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.