The Branding Strategies of Michael Kors

This assignment analyzes Michael Kors' branding strategies, exploring how they have contributed to the brand's success and the challenges they face. It delves into topics like emotional trends, social media marketing, and the balance between accessibility and exclusivity within the luxury fashion space. The analysis utilizes relevant case studies, academic research, and industry reports to provide a comprehensive understanding of Michael Kors' branding approach.

FASHION BRANDING AND COMMUNICATION
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Table of Contents
Executive Summary .............................................................................................................................3
Introduction .........................................................................................................................................3
Background of the brand .....................................................................................................................3
Review of customer segmentation...................................................................................................3
Brand positioning of Michael Kors.................................................................................................4
Brand portfolio of Michael Kors.....................................................................................................4
Managing the brand equity ..................................................................................................................4
Branding strategies of Michael Kors...............................................................................................4
How the business generates brand awareness among the customers ..............................................6
What changes have been made in the branding policies to revitalize the brand.............................7
Conclusion and Recommendations......................................................................................................8
References..........................................................................................................................................10
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Illustration Index
Illustration 1: Branding strategies........................................................................................................7
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EXECUTIVE SUMMARY
Michael Kors have transformed the business processes where in new celebrities are included
in the business processes. Transformations have also been seen in the marketing programmes where
in new and innovative messages have been created by the business entity for the purpose of enticing
the customers towards fashionable products. In order to generate awareness among the customers
regarding luxury products of Michael Kors, the brand focuses more on social media websites and
other promotional campaigns because these are those sources where large number of customers are
available. From many sources, it has been seen that Michael Kors also uses email marketing where
by the brand creates a list of people whom they send information in the form of a mail about all the
products. Further, internet advertising is also adopted by the brand which delivers promotional
marketing messages to the consumers all around the world. Competition has been increasing in the
fashion industry; therefore Michael Kors has been emphasizing more on competitor's policies and
strategies so that accordingly mindset of customers can be changed.
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INTRODUCTION
Fashion is a form of direct and indirect individual communication and it also nourishes the
fashion industry with high research requirements. Currently, the concept of fashion demands an
approach which can promote brand culture because consumer prefers to get branded products as per
their lifestyle. The success of a fashion brand depends upon how precise it comprehends the needs
and preferences of the targeted customers (Katz, 2011). In such respect, the present study has been
emphasizing on Michael Kors which has emerged as one of the top leading fashion brand in fashion
industry. Michael Kors is the second most searched for high fashion brand of the year since it
provides luxury accessories to the customers. Moreover, in the present research, discussion has been
made regarding diverse brand aspects along with the concept of branding at Michael Kors. Further,
several recommendations are also made in context to improvements in business products and
marketing strategies.
BACKGROUND OF THE BRAND
Michael Kors is an American fashion designer and he is also the honorary chairman for his
own company (Michael Kors Holdings Limited) which produces products for men and women.
Wide range of product categories are included in the product list for both men and women and all
the products come under luxury services. Kors was the first women's ready to wear designer for the
French house Celine from 1997 to 2003 (Crane, 2000). The Michael Kors line includes handbags
for women, shoes, accessories and other ready to wear apparels. Currently, the brand has collection
boutiques in New York, Beverly Hills and Palm beach. The company was established in the year
1981and the products are labeled by the brand name of Michael Kors. The stores are operated either
directly or through licensing partners and it is also spread in some of the most prestigious cities in
the world.
Review of customer segmentation
Micheal Kors have expanded the brand in global markets as well which has enhanced
distribution networks of the brand. The company seems to be focused on diverse retail stores,
department stores and specialty stores. Th retail segment of Michael Kors engages sales of all
products and services including licensed products (4 Reasons Michael Kors is the Fashion Brand to
Follow, 2015). The wholesale segment of Michael Kors sells most of the products for women
because numerous fashion products can be made for them as compared to men. There are 2027
departments and specialty stores in North America and 650 international department in other areas.
Thus, it can be said that the major products of Michael Kors are segmented for women's apparels.
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As per the customer segmentation, Michael Kors has expanded the brand in varied nations
such as China, Malaysia, Middle East and Macau. The brand has been planning to increase
international retail store base to 100 location in Europe and another 100 location in Japan (Barnard,
2013). The brand aims to expand shop to shop footprint in department stores in both Europe and
Japan. Basically the brand has targeted all the genders ranging from 16-60 years of age as this age
group have the power to spend money in luxury products. The company has also made changes in
the target market so that middle class customers can also get the products. It has been observed that
Michael Kors reaches out to its customers by considering their status and preference motives.
Brand positioning of Michael Kors
The brand has positioned itself as a luxury service provider in which retail, clothing and
other amenities are included. In the current scenario, brand is not considered just a logo but it is an
identity that differentiates the products from other businesses (Brunell and et.al, 2013). Customers
prefer to buy branded products because they think it gives value in exchange of money spent.
Hence, in order to maximize the impact of brand on the market, Michael Kors differentiates each
product with different image specifically emphasized on areas of fashion. Hence, the brand has
positioned the business at market place through focusing on all types of luxury services.
Brand portfolio of Michael Kors
The market of fashion products is a highly competitive market where in products and
services should give value to the customers (Georgson, and et.al., 2013). Under the brand portfolio,
Michael Kors has included several products for men and women both such as footwear, apparels,
accessories and other fashionable products. Michael Kors labels, includes accessories, footwear,
watches, jewelry, men's and women's ready-to-wear, and a full line of fragrance products. All these
products enhances brand value of the company and as a result, more customers are persuaded
towards these products (4 Reasons Michael Kors is the Fashion Brand to Follow, 2015).
MANAGING THE BRAND EQUITY
In general terms, branding is the concept through which business entity promotes its
products and services. However, the word brand gives identity to the product and makes it different
and competitive as compared to others. It has been observed that in order to survive in competitive
market place, businesses are improving the concept of branding (Holman, 1980). In such respect,
Michael Kors is also emphasized towards branding because the business considers brand building
as an integral aspect of personal and business development. Brand identity of the products have
been increased at market place because business entities are focusing more on product promotion.
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Branding strategies of Michael Kors
Michael Kors is one of the most renowned brands which has numerous marketing strategies
and branding is a part of all such strategies. Michael Kors have different products and services; thus
the business needs to adopt numerous promotional strategies for product development. Line
extension strategy seems to be adopted by the business entity where in Michael Kors believes in
introducing new and different products for customers. Earlier the business had only few products
which were promoted through marketing strategies; however different new strategies are involved
in the promotional aspects (Kaled and et.al., 2011). The business aims to improve brand value of the
products and for that it emphasizes on promoting the brand through social media and other effectual
sources. With the help of line extension strategy, Michael Kors is able to extend the product line by
adding numerous products and services. The business has included products for men and women
both so that to reach towards wide range of customers.
Illustration 1: Branding strategies
Branding strategies seems to effectual for Michael Kors because through that awareness can
be generated among customers regarding business products and services. Michael Kors has
extended the brand portfolio because of the increasing demand of customers. This provides scope to
grab more profits and as a result, business is diversifying more in numerous segments (Katz, 2011).
Brand extension is another strategy through which multiple products can be promoted through a
single strategy. Such strategy is beneficial for the business entity because through that, cost of
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business management can be reduced. Further, Michael Kors is able to encourage the customers
through its branding strategies because it communicates adequate message to the customers about
the products and services.
Emphasizing on branding strategies assists the subsequent brand to acquire competitive edge
in fashion industry and it also aids in generating more opportunities of sustainability. There are
varies entities operating business in UK fashion industry and all such industries creates competition
for Michael Kors; therefore the business is required to focus on branding strategies (Loschek,
2009). Branding strategy helps the business entity to focus on new customers and through this, their
needs and demands can also be identified. Hence, it can be said that through branding, larger market
can be covered which is further essential in terms of enhancing business profitability. Michael Kors
focuses on branding strategies for the purpose of creating new things in the business services. As
per the marketing strategies, the brand develops appropriate relations with the clients so that they
can be retained for longer period (Lipovetsky, 2002). From the view points of many business
managers, it is identified that branding helps the customers to show loyalty towards the business
products and services.
How the business generates brand awareness among the customers
Apparently, branding is the form of promoting the products and services at market place and
marketing activities aids the business entity to generate awareness among customers about different
products (Michael Kors, Ralph Lauren, and Coach are making the same mistake - and it's
undermining business, 2015). Michael Kors has received the highest number of fan posts under top
luxury brands. Beating out competitive brands like Ralph Lauren, Burberry and Armani, Michael
Kors remains one of the most highly engaged luxury brands. In order to generate awareness among
the customers regarding luxury products of Michael Kors, the brand focuses more on social media
websites and other promotional campaigns because these are those sources where large number of
customers are available. Michael Kors considers it as a platform through which brand value of the
products can be promoted. The brand has also launched a campaign called MKTimeless targeting
instagram fans where in 70% customers were only females. Several new schemes were promoted in
the campaign which ultimately has generated awareness at the market place (Okonkwo, 2007).
Customers also get information about the products through advertisements, retail outlets,
social media sources and marketing campaigns (Posner, 2011). This also helps the business entity to
observe the response of customers on their products and services; hence according to that
modifications can be made to the product line. Facebook is one of the most common source through
which the brand promotes itself among diversified customer segments. Brand awareness is actually
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the extent to which potential customers recognize a brand and it is usually expressed as a percentage
of target market. Brand awareness is done in such a way that it changes the buying decision of
customers and persuades them to buy the products (Turngate, 2012). To generate awareness about
the products, Michael Kors updates all the business blogs because customers follow all such blogs.
Therefore, this is one of the prominent source of informing people. The brand also moves
newsletters among the customers where in everything related to the products is mentioned.
From many sources, it has been seen that Michael Kors also uses email marketing where by
the brand creates a list of people whom they send information in the form of a mail about all the
products. Further, internet advertising is also adopted by the brand which delivers promotional
marketing messages to the consumers all around the world. Pay per click is an incredible tool for
marketers who are willing to invest and a good traffic to their site which further enhances the
degree of sales (Wolbers, 2009). Use of all such tools drives the customers to change their decisions
regarding purchase of products; hence this enhances sales and revenue ratio of Michael Kors.
Promoting the products and services helps the brand to make the services more competent and this
also aids in acquitting sustainability benefits at the market place. Several events are also organized
by Michael Kors where in the business entity gets information from the customers regarding their
preferences and demands about fashionable products (4 Reasons Michael Kors is the Fashion
Brand to Follow, 2015).
What changes have been made in the branding policies to revitalize the brand
It is essential for Michael Kors to consider the value of customers as through that success
and prosperity ratio can be enhanced (Barnard, 2013). Changes are required to made in the branding
and other marketing strategies so that innovation can be made and other customers can be
persuaded towards business products. To revitalize the framework of business, it is essential for
Michael Kors to change the strategy of branding where in chief concern should be given towards
needs and demands of customers. It has been observed that Michael Kors have changed several
aspects in branding strategies where in the business is spreading information about the product
services through different promotional techniques (Crane, 2000).
Brand positioning has also been changed where in Michael Kors is now entered into
different market places for more success an growth (Brunell and et.al, 2013). From past many
research studies, it has been analyzed that Michael Kors have been contributing more in improving
the brand image and this is the reason the business emphasizes more on adequate and proper
promotion. Varied adjustments have also been made in the brand portfolio and to make it more
competitive, Michael Kors have added variety of new products and services (Crane, 2000). At the
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same time, the brand has also formed new promotional messages so that customers can be
persuaded and more sales can be generated. Further, in order to generate more sales and
profitability, transformations have been made in company's messages and promotional values.
The brand is now focused towards more creativity so that it can differentiate itself from
other players (Georgson, and et.al., 2013). Competition has been increasing in the fashion industry;
therefore Michael Kors has been emphasizing more on competitor's policies and strategies so that
accordingly mindset of customers can be changed. Celebrities are also included in the promotional
aspects and for such purpose, they endorse the premium brand subsequently (Holman, 1980). In a
rapidly evolving digital era, business entities can get the same visibility and they can also get
exposure for their brands through digital marketing channels. As per the technique, concern should
be given towards social media as that is traditional method of promoting things. However, Micheal
Kors have been facing challenges particularly in the fashion industry because varied entities are
operating business with competent products and services. Thus, concluding it can be said that
maximum changes have been occurred in the realm of marketing (How to Boost Brand Awareness
Using Social Media, 2014).
As of the end of the first fiscal quarter in the year 2016, Michael Kors has opened over 770
Lifestyle stores all around the world. The brand is also populous among the celebrities and political
parties. For instance- Michelle Obama wore a black sleeveless dress from the designer for her first
term official portrait as First Lady and later it was sported again in the year 2015 for State of the
Union address (Kaled and et.al., 2011). The ad campaigns organized by Michael Kors, often reflects
the jet-set sportswear because all the fans prefer to grab those products. Several celebrities have
been invited to endorse the brand such as in the previous campaigns model Carmen Kass promoted
the brand on a safari in Africa by relaxing on a yacht. More recent campaigns feature models
Karmen Pedaru and Natasha Poly living the jet set lifestyle. Thus, it can be said that these ultimate
changes have been made in the branding concept of Michael Kors. This has also helped the business
entity to acquire attention of more customers from diversified perspectives (Katz, 2011).
CONCLUSION AND RECOMMENDATIONS
On the basis of entire discussion, it is clear that Michael Kors is one of the prominent brands
of America with range of products and services. The brand has been enhancing its value through
including several innovative and creative aspects and also through making various changes in the
utility of products (Lipovetsky, 2002). Though branding strategies of Micheal Kors are effectual;
still it is essential for the business entity to make varied changes so that overall success and
profitability aspects can be encouraged. Thus, in such context, Michael Kors is recommended to
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adopt new strategy for brand positioning where in apparels and accessories should be included for
kids as well. Currently, the business is majorly emphasized towards youngsters and as such fewer
products are there in the product list for kids (Loschek, 2009). Therefore, the brand is suggested to
include new products as well for kids so that all the customer segments can be covered.
Several changes could also be made to the pricing strategies in which Michael Kors should
introduce affordable products so that customers who have low purchasing power can also be
targeted (MICHAEL KORS LEADS BRAND STRATEGY AND MARKETING INITIATIVES IN 2013,
2013). At the same time, it is also suggested to Michael Kors to enter in new market places so that
the brand identity can be encouraged among new market segments. This will assist the brand to
acquire attention from varied customers and along with that, competency of the business can also be
accelerated. It is an apparent fact that brand value of the product leads the business to retain the
customers and it also encourages the frequency of repeat purchase (Michael Kors, Ralph Lauren,
and Coach are making the same mistake - and it's undermining business, 2015). While promoting
the brand, new trends and preferences of customers should be included as that will also assist the
entity to depict the concern towards customer's values and norms.
Preferences and demands of consumers are changing with the brand reputation, image and
value etc; thus it is essential for the business entity to fulfill all the expectations of clients
(Okonkwo, 2007). This is the only method of acquiring customer satisfaction. The well informed
customers of today can access to electronic media and there by they can acquire more information
about the brand and products; hence Michael Kors should compare the strategies with competition
and arrive at their decision based on rationalization (Posner, 2011). Thus, the brand communication
process should be taken into account as per the change in consumer’s buying process and according
to that, the brand should be positioned among the customers. It is also suggested to Michael Kors to
adopt new techniques for customer retention so that business can grab attention of other customers
as well and through this, sustainability opportunities can be acquired (Turngate, 2012). Further, the
brand should feedback from the clients and accordingly changes should be made if feasible. The
business must have to involve certain things that can influence mindset of customers such as value
added services, discounts and schemes. Further, numerous changes can also be seen in the area of
marketing where in the brand should promote only realistic and accurate information. Hence, these
subsequent changes should be made in the branding concept of Michael Kors for more competency
and profitability (Wolbers, 2009).
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REFERENCES
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Georgson. M. and et.al., 2013. Strategic brand Management A European Perspective. 2nd ed. FT
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[Online]. Available through: <http://www.luxury-insider.com/luxury-news/2013/12/michael-
kors-leads-brand-strategy-and-marketing-initiatives-in-2013>. [Accessed on 23rd February
2016].
Michael Kors, Ralph Lauren, and Coach are making the same mistake - and it's undermining
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Turngate. M., 2012. Fashion brands: branding style from Armani to Zara / Mark Tungate. SAGE.
Wolbers, F. M., 2009. Uncovering Fashion: Fashion Communications Across the Media.
Bloomsbury Academic.
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