1.What challenges does Coach face in pricing its vast product line?
-The company Coach has always been the premium and powerful brand known for its high quality that
serves as a status symbol.But,the company’s profduct portfolio has dilutes with the availability of other
high quality product producing competitors in the same segment.Coach has own outlet stores and
consumers had lost the feeling og uniqueness and don’t feel like buing the same.
2. Based on principles from the chapter, explain how price affects customer perceptions of the Coach
brand.
-Price greatly affects the perception of consumers about the product but sometimes people think that
the more expensive it it is the better it is ,but sometimes it’s true and sometimes not.As for the Coach
company,it is known as the brand of the symbol of luxury,taste and success.And when consumers buy
the product from this brand,they simply feel rich,in taste and successful people.
3. How has increased competition at Coach’s price points affected the brand’s performance?
-As we know,competition has a big impact on the business world and sometimes has a bad effect on the
company.But Coach had a lot of competitors in the market.So considering that whereas stores that
carried Coach products also sold mid-tier handbag brands for moderate prices, Coach bags were priced
as much as five times higher. It might seem that such a high price would scare buyers off.But even
though it bothered the company a bit,Coach had competitors like Gucci,Fendi,Prada that the prices
unlike Coach were fifty times higher.
This company didn’t stop working,it only produced new products but also started producing products
for men,which had a lot of profits.But this situation didn’t last long as a new brand called Michael Kors
came on the market where it there was an increase from 4.5% to 7% while Coach fell sharply.
4. Will the plan proposed by current Coach’s leadership be successful in reversing the brand’s slide in
market share? Why or why not?
-I think yes,since the company it self said in the end that a company is good where it recognizes and