Application and Theories of Marketing

Marketing
Management

INTRODUCTION
Marketing management is defined as disciple of organisation that focus on practical
application and theories of marketing methods, techniques and orientation inside corporation and
its activities and resources (Homburg, Jozić and Kuehnl, 2017). This facilities various functions
and tasks that are involved in proper distribution of products and services. It is also defined as
proper analysis, implementation, planning, controlling of programmes for designing to bring
exchanges at target market in order to achieve goals and objectives of business. The given
assignment is based on Michael Kors Holdings limited which was founded in 1981 at London
United Kingdom. It is multinational fashion organisation which deals in selling of shoes,
handbags, watches and other accessories. This report covers five issues which explain about
industry, their vision, mission and others. It also covers 5Cs of organisation along with other
information related with market research and intelligence. The market strategy and tactics has
been developed by organisation to achieve goal and objectives.
ISSUE 1
The chose organisation for given project is Michael Kors Holdings limited which is also
known as Capri Holdings Limited. This is international fashion company corporate in British
Virgin Islands having office at London and headquarters in New York. It is public limited
organisation which was started by Michael Kors in 1981. This organisation sells various products
such as shoes, accessories, handbags, clothes, watches. It has above 550 stores and 1500
boutiques in different countries. The mission statement of respective organisation is bringing
sophisticated lifestyle for men and women globally whether they are roaming for business to
Paris, Tokyo, New York or travelling to Bali, Aspen and Capri for pleasure. Michael Kors
Holdings limited has used various marketing tools for creating awareness in mind of consumers.
As it is already renowned brand in market but also it has various tools such as business
magazine, social media (Hüttner, 2018) (Icha and Agwu, 2015). This can create among
consumers more regarding arrival of new product in market. The respective organisation is
unique brand in market which takes care of quality and design for offering to consumers. It has
wide collection of different products divided into two categories such as men and women. In
male segment, it deals in apparel, bags, accessories, cologne, wallets, footwear, watches and
others. Similarly, in female segment, it has different products such as wallet, footwear, jewellery,
handbags, watches and others. Under each category also different types of product are served. It
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is unique brand across nations which provide huge variety of goods and services to their
consumers. For creation of marketing strategy, brand plays an effective role as known brand can
be earn maximum profits and gain then new or unknown brand in market. Thus, value is created
through providing high quality goods and services in market which automatically converted into
brand.
ISSUE 2
5Cs of Michael Kors Holdings limited
5Cs are important for organisation to know about their business and other activities. The
5Cs of Michael Kors Holdings limited are described below:
a. Company
The key resources of Michael Kors Holdings limited are: high quality product, skilled
manpower, renowned brands, variety and others. The strengths of organisation are presenting in
various domains of fashions, multi channel distribution strategy. It has high presence in social
media, celebrity clients for buying of products and positioning (Lovelock and Patterson, 2015).
Weaknesses of company are poor presence in Asia countries which create problems for
consumers, possess niche market and criticism in managing business. There are various
opportunities available for Michael Kors Holdings limited such as expansion of market in kids
segments and emerging market in those place and countries where it does not carry any
operations. This organisation carries threats in terms of competition such as Tommy Hilfiger,
Dolce and others.
b. Customers
Michael Kors Holdings limited has segmented market on basis of geographic,
demographics and psychographic factors. It has mainly focus on men and women living in
society. The respective organisation has focused on income group people between $100,000 and
$250,000. It positions itself in market in order to serve their consumers in better and effective
manner. The behaviour of consumers is good regarding product and prefers trendy and latest
fashion clothes and accessories (Morschett, Schramm-Klein and Zentes, 2015). As need and
demand of consumers changes frequently with change in time and situation. The products of
respective organisation are found in department stores which help brand to expose in market
channel. As it has good presence in US domestic market and at international level which help
them to face challenges and compel business to gain new customer base.
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c. Collaborators
The collaborator of Michael Kors is present at global level. For distributing products, it
has more than 100 countries where company sell goods through retail stores and e-commerce
sites, speciality stores, department stores and licensing partners. Due to vast distribution channel,
products are available to consumers easily. It has good online presence because of fast delivery
around various online portals. Michael Kors has different suppliers from where they purchase
product and sell in market through online and offline mode. The mainly used channel is online
where fast delivery is done for ordered products (Moutinho and Vargas-Sanchez, 2018).
d. Competitors
Every organisation has to face competition in order to survive their business in market.
Michael Kors Holdings limited is renowned organisation at market place which has to face
various competitions. The main competitors of Michael Kors are Gucci, Tommy Hilfiger, Dolce
and Gabbana and others. Market is full of competition and threats because of change in need and
demand of people. This organisation has threat for new entrant if it does not focus on creativity
and latest trends then other organisation easily capture market and consumers. It should focus on
improving their quality, packaging, designing, labelling for attracting more and more consumers.
e. Context
There are different factors which can affect Michael Kor which are described below:
Political Factors: The change in policies with new government and local government can
impact business and their activities. It is very important for business to use regulatory practices
and follow government system while manufacturing products. With change in any laws and
regulation, they need to follow it.
Economic Factors: The business of Michael Kors is affected due to change in exchange rate,
inflation rates, downward pressure on spending of consumers, intervention of government in
consumer cycle and efficiency of financial market.
Social Factors: The change in social factors can greatly impact organisation and their activities.
This includes migration, change in need and requirements of people, power structure, attitude of
people and demographics (Villeneuve and Pasquier, 2017).
Technological Factors: Michael Kors is affected through technological factors like maturity of
technology, research and development, 5G technology, empowerment of supply chain partners
and other factors.
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Environmental Factors: There is different environmental factors which can impact respective
organisation in terms of customer activism, change in weather conditions, recycling.
Legal Factors: The legal factors also affect business and its activities in terms of following data
protection laws, health and safety systems, environment laws and guide and others.
ISSUE 3
Collection of information
Market research basically plays a crucial role for every single business organisation, as it
helps a company in finding out the information in regards to the conditions of market, strategies
used by the competitors, market trends, customer needs and many more. In the same way, if
Michael Kors Holdings limited is looking forward to expand its business, which is a subsidiary
of Capri Holdings Limited. Then it will be required for the business organisation to analyse the
whole market, in which it is expanding the operations (Weinstein and Pohlman, 2015).
Company
If it is talked about Michael Kors Holdings Limited, organisation is focusing upon
business expansion and this could only be done through dealing with all the changes, trends and
the customer's needs or requirements. For this, Michael Kors Holdings Limited may perform 5Cs
analysis, in order to collect the data linked with the competitors, consumers, context of the
business and including the collaborators as well. Basically, the brand sells clothes, accessories,
jewellery and perfumes as well for men and the women. The fashion house started its operations
in the year 1981 with Michael Kors women’s collection and since than, it has been a famous
brand in Australia, United Kingdom and more.
a. What customers want?
In present time, targeted customers of Michael Kors Holdings Limited are looking for
fast fashion clothing segments, unique watches, online services and a digital persona as well. It
can be said that, a business organisation like Michael Kors would require developing a
redefining adulthood. With the help of this, maximum benefits can be gained by Michael Kors
Holdings Limited in reaching to new heights in specified time frame.
b. Which competitors pose a threat?
In present context, there are a range of business organisations like Gucci, Dolce &
Gabbana, Tommy Hilfiger and more could be considered as competitors of Michael Kors
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Holdings Limited, from which this organisation can pose a threat. These organisations are
already having good reputation among different continents like Asia, Africa where this company
is hardly performing well. It will be required for Michael Kors Holdings Limited to investigate
all of the coveted strategies, which may aid in reaching to new heights or to gain competitive
advantages.
c. How the context of business is changing, if at all?
Basically, Michael Kors has a poor presence in Asia. Because nations like India or China
offer a huge future potential for luxury merchandise and this has happened due to the change in
course. Along with this, it can also be said that it is future potential for this region is around 100
billion in the next decade. The Michael Kors Holdings Limited should look at emerging markets
for growing their business and attaining higher volumes.
d. What role collaborators play in the process?
It is vital for Michael Kors, to indentify the potential distributors along with the suppliers
like International Textile Group Plc, Eastman chemical Co., Findex Com Inc, Diana container-
ships and more. They basically aid Michael Kors Holdings Limited in reaching to new heights
through supplying products and services given by the company among customers, online shops
and more.
ISSUE 4
Developing marketing strategies.
Marketing is a very important component of the business organisation. It has the strong
contribution in identifying and analysing the customer needs and requirements. Developing
marketing strategies are very crucial task in which it involves the development and launching of
a new product. Marketing strategy is the combination of all the activities which all involved and
aimed towards the maximisation of sales and revenues (Aghazadeh, 2015). Thus, effective
strategies of marketing will help the business in gaining competitive advantage. Marketing
strategies is a very crucial undertaking. This helps in explaining the relevant actions which is to
be taken by the company in order to accomplish the business goals and objectives for the
company. In this, Michael Kors will be developing various marketing strategies that will help in
fulfilling the business motives.
Segmentation targeting and positioning
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The approaches of segmenting, targeting and positioning are the most applied model in the
concept of marketing. This helps the marketers in developing marketing communication plans
such that it will help the marketers in giving preferences to the propositions and then developing
and delivering the customised messages which will target the people. This approach or model is
highly focussed towards the customers rather than the products because it communicates the
content of message to the audiences in a very personalised and commercial manner (Bagozzi
and. et. al., 2018). Apart from this, it also stresses on the commercial effectiveness which
supports in selecting the most important segment for the Michael Kors and there by assisting
them in developing marketing mix and positioning strategies. The marketing manager of the
company has the crucial responsibility for creating and developing awareness about their product
to the people and for this purpose the STP model is developed.
Segmentation: It is the process which divides the large business market into smaller parts which
shares similar characteristics and features. It is concerned with identifying the different set of
people with different needs and requirements. In this, while designing the marketing messages
by the company; it is to be kept in mind that the necessities of each and every segment is same.
Michael Kors will divide the market on the basis of different segments and they are discussed
below:
 Demographic segmentation: This type of segmentation divides the market on the basis
of income, age, gender, education, household, marital status, etc. On this basis, Michael
Kors segment the market who have higher income. On the basis of gender it targets both
men and women and on the basis of age it segments the market where it targets both men
and women who are young and in present business world the brand is highly on demand
in young generation people.
 Geographic segmentation: On the basis of geographical segmentation, the company
segments the markets to those areas where the country is developed and it is selling its
products and services in almost all the countries.
 Physiographic segmentation: This type of segmentation is concerned with the attitude,
lifestyle, behaviour, personality, etc. Michael Kors will segment the market on the basis
of those people who are more concerned about the brand, style and design and which will
give them immense pleasure and satisfaction of being luxurious.
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Targeting: When proper segmentation of the market is done then it devices the various
marketing strategies and promotional tools to make the segmented group of people aware about
the new products and services or modifications in the existing products such that it meets the
tastes and demands of the customers(Baker and Saren, 2016). This comprises of various factors
like market prices, differences, money, etc. Therefore, the target people for Michael Kors is
relating to the both men and women who are of upper class segment. Those people who are more
concerned about the brand, design and style rather than price and have the purchasing power.
Positioning: The positioning is concerned with the various marketing strategies through which
the company makes themselves unique and differentiated in the market. With this, the
organisation is able to develop and create a perception in the mind of the customers. For this the
company will use the unique selling proposition that will make them different and unique and
customers will be able to identify the brand easily. Therefore, Michael Kors has positioned itself
unique and luxury brand which has intrinsic sense of fascination and trustworthy looks for
everlasting attractiveness.
ISSUE 5
Developing marketing tactics.
In the concept of marketing the company can use various types of marketing strategies for
making their brand highly recognised and effective. Marketing mix are the tactics which are used
by the company for the purpose of promoting the brand and products in the market. It is
combination of various marketing variables which are combined and used by the organisation in
order to produce the desired response in the target market (Baker, 2016). Furthermore, it is a
widespread procedure of business which includes design, development, promotion and
production. Therefore, following is the marketing mix of Michael Kors:
 Product: It is concerned with the physical goods and services which offered to the
customers for the purpose of sale and that offering have the potentiality of satisfying the
customer needs and demands. They help in creating brand value for the organisation
which are the differentiation. The products which are offered by the Michael Kors ranges
wide range which comprises of both the gender that is male and female. It sells, apparel,
footwear, accessories, bags and clutches, jewellery, wallet, cologne, etc. Apart from this,
the brand has greatly emphasised to take special care in designing apparel in normal, petit
and plus sizes for fulfilling the needs and requirements of the people.
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 Price: It is related to the economic worth of the products offered by the organisation. It
comprise of the segmented target people, ability of the market to pay, cost of production,
etc. Therefore, Michael Kors is the middle level brand of luxury items. It has positioned
and differentiated itself such that a bridge is created between the luxury and high street
brands that provide accessible line of clothing industry. It has adopted the premium
pricing policy for its high quality of products and services (Gummesson, 2017). This is
also advantageous for the company in expanding its business market globally. The
affordable and middle range of the products will also help the company in competing
with their competitors while facing the competition. Apart from this, the prices are
somewhat lower compared to the competitors who will further help in maximising the
sales for the company.
 Place: It is related to the location where the sale will take place. The retailers and the
company itself pay a greater amount of money in order to find the suitable and reliable
location for selling their products such that the place will easily attract the customers.
Therefore, Michael Kors has a well defined channel of distribution which will make the
products easily available to the customers. For this purpose, the company has also with
several delivery services in order to reach the customers within the specified period of
time. Apart from this, the brand also has a online application or store which delivers the
products globally.
 Promotion: This is concerned with all the relevant activities which are undertaken in
order to make people aware about the products and services which are offered by the
company. For this purpose, the Michael Kors will use various promotional tools like
advertisements in business magazines, newspaper, social media, promotions on airports,
digital hoardings, etc. It has also used various advertisements campaigns which have been
displayed in a print and visual media. The most relevant platforms which has reached out
to the people is social media and has a strong influence on people.
 Physical evidence: It is related to the physical features of the brand which makes it
different and easily identifiable. Therefore, Michael Kors will have several features like
logo, strong brand name recognition, style, design, etc.
 Process: The process is related to the conversion of raw material into finished products
which can be offered to the customers for sale (Heding, Knudtzen and Bjerre, 2015).
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Therefore, Michael Kors has an effective technologies and highly suitable research and
development department which converts the raw materials and produces a superior
quality of products and services to the customers with unique designs and features.
 People: It is related to all the employees and staff who are working for the organisation
in order to accomplish business goals and objectives. Therefore, Michael Kors has a
highly skilled and innovative staff that are capable enough to develop new designs and
products which satisfy the customer needs.
CONCLUSION
From the above file it has been concluded that marketing is the most important concept in
present business scenario. Every organisation is engaged in producing various products and
services to satisfy the needs and requirements of the customers. For this purpose, the company
produces products and those products are marketed in the business market for which various
marketing strategies are used. Such strategies help in making people aware about the offerings of
the companies products and encourage people to buy companies products. Thus, it helps in
selling and improving the brand image and profitability for the organisation in overall business
world.
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REFERENCES
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