes,
    watches, sunglasses, and a
    variety of other products
MARKET STRATEGY
   First, COACH is building market share in the ever
    popular U.S. women's accessories market by
    leveraging our unique position as an accessible
    luxury lifestyle brand. As part of this strategy, they
    are emphasizing new usage occasions, such as
    weekend or evening, and offering items at a broader
    range of prices as well.
MARKET STRATEGY (CONT.)
                Their second
                 strategy is the
                 continued
                 acceleration of
                 growth in U.S.
                 retail. By planning
                 to add 100 U.S.
                 retail stores over
                 the next four to five
                 years, they hope to
                 bring the retail
                 store base to
                 nearly 300
MARKET STRATEGY (CONT.)
                Third, they are
                 aggressively
                 expanding market
                 share with the
                 Japanese
                 consumer, by
                 jumping 3% during
                 the next few years.
                 They will continue to
                 open select new
                 retail locations,
                 including Flagships.
                 This year they are
                 expecting to open at
                 least 10 new
MARKET STRATEGY (CONT.)

               Finally, they are
                continuing to drive
                gross margin
                higher and
                leverage their
                expense base.
CUSTOMER PROFILE
              Accessible luxury
               accessories brand
              The average consumer is
               in her mid-to-late 30's,
               college educated, in the
               white collar workforce.
              Household income
               averages $100,000
              Endorses include famous
               celebrities like Rebecca
               Romijn, Eva Longoira
              The Signature "C" one of
               the popular product
               demand intended for a
               younger generation of
               consumers
RELATIONSHIP TO SUPPLY CHAIN

   COACH customer base is very broad and
    diverse from both a demographic and
    geographic basis. This requires a broad
    platform of products to market and appeal
    to a wide range of consumers. Factories
    have to be nimble and able to work with a
    wide variety of materials and products. The
    products must be shipped all over the world
    which in turn requires planning and
    logistics.
COMPANY ORGANIZATION
   50 individual factories all around the
    world in terms of production
   Distribution center (Jacksonville, FL)
   Warehouse in Tokyo
   16 Production facilities, which are
    NOT COACH owned, around the
    world
   Shipping lines are done by air and
    ground transportation
                SIGNATURE C
               START TO FINISH
   Designed in NYC, sample makers in NYC, line
    presentation to business units to determine demand
    levels, design card with "recipe" for product
    prepared, raw materials sourced (development of
    raw materials starts well in advance), pattern is sent
    to factories, production begins, finished product is
    sent, usually via ship across the Pacific and either
    thru the Panama Canal (all water) to a southeastern
    US port or into California docks to go via train (mini
    land bridge) and truck to Jacksonville DC. It is then
    picked and packed and sent to our stores or
    wholesale customers.
         Where does the leather
             come from?
   Leather is obtained as a by-product of
    the meat industry across the globe
   COACH is very picky and the top 10% of
    hides are purchased to go to tannery
    facilities.
   Now the jobs are outsourced to several
    different countries to lower cost and
    increase quality
                    COACH
             SUPPLY CHAIN SYSTEM

Finished
Goods
                                          Retail and
                              Transport   Department Stores
           Finished Goods     Suppliers
           Received at        (FedEx)
           Distribution
           Center in
           Jacksonville, FL   Transport
Finished                      Suppliers   Retail and
Goods                         (FedEx)     Department Stores
      Signature C in the Supply Chain
   COACH controlled the distribution level of
    Signature "C“
   Even within the factory division, currently not
    every factory store even carries the "C"
    products
   It took COACH the better part of 3 years to
    release old "C" to select factory stores
   This limited supply has helped to increase
    customer demand as well as brand equity
         INVENTORY CONTROL
   Internal Corporate Merchandising Planning group
    which works with our business units to determine
    production from the SKU level and roll it up to an overall
    forecast/order.

   Automatic, dynamic, unit stock replenishment systems
    in stores, 'tell' our Distribution Center in Jacksonville
    when to replenish our stores.

   Direct shipments from the Jacksonville Distribution
    Center are

   Shipments are sent to stores 4 times a year, at the
    beginning of each main product phase.
Who can distribute Coach?

   COACH stores, factory stores, catalogues,
    authorized department stores, and online
    catalogue.
   The catalogue is important in the USA and
    abroad.
   On-line store at www.coach.com started in
    1999.
Shipping
   Jacksonville fills individual store needs
    using Fed-Ex ground, Fed-Ex Express.
   3rd party trucking lines are used in Japan
   Store distribution needs are also met with
    transfers from other stores
   Full price to factory is the most common, an
    example would be a discontinued product
Use of Information Systems
   The use of CAD/CAM systems
   Customer Service modules for order
    fulfillment
   Warehouse management system that allows
    pick n pack in the distribution center
   Online routing guide that lets the stores know
    what day of the week orders are pulled and
    when they should be shipped
   Shipment reports are generated that report
    exactly how many cartons are shipped and
    what is shipped
                Quiz Time
   Does COACH use FedEx or UPS?
   What is the average income of
    COACH customers today?
   What is the most popular current
    product?
   What other country is a big player in
    COACH?
                     REFERENCES
   Phone Interview
    Andrea Shaw Resnick
    Vice President - Investor Relations
    Coach, Inc.
    516 West 34th Street, 5th Floor
    New York, NY 10001
    212-629-2618 telephone
    212-643-1743 fax
    aresnick@coach.com

   Official website of COACH www.coach.com

   Additional website
    http://www.indianchild.com/fashion/coach_purses.htmCoach

				
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posted:2/8/2010
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