Let us briefly recall the features of the French leather goods market. This market is composed of 123 enterprises generating a turnover of 1703.2 billions euros. In France, approximately 14.000 employees are working for leather goods companies. The low and middle price companies have entered a real price war and provide themselves in Asian countries. The top of the range companies are the only ones that are able to prosper. They are in an expansion strategy and seek constantly to expand their distribution network. Producers export increasingly their products and the demand keeps growing. To answer to this demand, top of the range producers extend their range of product and develop new points of sales concept. The main actors of this market are Christian Dior, Gucci Group, Hermes International, LVMH, Prada and Richemont. Coach sells fashionable quality leather goods, whose prices are high. The brand still benefits from a strong reputation in the USA and Japan.
[...] VI) Sales Forecasting Coach has a lot of ambition on the French market and expected to reach a market share on the leather goods market of for the first year for the second year and 10% for the third year. Here are the sales forecasts per categories of products for the three next years (in euros)*: trimest trimest trimest Semester semester Semester semester 19000 HANDBAGS Legacy Evening Bags Coach Ergo Hampton Hampton 5000 ACCESSORIES French purses Belts Charms Wristlets Planners 4000 Travel and business Totes Briefcase For men Messenger Briefcase Travel VII) Forecasts Bibliographie - http://www.coach.com - Xerfi 700 Maroquinerie et articles de voyage juillet 2006 [...]
[...] goal of the brand is to reach a market share of on the French market for the first year for the second one and 10% for the third one. The current strategy of Coach is to manufacture leather goods products with high quality stuff but assembled in countries with low labour costs. This strategy allowed the brand to sell its products twice cheaper than Louis Vuitton ones for instance. The strategy of Coach for the French market would be to compete with the top of the range brands and to make Coach accepted as top of the range too. [...]
[...] As an authorized specialty store, Galleries Lafayette seems to be a good distribution channel as it focuses very well on events such as Christmastime, the start of academic year or even Mothers' and Fathers' Days, which are the more important sales periods for leather shops. Moreover Galleries Lafayette could be a good means to present new or original products compared to competitors. All the more that the Xerfi report teaches us that innovations in design by the fashion creators influence demand. [...]
[...] As a consequence, there will be an extension of their own outlets, where all their products are visible, appears to be the more adapted positioning. However, the number of these stores has to be limited to the greatest towns (the first 10 of France), and keep being located in rich town centres in order to stay relatively rare and attractive. To another extent, and as Coach doesn't want to sell its products by another websites than its own, it could however present its products on website such as prestigium.com without selling them. [...]
[...] Fashion magazines These magazines are aimed at active women aged between 25-55 who take care of themselves. Elle, Mademoiselle, Vogue . is some examples. Sections devoted to clothes, fashion and accessories are bigger than in gossip magazines. To benefit from these sections as a source of free advertising, the same methods as those described above could be used. Even if these magazines are perfect to promote Coach in theory, most of its competitors might use the same process. At the end Coach might be unnoticed Advertisings should of course be published in gossips and fashion magazines. [...]
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