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COACH

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(FedEx) Signature C in the Supply Chain. COACH controlled the distribution ... Does COACH use FedEx or UPS? What is the average income of COACH customers today? ... – PowerPoint PPT presentation

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Title: COACH


1
COACH
  • Kyle Baggett
  • Lesli Brown
  • Jessica Whitaker
  • Adam Yeatts

2
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

3
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.

4
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 locations.

5
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 locations in Japan.

6
MARKET STRATEGY (CONT.)
  • Finally, they are continuing to drive gross
    margin higher and leverage their expense base.

7
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

8
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.

9
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

10
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.

11
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

12
(No Transcript)
13
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

14
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.

15
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.

16
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

17
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

18
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?

19
REFERENCES
  • Phone Interview
  • Andrea Shaw ResnickVice President - Investor
    RelationsCoach, Inc.516 West 34th Street, 5th
    FloorNew York, NY 10001212-629-2618
    telephone212-643-1743 faxaresnick_at_coach.com
  • Official website of COACH www.coach.com
  • Additional website http//www.indianchild.com/fas
    hion/coach_purses.htmCoach
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