Professional Documents
Culture Documents
OF
About Michael Kors
■ 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 Luxury brand based in New York City
City
Kate spade is standing out from Coach and
The first American company in the Michael Kors due to being a smaller business,
luxury handbag industry to expand with a smaller customer base, and a more
onto the international market extensive offering
Cook’s thoughts echoed those of his predecessor, Steve Jobs, whose strategy for Apple
had four pillars:
■ Offer a small number of products.
■ Focus on the high end.
■ Give priority to profits over market share.
■ Create a halo effect that makes people eager for new Apple products.
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 technological trends
■ Hard core Loyals of apple ecosystem and Switchers
■ Consistent ties back to products without making the content overly sales-
oriented
■ 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
Product Design and Quality: Since its inception, Apple has been rolling out
products which have been an epitome of design and quality. Apple Macintosh
was the first personal computer to have a mouse and graphical interface for a
user. Apple’s iPod made the old ugly walkman’s put to shame.
Apple has always come up with innovative technology and improved designs
and this, in turn, has led them to have a strong command in the market and
ask premium prices for their products.
Advertisements: ” The less the Better”: Apple always followed “The Less
the Better” philosophy – Clear and straight messaging, and usage of
Positioning
■ The current ambassador, Yang Mi, a very famous Chinese actress and singer, has a strong
influence over what the brand signifies.
■ 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