MKTG Management 9/8/2011 Coach, Inc. Case Study Executive Summary (Problem) The global luxury goods industry consists of men’s, women’s and children’s designer apparel, fine watches, jewelry, and leather goods and generated revenues of over $105 billion in 2005. U.S. companies held a 14% share of the market following Swiss, French and Italian companies who accounted for 19%, 22% and 27% market shares respectively. The market in the U.S. has grown recently in part due to the weak state of the U.S. dollar; companies are able to benefit from the converting of the international currency back to the U.S. currency. Buying habits of U.S. consumers have also characterized the growth of the industry. Middle-income consumers have begun to desire products with higher levels of quality and style.
Perceptual Maps in Marketing Simulation Summary MKT/421 Perceptual Maps in Marketing Simulation Summary Thorr Motorcycles is a name that illustrates power and superiority. Its chief product, CruiserThorr, reflects the development of an effective marketing mix through careful positioning. In the simulation, the CruiserThorr sales are declining. For many reasons including price, service, and competition, Thorr Motorcycles must assess the marketing mix and determine what course of action will re-establish CruiserThorr to a competitive status in the market. The options presented are repositioning the CruiserThorr or introducing a new motorcycle.
HD offers a broad selection of 32 products models, has 650 dealers in the US & has the largest market share in the US. However, Harley only has 7.7% of European market share (the second largest motorcycle market in the world) & 25.3% of the Asian/Pacific region.. Clearly, HD’s strenghts are in the US market, as 90% of Harley’s revenue comes from the US sales Concernig the liquidity ratio (ability to turn short term assets into cash) or the leverage ratio (how much a firm is financed by debt), HD is doing better than the industry average in his category & significantly better than its main competitor Honda. A threat for HD is certainly the price of the motorcycle in comparaison with the competitors. An explanation is that they want to use the best quality material but also the best labour competencies. They also invest a lot in the R&D department.
Mercedes would pay $4000 and the Traveler would pay $3200. I included a rebate for both brands in the third quarter so the sales would increase and they did. The Speed computer included engineering applications, office applications; ability to link with other computers and a fast and powerful machine these features met all the needs of the Mercedes customer. The Aloha included office applications, portability, ease of use ability and ability to link with other computers; these features met the needs of the traveler population. I chose to place offices in NY - North America and Tokyo- Asia because both brands had the greatest demand in both of these locations.
T-Mobile and AT&T are the largest companies that know as the American Telephone Network and have greatest service to the customers. T-Mobile is one of the leading mobile network operators in the world. Today, the company operates worldwide, though it is headquartered in Germany and European market was traditionally the main, target market of the company. Nevertheless, the process of globalization stimulated T-Mobile to develop its business internationally and the company has entered successful mobile network markets in many countries of the world, including the USA. The company's approximately 33 million contract and prepaid consumer customers use its network domestically and are able to connect to the compatible network of its parent company when in Europe.
What are the driving forces for Coach’s industry? Coach, Inc. is a luxury fashion company that got its start manufacturing small leather goods. Coach’s strategy created the”Accessible” luxury market. Basically, A Company’s external environment including Industry and competitive environmental conditions which is operating environment and driving forces acting to reshape this environment. In terms of the external environment of luxury goods industry, the world’s most well-to-do consumers spent more than 224 billion dollars on luxury goods in 2010, U.S. represented 30 percent of industry sales.
Ducati Meccanica’s competitive advantage was its engine. Ducati’s new types of engines, high in performance, were among the leading racing brands in Italy. Technically strong, Ducati could utilize its distinct competitiveness to enter into engine businesses for boats, recreational vehicles, and cars similar to Honda. Ducati has proven itself in the motorcycles market in terms of its performance and reliability. However, if Ducati wants to enter into other markets, it would have to first address manufacturing and financing issues to meet the potential demand.
Thorr Motorcycles appeared exceptionally successful in its marketing attempt, which moved their higher end motorcycle models to the next grade. Thorr Motorcycles maintained a 40 percent market share because of iconic brand loyalty. For extended period, sales had decreased. This appeared largely because of constant changing market demographics that seemed characteristic of a
The production of the assembly line gave the Ford Motor Company a huge advantage in succeeding in the U.S. market. Within ten years of producing the Model T, in 1923 it made up nearly half of all cars sold in the United States. For the time being Ford was the largest and one of the few automobile producers at the time therefore having very little competition which allowed it to flourish. Ford Motor Company eventually grew so large to establish itself as the worlds largest automobile producer. Businessmen came to Detroit from all over the world to see the operation for themselves and to try and take Ford’s methods to use themselves.
Should La Martina fight the trend or capitalize it? Was it time to raise more capital and grow internationally or stick to the brand DNA? 2) Alternative Solutions: 1st alternative solution: First alternative for Lando could be taking full control of his brand. He should consider important lecutres from his rich career and rely on his business experiences. Lando should stick to La Martina DNA and raise sells to previous primary niche (society polo players) functional equipment for polo players and put emphasis on polo lifestyle.