Week 12 Presentation Coach reaches Asia's emerging middle class BMA262 Consumer Behaviour Assessment Item 1: Group Assignment Natasha Ioannidis, Amanda James and Narelle Martin (134635)

1. COACH REACHES ASIA'S
EMERGING MIDDLE CLASS
Natasha Ioannidis, Amanda James and Narelle Martin

2. COACH
 Brief history on Coach
 Entry into China

3. SHOULD SOCIAL CLAS S ALONE BE USED
IN SEGMENTING CONSUMERS N CHINA
FOR LUXURY BRANDS ?
 Different types of segmentation. Such as geographical and
demographical.
 Example: a luxury item being marketed towards middle-upper
class consumers.

4. WHAT AR E THE ADVANTAGES AND
DI SADVANTAGES OF SUCH AN AP P ROACH?
 Advantage: Less time to determine who they are wanting to
market towards.
 Disadvantage: Not accounting for options outside the single social
class.

5. WHAT A R E T HE CHA L L ENGE S FAC ED B Y LU X U RY-B
R ANDED GOODS ENT E R ING CHINA AND
TA RGE T ING THE MIDDL E – C L A S S CONS UME R ?
Issues are related to market segmentation and positioning through
social class
 Luxury brand targeting middle class consumers.
 Devalues the brand image and reputation (quality and
prestige).

6. WHAT A R E THE CHA L L ENGE S FAC ED B Y
LU X U RY- B R ANDED GOODS ENT E R ING CHINA
AND TA RGE T ING THE MIDDL E – C L A S S
CONS UME R ?
An approach to minimise the impact of these challenges:
 Create a diffusion line.
 Main line targeted towards the upper class consumer.
 Diffusion line targeted towards the middle class consumer.

7. WHAT AR E THE DI S T INC T
CHARAC TER I S T I C S SHAR ED BETWEEN THE
CONSUMER S OF LUXURY B RANDS IN CHINA?
 Younger Generation
 Percentage of middle class
 Social Status
 Internet

8. C O N S I D E R T H E FA C T O R S I N F L U E N C E C H I N E S E
M I D D L E C L A S S C O N S U M E R FA S H I O N C O N S U M P T I O N
C H O I C E S A N D A P P L Y T H E M T O C OA C H
Four Main Motivators:
 Social Status
 Gifting
 Self-rewarding
 Following of Western Trends

9. C O N S I D E R T H E FA C T O R S I N F L U E N C E C H I N E S E
M I D D L E C L A S S C O N S U M E R FA S H I O N C O N S U M P T I O N
C H O I C E S A N D A P P L Y T H E M T O C OA C H .
 Strategy: Use of red and gold.
 Chinese consumers value red and gold.
 These colours symbolize wealth and luck in their culture.

10. WH A T C O M M U N I C A T I O N S S T R A T E G I E S S H O U L D
M A R K E T E R S O F C OA C H I M P L E M E N T T O T A RG E T T H E
M I D D L E C L A S S C H I N E S E C O N S U M E R ?
Currently using techniques such as:
 Famous personnel.
 Campaigns in conjunction with the Chinese New Year
celebrations.
 Online shopping options/Chinese website.

11. WH A T C O M M U N I C A T I O N S S T R A T E G I E S S H O U L D
M A R K E T E R S O F C OA C H I M P L E M E N T T O T A RG E T T H E
M I D D L E C L A S S C H I N E S E C O N S U M E R ?
Coach should look into techniques such as:
 Social media
 Billboard advertising
 Western advertising

12. THANK YOU