Semester long project for a Media Planning course at CCU.
MICHAEL KORSCompetitive Analysis done by:Kyle DeBari, Ashtyn Brown-Hurley, Addison Taylor and Emily Bohlen ABOUT: Michael Kors (USA) dresses the stars, both real and imagined. The company designs, distributes, and sellshigh-fashion apparel, footwear, and accessoriesfor men and women. Ithas expanded its products portfolio in recent yearsby inkingseveral licensing agreements, such as watches with Fossil, eyewearwith Marchon,and fragrances withEste Lauder. Thefirm's collections include three brands --Michael Kors,MICHAEL Michael Kors, andKORS Michael Kors. The company sells its products through its own retail network, as well as through high-end specialty department stores as a wholesaler. Michael Kors maintains a presence online, assisted by Neiman Marcus. The company is owned by Michael Kors Holdings.
Founded: 2002Annual Revenue: $18.7 (mil)
MARKET CLIMATEServes more than one marketHigh end clientele: geared toward luxury lineMiddle class: targeted more to the affordable lineCheaper than other luxury brands, but has the same appeal
Target AudienceMainly target womenWomen spend more money on clothingPay more attention to marketing emailsMid 20s-40sMarried, people with familiesStarting to gear more towards single young adults
KEY COMPETITORS1. RALPH LAUREN CORPORATION
2. DONNA KARAN INTERNATIONAL INC.
3. CALVIN KLEIN, INC
4. MARC JACOBS
OVERALL INDUSTRY COMPETITIONMarc Jacobs:Perhaps the only direct competitor that sells designs that are trendy with the younger market that Kors is currently dominating. Jacobs introduced the Marc by Marc Jacobs line, which is in direct competition with the Michael Michael Kors line. The different price points of the two lines make it more accessible than other luxury companies and a threat to Kors and his different lines.
Calvin Klein:Provides the opportunity to market products both domestically and internationally at various price points, distribution channels and to different consumer groups. A tiered-brand strategy was established to provide a focused, consistent approach to global brand growth and development. Each of Kleins brands occupies a distinct marketing identity and positition that preserves the brands prestige and image.OVERALL INDUSTRY CONT.Ralph Lauren:The looks are much more traditional than Kors and tend to appeal to an older audience than those who are fond of Kors. The diversity of the brand ranges from red carpet gowns to athletic wear for sporting events. Ralph Lauren is known for having his clothes in the Olympics as well as in numerous sporting events throughout the world. Ralph Lauren offers a more classic look and feel to their stores and products than Kors.They may want to create another line that is more modern and appeals to the audience that is interested in Kors updated looks. Lauren also needs to increase their social media presence.Donna Karan (DKI):DKI sells to upscale department and specialty stores and through its own retail storesDKIhas logged sales gainsin the US and overseas, post-recession. Thelabel attributes the positive momentum to fashion shows and its image makeover in recent years. DKI concentrates on best-sellers and its concept of designing a collection that transitions well from day to eveningDKI sells primarily to upscale department and specialty stores and through the company's15 full-price stores and 50-plus discount outlets in the US and the UK.
MEDIA MIX (CMR DATA) ExpendituresBrandTotal MediaMagazineNat. NewspapersOutdoorsNetwork TVSpot TVCable TVRadioMichael Kors80,100 36,045 4,00516,0208,0108,0108,0100Ralph Lauren165,200 66,08016,52033,04016,52016,520165200Calvin Klein170,000 51,00013,60030,60034,00025,50015,3000Marc Jacobs124,000 50,84011,16016,12012,40018,60012,4000Donna Karan80,200 24,0605,6148,0208,0208,02016,0402,406MEDIA MIXMost brands primarily use magazines to advertiseOutdoor Billboards are used frequently as wellAll brands focus on commercial advertisement to a variety of different television types to reach different consumers but focus in metropolitan areas with SPOT TV to target individualsRadio is primarily NOT usedMedia MixBrandTotal MediaMagazineNat. NewspapersOutdoorsNetwork TVSpot TVCable TVRadioMichael Kors100%45%5%20%10%10%10%0%Ralph Lauren100%40%10%20%10%10%10%0%Calvin Klein100%30%8%18%20%15%9%0%Marc Jacobs100%41%9%13%10%15%10%0%Donna Karan100%30%7%10%10%20%20%3%SOVSOV shows that the brands strength is in Magazines and TV Ads, but are weak in Radio and NewspapersBrandTotal MediaMagazineNat. NewspapersOutdoorsNetwork TVSpot TVCable TVRadioMichael Kors80,100 36,045 4,00516,0208,0108,0108,0100Ralph Lauren165,200 66,08016,52033,04016,52016,52016,5200Calvin Klein170,000 51,00013,60030,60034,00025,50015,3000Marc Jacobs124,000 50,84011,16016,12012,40018,60012,4000Donna Karan80,200 24,0605,6148,0208,0208,02016,0402,406Total Category619,500 228,02550,899403,80078,95076,65068,2702,406BrandTotal MediaMagazineNat. NewspapersOutdoorsNetwork TVSpot TVCable TVRadioMichael Kors12.9167.815.410.110.4120Ralph Lauren26.72932.5322121.6240Calvin Klein27.422.426.729.443.133.322.40Marc Jacobs20.022.32215.415.724.318.20Donna Karan13.010.611810.210.423.4100Total Category100100100100100100100100POVAfter completing this analysis, our final insights on the Michael Kors Inc.
Third in the industrySpending 10% too much on ads given profitetc