According to Coach's Website, the Company Has Built a Distinctive

question 61

Multiple Choice

According to Coach's website, the company has built a distinctive style and prestigious image over the past 40 years to develop a reputation as "America's preeminent designer, producer, and marketer of fine accessories and gifts for women and men including handbags, business cases, luggage and travel accessories, wallets, outerwear, eyewear, gloves, scarves and fine jewelry." Coach employs a multi-channel distribution channel to reach its customers, including company-owned stores and boutiques in the stores of prominent specialty retailers both within the United States and abroad, and the company operates an online store. Consumers who purchase coach products are generally willing to pay the premium price due to the superior quality of Coach's products as well as the perceived prestige of owning a Coach product. Coach stresses these features in its advertising campaigns and regularly allows movies and television shows to favorably feature Coach products in appropriate scenes. Over the last five years. Coach has partnered with automobile manufacturers such as Lexus to produce automobiles with Coach interiors. In an effort to expand its international reach, Coach intends to increase its international distribution and is expanding into Japan through Coach Japan, Inc., a joint venture with a local company that will allow Coach to control international distribution and to maintain a consistent brand strategy domestically and abroad.
-Given that the leather handbag market that Coach largely competes in can be considered a mature market, Coach should focus its product-differentiation efforts on

• A) exploiting a first-mover advantage as a basis of product differentiation.
• B) introducing radically new technologies as a basis of product differentiation.
• C) seeking a viable market niche that will enable it to survive.
• D) refining products as a basis of product differentiation.

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Definitions:

Positive Gain

An increase in value or beneficial results obtained from a certain action or investment.

Business Operation

Refers to the day-to-day activities and responsibilities involved in running a business.

Marketing Effort

The combined activities and strategies used by a company to market its products or services and achieve its marketing objectives.

SWOT Analysis

A strategic planning tool that evaluates the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture.