Michael Kors Strategic Marketing Plan

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Strategic Marketing Plan for the Michael Kors brand.

Text of Michael Kors Strategic Marketing Plan

  • 1. TABLE OF CONTENTS I. Executive Summary1-2 II. Company & Product Overview Products/Descriptions of Services Background/History Company Management Culture Market Position 4 5-6 7-9 10 11 12 13 III. Environmental Scan 14 SWOT Analysis 15-21 Summary/Review of SWOT Analysis 22 IV. Situational Analysis 23 Industry Served 24 Markets Served-Identifying Customers 25-28 List of Customers by Purchase Behaviors 29 Competition 30-35 Technology & Innovation 36-38 V. Strategic Marketing Plan Assumptions Goals-Measurable Strategies/Actions (Tactics) 39 40 41-42 VI. Division of Responsibilities/Timelines Timeline/Budget Recommendations 49 50 VII. Summary/Conclusions 51-52 VIII. Sources 53-55
  • 3. EXECUTIVE SUMMARY Michael Kors is an American fashion designer that is looking to continue on the growth path that has been set through the companys past and recent success. In the beginning, that path was rough and full of setbacks, but currently the Michael Kors brand is receiving recognition for its stability and accomplishments within the apparel industry. After research and analysis of the company and its competitors was performed, a list of strategies and actions were developed. The strategic goals that have been set for the company are: Increase revenue by 30% in 2014 Increase market share to 13% in 5 years Introduce new products via a mens accessories line, a childrens line and a sports line Keep prices stable or increase to grow profits Increase Facebook and Twitter followings by 5% each month In order to achieve these goals, there are several strategies that need to be implemented. Prices of products must be increased or remain the same; no discounting should be used. Awareness needs to be increased, new channels should be found and new products should be developed. Product differentiation and innovation are of the utmost importance to set the brand apart from its competitors. Strategic alliances will allow the company to grow into avenues that it has not previously experimented with. Limiting availability is also another tactic to increase demand. Finally, maintaining brand integrity allows Michael Kors to continue on the path to success. The steps that are proposed are in line with the goals of the company and facilitate growth. Michael Kors must implement these strategies in a timely manner, continue to create innovation within the apparel industry and continually measure/reevaluate the strategies and actions to see if changes or adjustments should be made to benefit the brand. 2
  • 5. OVERVIEW Michael Kors is a global luxury lifestyle brand with a jet-set aesthetic that combines elements of style, elegance and sport. The company was established in 1981 and is led by Michael Kors, a prominent fashion designer based in New York City. The business operates in three different segments: retail, wholesale and licensing. Their goods are sold in companyoperated retail stores, leading department stores, specialty stores and through carefully selected licensing partners. MICHAEL KORS THE AMERICAN FASHION ICON Michael Kors is the founder, designer and Honorary Chairman and Chief Creative Officer for Michael Kors Holdings Limited (KORS). He is a fashion icon who not only designs clothing and accessories, but is also known for his appearances as a judge on the Emmynominated Project Runway. He was born Karl Anderson, Jr. on Long Island, New York in 1959. He is half Scandinavian and half Jewish. His mother was a former Revlon model and his father was a college student. His mother was remarried when he was five and he took the surname of Kors, his stepfathers name. His mother allowed him to choose a new first name as well, and the name Michael David Kors was born. Michael was exposed to the fashion industry through his mothers career as a model. As a child he decided he would either become a movie star or a fashion designer. At the age of 4 he was in cereal commercials and when he was a teenager he studied acting in Manhattan. He began designing his own clothes around the same time and sold them out of his parents basement. Eventually he attended the Fashion Institute of Technology in New York City. He began school in 1977, but dropped out nine months later. 4
  • 6. Next he moved on to work for Lothars, a boutique on 57th Street in New York. He clothed many women here including celebrities like Cher and Diana Ross while learning valuable lessons about the fashion business. Eventually Kors decided that he could design better than the clothing that he was selling, so he launched his womenswear line in 1982 at Saks Fifth Avenue and Bergdorf Goodman. His clothing was an instant hit and Michael Kors became a relevant name in the fashion industry. Kors has received many honors throughout his career, but most recently in 2013, he was selected for The Time 100, Time magazines list of the 100 most influential people in the world. He is also noted for participating in and helping causes such as world hunger, HIV/ AIDS and cancer research. collectionS The company is based on two different collections: the Michael Kors collection is the luxury segment of the brand and the MICHAEL Michael Kors collection is a more accessible luxury collection. Both collections offer accessories, apparel and footwear. Michael Kors collection The items in this collection are made from the highest quality materials such as leather and other exotic skins. The handbags and small leather goods retail from $500 to $6,000 while the footwear ranges from $300 to $1,200 and the apparel retails from $400 to $4,000. MICHAEL Michael Kors collection The Michael Michael Kors collection focuses on handbags and accessories, but also includes footwear and womenswear. The accessories include small leather goods (such as clutches and wallets, wristlets and cosmetic cases) as well as womens footwear and dresses, tops, pants, jeans, skirts, shorts and outerwear. The handbags retail from $200 to $800, the small leather goods are from $45 to $200, the footwear retails from $70 to $500 and the womens clothing retails from $50 to $500. This collection is much more accessible and affordable to those who want the Michael Kors look without the high price tag. 5
  • 7. Licensed products WATCHES Michael Kors watches have been licensed by Fossil since 2004. They are sold in Michael Kors retail stores and to wholesale customers as well as in select watch retailers. They are priced from $150 to $500. Eye wear Michael Kors exclusive eye wear licensee since January 2004 has been Marchon. Sunglasses are the key category and the collection is focused on status eye wear. The items are sold in MK retail stores, to wholesale customers and at select sunglass retailers and prescription eye wear providers. The retail price is from $85 to $285. JEWELRY Since 2010, Fossil has been the exclusive fashion jewelry licensee for MK. The collection includes bracelets, necklaces, rings and earrings. These items are designed to compliment the watch collection. FRAGRANCE & BEAUTY Starting in May 2003, Este Lauder became the exclusive licensee of mens and womens fragrances from Michael Kors. The fragrances are sold in their retail stores, to wholesale customers and at select fragrance retailers. The retail prices range from $20 to $115. Recently, a new fragrance and beauty collection was introduced in 2013. The tag line for this collection is Sporty Sexy Glam, which continues the companys standard of jet set style. The collection includes perfume as well as beauty products ranging from lip color to nail color 6
  • 8. PRODUCTS/DESCRIPTION OF SERVICES Michael Kors offers clothing, shoes, accessories and fragrance/beauty products for women. He also designs for men in these categories, although the selection is much more limited. The ready-to-wear womens category includes dresses, tops, jeans and pants, shirts and shorts, outwear and swimwear. The price range is $89 to $3695. The possibilities are endless when mixing clothing pieces from Kors lines The beauty of the Michael Kors collection is that a woman can create an entire look with any combination of MKs pieces from the outfit to the accessories, shoes and beauty products, everything is included in the collections. The outfits illustrated above are examples of the many combinations that can be imagined with Michaels products. Medium Weston Shoulder Bag-$298 Large Selma studded Saffiano tote-$428 Large Miranda Python Tote-$2995 The item that is most well-known in the collections is the handbag. A wide variety of totes, shoulder bags, cross body bags, satchels, clutches, wallets and wristlets are part of both the Michael Kors Collection and the Michael Michael Kors collection. The price points of the collections vary, but he makes sure that there are affordable options for