Mrudula Menon, Parth Shah & Sambit Datta

Agenda

• About Michael Kors

• Competitive Strategy

• Marketing Strategy

• Brand Profiling

• Perceptual Mapping

• Focus Group Findings

• Conclusion

About Michael Kors

• Global luxury life-style brand with a jet-set aesthetics

• Led by the American Fashion Icon - Michael Kors

• Operate in 3 segments : retail (48%), wholesale(47%) and licensing(5%)

• 288 North American retail stores

• 117 international retail stores

COMPETITIVE STRENGTHS

• Rapidly Growing Luxury Lifestyle Brand with Best-in-Class Growth Metrics

• Design Vision Led by World-Renowned, Award-Winning Designer

• Multi-Format Retail Segment with Significant Growth Opportunity

Competitive Strengths

$150 - $500 $50 - $500 $20 - $150 $100 - $300

Source : Michael Kors Annual Report

Competitive Strengths

Competitive Strengths

Competitive Strengths

Competitive Strengths

Competitive Strengths

Source : Michael Kors Analyst Call Report

Competitive StrengthsON & OFF THE RED CARPET

MARKET SHARE – LUXURY HANDBAGS

• Rapidly Growing Luxury Lifestyle Brand with Best-in-Class Growth Metrics

• Design Vision Led by World-Renowned, Award-Winning Designer

• Proven Multi-Format Retail Segment with Significant Growth Opportunity

Source : Experian Market Services 2013

Source : Digital Luxury Group Study

TOP 10 MOST SEARCHED HANDBAGS

Perceptual Mapping

Perceptual Mapping – Multi Dim

MICHAEL KORS BRANDS

Handbags & Small Leather Goods -$500 - $6000

Footwear - $300 - $1200

Women’s Apparel - $ 400 - $4000

Handbags - $200 - $800

Small Leather Goods - $50 - $200

Footwear - $70 - $500

Women’s Apparel - $ 50 - $500

CUSTOMER SEGMENTATION

Male

Female

<18

18 - 25

26 - 35

36 - 45

46 - 55

>55

Art

Auto

Business

Cooking

Education

Fashion

Food

Health & Fitness

Home & Garden

Literature

Movies

Music

0.3x

1.8x

0.7x

1.1x

1.06x

1x

0.9x

0.8x

1.5x

0.7x

0.6x

1.1x

1.06x

2.8x

1.1x

0.7x

1.08x

0.94x

1x

1.4x

TARGET DEMOGRAPHIC

82% of Michael Kors customers are Female

36% of Michael Kors customers are aged between 26-35

Top 3 interests of Michael Kors customers are Fashion, Art and Music

Core customers of Michael Kors are Female & majority are Young

While Michael Kors is a Luxury brand, it is also Affordable & Attainable which helps in attracting Young Consumer

Michael Kors products and stores cater to Fashion, Music & Art

Source : Statsocial Report on Michael Kors

Laddering – Connecting Product With Customer

• How important is handbag to you?

• Response : Its very important

• In what way it is important to have a handbag ?

• Response : It carries everything I need and the color adds to my outfit instantly

• What are the various occasions where you go with your handbag?

• Response : My work, meetings, shopping, parties

• Do you really care about our handbag when you are out?

• Response : Yes, because it is complementary to my style, overall look and outfit.

• If handbag is important, would you go out of your way to spend?

• Response : Yes, I am very choosy about the brand and I don’t mind paying extra

• Why would you like to pay extra for your handbag?

• Response : It helps to reflect the way I carry myself, prestige and social status. I feel confident and happy

ATTRIBUTEFunctional

Aspects Of The Product

CONSEQENCESPsychological

Effect on Customer

CORE VALUESEmotional

Payoffs

Focus Group Findings

AttributesBrand Image, Design, Price, Exclusivity,

Quality, Color

ConsequencesFashionable, Impulsive Purchase, Freedom,

Youthful

Core ValuesAttractive, Unique, Ego-Expressive, Confident

Conclusion

Style Utility Value for Money Youthful

aspirational needs

esteem needs

social needs

safety needs

hygiene needs

“I only carry exclusive designer handbags.”

“People always talk about my bags.”

“I love to use this bag for all occasions.”

“I don’t mind paying little extra for this bag.”

“It carries everything I need.”

Perceptual Mapping

Perceptual Mapping – Multi Dim