Marketing Strategy
On
Michael Kors
Presented By:
Diamond Fogg
MKT 482 OL2
4-25-18
Audit Process
The audit process describes what the roles of each board and committee member
does individually as well as what the entire committee looks at altogether. An audit
committee must have at least 3 directors. Not all the audit members have to be
financially and accounting literate, but at least one members of the entire committee has
to actually have experience in the field of finance. Michael Kors’s committee consists
of nine members. Michael Kors being the Honorary Chairman, Chief Creative Officer
and as well as one of the main Directors, John D. Idol is a Chairman, Chief Executive
Officer and a Director. M. William Benedetto, Silas K.F. Chou, Judy Gibbons, Ann
McLaughlin Korologos, Stephen F. Reitman, Lawrence S. Stroll and Jean Tomlin are
all Directors as well. The member who is the financial expert for the company is
William Benedetto. As you can see the brand, Michael Kors, has plenty of board
members for their audit process.
Every company has strengths and weaknesses; the audit process discovers these
issues. Strengths of Michael Kors are: being a resilient brand, being a segmented brand,
having leverage from many celebrities, philanthropies, high-quality products, good
suppliers, having their own personal brand, and a jet style for higher income consumers.
Weaknesses of Michael Kors are: the brand can be diluted in bargain stores, the
founder/owner Michael Kors does not have anyone to pass the company down to and jet
style for lower income consumers. There are more strengths then weaknesses for this
brand, which explains why Michael Kors is such a successful company in the fashion
world. Some recommendation for improvements could be: adding children’s clothing,
develops more of a men’s line, become more well known in countries besides USA and
Europe, also purchase and increase development in other brands.
Michael Kors as a company is doing well. The Board of Directors/Committee
has done a great job at overseeing and looking at what needs to be done. The company
has been extremely successful in sales as well as stocks for many years now due to their
products by catering to the consumer’s desires and wishful taste. Michael Kors carry
majority women’s product but the company also carries limited products for men as
well. The products of the company are: handbags, footwear, jewelry, sunglass, clothing,
fragrances and beauty products. Some competitors of Michael Kors are: Ralph Lauren,
Marc Jacobs, Burberry, Louis Vuitton, Coach, Kate Spade and others. Michael Kors has
done more than well by staying in the top line of brands according to statues, good
quality, and price range.
Company Overview
Michael Kors (Kors) is a designer company founded, owned and operated by,
the original Michael Kors himself. The global and luxury lifestyle brand started in 1981
in New York City, where the headquarters of the company still resides today. In 2012,
the company was worth $226.6 billion. The company operates in retail, wholesale and
licensing. The company focuses on products like: handbags, clothing apparel, footwear
and accessories. Kors cater to men and women. The brand networks by company-owned
retail stores, departments stores, specialty stores and selected licensing partnerships.
Michael Kors store locations are in the United States as well as internationally.
Michael Kors became popular by getting involved in fashion shows and the
stock market in 2011. In 2011, investors commonly started seeing around 20% growth
of comparable sales. This had been noted as the fastest growing brand since Coach,
another well-known handbag brand. Lately, sales for the company have dropped around
6.7% and 5.6% when we look at the sales in the US and Europe. The 52-week range
low for its stock is $36.63 while the company’s high is $79.70. As of now the
company’s sales growth is the slowest it has been since around December 2011. It has
been stated that the decrease in sales is due to the expansion of stores in such a short
time frame, leading to the consumers buying Kors products too commonly.
Even though Michael Kors has become very common today, as of now, the
company is still worth billions of dollars and continues to do very well. How? Michael
Kors does a phenomenal job at marketing their products in a vast amount of ways like,
ads, celebrities, department stores, magazines, emails, consumer’s wearing their product
and their brand being such high quality at affordable prices for not only higher class but
middle class as well.
Michael Kors’s mission statement says it all:
“Michael Kors is the leading American fashion designer for luxury accessories and
sportswear. The company’s heritage is rooted in producing polished, sleek, sophisticated
American sportswear with a jet-set attitude. Whether Aspen, Palm Beach or Capri, our
mission is to bring our vision of a jet set, luxury lifestyle to women and men around the
globe. Our products, emblematic of the highest standard of quality, include apparel,
accessories and beauty. Our lifestyle-driven company embraces the highest standards of
creativity, quality, technology, and human resources.” (Payne, 1)
Cleary their mission statement has worked and been successful due to the company
being 34 years old and worth at least 226.6 billion dollars.
Mission statement
Michael Kors is the leading American fashion designer for luxury accessories and
sportswear. The company’s heritage is rooted in producing polished, sleek,
sophisticated American sportswear with a jet-set attitude. Whether Aspen, Palm Beach
or Capri, our mission is to bring our vision of a jet-set, luxury lifestyle to women and
men around the globe. Our products, emblematic of the highest standard of quality,
include apparel, accessories and beauty. Our lifestyle-driven company embraces the
highest standards of creativity, quality, technology and human resources.
Marketing Segmentation
Michael Kors is in 100 different countries. Michael Kors was well known for
being the “American” brand for many years, until it expanded internationally. The
