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Coach is the number one seller of handbags in the U.S., selling $5 billion company worth of handbags every year. All financials have grown vigorously

Coach is the number one seller of handbags in the U.S., selling $5 billion company worth of handbags every year. All financials have grown vigorously in the past few years. Coach has achieved this success through value-added pricing. What makes its products worth more? Quality (materials, workmanship), design/style, and above all, the value of the brand as a status symbol do. The bags are pricey, but they are moderate to even cheap when compared to the higher-end handbags from Prada and Gucci. It's aspirational but within reach. The problem the company now faces is that it is losing its share in the U.S. (two years in a row). Various factors contribute to this, including increased competition. But there is also criticism that Coach may have overestimated just how high price customers are willing to pay. This case examines the challenges a premium-priced brand faces as it becomes popular across demographics.

  1. Define the concept of the product line, examine Coach's product lines, and discuss Coach's strategy of product line pricing for its vast product line.
  2. Explain how price affects customer perceptions of the Coach brand, using positioning map to discuss Couch's positioning and competition strategies in the market.
  3. Discuss the potential multi-channel conflicts. Provide your recommendation on how Coach could use Omnichannel as a content strategy to improve their customer experience (Omnichannel supersedes multichannel and includes channels such as physical locations, eCommerce, mobile applications, and social media).

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