Building Brand; Curbing Cannibalism

Coach LogoAccording to some marketing pundits, whether in the high-flying world of luxury goods or the pedestrian realm of tech companies, brand is everything.  But how can you build brand across multiple sales channels without letting one channel cannibalize the other?

The answer lies, as always, in knowing your customer.  Take, for example, Coach, a handbag and accessory maker, that sells its products in both high-end, full-price stores and cut-price factory outlets.  An uninformed observer may posit that these channels would tend to cannibalize each other.  Not so, according to Coach research.  Because Coach took the time to understand its customers, it knows that those that patronize each outlet are different:

  • The Coach full-price shopper is a 35 year old single working woman who values fashion
  • The Coach outlet shopper is a mid-40s mother with 2 children who prizes function over fad

Understanding the customer and catering to her unique desires in each of its channels helps Coach maintain its brand and profitability.

Worried about cannibalization in your business?  Perhaps it is time to understand your customer better …

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