1.) Coach has been described as “a textbook lesson on how to revitalize a brand” (see Case 6-1 below). The same could be said for Burberry, the British fashion goods company. Locate some articles about Burberry and read about the research its management has conducted and the formula it used to polish the brand. Are the approaches evident that Burberry and Coach similar? Are they competitors?
(case 6-1) For years, Coach was known as a purveyor of sturdy, long-lasting leather goods. Although many professional women appreciated the conservative styling of the signature Coach bag, they did not necessarily regard Coach’s accessories as must-
have fashion items. Today, the Coach brand is viewed as cutting-edge, and in key countries such as Japan, Coach’s share of the luxury fashion accessories market has doubled and tripled. The company has become particularly adept at creating and marketing new types of handbags for various occasions. In an industry dominated by Prada, Gucci, Chanel, and other luxury brands whose bags can sell for hundreds of dollars, Coach pioneered the concept of “accessible luxury.” How has Coach CEO Lew Frankfort accomplished this transformation? For one thing, the company’s varied distribution channels and network of factories in more than one dozen countries means that its products cost an average of 40 percent less than those of competitors. But price is only part of the story; marketing information systems and extensive consumer research are equally important. Company executives rely on daily feedback from department stores, the company’s stand-alone boutiques, the Coach Web site, and factory outlet stores. In addition, new designs are test-marketed with an obsessive focus on “the numbers.” As Reed Krakoff, Coach’s head designer for handbags and accessories, explains, “When something doesn’t sell, I never say, ‘Well, people didn’t under- stand it.’ If people don’t understand it, it doesn’t belong in the store.”
Coach’s resurgence in the competitive fashion goods business shows how information about buyer behavior and the overall business environment is vital to effective managerial decision making. When researching any market, marketers must know where to go to obtain information, what subject areas to investigate and information to look for, the different ways to acquire information, and the various analysis approaches that will yield important insights and understanding. However, similar challenges are likely to present themselves wherever the marketer goes. It is the marketer’s good fortune that a veritable cornucopia of market information is available on the Internet. A few keystrokes can yield literally hundreds of articles, research findings, and Web sites that offer a wealth of information about particular country markets. Even so, marketers must do their homework if they are to make the most of modern information technology. First, they need to understand the importance of information technology and marketing information systems as strategic assets. Second, they should have a general understanding of the formal market research process. Finally, they should know how to manage the marketing information collection system and the marketing research effort. These topics are the focus of this chapter.
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