Ch. 7 - Business Marketing

All of Michael Kors products used to make all the accessories are processed but natural materials. On the website, there is a tab where it explains the care needed for each accessory product sold both on the website and in the store. For example, under handbags, it lists the various materials used and how to care for each handbag of a particular kind.

The demand for Michael Kors has become a major upside potential for the company where the stores are expected to rise a full 25% with total sales in the range of $525 million to $535 million for the third fiscal quarter. Not much is discussed about this particular subject for the business, however the company is very optimistic about the continuous business growth. "Our strong performance in the quarter was driven by continued growth in comparable-store sales, strong performance of our new stores, and the advances in out international expansion strategy as we continue to build brand awareness," said Mr. Idol, CEO of Michael Kors USA, Inc.

Ch. 8 - Segmenting and Targeting Markets

The name Michael Kors has become synonymous with the jet set luxurious lifestyle that is timeless and elegant. All is expressed through the sophisticated accessories and ready-to-wear collections. 

Michael Kors, over time, have developed a strategically controlled global distribution network focused on company operated retail stores, leading department stores, specialty stores and select licensing partners. Business is operated in three segments: retail, wholesale, and licensing. The retail segment engages in the sales of all the products, including licensed products.

As of March of last year, retail obtained 196 stores in North America and 46 internationally, including concessions in both Europe and Japan. The wholesale segment sells most of the products, including women's and men's apparel, accessories, and footwear to department stores and specialty stores in both North America and Europe. There are 2,027 department and specialty store doors in North America and 650 international department and specialty store doors. The licensing segment licenses Michael Kor's trademark on all its products as well as licenses rights to sell to geographical  regions such as: Korea, The Philippines, Taiwan, Malaysia, The Middle East, Turkey, China, Singapore, Hong Kong, and Macau. Geographically, Michael Kors  plan to increase our international retail store base to 100 locations in Europe and another 100 locations in Japan in addition to expanding our shop-to-shop footprint in department stores in both Europe and Japan.

Michael Kors targets all possible genders, ranging from 16 - 60 years of age who obviously have money to spend. The company made changes in the target market from people who are wealthy to the middle class, people who are not necessarily wealthy by have money to spend. This change broadened the lines of who can buy the products, along allowing MKUSA to make more money. Michael Kors reaches out to its customers looking to improve their status related motives. And for those whose social status is already established, Michael Kors is simply the icing on the cake.

Michael Kors does collaborations, called Kors Collaborations, as an initiative to aim at showcasing the special relationships and unique dialogues between Kors himself and creative talents across the cultural spectrum. The most recent collab, the third installment of the series, featured British model and muse, 23 year old Amber Le Bon. These collaborations will continue to roll on a quarterly basis.

Ch. 11 - Developing and Managing Products

Michael Kors USA, Inc. has been defined down to one word, classic. As of 2011 Michael Kors has become one of the most successful American fashion designers. The company's take on product development and management is simplicity.

Strengths: Mickael Kors Inc. design vision is led by the world renowned, award winning designer, Michael Kors. The solid foundation we built for continued long-term global prosperity and best-in-class growth metrics has its luxury lifestyle brand in rapid advancement.  Michael Kors is the youngest man and company to receive the CFDA Women’s Fashion Designer of the Year Award, the CFDA Men’s Fashion Designer of the Year Award, the ACE Accessory Designer of the Year Award, and the CFDA Lifetime Achievement Award, along with other awards. The company has the fastest growing accessory product category in the global luxury goods industry. Other strengths include: strong relationships with premier wholesale customers, growing license segment, and preparing to take share in the growing global accessory product category.

Weaknesses: Recessions in the general economy can greatly affect consumer spending habits which negatively affects purchases made towards the accessory, footwear and apparel industries. Profitability can decline in this highly competitive industry. Its competitors include, among others, Coach, Burberry, Ralph Lauren, Hermés, Louis Vuitton and Prada. Being a smaller company who is not as diversified as others, they will not be able withstand any periodic downturns to their accessory, apparel and footwear industries.  Michael Kors products may not be innovative enough to meet the standards of the rapidly changing fashion and retail trends.

Ch. 16 -Integrated Marketing Communications

Michael Kors  has been defined down to one word, classic. As of 2011 Michael Kors has become one of the most successful American fashion designers. The company's take on product development and management is simplicity.Michael Kors has been giving its competitors a run for their money with its successful major growth within the past year. Its target market was mainly women from 30s to 40s. However, now due to all the expansions and line additions, the main new target begins with women young twenties to endless who are looking for the quality in a product and pieces to wear, not just everyday clothing. A smaller portion of the target market reaches out to men with the men's lines and accessories. Michael Kors marketing strategy has been very simple. Michael Kors maintains its luxury brand and maintain its customer base by offering various product lines that reaches out to every class; the expensive high-quality Michael Kors and the relatively cheaper Michael line, and all other lines.

Ch. 10 - Product Concepts

Bearing the name of an award-winning luxury clothing and accessories designer with over 300 retail stores located across the globe, Michael Kors has become a powerful brand with worldwide growth in multiple

product lines.

The company has two levels of products, a high-end collection and the MICHAEL collection. The high-end collection is sold through the company's "collection" stores and high-end department stores like Bergdorf Goodman and Harrods. The MICHAEL collection is sold in upper mid tier department stores like Bloomingdale's, Nordstrom and in it's own "Lifestyle" stores.

The company's product lines consist of the following:

 - Michael Kors Beauty Collection

 - MICHAEL Michael Kors

 - KORS Michael Kors

 - Michael Kors Designer Collection

Over the years, Michael Kors product lineup has expanded to include more than just clothing. Each of these product lines consist of several product items. Michael Kors Beauty Collection splits into three main categories of cosmetics; sporty, sexy, and glam. The MICHAEL Michael Kors collection includes women's handbags and shoes as well as ready-wear-apparel. The KORS Michael Kors collection includes footwear and jeans. The Micheal Kors Designer collection includes all runway styles that range between $400 - $6000 in apparel, handbags, and footwear.

Though the effort to reach beyond the high end of the marketplace to gain more consumers is a common goal among luxury companies, there are a limited amount of consumers available at the top of the retail market. Therefore, the shift to lower becomes a necessity to gain more consumers. Michael Kors has successfully managed to balance the acts of keeping high-end customers happy with the differentiation of the products marketed to them. preventing the mid-tier products from tarnishing the brand's high-end image.

Ch. 18 - Sales Promotion and Personal Selling

Micheal Kors does participate in sales promotion unlike other luxury brands. However, these promotions are mainly online. You find that they would have a clearance section in some of the stores and sales in the outlet stores but not in all of them. They don't broadcast sales in the store like other stores. The broadcasting is done online, in catalogues, and in the emails of existing customers. There are also promotions when there is a new theme. Whether it be face-to-face, over the telephone, videoconferencing, or through interactive computer links between the buyer and seller, personal selling plays a huge role for this company. Micheal Kors sales associates have to meet high standards and cannot be a beginner in retail selling.

Ch. 17 - Advertising and Public Relations

Michael Kors uses print ads in magazines and billboards in cosmopolitan cities.

 The company advertises its brand mainly in fashion and lifestyle publications, ad campaines, and international multichannel effeorts including print, mobile and social media.

Countless celebrities wear his garments, and First Lady Michelle Obama posed in a Michael Kors dress for her first official portrait.

Social Media

Most brands offer their loyal Facebook fans an exclusive coupon here and there, but Michael Kors downright spoils their Fans with some of the most highly articulated exclusives around. Just this month they launched a campaign in honor of reaching 500M Facebook fans. Michael Kors released 500 limited-edition pairs of shoes for Facebook Fans only. Building an exclusive product line devoted to a single Social channel, is one of the many things that sets this company apart.

Some brands know Twitter, other’s are Instagram Rockstars. Michael Kors knows them all. For example, their February #FallingInLoveWith Campaign was a tribute to Valentine’s day and all that the their customers’ love. The campaign was centered around uploading photos of what they love to either Twitter, Facebook, or Instagram.

Last year, Michael Kors launched a campaign called #MKTimeless targeting Instagram Fan Growth. While Twitter and Facebook reign supreme for Social campaigns, Instagram and Pinterest are gaining strong attention from Fashion brands due to their visual nature and strong female following (Instagram user base 70% female). Customers were challenged to take a photo of their favorite watch and post to Instagram. This two week contest saw major success, giving them a 50% increase in their Instagram fan base. 

“Success is now driven by creating the brand experience within or around your Web site and the Internet rather than inside a magazine,” he said. “It is fair to say that a brand’s Web site is the new platform for luxury brands.”