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.