2-1 Blog: Uncovering New Market Segments?

by: Lupita Carmona

We live in an age where social media plays a crucial role in our lives as consumers. If you’ve been eyeing a certain product, chances are your Facebook and Instagram feeds are filled with ads for it, and places like Amazon are offering it at a lower price or showcasing alternatives. As someone whose favorite bag to take to work broke due to a zipper issue, I knew it was time for a new bag. While I don’t remember exactly how I came across my new large Evelyn Coach bag, I knew that TikTok would help answer my questions, and that purchasing it would be ideal, since luxury bags take their time to break down.

Market Segments and Strategies

As someone who has grown up in the era of Coach, I am a millennial, and Coach caters to young professionals and millennials. Most of the Coach bags offered are for business purposes. While also catering to the middle and upper classes, this is differentiated by Coach Outlet stores and actual Coach stores. Both men and women can enjoy the luxury goods Coach offers. With this information, Coach uses demographic, psychographic, geographic, and behavioral segmentation.

• Demographic Segmentation is a type of consumer segmentation that involves grouping consumers based on shared demographic characteristics to create more effective marketing campaigns. (www.experian.com) This would include age, gender, income level, and occupation. As a 32-year-old female earning about $52,000 a year and a pharmacy technician, I fit the demographic for Coach.
• Psychographic Segmentation is a marketing strategy that involves understanding your audience’s values, interests, attitudes, and lifestyles to create targeted audience segments. (www.business.adobe.com) The bag I chose is luxury without spending the dollars on other luxury brands like Louis Vuitton and Dior. Consumers buying from Coach choose it for its luxury at a fraction of the cost.
• Geographic Segmentation is the practice of dividing your target market into groups based on their specific physical locations.(www.experian.com) Coach stores are located in populated areas and shopping centers where tourists can access their luxury goods. A well-known area to this author is the Coach store at Disney Springs in Orlando, Florida. Where luxury is offered, and special editions with Disney characters can be purchased.
• Behavioral Segmentation is grouping or segmenting certain audiences of users based on actions they have taken in their customer journey(www.business.adobe.com). As a consumer, I’ve purchased Coach items twice in the last six months. This shows Coach’s marketing team that I am a strong consumer, and emails help keep me informed about new releases, which keeps their consumers coming back.

Segmentation Strategies Key Points

1. Understand the target consumer- Coach researches customer age groups, income levels, fashion preferences, and shopping habits to better understand its audience.
2. Use multiple types of segmentation-Coach uses demographic, psychographic, geographic, and behavioral segmentation together.
3. Maintain consistent brand positioning-Coach positions itself as an “accessible luxury” brand, meaning customers receive fashionable, high-quality products at prices lower than ultra-luxury brands.
4. Adapt to market trends and consumer preferences-Coach has adjusted its designs, social media marketing, and product lines to appeal to younger consumers and changing fashion trends.
5. Build a strong customer relationship- Coach uses loyalty programs, online engagement, personalized marketing, and outlet stores to encourage repeat purchases and customer loyalty.

New Market: Market Segment

Sustainable materials would help target Gen Z and Millennials who are interested in the environment. Secondhand and resale fashion would also help the company reach new markets. A company that reminds me of this is Patagonia, which offers brand-new products to consumers while also offering a resale option on its webpage. A lightly used items page would help the consumers who can’t afford Coach products, similar to the bag shown below.

Market Segment strategy

Coach needs to understand every consumer and implement market startegies that will help the company target their intended audience while also understanding that the market is changing and luxusry goods are still the cosnumers favorite but need to adhere to changing standards like a sustainable leather or a bag made from recyled materials that turned into a sustainable fabric.

Reference:

(2021). Market Segmentation [Photograph]. Google Images. https://www.google.com/search/about-this-image?img=H4sIAAAAAAAA_-MS4Viw6t26BycnfVUV2NhyuGf213eXBQCUdcpCFgAAAA%3D%3D&q=https:%2F%2Fclevertap.com%2Fblog%2Ftarget-market-vs-market-segmentation%2F&ctx=iv&hl=en-US&sa=X&ved=0CA8Qg4ILahcKEwiwubaVzcuUAxUAAAAAHQAAAAAQIQ

(n.d.). Demographic segmentation overview. Experian. https://www.experian.com/marketing/resources/audience/demographic-segmentation

(n.d.). Psychographic segmentation: Understanding your audience. Adobe for Business. https://business.adobe.com/blog/basics/psychographic-segmentation

(n.d.). Geographic segmentation in marketing campaigns. Experian. https://www.experian.com/marketing/resources/audience/geographic-segmentation(n.d.). Geographic segmentation in marketing campaigns. Experian. https://www.experian.com/marketing/resources/audience/geographic-segmentation

(n.d.). What is behavioral segmentation? Adobe for Business. https://business.adobe.com/blog/basics/behavioral-segmentation

(2026). Evelyn Bag [Photograph]. Coach Outlet. https://www.coach.com/products/evelyn-large-shoulder-bag-with-quilting/CCZ81-IMBLK.html?COHNA=true&ogmap=PLA|ACQ|GOOG|STND|c|SITEWIDE|Outlet|Coach_OTL_Google_PLA_Signal_NA_Unified_National_PMAX_NA_BAU_Bags|PMAX_Unified||21702583586||US&utm_source=google&utm_medium=cpc&utm_campaign=Coach_OTL_Google_PLA_Signal_NA_Unified_National_PMAX_NA_BAU_Bags&utm_id=go_cmp-21702583586_adg-_ad-__dev-c_ext-_prd-CCZ81_IMBLK_sig-CjwKCAjw2rrQBhBuEiwAarLWHWatcmuqsrKT0i2EOQM621Gmi0TW_3m9nnI3yC28H-YI-dqpJ7n9JRoCI4AQAvD_BwE&gclsrc=aw.ds&gad_source=1&gad_campaignid=21702585119&gbraid=0AAAAADPVaeqNwtlXTcxDQkDhokNtrRe5W&gclid=CjwKCAjw2rrQBhBuEiwAarLWHWatcmuqsrKT0i2EOQM621Gmi0TW_3m9nnI3yC28H-YI-dqpJ7n9JRoCI4AQAvD_BwE

(2026). Empire Bag [Photograph]. Coach. https://www.coach.com/products/soft-empire-carryall-bag-48/CW617.html?frp=CW617+B4%2FBK