Marketing strategy of Michael Kors: Michael Kors is a famous brand created by an award-winning designer of high-end accessories and ready-to-wear items. It was founded in 1981, with its headquarters being in New York. The range of products includes watches, footwear eyewear, jewelry and accessories, and the entire line of perfume products.
The stores are run by licensing partners or directly through the most famous cities around the world like New York, Beverly Hills, Chicago, London, and Milan.
Michael Kors, the designer has received a variety of honors in the fashion industry. He was also recognized for his charitable work.
Did You Know About Michael Kors?
Company : Michael Kors
CEO: John D. Idol
Founder: Michael Kors
Year founded: 1981
Headquarters: New York, NY US
Annual Revenue: 4.71 billion USD
Profit | Net income: 839.1 million USD
Products & Services: Men’s and women’s ready-to-wear, accessories, watches, jewelry, footwear, and fragrance.
Michael Kors Fun Fact: Michael Kors is an American designer best known for his fashion company and as a judge for the popular television show ‘Project Runway. ‘
Marketing Strategy of Michael Kors – Segmentation, Targeting, Positioning
Based on Ashley Lutz in Business Insider Michael Kors succeeded because it was among the first companies to tap precisely the market and targeted people who were not wealthy but could afford to spend.
A few of the variables utilized to segment the market are you can find the demographics psychological and geographical. Based on the category of demographic segmentation, Michael Kors targets those who earn between $100,000 and $250,000.
The market was also segmented by size and consumption capacity. It also categorizes the market according to the logistic accessibility, growth potential, and expected. Kors customers include housewives, working women, and those of a younger age. Because Michael Kors is a well-known persona of this brand, and also is a well-known famous person Kors is popular with stars. They love him just as equally as they are awed by the brand.
Michael Kors Mission Statement
” to bring a sophisticated jet-set lifestyle to women and men around the globe.”
Michael Kors Vision Statement
“to bring our vision of a jet-set, luxury lifestyle to women and men around the globe.
Michael Kors Tagline
“I design for women and men who need clothing and accessories that can keep up with their fast-paced lives and make them feel like their best selves.”
Marketing Strategy of Michael Kors – Competitive Advantage
One of the only competitive advantages Michael Kors has enjoyed is the fact that it has the most recognizable branding. Michael Kors is a renowned famous designer. Customers are extremely loyal The brand has been loved by women for over 30 years. The low cost makes the brand popular with the customers.
To remain relevant to most current fashion trends, Michael Kors himself joined as a judge on the reality television show, Project Runway. The show brought him in front of a broader range of viewers. This led to the possibility to establish branches of the shop in cities of fashion around the globe. He is the person who leads his team in the design of the products.
Another benefit Michael Kors brand has is that it is able to leverage its famous status. The brand has been supported by celebrities. The clothes that celebrities wear are always being scrutinized and everyone is looking to dress like the celebs, which is why he has brought his product to a large audience and makes it a brand that every millennial wants.
Marketing Strategy of Michael Kors – BCG Matrix
Bags comprise around 70 percent of the company’s sales, however in accordance with Michael Kors’ website Michael Kors website the share will drop down to 62% in the year 2020. The bags are very well-liked by young people and are a market leader and have competitors such as Coach as well as Kate Spade. They are easily accessible due to their huge popularity, which has led to the loss of quality aspect. The handbags from this brand are a spotlight in the BCG matrix.
Michael Kors has ventured into the women’s and men’s wear-to-wear categories and is anticipated to grow. They anticipate the category for men to expand from 3% for 2017 and 8 percent sales in the year 2018. This puts them in the”question mark” section of BCG’s matrix. BCG matrix.
Michael Kors watches are a major part of the company’s sales. Michael Kors watches represent around 5 percent of the overall sales. Michael Kors watches are very popular, due to their unique designs. The watches are part of the money cows but because of the trend of smartwatches, the traditional watch category is dwindling. They must be innovative in wearable and smartwatches as well as wearable technology to avoid the loss of part of the market.
Marketing Strategy of Michael Kors – Distribution Strategy
Michael Kors has a global distribution network that includes a presence in more than 100 countries, through company-operated stores as well as E-commerce websites, top department stores, specialty shops, and selected licensing partners.
Michael Kors has a global distribution network that is present across more than 100 countries. There are many retailers that are owned by companies’ courses, e-commerce sites, department stores as well as specialty shops that are located in renowned fashion capitals around the globe. With this vast supply, channel products are easily accessible to customers. Once an order is made, it is shipped out. merchandise is delivered and the delivery route is tracked using a courses monitoring system. we have strong courses web presence courses with the capability to offer products on various course sites around the world.
Marketing Strategy of Michael Kors – Brand equity
The benefit that the brand name adds to Michael Kors’ products Michael Kors is quite high providing it with both competitive and financial advantages. The trademark itself serves as a source of distinction in relation to Michael Kors products. Michael Kors is getting more and more attention among millennials as it is in line with the most recent trends in fashion. Generation Y made up the third of all spending on the Michael Kors brand. Because the brand is popular with celebrities the brand has become an aspirational brand that is attracting clients from all over the world.
The brand has been able to place itself in between the upper end as well as fast fashion, which allows it to reach a larger customer base. The brand has a consistent image of its brand which has increased its product appeal and has kept loyal customers. The brand’s credibility is high, but it has diminished because of the high discounts and a large number of outlet stores in comparison to other brands of luxury. Price pressure and consumer loyalty are also on the rise. Michael Kors needs to improve its pricing and must regain its brand equity.
Marketing Strategy of Michael Kors – Competitive Analysis
Michael Kors faces tough competition from other luxury brands. Coach Michael Kors is the main rival, as they operate in the mainstream market. The coach was acquired by Coach following a deal with the company Kate Spade, which changed its name to Tapestry.
The fierce rivalry is evident most often across the USA. In the past, Coach had failed to identify numerous trends in fashion as well as pricing changes that led to the loss of the market. However, the recent market tactics of Coach have helped to slowly recover its position in the market. Recently, they tapped Selena Gomez as the brand ambassador which has helped give Coach an advantage in terms of advantage in the market since Selena Gomez has a huge following on social media.
Through the acquisition of brands such as Jimmy Choo as well as Versace with a long tradition, it has helped Michael Kors compete better in areas like footwear, in which competitors like Kering SA are enjoying better performance.
Marketing Strategy of Michael Kors- Market Analysis
The luxury and fashion market has seen low purchases of accessories and apparel as well as a decline in the traffic at the mall. Michael Kors’s products Michael Kors are constantly seen on sale in department stores. The brand has decided to cut the amount of exposure it has through this channel.
The brand has a strong presence in the local US market and is growing internationally. The brand is facing numerous problems in its home market. The expansion into accessories for males has contributed to Michael Kors gaining a new customer base.
In FY2017, the value of retail in the Asia Pacific reached 9% of the total sales at Michael Kors. The premium market can be expected to increase in the Asia Pacific mainly due to China and India. Michael Kors has expanded internationally through the acquisition of geographical licenses for China, Hong Kong, and Taiwan and also expanding in China, Hong Kong, and the South Korean market.
Marketing Strategy of Michael Kors – Customer Analysis
The customer base of Michael Kors is people mostly aged between 16 and 39. Michael Kors is more well-known for women than males. Michael Kors is mostly aspired by women. The primary goal of Michael Kors is to be a target for those who are millennials and invest strategically in providing a courses shopping experience that is seamless across all channels in order to attract the millennials.
Consumer preferences are shifting and they are looking for more modern products that are trendy and attractive technologically. The market for Michael Kors watches has seen a drop since customers are becoming more interested in smartwatches. Michael Kors has been taking the initiative to reinvent itself and make it more appealing to younger consumers.
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