MICHAEL KORS BRAND AUDIT

MELISSA TURNER
IMC 613
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Table of Contents

Executive Summary................................................................................................................................... 2
Michael Kors Background ......................................................................................................................... 3
Brand Inventory ........................................................................................................................................ 6
Product Line .......................................................................................................................................... 8
Brand Meaning...................................................................................................................................... 9
Marketing Support .............................................................................................................................. 10
Competitive Market ............................................................................................................................ 12
Brand Exploratory ................................................................................................................................... 14
Consumer Attitudes ............................................................................................................................ 15
Brand Meaning.................................................................................................................................... 17
Marketing Support .............................................................................................................................. 18
Competitive Market ............................................................................................................................ 19
Expectations of Future Potential ............................................................................................................ 20
Recommendations .................................................................................................................................. 21
Appendix ................................................................................................................................................. 22
Works Cited ............................................................................................................................................. 23
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Executive Summary

The Michael Kors brand audit is a comprehensive examination to assess its health and learn about
sources of equity and ways to improve on the brand’s equity (Keller, 2003). In this brand audit, a
complete inventory and exploratory of the Michael Kors brand has been conducted and also includes
recommendations for the future.

The brand inventory provides a current profile of how and where products are sold by Michael Kors and
how Michael Kors products are marketed and branded. This means the information in the inventory
represents the health of the brand from the company’s perspective. The brand exploratory represents
what Michael Kors users and observers think and feel about the brand, plus how they feel about other
consumers who use Michael Kors brands. This information in the exploratory provides what consumers
think of the brand (Keller, 2003).

Michael Kors has been experiencing a rapid growth over the past 3 years. This is great for current
numbers and sales, but it could also hurt the brand name in the long run. Category leader Coach,
experienced this same thing in the 2000’s while they were expanding outlet store locations. It was only a
matter of time before everyone had a Coach bag on their shoulder. Coach started getting passed by for
less familiar brands like Michael Kors. It’s a delicate balance between exclusiveness and accessibility
(Halzack, 2015).

Overall, Michael Kors has done an excellent job branding its luxury lifestyle. They have made exceptional
use of social media plus traditional magazine advertisements to fully market their brand in the fashion
industry. Michael Kors will continue to grow, especially internationally. However, they need to take care
to not go into brand dilution and start losing their luxury image. Recommendations for the brand are to
put forth more efforts in creating relationships and experiences with their clientele. Those who shop
luxury want to feel special and are willing to pay for this lifestyle. Michael Kors needs to add special
personal touches with its customers, such as personal in-store events and hand written thank you cards.
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Michael Kors Background

Michael Kors is an American luxury accessories brand established in 1981 in

New York. Though the brand began in 1981, it was not until 2006 when they
opened their first retail store. The brand started primarily as a sportswear
house, but moved to accessories. Even in handbags they still have a jet-set
aesthetic and sporty attitude (Seeling, 2012).

Michael Kors was established in 1981 in New York. However, it took 20

years before they opened their first retail store (Michael Kors, 2015). In
2004 the reality show, Project Runway first aired and featured Michael Kors
as a judge. Due to the success of the show, Michael Kors was jetted into the
public eye. He popularity rose and Michael Kors was able to open their first
retail store (Givhan, 2014).
Designer: Michael Kors

KORS only represents two brands under its umbrella (Michael Kors, 2015).

Michael Kors – Couture luxury image that establishes the company aesthetic
MICHAEL by Michael Kors – Accessible lifestyle luxury that is strong in the accessories category

Hierarchy of Michael Kors

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Both brands are represented equally within the company. The couture brand, Michael Kors Collection,
by definition is made from higher quality materials (such as crocodile), constructed in proper couture
techniques, and this quality in turn earns a much larger price tag. Handbags under this brand can retail
for up to 15,000 USD (Michael Kors, 2015). In the world of fashion, couture is the inspiration behind all
levels of fashion. The exuberant style and trend of these fashions trickle down to the more affordable
level of fashion and ready-to-wear goods. In essence, you cannot have one without the other (Stone,
2011). This leads to the second brand, MICHAEL by Michael Kors, which is a more mass marketed, but
still a luxury brand. Handbags under this brand can retail for up to 500 USD (Michael Kors, 2015).

Andy Sachs: No. No, no. Nothing's... You know, it's just that both those belts look exactly the
same to me. You know, I'm still learning about all this stuff and, uh...
Miranda Priestly: 'This... stuff'? Oh. Okay. I see. You think this has nothing to do with you. You go
to your closet and you select... I don't know... that lumpy blue sweater, for instance because
you're trying to tell the world that you take yourself too seriously to care about what you put on
your back. But what you don't know is that that sweater is not just blue, it's not turquoise. It's
not lapis. It's actually cerulean. And you're also blithely unaware of the fact that in 2002, Oscar
de la Renta did a collection of cerulean gowns. And then I think it was Yves Saint Laurent...
wasn't it who showed cerulean military jackets? I think we need a jacket here. And then cerulean
quickly showed up in the collections of eight different designers. And then it, uh, filtered down
through the department stores and then trickled on down into some tragic Casual Corner where
you, no doubt, fished it out of some clearance bin. However, that blue represents millions of
dollars and countless jobs and its sort of comical how you think that you've made a choice that
exempts you from the fashion industry when, in fact, you're wearing the sweater that was
selected for you by the people in this room from a pile of stuff.
“The Devil Wear Prada”
(Frankel, 2006)

Michael Kors Retail Locations

Retail locations are generally located in upscale shopping

malls, lifestyle centers, and stand-alone stores in large
metropolitan areas.

Only Michael Kors branded merchandise can be found in the

retail stores. Even licensed MK merchandise is not available at
retail locations, they are only found with wholesalers (Michael Flagship Store in New York City

Kors, 2015).
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KORS business revolves around retail stores, wholesales, and Licensing (United States Securities and
Exchange Commission, 2015):

Retail – 48.8% of whole business revenue

 Retail stores operate under 4 store types: Collection
stores, Lifestyle stores, Outlet shops, and
Ecommerce.
 Number of retail establishments:
 343 stores in North America
 1 U.S. Ecommerce shop
 183 International store located in Europe &
Japan
Upscale shopping mall location

Wholesale – 47.3% of whole business revenue

 Wholesale products are sold as “shops-in-
shops.” Michael Kors and MICHAEL by
Michael Kors are sold in different category
department and specialty establishments.
 2,541 Department & Specialty stores in
North America
 1,497 International Specialty stores
 Michael Kors:
o Saks 5th Avenue
o Neiman Marcus Wholesale Shop-in-Shop
o Harrods
 MICHAEL by Michael Kors
o Bloomingdales
o Nordstrom
o Macy’s

Licensing – 3.9% of whole business revenue

 A growing sector of the KORS Company. A limited
amount of licensed products with the Michael Kors
name are available and the KORS company hopes to
expand their licensing line in the future
 Current Licensed products:
 Eyewear
 Jewelry
 Fragrances
 Watches Michael Kors Licensed Product
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Currently accessories, more specifically handbags, have been the highest revenue earners for KORS.
68.4% of all sales for KORS is generated from the accessories product category. The lowest earner is in
the licensing category at 8.0%, however, since only 3.9% of KORS entire business revenue comes from
licensing, this is not a fair indicator of KORS licensing business. Instead it is more worthwhile to note that
sales of shoes are only 10.5%, making this category the lowest earning for KORS as a whole (Das, 2015).

Brand Inventory

Target Audience

Michael Kors' appeals to a wide variety of demographics. The target audience age is 25 to 54 years old,
with annual income above $50,000. Michael Kors growth strategies target a younger, affluent
demographic, often overlooked by luxury brands. North America is Michael Kors’ largest geographical
market. It is also building its presence internationally, mainly in Europe and Japan (Wood, 2013)

Category Need

The luxury brand market is different from the general market. It needs a unique focus and strategy that
is catered to its target market. The luxury market dictates or influences trends in the general market, not
the other way around. Status and personal ego are the key drivers in the luxury brand market. They are
generally believed to be superior in quality, design, and craftsmanship, thus they are a higher cost.
Luxury goods are considered to be in limited supply or only available for a limited time (by season)
(Posner, 2015).

Brand Benefits

Handbags are one of the most popular luxury items. They are known for displaying brand logos and are
frequently crafted out of expensive materials such as leather. They are a status symbol that the
consumer wants their peers to see. The consumer is motivated to purchase these kinds of handbags
because they want to be recognized as being able to afford such a luxury item (James, 2014).
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Brand Imagery

The purpose of branding is to form a distinct identity and make your product distinguishable from the
competition. Brand identity is how Michael Kors see themselves while brand image however, is how the
consumer or potential consumers see Michael Kors and forms their own opinion about the brand
(Posner, 2015). Even in Michael Kors stores the employee is an internal customer. Their perception of
the brand helps develop the brand relationship with regular clientele (Wheeler, 2012).

Brand image is formed by current customer user experience. There is also the occasional user. They
cannot always afford luxury, but try to buy a few pieces when they are able. The Michael Kors brand is
something they aspire to be a part of. Another important facet is the non-user of Michael Kors. Their
opinion of the brand is also important. They form opinions on the brand itself and those they see using
the brand. They are a potential customer and/or an influence toward their friends and family (Posner,
2015).

Brand Performance

Michael Kors has been experiencing a rapid growth over the past 3 years. This is great for current
numbers and sales, but it could also hurt the brand name in the long run. Coach experienced this same
thing in the 2000’s. They were expanding outlet store locations. It was only a matter of time before
everyone had a Coach bag on their shoulder. Coach started getting passed by for less familiar brands like
Michael Kors. It’s a delicate balance between exclusiveness and accessibility (Halzack, 2015).
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Product Line
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Brand Meaning

KORS believes their brand image reflects a rapidly growing

luxury lifestyle brand. Their designs and brand vision is led by
a world renowned designer. The brand started as an
American brand, however, they are prepared to take share in
a growing global accessories product category.

The Michael Kors brand has a strong relationship with

premier wholesalers. The brand is also expanding and growing
the licensing category.

Michael Kors differentiates itself with a unique style, the

appropriate price points, excellent customer service, high
quality products, and overall brand prestige (Michael Kors,
2015).

Memorability

The MK logo is iconic and memorable. It is regularly displayed in gold. These

gold logos are featured on keychains, across zipper pulls, around buttons, and emblazoned on gold
riveted tags on clothing. The logo is also frequently used in a “wallpaper” format of a repeated “MK”
across the material of handbags. It is the most recognized feature of the MK brand (Michael Kors, 2015).

Meaningfulness

The MK brand wants the consumer to understand the luxury lifestyle they are trying to represent. It can
even be stated as an ego increaser. The MK brand should make the consumer feel special (Michael Kors,
2015).

Likeability

The MK brand is a growing brand that is taking hold of the international market. Expansion goals would
not be possible if it wasn’t for the popularity of the brand, plus their iconic celebrity designer Michael
Kors who has gained popularity with television shows such as ‘Project Runway’ (Williams, 2015).
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Transferability

Due to the recognition of the MK brand, it can be easily transferred to different or new products. The
expanding licensing category of MK is evidence of this (Michael Kors, 2015)

Adaptability

As all brands in the fashion industry, you have to remain adaptable to ever changing trends. It is always
a risk factor that a company’s forecasting can steer them the wrong way. The MK brand has experienced
up and downs with remaining adaptable, but they learn from their mistakes and adjust to please the
consumer (Stone, 2011).

Protectabililty

Due to the MK brand being so recognizable it unfortunately makes it easier for counterfeits. The MK
brand has been experiencing this issues “for years.” It is something that can hurt a brand when the
customer you are not trying to target is using and displaying your brand. Recently Michael Kors has been
fighting back against knock-offs in New York (Bonlello, 2015).

Marketing Support

In Fiscal 2015, approximately $103.6 million was spent in advertising and

marketing expense in North America and internationally by the Michael Kors
brand (United States Securities and Exchange Commission, 2015).

In pursuit of product positioning the MK brand regularly participates in

activities to increase brand awareness. They maintain advertising through
magazines such as Vogue, Elle, and Harper’s Bazaar. These advertisements
are usually large full page, or double full page ads. The ads are the same
whether it is a physical magazine, or a digital version. Fashion is all about
vision, so photography of products is extremely important (Michael Kors,
Fall 2015 MK Collection Campaign
2015).
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They also have internet advertising on the MK brand website as well as working with social media.
Michael Kors was the first fashion brand to advertise on Instagram (Strugatz, 2014).

We go where our fans go, and we believe that more and more consumers are spending their
time on Instagram for both inspiration and product discovery. We’re successful on Instagram.
The ads allow us to target a ‘like’ audience outside of the women who are already familiar with
Michael Kors,” said Lisa Pomerantz, senior vice president of global communications and
marketing at Michael Kors.

As with most designers, the MK brand participates in semi-annual runway shows in New York
(Mercedes-Benz Fashion Week, 2015). During New York Fashion Week, Michael Kors had both the most
“liked” photo and video on Instagram. It also maintained, during NY Fashion Week, the most visited
brand page of any designer on Facebook, gaining a total of over 647,000 likes, shares and comments
(Strugatz, 2014).

Michael Kors has been able to piggy-back off of Project Runway for
advertising. He was frequently used in online advertising and commercial
advertising for episodes of the show (LifeTime, 2015). He was also known
for his snarky, yet comical comments on contestant’s garments. This led to
various fan pages dedicated to Michael Kors quotes (Lambe, 2012).

The MK brand is also involved with ‘Watch Hunger Stop.’ With this
MK featured in Project Runway Ad
program Michael Kors and the United Nations World food program are
working together to donate meals to children in need. Participants can
design and purchase a T-shirt from Michael Kors and for every design made MK will donate 50 meals to
children in need (Michael Kors Holdings, 2015).

(Watch Hunger Stop, 2015)

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Strengths

The MK brand is resilient and segmented. They have the leverage of celebrity factor with their founder
Michael Kors. The MK brand is associated with charities and other philanthropy. They use high quality
materials and good suppliers (Michael Kors, 2015).

Weaknesses

The MK brand has been experiencing dilution in discount stores (Halzack, 2015). The jet set lifestyle is
not a priority for people in a lower economy. Michael Kors is the face of the brand, but he has no
successors in place. Even though awareness is rising, the MK brand is still not well known globally
(Michael Kors, 2015).

Competitive Market

Coach is a luxury brand based in New York City that was founded in 1941 as a family-run
workshop that specialized in leather goods. They established themselves as the original
American house of leather during the second half of the 20th century. They are also the first
American company in the luxury handbag industry to expand onto the international market
(Seeling, 2012).

Coach, Inc. operates 258 North American retail locations, and 204 North American outlet locations.
Coach International operates 503 store locations. As of 2015, 58% of whole business revenue is
generated by the sale of handbags (United States Securities and Exchange Commission, 2015).

They are currently boosting marketing to highlight its 75th anniversary this year. They are seeing a brand
momentum as they are transforming the state of the brand by recently adding new products and
updating stores. They are taking steps to directly compete with recent competitors Kate Spade, and
Michael Kors (Rupp, 2015).
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Kate Spade is a luxury brand based in New York City that was founded by
Katherine Noel Brosnahan in 1993. The brand introduced the boxy nylon bag
style. The brand has grown rapidly and is known for its crisp color, graphic prints
and playful sophistication, bringing a fresh and new approach to luxury handbag
designs (Kate Spade New York, 2015).

Kate Spade & Company operate 93 U.S. specialty retail stores, 32 foreign specialty retail stores, 57 U.S.
outlet stores, and 14 foreign outlet stores (United States Securities and Exchange Commission, 2015).

Kate spade is standing out from Coach and Michael Kors due to being a smaller business, with a smaller
customer base, and a more extensive offering. Even in the handbag industry, the Kate Spade designs are
unconventional and completely different from other brands. Kate Spade also does not have the
department store exposure. (Post Staff Report, 2015).

Points-of-Parity & Points-of-Difference

The points-of-parity and the points-of-difference help differentiate Michael Kors from it main
competitor, Coach, and its rival, Kate Spade. Please refer to the chart below.

BRAND POINTS OF PARITY POINTS OF DIFFERENCE

Reserved high class lifestyle Baby Boomer customer
Muted color schemes High distribution
Coach
Designer Handbags Average bag sizes Coach logo enables easy
Famous Name Branded since 1941 counterfeiting
Iconic Logo Sporty Jet-Set Lifestyle Gen X & Y / Millennial customer
High quality Black / Gold / Silver colors High distribution
Michael Kors
Prestige Image Large size bags MK logo enables easy
Lower price points Extensive hardware use counterfeiting
available at Outlets Quirky unique lifestyle Generation X customer
Unconventional bag shapes Limited distribution
Kate Spade
Vivid colors with sparkle Unique style makes
Use of typography in designs counterfeiting rare
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Market Share

Five luxury brands capture 75% traditional online market share and 68% mobile market share. These
are Ralph Lauren at 25.1%, Coach at 19.5%, Michael Kors at 11.9%, Louis Vuitton at 9.2% and Gucci
at 9.0%. (Kate Spade is still growing and did not make the list) (Hitwise Research, 2013).

Brand Exploratory

A study of 107 participants was conducted at West Virginia University. These surveys were performed
on the general public. Half of those surveyed completed a physical survey in Morgantown, WV. The
other half were surveyed using Survey Monkey to complete questions online. Half of the responders, 51,
came from West Virginia due to the survey taking place there. However, 51 of the responders were from
different parts of the U.S., and 6 from other countries. For a list of survey questions please refer to the
Appendix (Turner, 2015).

According to the study, consumers identify Michael Kors as an affordable luxury brand that is
known for its large handbags and “MK” patterned designs (the term ‘obnoxiously huge’ was used
over 5 times). Many of those questioned were also aware of Michael Kors clothing line. The
clothing line received all positive reviews, while the handbag line received mixed reviews
(Turner, 2015).
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Michael Kors is frequently known as ‘that guy from Project Runway.’ Project
Runway is a reality television show that promotes fashion designers that first
aired in 2004 (LifeTime, 2015). It is no coincidence that Michael Kors did not
open his first retail store until 2006, after the increasing popularity from
Project Runway (Givhan, 2014). Those surveyed added additional comments
referring to Michael Kors only being successful due to Project Runway and
they never heard of him beforehand (Turner, 2015).
Michael Kors on Project Runway

Consumer Attitudes

Brand Imagery

Those surveyed were asked how they felt about the Michael Kors brand. They were able to express their
opinion in any way they felt. From those surveyed 45% had no opinion or were ambivalent. A positive
view of the MK was held by 30% of those surveyed. They used words such as ‘beautiful & stylish.’ They
had no opinion on the actual MK logo. The final 15% surveyed had a negative impression of the brand.
They used words such as ‘boring,’ or made statements that they felt the MK designs were copied from
other designers. They also did not like the MK logo. They felt it was obnoxious and was plastered all over
handbags (Turner, 2015).
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Brand Performance

In the survey, the participants were asked who they knew that owned a Michael Kors handbag. They
were able to choose all that applied. Even though the participant owning a MK handbag was the lowest
response recorded, the overwhelming amount of those surveyed had a friend that owned a MK
handbag. From those surveyed 75% of them knew at least someone that owned a MK handbag (Turner,
2015).

Owns a Michael Kors Handbag

No One
Family
Co-Workers
Friends
Yourself

0 10 20 30 40 50 60 70

Brand Personality

In combination of asking participants their feelings on the Michael Kors brand, they were also asked how
they felt about seeing other consumers who use or wear MK branded merchandise, handbags especially.
Out of the 50% that expressed an opinion toward MK, they were gathered around three common
themes. First were those that believed consumers that owned MK merchandise had a lot of money.
Second were those who felt consumers were willing to spend a lot of money to show (or show-off) how
they felt about MK. Lastly those who had a negative impression of the brand in general felt that MK was
just a passing trend. There were references to MK just being something ‘that the kids are into’ (Turner,
2015). There have been articles that agree with this opinion. MK has been increasing with the teen
audience. If teens can afford MK, is it really a true luxury brand (Bhasin, 2015)? They also complained
that the brand was no longer unique. MK was compared to Coach and Dooney & Burke as brands that
have become very popular and then fell out of public favor. The Michael Kors brand has been predicted
recently of entering brand dilution and is too attainable to continue being considered luxury (Halzack,
2015).
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Those who had a positive impression of the brand felt that owning a MK handbag was a statement of
being fashionable and stylish. Seeing a consumer with a MK handbag meant they were fashion and
brand conscience. They also felt that MK brand represented good taste (Turner, 2015).

Brand Meaning

Memorability

Whether the opinion of Michael Kors is positive or negative the MK logo is extremely recognizable.
Consumers can identify MK handbags and know that they represent repeated pattern designs and
leather handbags.

Meaningfulness

Luxury brands are all about being meaningful. They are not a need, but a want. Therefore, the brand has
to have meaning for a consumer to want to own one. Those surveyed made comments such as MK
‘apparently makes someone happy to own one.’ They realize that MK is important to those who buy its
products (Turner, 2015).

Likeability

The MK brand is liked by those who own the brand. According to the study, it is common to know
someone who owns a MK product. The brand is ‘liked’ among many consumers. In the world of fashion,
MK has its issues of design style debates and degree of luxury, but in the terms of brand image it is well
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liked. Even those who felt negatively toward the MK brand felt that actual designer Michael Kors seems
like a great person (Turner, 2015).

Transferability

The opinion of over saturation is strong with MK. Transferring MK to more products would only further
dilute the brand. Transferability is not viable option for MK and would reflect negatively toward the
brand.

Adaptability

The adaptability of MK is questionable. In fashion adapting can be tricky. A designer has to remain
unique and different from the rest, but also keep up with the current zeitgeist. It is easy to lose a design
aesthetic to stay on trend (Stone, 2011). MK has had missed opportunities with current trends and has
remained a little too static for some consumers, essentially being accused of ‘making the same thing
again and again’ (Turner, 2015).

Protectabililty

A few responders made comments about obtaining knock-off MK bags. They are said they wonder when
they see a consumer who has a MK handbag if it is real or not. There were under 5 responders with
comments such as these (Turner, 2015).

Marketing Support

A major marketing contributor in those surveyed referred to Project Runway. The reality television show
in general has projected the MK brand into the spotlight. Many designers advertise in magazines and
publicize their designs in seasonal runway shows. MK is no different. However, many consumers did not
learn of MK through the typical fashion channels. They only heard of MK with the help of Project
Runway (LifeTime, 2015).

Those surveyed were also asked how much they would be willing to spend on a handbag. Over 50
percent were willing to spend $100 or more. A functional handbag can easily cost under $20 dollars. Half
of the responders would spend more on a handbag for other reasons that functionality. MK operates
many outlet stores and sell to wholesalers such as Macy’s and Bloomingdales. This allows consumers to
easily find a MK handbag for $100 dollars.
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HOW MUCH WOULD YOU SPEND ON A HANDBAG?

$700 - $1000
$300 - $500
1%
$20 or less 13%
26%

$150 - $300
20%

$50
20%
$100
20%

Strengths

Affordable luxury is a common association with the MK brand. Consumers see the MK brand as a quality
product that is attainable for many demographics.

Weaknesses

Brand dilution is currently Michael Kors’ greatest weakness. As a double edged sword, the affordable
aspect of the MK brand makes it an attainable brand, but takes away the unique aspect of owning luxury
items.

Competitive Market

The first question of the study conducted asked what handbag brands the participant was familiar with.
This was not multiple choice which enabled the participant to note which brands came to mind without
any influence. The most common brand mentioned 66 times was in fact Michael Kors. Although, if the
participant read ahead in the survey, this may have influenced their answer. In a close second was the
Coach brand noted 61 times. Louis Vuitton was referred to 51 times (although it was frequently spelled
incorrectly). Kate Spade was mentioned 34 times with the numbers dwindling down greatly beyond that
(Turner, 2015).
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HANDBAG AWARENESS
Prada Fendi
6% 3% Michael Kors
Hermes
19%
Chanel 3%
7%
Dooney & Bourke
5%
Kate Spade
10%
Gucci
8%

Marc Jacobs
3%

Tory Burch Coach

3% 18%
Louis Vuitton
15%

There have been reports the Michael Kors is now the on trend brand for teenage girls. In response, sale
of Coach has drastically dropped with teenagers. High sales are good, but again, how much of a luxury
brand is Michael Kors if teenagers can afford it (Bhasin, 2015)? Michael Kors could learn a lesson from
Coach. They have already experienced the issues of brand dilution, recovered, and are in the middle of a
revival process (Rupp, 2015). Michael Kors should be more about a story than its products. When that
story gets fuzzy or isn’t told clearly, the brand loses its essence and what makes it unique. Without
standing out and owning this story and identity, Michael Kors could start to look like every other tree in

the forest. With Kate Spade nipping at its heels, it will take focus to prevent the young upstart from

getting ahead (Post Staff Report, 2015).

Expectations of Future Potential

While the brand has been expanding globally, it will be very difficult to compete against classic luxury
brands such as Louis Vuitton, Prada, and Gucci. However, Michael Kors has done exceptionally well in
North America. With Michael Kors’ continuing growth it would not be surprising if they take the top spot
from Coach in the future. Michael Kors just needs to keep an eye on brand dilution and not expand too
quickly, or they risk losing some of their luxury lustier.
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Recommendations

Michael Kors has been working on expanding more of the MICHAEL by Michael Kors brand due to the
affordability. A recommendation for the MK brand is to put more focus on the Michael Kors Collection
brand.

Marketing luxury items is not the same as general marketing. Luxury is not a need. It is only a want.
Michael Kors needs to work more on selling a lifestyle. This is a lifestyle that is special and only a few can
afford.

It’s exciting to be invited to a party. Through a direct mailing campaign Michael Kors could send
personalized invitations to previous customers inviting them to visit a Michael Kors retail location.
Perhaps the invitation could include information on the nearest Michael Kors retail store location to the
customer and encourage the customer to ask for a specific sales associate by name when they come to
visit the store.

Buying needs to be part of the experience. Purchasing a Michael Kors Collection product could entitle
the customer to receive a free 50 dollar Michael Kors keychain. This $50 dollar gift is a small price to pay
on the purchase of a $10,000 dollar handbag. Just like the joy of driving a brand new car off the
showroom floor, Michael Kors consumers should feel the same way when they are leaving a Michael
Kors retail location.

To continue the personal level of attention, a thank you card should be sent to the customer thanking
them for their recent purchase. It should be mailed in a formal envelope and be handwritten. Going the
extra mile can mean a lot toward a customer’s feelings.

If Michael Kors focuses more on the Collection brand, and then the expansion of the MICHAEL by
Michael Kors brand in retail and wholesale stores, this could lead to consumers buying their way up the
brand chain. Make MICHAEL buyers want to become Collection buyers.

If Michael Kors follow some of these recommendations, they can continue positive growth between
both of their brands.
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Appendix

Survey Questions

1. What brands of luxury handbags are you aware of?

2. Do you know anyone who owns a Michael Kors handbag?

Please choose all that apply
a. Yourself
b. Friends
c. Co-Workers
d. Family
e. No one

3. What is your attitude toward the Michael Kors brand?

4. What is your attitude toward those who own Michael Kors branded merchandise?

5. Which city and state (or country) are you from?

6. How much are you willing to spend on a handbag?

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Works Cited

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