Yasya Goretsky, Avinash Honkan, Jonas Olsson, Ceci Zhang December 2015
December 2015Sustaining Growth in a Slowing Luxury MarketMichael Kors
Yasya Goretsky () - For this one, we only need to show that MK revenue is growing, I dont think we need anything else.SummaryMarket reality --Increased competition and homogeneityMichael Kors brand perceptionNeed promotional strategy to regain growth in revenue
Data on Market growth
Michael Kors Financial Summary $4.37B
Just say MK company revenue growth (the green line), and remove the red line. 2010 = $508M 2015 = $4.37 B
Growth leveling off Michael Kors growth rate is slowing but is still strong at 32% in 2015
Michael Kors Growth Rate versus Global Market$4.37M$1.3B
Michael Kors Internal truthClassic aesthetic designs with utility at a value Staple accessories - not statement piecesAccessible - Online, Department Stores, Independent Retail Stores, OutletsVersatile Product Lines - Apparel, Watches, Shoes, Fragrances, Bags, Accessories, Leather GoodsTwo brands Luxury and Affordable luxury
INTERNAL TRUTH: MK bags are not statement accessories. They're not flashy and attention grabbing (like Kate Spade, for example.) MK bags are staple pieces for your wardrobe. They're an everyday bag, made of great quality. The designs are timeless, classic.
Put pictures of the nice stuff of MK bags and accessories
Everything for everyone - Michael Kors
too broad a target
What do you think people is thinking about you when you are wearing Michael Kors?
Jonas starts from here
Customer InsightsIt is everywhere - ubiquitous --they are always on sale at some place like the Macys, feels like they are a little bit cheap. --loses value when its sold in stores Like Ross --designs always look the sameStatus Quo Designs Discounts cheapen the brand
Phrases, quotes etc. Put quotes in smaller font and spread around in the background.This might seem like like negative feedback, but these are also MKs strengths wont go out of style
Turning Perceived Weaknesses into StrengthsIt is everywhere - Its easily available for purchase.Status quo design - Never goes out of style. Where do you wear Michael Kors? - everywhere, work The watches I wear on a daily basis.Discounts cheapen the brand - No need! The core customer loves the brand! feels more professional, more put-together, feel like Im dressing nicer
Turn the negative customer perceptions to positive through what?TPut in the facts on the purchase power etc from census/DOLalready priced appropriately
Desired CustomerFemale 25-35College graduate in her early careerAspirational young professional who wants her look to transition seamlessly from day to nightPurchase Power
Dont mention people being sinlge. Saying that the this group of customers are growing rapidly--More and more female getting college degrees
Women that embody the Michael Kors customerKate MaraZoe Saldana
Olivia is a doctor, zoe is a super hero, Kate Mara
Campaign Target ObjectiveStop decline in growth Target $1.4B increase in revenue over last year. Achievable within MK growth trajectory.
need to change 4.2 B to 4.37B. Should we increase it 1.2 to re-accelerate growth to 27%?
Yasya Goretsky () - this needs to show the 32 percent increase from 2014 to 2015 AND 2016. 4.37B + 1.4 billion = 5.77BShiyuan Ceci Zhang () - Show 32% increase to $5.77B in 2016So, whats the one thing that makes Michael Kors stand above the crowd?
Michael Kors offers professional and timeless pieces that can transition from daytime office meetings to social events. A classic - yet affordable brand.
Q & A