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


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.


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 afforadable 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 independant 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.


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.


Total (000) 111578 41114 34928

Index 100 100 100

Male(000) 13923 19571 15246

Index 26 98 90

Ages 30-49(000) 40971 12784 11874

Index 103 87 95

Income between $150,000 and $249,999

(000) 729 536 *142

Index 74 147 *46

Enjoy owning good quality things(000) 28785 17167 12853

Index 102 165 145

Money is the best measure of success

(000) 5332 4047 4699

Index 81 167 228

MR. MONEYBAGS

SELECTION OF TARGET MARKET

Our recommendation for the target market is Trendy Up-and-comers.

Michael Kors prides itself in high quality, designer clothing.

Our media strategy would be to target Trendy Up-and-comers through magazines, social media, and online shopping websites.

Michael Kors ultimate goal would be to make Trendy Up-and-comers brand loyal to our company to the point that they influence others to buy our products as well.

COMPETITION The major competitors for Michael Kors are

Calvin Klein, Marc Jacobs, Donna Karan, and Ralph Lauren.

Each competitor has a unique way of making their brand stand out whether it be with an innovative marketing and advertising, global market positioning, extensive brand imagery, or modern design.

However, Michael Kors differentiates itself from its competitors with its simple, sleek, and high end styles. Because of this, our products can still have the same luxurious quality while still being affordable.

CONSUMER The targeted market for Michael Kors is

the market of Trendy Up-and-Comers (Trend-Setters) which are 25-49 years old female college graduates.

Their income is rather high and range from $75,000 to $99,999 (leaving room for plenty of disposable income.)

Trend-Setters revolve around upscale clicks and buy often from online apparel sites.

CONSUMER ATTITUDES AND INSIGHT The attitudes of the trend-

setters are refined, gracious, sophisticated and dignified. They keep up with all of the latest trends and fashions and believe in looking good in order to gain approval through their lifestyle and clothing choices.

Trend-Setters believe in the concept that if they look good they feel good. They believe that it is important to look attractive and strive to set trends that others will follow.

BRAND Brand Inspiration/Promise:

Stay sophisticated. Support:

The look and feel of Michael Kors products is unique and classic, just like the people who are wearing them. Our products give off an air of simple elegance and keep up with the latest trends, leaving our target audience wanting more.

Brand Personality: Michael Kors is for a fun, trend-setting individual who finds every

opportunity to be the most stylish person in the room - like Lauren Conrad. Lauren Conrads style is one of a kind, and she exemplifies high status, sophistication and poise. She knows how to dress for day to day happenings, as well as celebratory events, while accessorizing from head to toe.

CATEGORY DEVELOPMENT INDEX

Category Development Index (CDI) shows how well the category (fashion) is doing in a specific area and Brand Development Index (BDI) shows how well Michael Kors is doing.

The Northeast contains the highest CDI, which is 103. The West contains the lowest CDI of 97. The Midwest has a CDI of 102 and the South has a CDI of 99. The average for CDI is 100.

Michael Kors should increase advertising in the South and the West. We are choosing the South because we would like to increase both CDI and

BDI in that region. The category is high enough to where it can be enhanced, and we would like to improve brand sales in that area.

Population

(000)Popluation

% CDI BDIRegions Northeast 41,170 18.7 103 166Midwest 49,417 22.2 102 96South 84,694 36.9 99 70West 51,728 22.2 97 101

PERCENT FACTOR SPREADSHEET

Cities Population % Female % Income % Store Count % % Total Estimated ValueAtlanta 2.80% 2.70% 4.40% 7.40% 17.30% 4.30%Albuquerque 3.50% 3.34% 4.30% 1.90% 13.04% 3.30%Austin 5.50% 5.20% 4.81% 3.70% 19.21% 4.80%Baton Rouge 1.40% 1.40% 3.44% 1.90% 10.04% 2.50%Birmingham 1.30% 1.33% 3.90% 3.70% 10.23% 2.60%Charlotte 4.90% 4.90% 4.70% 7.40% 21.90% 5.50%Charleston 0.70% 0.80% 4.53% 3.70% 9.73% 2.40%Columbia 0.80% 0.83% 3.70% 1.90% 7.23% 1.80%Dallas 7.80% 7.53% 4.41% 11.11% 30.85% 7.70%Greensboro 1.70% 1.80% 3.70% 0.00% 7.20% 1.80%Houston 13.60% 12.90% 4.02% 7.40% 37.92% 9.50%Jacksonville 5.20% 5.13% 4.00% 1.90% 16.23% 4.10%Jackson 1.00% 1.10% 2.92% 1.90% 6.92% 1.70%Lousiville 3.70% 3.60% 3.94% 3.70% 14.94% 3.70%Little Rock 1.20% 0.12% 4.01% 0.00% 5.33% 1.30%Lexington 1.90% 1.90% 4.32% 1.90% 10.02% 2.50%Miami 16.20% 15.92% 3.84% 13.00% 45.96% 11.50%Memphis 4.00% 4.10% 3.30% 0.00% 11.40% 2.90%Nashville 3.70% 3.70% 4.20% 3.70% 15.30% 3.80%New Orleans 2.30% 2.31% 3.31% 1.90% 9.82% 2.50%Oklahoma City 3.70% 3.64% 4.03% 3.70% 15.10% 3.80%Orlando 0.10% 1.55% 3.80% 9.30% 14.80% 3.70%Raleigh 2.60% 2.62% 4.90% 3.70% 13.82% 3.50%San Antonio 8.70% 8.53% 3.80% 3.70% 24.73% 6.20%Tampa 2.10% 2.13% 3.90% 1.90% 10.03% 2.50%Total 100 100 100 100.00% 400

SPOT SELECTIONS

The Top 8 cities are 1. Miami, 2. Houston, 3. Dallas, 4. San Antonio, 5. Charlotte, 6. Austin, 7. Atlanta, 8. Jacksonville.

We have selected these cities because they have high populations and highest estimated value for the Southern region.

Also, they have high female populations and each city has a high store count percentage. For example, Miami has 13% of the stores in this region and Dallas has 11.1%.

SCHEDULING

A pulsing schedule was chosen for the best advertising results. The months with the heaviest advertising will be the months around

Fashion Week: February, May, August, and November. The months with moderate advertising will still keep Michael Kors

present in peoples minds without overwhelming them. These months are January, March, April, June, July, September, October, and December.

The heavy months will have more advertisements in different areas whilst the moderate months will have advertising in not as many areas.

FREQUENCY AND REACH GOALS Michael Kors is an established brand with many different competitors. The

products can be used year round as each new seasonal fashion line rolls out. During these seasonal fashion line months, it is important to keep the brand in the consumers mind and reach new people. For this reason, reach was more important for our campaign.

The national reach goals for our heavy months were 85% for national. The frequency goals for national during the heavy months were 3.6. The spot reach goals for our heavy months were 90% so we can reach a good amount of households in our 8 cities. The frequency goals for spot during the heavy months were 3.8. This keeps us in the households during fashion heavy months.

The national reach goals for our moderate months were 60% and the frequency goals for national were 2.6. The spot reach goals for our moderate months were 65% and the frequency goals for national were 2.8. This is just enough to keep us in peoples minds without overwhelming them year round.

MEDIA BUYS

GRPS CPP CPM Total Cost(000)

Heavy Months 337 16954 582 3747

Moderate Months

176 20669 172 2843

Total 513 37623 754 6590

MEDIA BUYS

Reach Goals Reach Achievement

Frequency Goals Frequency Achievement

Heavy Months 90 89.0 3.8 3.9

Moderate Months 65 65.7 2.8 2.7

VEHICLES

TV channels like E!, Lifetime, and Bravo with shows like Fashion Police and The Real Housewives are geared towards women in our target market. Late night shows like SNL or Jimmy Fallon would also be ideal because people in this age range may stay up later to watch them. We will also advertise on network stations that have shows geared towards women like Revenge and Scandal.

Magazines like Cosmopolitan, Vogue, People, Elle and Glamour are also geared towards women in our target market and would be good places to advertise in.

Pop music stations, talk radio, and news radio stations would be ideal places to advertise for our target market.

Local news stations will also be ideal for advertising in our spot cities.

CONCLUSION

In the competitive fashion industry, Michael Kors sets itself apart by being high quality and affordable.

The target market is Trendy Up-and-Comers, young, middle-class women who set trends for others.

MKs image is upscale and sophisticated, instilling a feel of elegance in the consumer.

The southern region is the best area for MK to advertise in. Miami, Houston, Dallas, San Antonio, Charlotte, Austin, Atlanta, and Jacksonville are the top 8 cities to advertise in.

MKs heavy advertising months are February, May, August and November. The most effective vehicles are television and magazines.

MICHAEL KORS

Documents

Michael Kors Media Plan