MICHAEL KORS

Michael Kors brand is an internationally known fashion statement in the market since 1981,
owned and run by Mr. Michael David Kors. Michael’s interest for fashion started when he
was very young. His mother thought his interest might have been caused in part by his
exposure to the apparel industry through her modelling career. Michael, at the age of five,
even redesigned his mother's wedding dress for her second marriage. As a teenager, Michael
began selling and designing clothes them out of his parents' basement, which he named it the
Iron Butterfly. Michael was 14 when he decided to focus on becoming a fashion designer as a
profession. Michael Kor’s launched his first women’s label in a department store in New
York in the year 1981. In 1990, the organization boosted KORS Michael Kors as a licensee.
In 1993 due to the closure of licensing partner, it forced the line of KORS to be put on hold.
The line KORS made a comeback in 1997 and launched a lower price range line. A
menswear line was launched in 2002 by the company. Joining the original Michael Kors
Collection label, the MICHAEL Michael Kors line was launched in 2004.
This MICHAEL line includes women's shoes, handbags and as well as women's ready-to-wear
apparel. According to Ashley Lutz in Business Insider Michael Kors, is still successful because
it hit the right market and targeted people who had money to spend, not just the rich. Some of
the variables used for segmenting the market where the demographics and geographic. The
people with income between $100,000 and $250,000 were targeted according to the graphs and
calculations. It also segmented the market according to the market size and the consumption
capacity. It also segments the market on the basis of logistic reachability, expected growth.
Kors customer includes the working women, housewives and also the younger generation.
Since Michael Kors is a well-known face of the brand and is a famous celebrity, the brand is
popular among the celebrities. The celebrities love him as much as they love the brand. Michael
Kors became the most searched brand on the internet because it offered a lower-priced
diffusion line that was most appealing to a wider range of customers.

One of the few competitive advantages that Michael Kors is that it has a very strong brand
name. The designer himself an esteemed celebrity designer. The customers are very loyal, the
brand has been fancied by women for the past 30 years. The affordable price also makes the
brand very attractive to the customer base. Handbags represent about 70% of the company’s
overall sales but according to the Michael Kors website the share is expected to fall to 62% by
2020. Michael Kors has a global distribution network that has the presence in over 100
countries through company-operated retail stores and e-commerce sites, leading department
stores, specialty stores, and select licensing partners. There are the number of company-
operated retail stores, e-commerce sites and department stores and specialty that is in the
famous fashion capitals of the world. With such a vast distribution channel, the products are
readily available to the customers. As soon as an order is taken the product is shipped and the
route is tracked via the online tracking system. The brand has a good online presence online
with strong capabilities to deliver products in different online portals around the world.

Michael Kors faces tough competition from other luxury brands and Coach is Michael Kors’s
primary competitor since they operate in the common market. Coach, after an acquisition of
the brand Kate Spade, changed its name to Tapestry. The customers of Michael Kors is people
mostly between the ages of 16-39. The brand is more popular among women than men. Michael
Kors is mostly aspired by women and the focus of the brand is to target the millennial
customers and is investing strategically in delivering a multichannel seamless shopping
experience to appeal to them. The customer preferences are changing, they want better products
that are trending and technologically attractive. The Michael Kors watch market has seen a
decline as customers are more into smartwatches. The brand has taken initiatives to re-invent
itself and become more appealing to the young customer base.

Michael Kors Holdings Limited is simply known by the name Michael Kors. It is associated
with Lifestyle and Retail industry and deals in apparel and several accessories. It is a public
limited company of American origin.

Product, Michael Kors is a unique brand that takes special care of design and quality to offer
chic and fashionable apparel and related accessories. It has a large collection of products which
is divided into two sections, one for men and the other for women. The brand has taken special
care to design apparels in petit, normal and plus sizes to suit individual needs.

Place, Michael Kors is an international brand and has spread its network to include several
countries in the world. The first retail outlet was opened in the year 2006 and by the year 2015;
it had more than five hundred and fifty outlets and by the end of the fiscal year 2017, the brand
had one hundred and thirty-three licensed outlets and eight hundred and twenty-seven outlet
stores. Its headquarters base is at New York City in the United States. The brand has a
manufacturing facility in China for reducing its costing as labour is very cheap there.

Price, Michael Kors is a mid-level brand for luxury items and it has positioned itself as a bridge
between luxury and high-street brands that offers accessible clothing line. In order to spread its
product presence in overseas and new markets, it has decided to adopt a mid-premium
pricing policy for its high-quality products. The affordable and reasonable mid-premium rates
will help the brand to face its competitors in an advantageous footing. The prices are
comparatively lower than its rival brands and have helped it in increasing its sales figures.
Higher the sales, higher the revenues, and larger the profits are the mantra of this high-class
brand.

Promotions, In order to stay relevant, the brand has turned its attention to social media platform
and has created a Twitter page, which has more than 2.81 million followers and
a Facebook page which has more than 16.25 million followers. The brand has also opened an
Instagram account with 4.1 million followers. These platforms are very popular and can easily
reach out and influence the customers. Michael Kors has an official website to upload all the
important and noteworthy information for interested customers. It has a Trends page which
uploads new style quotients and about what is in at that particular season. This direct line of
communication helps the brand to see and hear responses as well as feedback from its
customers. With so many followers it is easy to know and determine which product is doing or
not doing well and take steps accordingly.

Michael Kors has made itself as a luxury brand with “innate sense of glamour and the unfailing
eye for timeless chic”.