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Coach: introduction of an American leather goods producer to the French market

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  1. Overview of the French leather good market.
  2. Segmentation, targeting and positioning.
  3. Product policy.
    1. Definition of the range of products.
    2. Choice of the product line.
    3. Price positioning.
  4. The distribution policy.
  5. Communication plan.
    1. Objectives.
    2. Means: Choices and actions.
    3. Budget.
  6. Sales forecasting.
  7. Bibliography.

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 - - 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. [...]

[...] However, to improve the impact of these paper advertisings, a muse could be chosen. The advertising will all the more catch the readers' attention as the model on the picture is known. The right balance between the idol (maximum impact) and the growing star/declining star (less expensive) has to be found. For instance, Ludivine Seigner (aged Marion Cotillard and Audrey Tautou could make great muses: they are well-known, but are not a reference in the French cinema yet. To hit an older target, Carole Bouquet Hélène Ségara Catherine Zeta-Jones Mathilde Seigner or Valérie Lemercier could be good muses as well. [...]

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