Michael Kors Media Plan

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Media plan for Michael Kors. Semester long project for Media Planning course at CCU.

Text of Michael Kors Media Plan

  • MICHAEL KORSFounded: 2002

    Annual Revenue: $18.7m

    Kylie DeBari, Ashtyn Brown-Hurley, Emily Bohlen, and Addison Taylor

  • EXECUTIVE SUMMARY In this report we will show the client:

    How Michael Kors (MK) differentiates itself from the competition.

    Who MKs target market is. What the brand and the company represent as a

    whole. The best regions for MK to advertise in. The best times for MK to advertise nationally and

    in the spot locations. Finally, which specific vehicles would be effective

    for MK to advertise in.

  • COMPETITIVE NATURE OF THE OVERALL INDUSTRY

    The fashion industry is currently a globalized sector that works to meet the demand for apparel and dictates the trends for what should be worn.

    Total global sales of luxury goods were approximately $251.5 billion in 2011, $277.7 billion in 2012, and are estimated to be approximately $284.3 billion in 2013. Demand for the worldwide luxury goods industry is predicted to grow

    from approximately $277.7 billion in 2012 to between $295.6 billion and $301.3 billion in 2014.

    The U.S. apparel market is the largest in the world; comprising about 28 percent of the global total.

  • MEDIA MIX (CMR DATA)

    Expenditures

    Brand Total Media Magazine Nat. Newspapers Outdoors Network TV Spot TV Cable TV Radio

    Michael Kors 80,100 36,045 4,005 16,020 8,010 8,010 8,010 0

    Ralph Lauren 165,200 66,080 16,520 33,040 16,520 16,520 16520 0

    Calvin Klein 170,000 51,000 13,600 30,600 34,000 25,500 15,300 0

    Marc Jacobs 124,000 50,840 11,160 16,120 12,400 18,600 12,400 0

    Donna Karan 80,200 24,060 5,614 8,020 8,020 8,020 16,040 2,406

    *amount in thousands

  • MEDIA MIX %

    Most brands primarily use magazines to advertise. Outdoor mediums are used frequently as well. All brands focus on commercial advertisement on a variety of different television

    types to reach different consumers but focus in metropolitan areas with SPOT TV to target individuals.

    Radio is primarily NOT used.

    Media Mix

    Brand Total Media Magazine Nat. Newspapers Outdoors Network TV Spot TV Cable TV Radio

    Michael Kors 100% 45% 5% 20% 10% 10% 10% 0%

    Ralph Lauren 100% 40% 10% 20% 10% 10% 10% 0%

    Calvin Klein 100% 30% 8% 18% 20% 15% 9% 0%

    Marc Jacobs 100% 41% 9% 13% 10% 15% 10% 0%

    Donna Karan 100% 30% 7% 10% 10% 20% 20% 3%

  • SHARE OF VOICE % SOV shows that MKs strength is in Magazines and TV Ads, but are weak in Radio and Newspapers.

    Brand Total Media Magazine Nat. Newspapers Outdoors Network TV Spot TV Cable TV Radio

    Michael Kors 80,100 36,045 4,005 16,020 8,010 8,010 8,010 0

    Ralph Lauren 165,200 66,080 16,520 33,040 16,520 16,520 16,520 0

    Calvin Klein 170,000 51,000 13,600 30,600 34,000 25,500 15,300 0

    Marc Jacobs 124,000 50,840 11,160 16,120 12,400 18,600 12,400 0

    Donna Karan 80,200 24,060 5,614 8,020 8,020 8,020 16,040 2,406Total Category 619,500 228,025 50,899 403,800 78,950 76,650 68,270 2,406

    Brand Total Media Magazine Nat. Newspapers Outdoors Network TV Spot TV Cable TV RadioMichael Kors 12.9 16 7.8 15.4 10.1 10.4 12 0Ralph Lauren 26.7 29 32.5 32 21 21.6 24 0Calvin Klein 27.4 22.4 26.7 29.4 43.1 33.3 22.4 0Marc Jacobs 20.0 22.3 22 15.4 15.7 24.3 18.2 0Donna Karan 13.0 10.6 11 8 10.2 10.4 23.4 100Total Category 100 100 100 100 100 100 100 100

    This information shows us that magazines and TV are the best mediums to place MKs ads because the visual attraction creates the consumers want for the product.

  • MICHAEL KORS

    Tone: MK designer styled apparel gives off an air of luxury, sophistication, and prestige.

    Positioning: The position MK has is that although it is a designer brand, it can be available for more than one market. MK aims to serve a more high end clientele as well as the middle class. Celebrities like Kate Hudson are seen wearing the spring line, while middle-class mothers carry around last seasons tote.

    Creative Ad Strategy: Michael Kors uses advertisements in Magazines to promote luxury products with celebrity endorsements. MK uses their signature logo on all products and ads.

    Target Market: MK appeals to mid-high class females who are known for having a trend-setting style; the apparel is high end, but affordable for them.

  • KEY COMPETITORS

    1. MARC JACOBS

    2. CALVIN KLEIN, INC

    3. RALPH LAUREN CORPORATION

    4. DONNA KARAN INTERNATIONAL INC.

  • OVERALL INDUSTRY COMPETITION Marc Jacobs (MJ): Tone: MJ is a trademark brand of off-kilter fashion that speaks to renegade style-setters. Positioning: MJ sells in high-end department stores as well as their own retail stores, focusing on

    off the runway looks for both women and men. Creative Ad Strategy: MJ creates interesting and unusual advertisements, catching the eye of

    magazine readers and social media users alike. Target Market: MJ targets unique men and women who are into upscale and beautiful products.

    Calvin Klein (CK): Tone: CK offers modern and sophisticated styles for men and women who are into minimalistic

    styles. Positioning: CK provides a focused, consistent approach to global brand growth and

    development. Creative Ad Strategy: CK has ubiquitous and controversial ad campaigns. Target Market: CK is inspired by the fresh and unpretentious style of New Yorks urban youth.

  • OVERALL INDUSTRY COMPETITION

    Ralph Lauren (RL): Tone: RL offers a classic look and feel to their products that attracts an older audience. Positioning: The diversity of RLs brand ranges from red carpet to sporting events. Creative Ad Strategy: RLs strategy focuses on advertisements in specialty magazines that

    prioritize upper class sporting events such as polo or horse races to emulate their sophisticated customers.

    Target Market: RL targets men and women alike who enjoy a sophisticated and comfortable lifestyle.

    Donna Karan (DK): Tone: DKI focuses on the life and style of the artist, focusing on lifestyles rather than clothes. Positioning: DKI sells to upscale department and specialty stores as well as their own retail

    stores. Creative Ad Strategy: DKIs ad strategy is fast paced and modern, embodying the urban and

    dark style of the artist while focusing mainly on social media. Target Market: DKI appeals to womens needs and desires, embodying the pulse of New York in

    its style.

  • SORORITY SHOPAHOLICS Sorority Shopaholics are

    females.

    Sorority Shopaholics are 18-24 year old independent singles who have attended college at least 1-3 years.

    It is important for Sorority Shopaholics to look attractive to others. Therefore, they are willing to spend more than they can afford to get the clothes they want.

    They are sociable, excitable, and fun.

  • Bought Apparel in the last 12 Months Brand Loyal Approval Seeking

    Total(000) 111578 41114 34928

    Index 100 100 100

    Age 18-24(000) 11753 3533 7175

    Index 88 72 171

    Female(000) 97655 21542 19682

    Index 170 102 109

    Attended College (1-3 years)(000) 25103 8502 7535

    Index 104 96 100

    It is Important to look Attractive to Others

    (000) 36899 15412 15506

    Index 118 134 158

    Willing to spend more than I can afford, to get the clothes

    I want

    (000) 4258 2801 4243

    Index 101 180 313

    SORORITY SHOPAHOLICS

  • TRENDY UP-AND-COMER Trendy Up-and-Comers are

    made up of female, college graduates between the ages of 25-34.

    Average income is between $60,000-$74,999

    Like to keep up with the latest fashions, but are also refined, gracious, sophisticated, and dignified.

    Trendy Up-and-Comers enjoy buying products that will keep them in line with what is trendy today.

  • Bought apparel in the last 12 months Brand Loyal Approval Seeking

    Total (000) 111578 41114 34928

    Index 100 100 100

    Female(000) 97655 21542 19682

    Index 170 102 109

    25-34(000) 19746 5276 7586

    Index 101 73 123

    Income between $60,000-$74,999(000) 5102 2468 1619

    Index 91 120 92

    College 4 years (Graduated)(000) 19339 5876 5301

    Index 113 93 99

    Refined, gracious, sophisticated, dignified

    (000) 17057 8746 9177

    Index 116 162 200

    TRENDY UP-AND-COMER

  • THE GIFTERS

    Gifters are males and females

    Gifters are between the ages of 30-49 years old.

    They graduated college with a bachelors degree and went on to graduate school.

    Income is between $100,000 to $149,999

    Gifters have enough money to buy products for their friends and family.

  • Bought apparel in the last 12 months Brand Loyal Approval Seeking

    Total (000) 111578 41114 34928

    Index 100 100 100

    Female(000) 97655 21542 19682

    Index 170 102 109

    Male(000) 13923 19571 15246

    Index 26 98 90

    30-49(000) 40971 12784 11874

    Index 103 87 95

    Income between $100,000-$149,999

    (000) 2716 1588 815

    Index 77 122 74

    Graduated college or more(000) 34886 12874 8283

    Index 113 113 86

    THE GIFTERS

  • MR. MONEYBAGS Mr. Moneybags is a male who

    enjoys owning good quality things.

    Mr. Moneybags is between ages 30-49

    Income is between $150,000 to $249,999

    For Mr. Moneybags, money is the best measure of success. He will strive to keep his image intact.

    Mr. Moneybags is confident and stylish. Most likely to buy watches or wallets.

  • Bought apparel in the last 12 months Brand Loyal Approval Seeking

    Total (000) 111578 41114 34928

    Index 100 100 100

    Male(000) 13923 19571 152