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Michael Kors - Sustaining Growth in a Slowing Luxury Market

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I am a MBA student at San Francisco State University and this presentation show cases my team's marketing strategy for returning Michael Kors to growth.

Published in: Marketing
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Michael Kors - Sustaining Growth in a Slowing Luxury Market

  1. 1. December 2015 Sustaining Growth in a Slowing Luxury Market Michael Kors
  2. 2. Summary • Market reality --Increased competition and homogeneity • Michael Kors’ brand perception • Need promotional strategy to regain growth in revenue
  3. 3. Data on Market growth
  4. 4. Michael Kors Financial Summary 0 1 1 2 2 3 3 4 4 5 5 2010 2011 2012 2013 2014 2015 2016 Billions Year Michael Kors Global Revenue MK Revenue $508M $4.37B
  5. 5. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2011 2012 2013 2014 2015 2016 Year MK Revenue Global Market • Growth leveling off • Michael Kors growth rate is slowing but is still strong at 32% in 2015 Michael Kors Growth Rate versus Global Market $4.37M $1.3B
  6. 6. Michael Kors’ Internal truth • Classic aesthetic designs with utility at a value • Staple accessories - not statement pieces • Accessible - Online, Department Stores, Independent Retail Stores, Outlets • Versatile Product Lines - Apparel, Watches, Shoes, Fragrances, Bags, Accessories, Leather Goods • Two brands – Luxury and Affordable luxury
  7. 7. “Everything for everyone” - Michael Kors
  8. 8. What do you think people is thinking about you when you are wearing Michael Kors? Basic Bitch
  9. 9. Customer Insights • It is everywhere - ubiquitous --“they are always on sale at some place like the Macy’s, feels like they are a little bit cheap.” --“loses value when it’s sold in stores Like Ross” --“designs always look the same” • “Status Quo” Designs • Discounts cheapen the brand
  10. 10. Turning Perceived Weaknesses into Strengths • It is everywhere - It’s easily available for purchase. • Status quo design - Never goes out of style. • Where do you wear Michael Kors? - “everywhere,” “work” “The watches I wear on a daily basis.” • Discounts cheapen the brand - No need! The core customer loves the brand! “feels more professional, more put- together, feel like I’m dressing nicer”
  11. 11. Desired Customer • Female 25-35 • College graduate in her early career • Aspirational young professional who wants her look to transition seamlessly from day to night • Purchase Power
  12. 12. Women that embody the Michael Kors customer Kate MaraZoe SaldanaOlivia Wilde
  13. 13. Campaign Target Objective • Stop decline in growth •Target $1.4B increase in revenue over last year. •Achievable within MK growth trajectory. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 2010 2012 2014 2016 2018 Year MK Growth Rate (Projected) MK Revenu e Global Market $5.76B $4.38B
  14. 14. So, what’s the one thing that makes Michael Kors stand above the crowd? Michael Kors offers professional and timeless pieces that can transition from daytime office meetings to social events. A classic - yet affordable brand.
  15. 15. Q & A

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