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 1
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,possessnichemarketandcriticisminmanagingbusiness.Therearevarious 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 MichaelKorsHoldingslimitedhassegmentedmarketonbasisofgeographic, 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. 2
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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. 3
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 4
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 5
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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. 6
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 thecompanymakesthemselvesuniqueanddifferentiatedinthemarket.Withthis,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 widespreadprocedureofbusinesswhichincludesdesign,development,promotionand 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. 7
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). 8
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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. 9
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