fpt university mkt101 individual assignment 1

I''''ll examine the fourth issue and discuss how Michael Kors'''' brand expansion positioning approach differs from those of other companies.. Target Market Analysis Establishing segmentation

FPT UNIVERSITY

MKT101- Individual Assignment 1

IB1703

MICHAEL KORS

INTRODUCTION: 3

MICHAEL KORS: 3

I Target Market Analysis 5

II Brand Extension and Product Strategy: 7

III Competitor and Positioning Analysis: 7

1 Competitor: 7

2 Brand Positioning 8

IV Marketing Mix: 9

CONCLUSION: 10

REFERENCE: 11

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

MICHAEL KORS:

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)

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,

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

I Target Market Analysis

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

Gender

Income

Lifestyle

Values etc

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

Personal The fit of the

segment with the

brand’s

identity/positioning

Size and growth

Structural attractiveness

1 The

demographic

segmentation

Making handbags in

a unisex design the bracket of 25 age

to 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

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'

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

II Brand Extension and Product Strategy:

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)

III Competitor and Positioning Analysis:

1 Competitor:

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 Coach

Competitor'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

strategy 1 To achieve marketing, use physical storefronts, e-commerce platforms, and third-party cooperative distributors

2 Modify brand approach and rebuild brand reputation

3 Frequently conduct Weibo and WeChat marketing campaigns

4 Work together with Chinese celebrities to create themed marketing events and enhance consumer-brand communication

Competitor's

strength and STRENGTHS:

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

2 Brand Positioning

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

The responsibility

Michael Kors supports civic and personal accountability Each person should take responsibility for their actions, their labor, and their abilities to contribute to society Clothing Animal

Encourage customers to develop their fashion sense, pursue fashion logically, and concentrate on the usefulness of fashion

Respect

Michael Kors promotes brand value that is respectful Respect in its broadest sense entails having regard for all that exists In a limited sense, respect encompasses things like tolerance for other ways of life, personal preferences, intellectual prowess, aesthetic merit, etc

IV Marketing Mix:

1.Women: Handbag, Footwear, Wallet

Watches, Apparel Accessories, Jewellery,

Perfume, Glasses

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

Wallets, Watches

Price

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

2 Fair mid-premium prices

Place

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

Promotion

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

CONCLUSION:

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