fpt university mkt101 individual assignment 1

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<b>FPT UNIVERSITY </b>

MKT101- Individual Assignment 1

IB1703

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<b>MICHAEL KORS </b>

INTRODUCTION: ... 3

MICHAEL KORS: ... 3

I. Target Market Analysis .. 5

II. Brand Extension and Product Strategy: ... 7

III. Competitor and Positioning Analysis: ... 7

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As people's living standards rise today, they become more and more involved in their lives, which is evident from the fact that branded goods are prioritized and trusted by consumers. to expensive luxury products. In order to examine the current market data for the firm, I will first investigate the background and history of luxury brand Michael Kors in this research. Analyzing and ranking the attraction of three prospective brand categories is my second area of interest. The third area of interest I'll discuss is how well I grasp the traits of the market niche I've picked, which will serve as the foundation for my new product and market expansion strategy. I'll examine the fourth issue and discuss how Michael Kors' brand expansion positioning approach differs from those of other companies. The remainder of the marketing mix for the brand expansion will next be thoroughly examined. I concentrate on researching the Chinese market for Michael Kors.

<b>MICHAEL KORS:</b>

Karl Anderson Jr. was given the name Michael David Kors upon birth on August 9, 1959, in Long Island, New York. When Karl was two years old, his parents Joan Krytosek, a former Revlon model, and Karl Anderson, a college student, got divorced. When his mother wed businessman Bill Kors, Kors received a new name at the age of five. Kors' mother allowed him to pick a new first name in addition to a new last name, and he chose Michael David. (biography.com, 2014; static.vogue.com). Kors was a "fashion fanatic" even as a youngster, acquiring as much fashion knowledge as he could from their Merrick, New York, suburbia home. He had previously worked as a model when still a young child. As he became older, Kors became more interested in fashion. He has said: : "I practically hyperventilated every month when Vogue arrived, and I loved shopping." (biography.com, 2014)

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In the 1970s, driven by his enthusiasm, he relocated to New York City to enroll in the Fashion Institute of Technology. However, after two semesters Kors dropped out and began working at Lothar's, a French clothing store, in 1978. The shop's proprietor granted Kors a studio and complete freedom to create anything he desired. Here, Kors was able to create and market his first independently produced line of clothing, which was favorably appreciated by the general public. In 1979, He revealed this to a Pittsburgh Post-Gazette writer that <After (a year and a half), I realized what kind of clothes I wanted to make, and that they worked. I always loved very simple, understated things.= (static.vogue.com)

The brand's popularity encouraged Kors to develop his own clothing line, which resulted in the "Michael Kors Women's Collection," which was introduced in May 1981. High-end department shops Bergdorf Goodman and Saks Fifth Avenue also sold the line.(biography.com, 2014)

Customers loved Kors' designs because of the understated yet tastefully cut garments and his wonderfully convincing sales tactics. Along with the success of the clothing line at department stores, Kors also traveled throughout the USA to tiny fashion events called "trunk shows" that were hosted in private residences. The 23-year-old Kors also succeeded in persuading Anna Wintour, a powerful fashion editor, to check out his collection. Before gaining the admiration of famous people like Barbara Walters and receiving praise for his designs, Michael Kors started out by showcasing his collection on his bed in his flat. At this moment, the glitzy showrooms on Madison Avenue he would someday possess were only a distant memory. (biography.com, 2014)

Despite the expanding popularity of Kors' clothing line, his business was forced to file for bankruptcy under Chapter 11 in 1990. The recession that was affecting the whole industry and the failure of a production agreement for his bridge line were the major causes of the decline. Fortunately, Kors was able to get beyond these challenges and later debuted his more affordable line, "KORS Michael Kors". In addition to the new brand, Kors received the title of creative director of Celine, a French fashion business owned by LVMH, in 1997. He maintained the post for six years while also growing his own business. Kors introduced his menswear, accessories, and fragrance collections during this time. The most coveted and important accolade, the Menswear Designer of the Year award from the Council of Fashion Designers of America, was given to Kors in 2013 in acknowledgment of his ongoing efforts. (static.vogue.com)

What was once an American premium sportswear company has evolved according to Mr. Michael Kors' vision into accessories, clothing, footwear, jewelry, timepieces, ready-to-wear for men and women, eyeglasses, and lifestyle retailers with over 770 locations globally. The skilled design team for the company is directly led by Mr. Kors, and together they are in charge of conceiving and guiding the designs for all of the company's goods. The award-winning designer and a top-notch management team are in charge of the global luxury lifestyle brand, which is expanding quickly and earning widespread acclaim in countries outside of North America. Michael Kors has created designs, materials, and craftsmanship that are unique to the company during the course of its 30 years in business. All of the brand's items exhibit a jet-set style together with stylish elegance and a sporty attitude.The company's 2014 annual report lists Coach, Burberry, Ralph Lauren, Hermès, Louis Vuitton, Gucci, Marc Jacobs,

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Chloé, Tori Burch, and Prada as its top rivals. (Michael Kors Annual Report 2014, 12, 24)

<b>I. Target Market Analysis </b>

Establishing segmentation bases is necessary for the construction of the Michael Kors marketing strategy in order to comprehend the unique purchasing habits of clients. Customers' wants, desires, and purchasing habits vary widely and are influenced by a variety of factors, including:

Age GenderIncomeLifestyleValues etc.

The business may create a successful marketing strategy using one of three possible segments.

<b>PersonalThe fit of the segment with the </b>

<b>Size and growth</b>

<b>Structural attractiveness</b>

1. The demographic segmentation

Making handbags in

a unisex design. ^thebracket of 25 ^ageto 54 with an annual salary of above $50,000.

The handbags that Michael and KAWS will co-brand are almost certainly going to be a great hit.

2.The geographic segmentation

Integrating Chinese traditional culture in handbag design

Plan to extend our shop-to-shop footprint in department stores in both Europe and China, as well as our worldwide retail store base, reaching 100 sites in each of those

Michael Kors primarily works with two key vendors, one of which, Ci jeans sa cra, is in charge of producing apparel, denim, and textiles. Sitoy Group Holdings Ltd. is another, and it specializes in making leather items. A well-known Chinese manufacturer, Sitoy Group Holdings Ltd., also provides several

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regions. other premium labels, including a rival to Michael Kors: Coach(Reference, 2020)

3. The psychographic segmentaton

Creating bags that may be utilized in a variety of situations.

Women who want to look stylish but active.

It is generally known that KAWS and Uniqlo's collaboration in 2019 sparked an insane panic purchasing frenzy in China.(Zhuang, P., 2019)

I choose the demographic segmentation as the main segment to target. Because in order to develop successful marketing strategies, we need to understand the gender, age, income, and lifestyle of the consumers in the market we are targeting.

Michael Kors' first-level target market includes working women between the ages of 25 and 45 who have an annual household income of more than $50,000, according to Figures 9 and 10. These ladies like outdoor activities, have the capacity for autonomous thought, and possess intellectual elegance. Furthermore, Michael Kors'

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target market includes groups of women between the ages of 25 and 45 who have excellent education levels and are still enrolled in college.

<b>II. Brand Extension and Product Strategy: </b>

Line Extension: Michael Kors’ expansion and development the handbags in China.

Brand Extension or Category Extension: Expand potential target markets in China.

Multi-brands: The co-branded items from Michael and KAWS are highly likely to be a tremendous success based on this Chinese mass consumer psychology and assist Michael Kors in achieving the brand image developed in China.

New Brands: Students at universities in China between the ages of 18 and 24 may now be Michael Kors' new target demographic. Social surveys reveal that Chinese students desire to present an opulent lifestyle and disappear from view (Tamsin Smith, 2019).

<b>III. Competitor and Positioning Analysis: </b>

<b>1. Competitor: </b>

It is evident by analyzing market similarity and resource similarity that Coach and Tory Burch are Michael Kors' main rivals in the Chinese market. And Coach had superior sales stability in 2019 (McKinsey, 2019), making it unquestionably the brand Michael Kors faced the most competition from.

Major

competitor ^CoachCompetitor's

brand goal ^{1. To improve market reach, open flagship shops in every Chinese first-}tier city. 2. Establish a platform for online shopping and an information system. 3. Brand image development and front-end retail management. 4. Create a distribution hub for Asia in China.

5. Create a regional logistics infrastructure to lower the expenses of logistics associated with transportation through outside businesses.

Competitor's

strength and ^STRENGTHS:

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weakness 1. Coach developed its business in China considerably earlier than Michael Kors, and it has excellent sales performance and superb craftsmanship.

2 Coach handbags are produced in Japan and are of higher quality and 3. Coach had a stable consumer base and started developing its e-commerce platform earlier than Michael Kors.

WEAKNESS:

1. Coach has a smaller operating margin than Michael Kors.

2. Although the market valuation is lower, the time to market is sooner than Michael Kors.

3. Weak predicting skills for product demand lead to high day stockpiles.

4. Product development expenditures are too expensive compared to industry norms.

Competitor's

reactivity ^{While Coach and Michael Kors both sell clothing, their core product}lines are handbags and leather goods. Coach has developed sophisticated marketing techniques in the Chinese market, and via a variety of marketing initiatives, has enhanced consumer connection and developed brand loyalty.

<b>2. Brand Positioning </b>

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According to Michael Kors, it is a premium company with an intrinsic sense of attractive, classic style (Marketing91, 2019). And as a result of offering a diffusion line with prices for the majority of things ranging from $100 to $400, Michael Kors has expanded its consumer base and become the most popular brand on the Internet (Prezi, 2014). (Bhasin, 2019). Given China's enormous population, Michael Kors' positioning of "Affordability" and "Mass Market" in comparison to its rivals (Figure 8) may enable it to grow its market there.

The following are the four key brand values of Michael Kors: "Self Esteem"

It promotes the idea that when someone feels good about themselves, they can love others and be joyful. Individuals may attain any life goals by loving themselves (Values, 2020). It encourages consumers to gain assurance.

<b>IV. Marketing Mix:</b>

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1.Women: Handbag, Footwear, Wallet Watches, Apparel Accessories, Jewellery, Perfume, Glasses.

2.Men: Bags, Apparel, Accessories, Footwear, Wallets, Watches.

1.A mid-tier brand offering reasonably priced products that sits between high-end and boutique brands

2 Fair mid-premium prices

1. More than 1200 stores worldwide. 2. Provide services to 827 Outlet retailers and 133 licensed Outlets.

3. Opened plants for manufacturing in China. 4. Collaboration with online merchants 5.Achieve license deals with a number of well-known companies, including Estee Lauder, Marchon, and Fossil. Therefore, the goods may also be sold in their retail locations.

1. To maintain brand exposure, develop advertising, public relations, sales, promotion, personal selling, and social media. 2. Start major brand initiatives. 3. Exposure in fashion publications and on television.

4. Use social media platforms like Twitter, Instagram, and Snapchat to manage them and foster client loyalty. 5. Official webpage to announce sales or new arrivals.

6. Social media profiles for celebrities.

A premium company with roots in American culture is Michael Kors. Its cost is reasonable, and the caliber of its goods is excellent. However, because of excessive brand exposure and changes in the target market, which have a direct impact on sales, Michael Kors has recently contributed to a deterioration in the standing of the premium brand.

Additionally, Michael Kors' expansion in the Asian market is proceeding somewhat slowly. Asia is dominated by China, and nations with considerable purchasing power include Japan, South Korea, Singapore, and Thailand. This article examines a variety of topics in-depth with a focus on the Chinese market, including Michael Kors' rivals, development, and policy assistance. These issues led to the establishment of a completely new course for it.

In the United States and Europe, Michael Kors is seen as a white-collar lady. However, in China, the price structure of Michael Kors, the features of commodities, and a study on the purchasing power of Chinese women were merged. Young ladies between the ages of 18 and 24 are its target market. As a result, the brand's

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positioning and user interface improvements need to be more youthful and customized.

<b>REFERENCE:</b>

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The Influence of Finnish Culture on the Success of Luxury Brands Case Michael Kors; Halme_Mari_Rissanen_Amanda Thesis.pdf

Brand Analysis Of Michael Kors And Propose Fashion Marketing Strategies for Chinese Market; Yuxi (Victoria) Zhang 07/06/2021.

Strategy Of Michael Kors; Posted by Matthew Harvey on Oct-17-2018. H., 2019. Marketing Strategy Of Michael Kors - Michael Kors Business Strategy. [online] Marketing91. Available at: < michael-kors/> [Accessed 12 April 2020].

Bu, L., Durand-Servoingt, B., Kim, A. and Yamakawa, N., 2017. Chinese Luxury Consumers: More Global, More Demanding, Still Spending. [online] McKinsey & Company. Available at: < insights/chinese-luxury-consumers-more-global-more-demanding-still-spending> [Accessed 8 April 2020].

Craft. 2020. Michael Kors Competitors. [online] Available at: < kors-959/competitors> [Accessed 8 April 2020].

Michael Kors. 2020. Values. [online] Available at: portfolio.weebly.com/ values.html#> [Accessed 12 April 2020].

<https://mareah-O'Connell, L., 2020. Topic: Michael Kors. [online] www.statista.com. Available at: <https:// www.statista.com/topics/3215/michael-kors/> [Accessed 5 April 2020]. Pan, Y., 2019. American Fashion Brand Michael Kors Triples Down On China | Jing Daily. [online] Jing Daily. Available at: < [Accessed 6 April 2020].

Pathak, S., 2015. Michael Kors Is Now On Snapchat, Which Might Be A Problem. [online] Digiday. Available at: < [Accessed 8 April 2020].

Smith, T., 2019. How Splurging Chinese Students Spell Big Bucks For Luxury Brands | Jing Daily. [online] Jing Daily. Available at: < brands/> [Accessed 19 April 2020].

Successstory.com. 2020. Michael Kors Story - History, Founder, CEO, Profile | Famous Clothing Brands | Successstory. [online] Available at: < companies/michael-kors> [Accessed 5 April 2020].

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