A BRAND AUDIT

OF
About Michael Kors

■ Michael Kors was established in 1981 in New York

■ However, it took over 20 years before they opened their first retail
store in 2006
■ The company, under the same brand name, offers the following
broad categories of products:
– Couture luxury image that establishes the company
aesthetic
– Accessible lifestyle luxury that is strong in the accessories
category
■ Revenue more than $4.7 billion and Profits of nearly $1 billion
BRAND AUDIT –
COMPANY VIEW
Corporate Strategic Alignment
■ Vision of Michael Kors: “To provide a jet-set, luxury lifestyle to women and men
around the globe”

■ Mission of Michael Kors: “Our mission is to bring our vision of a jet-set, luxury
lifestyle to women and men around the globe. Our products, emblematic of the
highest standard of quality, include apparel, accessories and beauty. Our lifestyle-
driven company embraces the highest standards of creativity, quality, technology
and human resources”

■ Strategic Alignment: Strong alignment of the marketing, brand and product strategy
with the vision and mission

■ The luxury aspect is, however, beginning to diminish, due to over-exposure of the
brand and it’s ‘mid-level marketing and branding’ image
Competition
Luxury brand based in New York
City
The first American company in the
luxury handbag industry to expand
onto the international market
Luxury brand based in New York City
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
Brand Architecture

Michael Kors
Holdings

Licensing

Michael Kors MK by Michael Michael by

Collection Kors Michael Kors

The entire focus is on the name – MICHAEL KORS

Brand Strategy

■ The Brand is the Company

■ Michael Kors has always focused on using the name to sell its products
■ The strategy has worked, and Michael Kors is a household name in middle, upper-
middle and top segments of the population
■ People who own, or do not own the brand, are equally aware about the brand, which
can be credited to the strategy
■ Michael Kors is an all in one brand:
– Cash Cow
– Corporate
– Flagship
– Distinguisher
Brand Role
■ Michael Kors, as a brand, is the Driver of the company, which goes by the same
name
■ High contribution to the Brand Equity
■ Endorser role: Since, the brand itself is used to endorse the company as well as the
founder, the name is the key to everything
■ Sub-branding, too, revolves around ” Michael Kors” – MK & MICHAEL
Touch Points
■ Retailers
– 48.8% of the business
– Collection stores, Lifestyle stores, Outlet stores
and E-commerce
■ Wholesalers
– 47.3% of the business
– Shop-in-shop concept
– Includes specialty stores as well
■ Licensing
– 3.9% of revenue getters
– Licensing the name to eyewear, jewelry,
fragrances and watches
■ Other touch points are Fashion shows, special
events and hosted functions
Customer
Purchase Behaviour
■ Price Consideration : Based on Income, High-end clientele, average income above
$50,000
■ Quality Consideration: Purchase depends on Quality of Products. MK is known for
high quality material and craftsmanship
■ Channel Consideration: Customers Based on distribution channel; MK caters to both
online and offline stores, strong relationship with both types
■ Ego Consideration : Purchase due to ego-boosting by buying high-end products;
MK’s Luxury line caters to this particular segment
Demographics
■ Age: 18-54 years
■ Gender – Females mainly, followed by males
 Market
■ 19% of the world’s handbag market is
aware about Michael Kors and its product
range
■ Known more popularly in the accessories
world, rather than apparels and other
products
■ More female oriented campaigns, lead to
untapped male population, which could be
potential customers
■ Brand has a high maturity level, which
makes it easier to define its potential
markets
■ Clearer strategies about market definition
are needed, as resources maybe getting
wasted with the current trends
Segmentation
BEHAVIORAL (ON THE BASIS OF BENEFITS SOUGHT, LOYALTY)
■ People who want to tune themselves to the upcoming trends.
■ Recency, frequency & monetary aspect

DEMOGRAPHIC (On the basis of Age, Gender)

■ The brand has products that satisfy the needs of both the genders. Also, the age factor
comes in picture as young people generally like to be a part of the fad and they jump on
the bandwagon.

GEOGRAPHIC (On the basis of Continent, Country)

■ Macro level – Continent wise
■ Micro level – Country wise

PSYCHOGRAPHIC ( on the basis of social class, Interest)

■ Social class – upper, middle and the lower class
■ Interest – People looking for fashionable accessories and apparel
Target
■ The target group is young men and women who wants to enjoy the American elite
fashion
■ Michael Kors’ marketing seems to target HENRY (“High Earners Not Rich Yet”)
consumers(people who make between $100,000 and $250,000)
■ This segment is increasing steadily not just in the USA, but all across the globe.
■ Michael Kors targets all possible genders, ranging from 16 - 60 years of age who
obviously have money to spend
■ Social class (Middle & Upper class)
■ Michael Kors reaches out to those customers looking to improve their status related
motives
■ Differentiated Targeting (for Men & Women, For different social classes)
Creative Strategy
Story • Behind the burgeoning empire stands a singular designer with an innate sense of
glamour and an unfailing eye for timeless chic
• Wholly dedicated to a vision of style that is as sophisticated as it is indulgent, as
iconic as it is modern
Primary Objective • Create an enduring luxury lifestyle empire with a global reach
• Achieve customer excellence, operational excellence, product excellence and
locational excellence
Target Audience • Serves more than one market due to its wide variety of products and pricing
• MK appeals to mainly women
• Mostly target the 18-31 age group
Offering • Luxury and affordable luxury
• “Everything for everyone”
Marketing • Streamlined stores and online presence
Channels
Budget • Focused on forming a business-to-consumer relationship
• Customers showcase purchases which the company shares on its official pages.
#mymichaelkors #MKGlam #Mksexy
Content Strategy
■ Use of snaps of celebs wearing Michael Kors clothes in the wild, brief
interviews with models, and full articles on trends

■ Expert opinions, predictions, and recommendations from Michael Kors

himself

■ Integration of social causes via Kors Cares initiatives

■ Consistent ties back to products without making the content overly sales-
oriented

■ Sufficient use of fashion slang like “Pinteresting” and “Collab” in addition to

the Instagram campaigns
Metrics
■ Michael Kors has been experiencing a rapid growth over the past 3 years
■ Revenue: $4.71 Billion, Profit: A little over $1 Billion
■ Market Share: 12-14% Market share in handbags, and very high brand identity
■ Luxurious image, however, becoming more and more mainstream with increase in
volume of sales
■ This is great for current numbers, 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
■ It’s a delicate balance between exclusiveness and accessibility
BRAND AUDIT –
CUSTOMER VIEW
Personality
■ 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

On the basis of the Brand Prism:

■ Physique – Stylish products (Accessories mainly) and Exciting designs

■ Personality – Sporty, Fast, Cool, Trendy
■ Culture – Sophisticated, high craftsmanship and more female-oriented
■ Relationship – Credibility and Accessibility
■ Customer reflection – Liberated, Strong, Individualistic
■ Self image – “ I am a fashionable woman/man using a stylish brand which exuberates
confidence
Decision Criteria

■ Michael Kors is a Luxury Brand, hence, the decision criteria will be:
– Price
– Emotional value
– Feeling of Self-esteem and ego-fulfilling experience
– Perception amongst the social circle

■ NO focus on functional utility and convenience, as it is not a basic or low-priced

product
■ Marketing strategies successfully target the emotional sentiments and evoke a
sense of pride, desire and ego-boost
Competitive Differentiation
Positioning

■ Michael Kors wants the brand to be perceived as a symbol of jet-style sporty luxury
■ The brand fits well with this description
■ The positioning in terms of pricing and large number of stores has proved to be a
reason for decline in terms of exclusivity
■ It has ended up becoming a basic luxury brand, with high accessibility
■ On evaluation, MK appears more of a premium mid-level brand rather than a
medially positioned luxury brand
■ This needs to be worked upon to ensure brand equity is maintained
Influencers
■ Brand Ambassadors: Michael Kors ambassador’s possess a high level of influence.

■ The current ambassador, Yang Mi, a very famous Chinese actress and singer, has a strong
influence over what the brand signifies.

■ Some of the earlier famous ambassadors include:

– Actresses: Olivia Wilde, Dakota Johnson, Blake Lively, Kate Hudson, Jennifer Lawrence,
Taylor Swift,, Angelina Jolie, Jennifer Lopez
– Politicians: Hillary Clinton, Kate Middleton
– Celebrated Figures: Melania Trump & Ivanka Trump

■ Michael Kors’ presence in famous fashion weeks across Europe and USA, along with a rigorous
expansion to China

■ The Brand’s users also play an influential role in the promotion and positioning of the brand.
■ This creates a thrive among the people to associate themselves with the brand.
Celebrity endorsement
Communities
“Upper-class, glamorous and trendy”
■ The Michael Kors brand is one that is associated with jet-set
luxury, and functional sport-luxe

■ Michael Kors has a strong celebrity following that corresponds

directly to the brand personality
– Michelle Obama wore a Michael Kors dress in her First Lady
portrait.

■ At the same time, it is the first stop in ’higher-brand aspiration

communities’

■ Positive CSR perceptions among people

– As part of the Watch Hunger Stop campaign, proceeds from
the sale of the brand's popular watches have helped
provide over 13 million meals to school children,
 Equity • High loyalty with expanding
customer base
• High recall and association
• Popular with the communities

• Well known American Fashion House

• Comfortable and Trendy
• Mainly considered to cater to female
audiences • Chic and Global Acceptance
• Most famous for Accessories (bags)

• High Quality lasting products • MK Logo

• Value for Money • Celebrity Endorsement
• Lives up to expectations • Sporty and Jet-Style

• High Brand Awareness • Known through the

• They buy it for the multiple celebrity
fashion-sense and to endorsements making
stay trendy it aspirational
Recommendations
■ Michael Kors should redesign its branding activities to ensure it does not cross the
thin line of popularity and over-exposure
■ Clearer definition of the STP, since it aims to be considered in the most luxurious
brand category but has ended up being the early entrant’s aspiration
■ Introduction of Sub-branding to meet aspirers and ‘lower segment entrants’ and
maintain a higher esteem
– Example: M by Michael Kors
■ More propagation of Men’s collection, as increased interest from the male
population is a great potential source of revenue
■ Capitalize on the popularity by increasing presence in developing countries, like
South-east Asia
■ Luxury is not a need but a want(desire). Hence, Michael Kors needs to work more on
selling a lifestyle that a select and few can afford
■ Use a build up approach by making customers move from the MICHAEL collection,
upwards to the Collection series to increase brand value and equity
THANK YOU