Marketing Plan for Michael Kors Smartwatch: Product, Price, Place, Promotion

This report presents a marketing plan for Michael Kors Smartwatch, including product, price, place, and promotion strategies. The primary target market is high-income earners who are not yet rich. The report also includes segmentation strategies based on demographic, geographic, psychographic, and behavioral factors.

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Executive Summary
Michael Kors SmartWatch is a designer product credited to an American Designer hub,
Michael Kors. This report presents a marketing plan for the designer product. The report is
divided into various sections with details of how the marketing of the product will be done. The
plan begins with an introduction of the product and the including some of its unique features and
the organization credited for the product. This is then followed by the product marketing mix
description. The design of the product includes a clear understanding of the needs of the target
market and includes specific unique features likely to make it more appealing to the targeted
market. The product of the product will be determined by a number of factors among them the
quantity purchased. It will also be availed of leading retail and wholesale stores across the globe.
Users of the product can also get the product from online platforms such as the company’s
website and other online stores. It will, therefore, be distributed directly to the consumer or
through intermediaries such as wholesalers and retailers. Both traditional and modern marketing
strategies will be used to create awareness about the product. These will include both print and
nonprint strategies. The primary target market is high-income earners who are not rich yet. The
watch presents them with a classy and affordable alternative that they can acquire without much
strain on their pockets. Being luxurious, it’s obvious that the targeted consumers will consider a
number of factors before making their final decision. The type of purchase decision involved is
therefore high.

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Contents
Executive Summary.......................................................................................................... 2
Introduction.................................................................................................................... 4
Part A: Marketing Mix Description....................................................................................... 5
Product...................................................................................................................... 5
Price......................................................................................................................... 6
Place/Distribution......................................................................................................... 6
Promotion................................................................................................................... 7
Part B: Identification of Target Market and strategies................................................................8
The primary target market for Michael Kors Smartwatch.........................................................8
Primary market......................................................................................................... 8
Demographic segmentation.......................................................................................... 9
Geographic segmentation........................................................................................... 10
Psychographic segmentation....................................................................................... 10
Behavioral Segmentation........................................................................................... 10
Purchase Decision....................................................................................................... 11
Conclusion................................................................................................................... 12
References................................................................................................................... 13
Introduction
Michael Kors Smart Smartwatch is a product of an American Fashion wear house,
Michael Kors Holdings Limited. The Brand is named after the Company’s chief executive
officer Michael David Kors. The Company which was founded in 1981 is a reputable

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organization specialized in men and women ready to wear fragrance, footwear, Jewelry,
Smartwatches, and accessories. Michael Kors Smartwatch is one of the most popular brands
from Michael Holdings Limited. The Fashion Smartwatches are made in collaboration with
fossil Group with which Michael Kor Holdings Limited has signed a licensing agreement.
Michael Kors Smartwatch presents a luxurious brand whose pricing reflects its quality and value.
Michael Kors Smartwatch which is designed for both men and women share some unique
features such as leather straps, stainless steel, and water resistance. This report presents a
marketing plan for Michael Kors Smart Smartwatch. Its main objective is to evaluate and
analyze the brands marketing strategies, target market and how these strategies can be effectively
used to reach the targeted market. The plan presents an analysis of Michael Kors Smartwatch,
which is open of the most sought-after designer product in various parts of the world. The plan
begins with an overview of the product followed by a description of the marketing mix which
includes promotion, place, price, and product. It also identifies the targeted market and analyzes
the marketing messages and strategies that will be used to attract the market. The market analysis
part is divided into primary and secondary markets identified by their specific attributes. The
plan concludes with an identification and explanation of the type of purchasing decision for the
product.
Part A: Marketing Mix Description
Product
The product element of the marketing mix specifies the particular needs intended to be
satisfied by a particular product, the sizes, and shapes of a product, its associated features, use,
its name, differentiation and prices(Chávez et al., 2017). The concept of marketing is grounded

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in the product. The specific features of a product make it more desirable and easy to sell. The
product can, therefore, be viewed as the most important aspect of the marketing plan. Without
the product element, other marketing mix elements would be of no use(Schreyer, Schmidt and
Torgler, 2017). Michael Kors Smart Smartwatch is designed with a deep understanding of the
needs of the targeted market. It does not only satisfy the needs that can be satisfied by other
existing Smart watches but comes in unique designs and shapes. It is also made up of unique
materials that make it more desirable than competing brands. Michael Smart Smartwatches,
therefore, presents additional benefits to those offered by competing brands. The Smartwatch is
made in either chronograph or analog, with a durable leather strap, water resistance ability and
stainless steel feature. The Smartwatch is designed using mother of pearl and Swarovski crystals.
It comes in silver or black design with yellow gold rose gold or gunmetal. The unique design and
characteristics of makes Michael Kors smart Smartwatch better placed than the competing
brands (John et al., 2017). Its unique attributes communicate the product’s value proposition to
its potential customers.
Fig 1.

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Price
For a product to meet its intended purposes, it must be priced in a way that the targeted
market will be willing to purchase. The money spent on a product should be equal to the value
gotten from the product (Crawford, Brennan and Parker, 2017). This fact makes consumers very
sensitive to prices. This fact should, therefore, be taken into account when making pricing
decisions. In addition, the pricing should be within the range of products offered by competing
brands. The price of a product is one of the aspects that create demand. If the targeted consumers
feel that the set prices of products are worth it, they are likely to buy the product. In the event
that they perceive the value to be lower than the price, they are unlikely to buy. All these aspects
need to be taken into consideration when setting the price of a product (Parsons, Maclaran and
Chatzidakis, 2017). For Michael Kors Smartwatch, 2nd-degree price discrimination strategy will
be adopted. Under this strategy, different prices will be charged depending on the quantities of
the product bought. The recommended retail price will be $199 for each Smartwatch. This price
represents the value of the luxurious Smartwatch
Place/Distribution
Place refers to the physical locations where users or consumers of a product can get it
conveniently. The place component of the marketing mix creates values for products by moving
them from the producer to the consumer. This component is also concerned with aspects such as
where users and consumers can get their product and how they can get it (Constantinides and
Fountain, 2008). This is where other players such as the wholesalers and retailers come in. This
component of the marketing mix makes it possible for the producing organization to earn from
their product. It specifies the distribution channels to be used, the stores where the product will
be stocked and other locations where the targeted users can get it (Onkvisit and Shaw, 2008).

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The product will be distributed through direct and indirect distribution strategies. It will be
moved from the producer to the consumer without any intermediaries or move from the producer
to the Producer, to the wholesaler, retailer then finally to the consumer. The product will be
available in major stores around the world. Consumers can also make their orders from the
Company’s websites and have their orders delivered to their physical locations. The consumers
can also buy the product from Amazon stores. The proposition value for the new product is
communicated by the fact that it will be availed in global chains such as Amazon (Pansari and
Kumar, 2017).
Promotion
Promotion is a term used to refer to the process of creating awareness about the existence
of a given brand, product or service (Sicilia and Palazón, 2008). Promotion is also used to
persuade the targeted market to buy the product. This communication may include elements such
as advertising, personal selling, sales promotion publicity and direct marketing (Louis and
Lombart, 2010). This kind of communication is important in generating inbound traffic for a
product.
For Michael Kors Smartwatch, both traditional and contemporary strategies of marketing
will be used. These strategies will include television, print, and outdoor advertising.CSR
Programs will also be used in the promotion and creating awareness about Michael Kors
Smartwatch. To supplement these strategies, YouTube promotion videos will also be used. These
will be specifically designed to inform targeted users on the benefits that come with the designer
watch and why they should choose it over any other available in the market (Sheth, 2017). These
videos will be uploaded on the mother organization’s YouTube Channel. Due to the stylish

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nature of this watch and the fact that it is likely to be a preferred gift for many during specific
months of the year such as Christmas, valentines and Yew Year, promotional schemes will also
be used. Finally, promotional techniques such as events sponsorships will be used.
Part B: Identification of Target Market and strategies
The primary target market for Michael Kors Smartwatch
Organizations operate in diverse markets made up of different categories of potential
consumers. A primary target market represents a class of consumers who are likely to associate
more with a certain product (Andrews and Shimp, 2017). This, however, does not mean that the
primary target market should always be the largest market segment. While the primary market
represents the people who are likely to buy a product immediately, secondary market represents
the people who are likely to buy by the influence of the primary market or in the future.
Primary market
The profitability of a brand is dependent on this market. Some of the attributes of this
market include similar behaviors and characteristics. They are also more likely to buy now and
account for the highest number of sales (Sahaf, 2008). The primary target for this product is
expected to be the high income earners who are not yet rich. This class represents a population
that values a luxurious life but which can afford things such as designer watches which fall
within their budget range. In simple terms, this class of consumers includes a class of high-
income earners who cannot be defined as rich yet. Their spending habit is considered to be lower
than that of the class of people who can be referred to as rich. The increasing popularity of this
class of consumers makes Michael Kors Smartwatch watch a viable product. The high-income

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earners who are not yet rich are a strategic primary market because the Smartwatch represents a
specific class that would want to show off with a worth brand without putting too much pressure
in their pocket.
Fig 2.
Satisfaction of the needs an organization’s potential customers besides its primary target
market is likely to be an uphill task. These markets will be classified according to the specific
needs and want of these different populations. Segmentation will be used to achieve this
objective. It is the process through organizations or marketers divide their market into different
consumers segments sharing similar characteristics. This process will come after the primary
target market has been identified. It will also be important in ensuring the profitability of the
Michael Kors smartwatch. Segmentation ensures a more accurate targeting of consumers.
Demographic segmentation
Under demographic segmentation, a market is segmented according to the level of education,
income levels, ethnicity, family size, gender, religion, race, and age. Demographic segmentation
will be used for Michael Kors smartwatches. The main reason for this decision is the fact that the
buying patterns displayed by consumers including the types of products they tend to buy more
and the amount of money spent on such purchases are to a large extent determined demographic

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factors (Young et al,2010). It is expected that the new product will be popular among educated
middle-income earners, people with smaller families belong to the youth or young adult bracket.
These will also come from genders, different ethnicities, and religions.
Geographic segmentation
This strategy is commonly used when an organization’s customers are located in a certain
geographical area or different geographical areas. These different geographical locations are
attributed to differences in the consumer preferences. Small businesses serving a wide
demographic customer segment are more likely to adopt geographic segmentation. Under this
segmentation attributes such as state and regional differences are used. Demographic
segmentation can affect a product’s marketing mix, as well as the choice of the channel of
marketing and promotion because potential customers are differentiated by their geographical
location ( Solomon, et al.,2014). We believe the needs of our potential consumers from different
geographical locations. Our marketing strategy will, therefore, include ensuring that we meet
these divergent needs satisfactorily
Psychographic segmentation
Individual values, attitudes beliefs, and opinions are also an important contributor to their
consumer behavior. Psychographic segmentation is the process of segmenting a market based on
the above-mentioned attributes. Psychographic segmentation helps marketers to better match the
needs of their different customer segments with the attributes of a product (Bamossy and
Solomon, 2016). Psychographic segmentation differs from behavioral segmentation in that it
considers the buying behavior of consumers including their social standing and lifestyle.

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Behavioral Segmentation
This segmentation refers to the process through which marketers consider consumers buying
behavior in coming up with smaller homogeneous groups of consumers. This segmentation is
based on aspects such as consumers buying patterns such as benefits sought, loyalty to a given
brand, and frequency of usage. The main reason for behavioral segmentation is to ensure that
consumers with similar interests are grouped together so that they can be effectively targeted
(Hong and Li, 2017). It also facilitates customization of a product to meet the needs and wants of
the targeted consumer segment. Some of the most successful behavioral segmentations have
been on the Smartphone. Products such as those belong to Apple have their products designed
for premium users while others such as Samsung and Blackberry phones are designed for
android enthusiasts and business people respectively.
Fig 3.
Purchase Decision
Consumers purchase decision is dependent on a wide range of factors. Among them is the
ability and willingness to pay for the product. Consumers purchase decisions may change with
time as a consequence of other factors such as influence from social media and close associates,

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economic factors, social factors, cultural factors, personal factors and psychological factors. The
consumer purchase decision-making process is made up of several stages. The first stage in the
consumer’s decision-making process is problem recognition. Here a consumer establishes a need
that they would like to satisfy. After the problem has been recognized, the search process begins.
This process involves searching for available alternatives that can be used to satisfy the identified
need. Thirdly consumers evaluate the available alternative to identify which of these alternatives
can satisfy their existing needs satisfactorily (Amesbury, Winchester, and Kennedy, 2017). This
evaluation may be influenced by factors such as the price or reviews. The evaluation stage is
followed by the selection stage. Here consumers evaluate their purchase with regards to their
existing need. Here they seek to find out whether their purchase satisfies their want or not. The
type of purchasing decision involved in this case is high. This is the product is targeted at a class
of consumers who earn a high income but who cannot be considered rich. This class does not
live an extravagant lifestyle. The fact that Michael Kors SmartWatch is both a luxurious and
expensive product means that consumers will be highly involved when making their purchase
decision.
Conclusion
In conclusion, Michael Kors Smarts presents a classic product targeted at high-income
earners not yet rich yet. This is a class of people who desire to live a luxurious life without
straining their budgets. The marketing of this product will, therefore, be in line with all the
relevant marketing strategies and elements Michael Kors Smart Smartwatch is designed with a
deep understanding of the needs of the targeted market. It does not only satisfy the needs of that
can be satisfied by other existing Smart watches but comes in unique designs and shapes. It is

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also made up of unique materials that make it more desirable than competing brands. This
product is better placed to create high demand among the targeted consumers. The price of the
smartwatch will depend on the quantity bought with high quantities attracting a lower price
compared to lower quantities. It will be available in major online and physical stores around the
world. Print and none print promotional mediums will be used to create awareness about the
existence of the product. Because of the luxurious nature of the product, it will involve a high
purchasing decision.

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References
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Onkvisit, S. and Shaw, J., 2008. International marketing: strategy and theory. Routledge.

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Pansari, A. and Kumar, V., 2017. Customer engagement: the construct, antecedents, and consequences.
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Appendices
Appendix A: A picture showing different designs and shapes of Michael Kors Smartwatch
Appendix B: picture showing strategies of market segmentation
Appendix C: Diagrammatic illustration of the process of Market segmentation