Research Paper: Michael Kors Company

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Michael Kors Company

Come up with customer segmentation for Michael Kors / KORS.

Michael Kors Company engages in selling products under the brand name of Michael Kors, Kors Michael Kors and Michael Kors. The company operates within three market segments: licensing, wholesale and retail. Under the retail segment, the company is engaged in selling women apparels such as accessories that include small leather products such as wallets, handbags, licensed goods such as eyewear, fragrances and watches and women footwear. As at the beginning of this year, the retail segment comprised 190 retail outlets, which include concessions in South America and 48 global retail stores including concessions in Japan and Europe

The wholesale market segment is engaged in selling accessories including small leather goods and handbags. Small leather products comprise of wallets and footwear. Men and women apparel outlets operate in Europe and North America. This market segment comprise of 2,200 department outlets and specialty store outlets. The licensing market segment engages in licensing the company's trademarks on goods such as furs, swimwear, ties, men's suits, footwear, coats, watches, jewelry, leather goods, eyewear, cosmetics, and fragrances. Further, it gives license rights to third parties who engage in selling products manufactured by the company in various geographical areas such as Taiwan, Hong Kong, China, Macau, China, Turkey, Middle East, Malaysia, Singapore, Philippines, and Korea. Michael Kors Holdings was established in 1981. It has its headquarters based in Tsim Sha Tsui, Hong Kong

2. Assess what is working and what is not working for the brand. How has the company's performance been to date?

Michael Kors handbags, purses, and watches have been encrusted with appreciation, acceptance, celebrity and appearance. Handbags, purses and watches from the company have become synonymous with quality, extravagance, wealth, attractiveness and beauty on the subject of certified chronograph and time keeping. Handbags, purses, and watches are increasingly gaining recognition for the company's excellent production. This is the underlying reason for the fashion smart folks who apply the products. A battery of fashion sweetheart women and men are going down excited concerning Michael Kors Handbags, purses and watches about the way they have designed to be noticed. Handbags, purses and watches produced by Michael Kors are generating a market for all the products in perfection. The company has designed these products with legitimate leather, which makes them more spectacular. Utilizing and having top branded Handbags, purses and watches does not only symbolize approach and comfort, but it is also a sign of a high position in the community

Currently, when the total returns for Michael Kors are compared to the industry and other players, the company's total returns are excellent. This is so, especially when the current stocks are held even though returns are prone to quick direction changes. To establish the current performance of the business, it is important to lock at the company than to look at its historical returns. Price appreciation returns provide a partial view of the investor returns

. The company reinvests its dividends. In the end, the earnings and price of the company are interlinked. Diversifying these two metrics is likely to create opportunities for the company. If the two metrics diverge unreasonably, dangers to the company are imminent. Yields are showing how much the company is getting from selling their product s. For instance, an earning yield on 10% means that the company is getting 10 cents from the current earnings. The revenue section has highlighted the amount that the company has obtained from selling goods to customers

3. Describe the company's presence- in store, in advertising, online, & globally? They are involved in Social media

Michael Kors holdings is rapidly growing and expanding its presence in the global market of lifestyle luxury brands. This is led by renowned and excellent management group of an award-winning designer. After 30 years of launching the brand name, the company has been featured in distinctive materials, designs and artisanship with a sporty attitude based on elegance. The company developed as a U.S. sportswear house to become international apparel, footwear, and accessory companies with presence in 75 nations

. The company, which enjoys its market position as a recognized brand of luxury lifestyle in North America, has an accelerating brand awareness that targets global markets. Michael Kors is experiencing clear trajectory and exceptional momentum of sales for their significant growth in the future. Over time, Michael Kors has made successful expansions going beyond apparel production to producing accessories such as watches, eyewear, jewelry, small leather products, and handbags. In addition, the brands have expanded into footwear, which is currently accounting for most of the company's retail and wholesale sales. Michael Kors has expanded its capabilities to distribute beyond wholesaling to retailing, which is currently accounting for approximately 80% of the company's total revenues for the fiscal year 2012

Michael Kors is operating in three distinct segments; licensing, retailing and wholesaling, which have enabled them to establish a strategic global market distribution. The company's ability to control global markets is based on their distribution networks, which have focused on leading department stores, operated retail outlets, and selected licensing partners and specialty stores. Michael Kors offers two distinct primary collections, which include accessible collection of luxuries and luxury collection. The products have established an authority in the entire brand as well as in the global department stores such as Selfridges, Harvey Nichols and Bergdorf Goodman among others

4. What could the company do to become more successful?

It takes time for companies to build brand equity. Brand equity fulfills a promise. Expectation on the image, quality, price point, design and style takes time but becomes something that many consumers wish to be associated. A good business deal is accomplished by building brand equity. Once brand equity is developed, it must be nurtured with constant product consistency, pricing, promotion, as well as fulfilling expectations of customers. Businesses are always tempted to draw brand equity from already existing equities. However, companies must be judicious and wise in drawing their brand

My concern regarding Michael Kors is the diminishing brand capital to draw an international lifestyle brand, which is likely to generate big equity returns. This can be easily attained by investing in promotions advertising and new stores to offer support to the tired brands. However, I think Michael Kors must pay attention to top brands. If Michael Kors executes the runway collections successfully, it will retain continuous supply of fashion and design authority to Michael Kors. Thai is the equity that I have been referring to go into Michael Kors' brand bank offering opportunities for a first class lifestyle global brand

. In reality, this is likely to lead to outlets filled with watches, handbags, and purses featuring brassy logos. In order to retain its value, Michael Kors must ensure that the logos on the products have reasonable meanings because it needs substantial investments and acceptance from customers. If this is not taken into serious considerations, Michael Kors brand risks falling into a world of meaningless mass brand market extensions. This can make customers resort to making funny descriptions of the company as well as its products. They perceive the company as an upscale modernist and classic with every trending vibes. Therefore, Michael Kors should not strike customers as a down imitator of the market

5. Discuss ideas and what you would do to the company's financial performance

My goal would be to increase the company's profits and revenue and strengthen its global brand. I would recommend the strategy of increasing brand awareness; the intention should be to increase customer loyalty and brand awareness in international markets and North American markets by employing three distinct aggressive strategies:

1. One of the strategies would be to continue opening new retail outlets in highly visible locations.

2. Maintain an aggressive advertising and promotion position in global publication of fashion products and increase the company's exposure through online advertising and internet presence. It is necessary to maintain constant distribution of products through store catalogues featuring new collections from the company

3. The company should hold regular semi-annual fashion shows reinforcing Mr. Kors' high fashion images and his designer status. The shows must create excitement revolving around Michael Kors collections and generate international coverage from multimedia press.

Growing in global wholesale and retail business is a key. With the increasing global demand for accessible luxury products, constant global expansion in selected regions will represent a compelling chance for further growth. The company has been operating in 35 retail outlets and concessions selling its goods through 550 specialty stores and wholesale outlets internationally. I would recommend that the company leverages its existing operations in Tokyo, Paris, Munich, Milan, Madrid, London and Lugano. This is likely to drive continued wholesale and retail expansions in Japan and Europe. At the end, I believe Michael Kors will increase its global retail store base, as well as concessions to approximately 120 locations in both Japan and Europe

References

Francesca Sterlacci and Joanne Arbuckle. The A to Z. Of the fashion… [END OF PREVIEW]

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