strategic marketing plan - michael kors

Marketing Management (MK2002S) Assignment 2

FT UCD BBS 23 (B) – TEE SZE MIN, LEE XIAO PING, RENICE WOO WAN LIN, NG XIAO HUI

Executive Summary

Michael Kors (MK), a luxury fashion brand of worldwide acknowledgement, is seeking growth

to its success track record. Upon research and situational analysis of the brand, we hereby

propose a strategic marketing plan with the following objectives to achieve:

Increase annual total revenue by 175% of FY2015 by FY2018

Increase social media following by 5% every month

To take over Ralph Lauren as the top online luxury leader by increasing online market

share to 23.1%

Protecting brand value

Various strategies need be in place. Number of product offerings need be increased, to further

enhance global geographical presence and explore e-commerce development. Product innovation

and differentiation need be highlighted frequently and to capture stray online traffic to generate

conversion to sales. Brand value has to be protected to maintain exclusivity; therefore price

control and supply-demand control will assist MK to achieve success.

The proposed plan seeks to further elevate MK’s status not only as a luxury brand, but as a

global enterprise achieving growth sustainability. MK will need to assess circumstances and

adjust approaches in order to fully maximize profitability.



1. Background information

Michael Kors is a prestigious brand named after its establishing fashioner. Displaying its design

style to be “luxuriously casual and simply elegant”, the brand has gotten worldwide

acknowledgment pertaining to American sportswear, for which it exemplifies native yet stylish

elegance. Michael Kors Holdings Limited (KORS) is managed by a top-notch executive team as

well as conspicuous, award-winning designer; who is none other than Mr. Michael Kors himself.

2. Situational analysis

2.1 PESTE Analysis

Political and Legal Factors

Singapore is known for its stable political environment and commerce infrastructure, attracting

Foreign Direct Investments and tourists. With a government tax of 7%, it acts as a barrier for the

flow of imported goods into Singapore. However, the tourist gets a tax refund if they spend a

minimum of $100. In order to facilitate the movement of goods and services between countries,

Singapore has signed the Free Trade Agreement and has expanded to cover 31 countries. (FTA,

n.d.)

Actions are also taken to protect companies. Singapore was one of the eight countries who

signed the Anti-Counterfeiting Trade Agreement (ACTA) in 2011, to fight against infringement

of intellectual property rights. (Ministry of Law Singapore, 2011)

The likes of Singapore’s political and legal environment allows Michael Kors to not only tap on

local but also tourism spending to maximise profitability. Just in Singapore alone MK has 4

flagship stores (Kors, 2015). Comparatively, other countries may encounter political instability.

For example, Russia and the United States are engaged in geopolitical tensions due to the

Ukraine crisis, damaging bilateral and regional ties. Organisations will be discouraged from

doing businesses with the affected countries. In this way, MK will be restricted in its corporate

developments.

Economic Factors



The global luxury market was valued at 224 billion Euros in 2014 (Bain & Company, 2015).

Despite the market being traditionally resilient to economic fluctuations, Serret (2011) notes that

most industry players had lost approximately 40% of their stock value in the 2008 Financial

Crisis. MK will need to protect their company from devaluation.

Markets behave differently. Even though the BRICS (Brazil, Russia, Indian, China and South

Africa) countries present strong potential for lucrative businesses, the impending Chinese

economy crisis and Russia’s economic policies being unfavourable to foreign businesses may

impact MK’s market penetration rather seriously (Laudicina & Peterson, 2015). Singapore,

however, presents a potential for a thriving luxury market with the above factors contributing to

the following conditions: tax-free shopping, business-friendly policies, and strong customer

buying power. The big number of international agreements further expresses Singapore’s

economic influence in the Asia-Pacific region (British Chamber of Commerce Singapore, n.d.).

The Singapore luxury market size as of the year 2013 was S$4.3 billion (Acunzo, 2014).

The above economic factors influence MK’s planning to be strategically geographic, looking out

for the best channels and tailor marketing efforts accordingly as there is no ‘one size fits all’.

Social Factors

People see luxury goods as mediums to express their social standing and economic success. The

more customer perceives the brand to fit their ideals, the more accepting they are towards the

brand, in turn forming brand loyalty. The exorbitant prices and high quality of these goods

further build an emotional attachment to the brand for customers. For example, middle-income

earners purchase luxury accessories for ‘self-indulgence’, hinting their achievements (perhaps a

lucrative bonus or a promotion). This leads to building a ritual, whereby they will continue

purchasing luxury goods to celebrate, but no longer limited to accessories and eventually moving

to the ‘absolute luxury’ range (Cebreros, 2012).

Today, almost everyone owns an electronic communication device such as mobile phones,

tablets and laptops. Due to technological advancements, people are virtually connected through

social media platforms. Social media plays a big part in today’s society, social media platforms

the likes of Tumblr and Youtube are popular among the younger and tech-savvy people. Most of

the time, people get first hand news from the internet. On top of that, these younger and tech-



savvy seek inspiration from celebrities’ fashion choices and live-streamed fashion shows on the

Internet (Zegheanu, 2014). With such advantages, MK engages celebrities such as Angelina Jolie

and Jennifer Lopez for product endorsement, the campaign has successfully earned lots of

followers (Kross, 2014).

Customers today not only spend on brands. They also seek the ‘software’ factor of compassion

that organisations and businesses reciprocate their profits to the less privileged. This will be

detailed further in Environmental Factors.

Technological Factors

While not many luxury brands have progressed towards modern technology, Kors has come out

with products for technological devices for instances, smartphone case, wristlet, USB keychain,

battery wallet, and iPad sleeve. As technology advances, Michael Kors begins to engage with his

audiences via digital marketing platforms like Facebook, Twitter, Youtube and Pinterest. Kors

likewise has an online store which can be accessed from their official website. However, not

having a phone application for easy accessibility of customers will be one of their setbacks

(Kross, 2014).

Environmental Factors

Customers today seek ethical consumerism to define how meaningful a brand can be (Dodes &

Schechner, 2010). MK faces several issues regarding ethical consumerism pertaining to

environment conservation. People for the Ethical Treatment of Animal (PETA) had singled out

MK for animal cruelty, as MK is still selling leather products till today and conducting testing on

animals (PETA, 2010) (Meredith, 2013). While other brands have moved to adopt fur-free

initiatives, MK’s insistence, however, constitutes its product differentiation of using real leather.

MK is also marked for its insufficient revelations on environmental sustainability (Konietzko et.

al., 2014). MK currently counters these unfavourable issues with charitable endeavours e.g.

#WatchHungerStop campaign feeding 100 children a meal for every watch sold (Kors, 2015).



2.2 SWOT Analysis

Figure 2.1: SWOT Analysis of Michael Kors

MK enjoys strong and resilient branding through executing brand segmentation. The brand

officially has two segments – catwalk range Michael Kors Collection, and the MICHAEL

Michael Kors collection offering affordable luxury. Compiled with the high-quality products

from suppliers providing the highest quality materials, MK produces products spearheading the

fashion trend. The Michael Kors’ unique ‘jet-set chic’ design styles a working woman dressed in

MK products traveling around fashionably, seen consistently through its promotion materials.

Celebrity endorsements e.g. Heidi Klum, Miranda Kerr, and even Mrs. Michelle Obama further

motivated MK’s success.

However, MK being a luxury brand heavily relies on discretionary spending, subjected to

economic and political conditions of the respective countries. MK being a home grown brand in

the United States still has more work to do in terms of global geographical presence.

Expansion into men's and children's marketsMore retail stores outside of United States

Luxury good, relies on discretionary spending subject to economy, political conditions etc. Lack of global geographical presence

Myriad of competitors; challenge to retain customersTo correctly guage fashion trend and customer demands and needsUnethical or undesirable behaviour by founder

Strong and resilient brandingHigh quality products from suppliers'Jet-set chic' unique design

Strength Threat

OpportunityWeakness



Nevertheless, opportunities lay ahead for MK in expanding its business. Further developing its

existing men’s line and starting a children’s line will aid in increasing revenue. MK may also

seek to resolve its lack of global geographical presence by opening more stores outside of United

States.

MK sees for itself a myriad of competitors offering substitutes or alternatives. Customers are

therefore allowed to switch between brands of similar price ranges. Therefore, customer

retention is crucial for business sustainability. MK has renowned for fashionable designs; its

design team must continue ensuring designs be leading market trend while catering to customer

demands and needs as well. Since MK is a self-titled business by its founder Mr. Michael Kors,

any unethical or undesirable behaviour by Mr. Kors will certainly deal a huge negative impact on

its reputation.

2.3 Porter’s Five Forces

Bargaining power of Supplier: High

Michael Kors bags are manufactured by Sitoy Group Holdings Ltd in China. Competitive brands

such as Coach, Fossil and Prada are also Sitoy’s clients. (Ask, 2015) There are a few factors that

determine the supplier power. When a company has multiple suppliers, it will make its decision

mainly based on price, on the other hand, when there is only a single supplier, the company has

little power to negotiate on the price. Since Michael Kors handbags are manufactured by a single

supplier, the Supplier has more power to increase the price for the handbags.

Bargaining power of Buyers: Low

There will always be buyers for the luxury market, but their buyers will be lesser than

convenience product. Usually, customers will purchase one product at a time unless there are

sales. When a company has many small buyers, the customers are usually unable to bargain.

Whereas when a company has few large buyers, the buyers hold more power in negotiating for a

better price. However, since Michael Kors is a luxury brand, their prices are fixed in the stores.

Intensity of competitor rivalry: High



Michael Kors faces competition from other major players such as Coach, Kate Spade and Ralph

Lauren, offering similar designs at similar prices. The intensity of industry rivalry depends on the

numbers of replica, the base cost for product and uniqueness of the product. If the base cost of a

good is expensive, MK has to sell it at a higher price which causes price sensitive customers to

go for the cheaper choice if the product from the competitor is similar to MK’s. The number of

replicas is also an important factor as it will affect the brand image, the more the replicas, the

less unique a brand is. Consequently, Kors has to enhance its product differentiation to sustain

customer loyalty.

Threat of Substitution: High

As there are a lot of competitors in the market who are also selling quality products, the

determining factors are usually based on individual preferences. Since Michael Kors is

considered a mid-range luxury brand, their products are cheaper than Hermès and Chanel who

are high-end luxury brands. For price sensitive customers, they will switch between brands of the

same price range. However, there is a rising trend for imitation goods that threatens the brand

image.

Threat of New Entrant: Medium

The chance of new entrant is determined by the barrier for entry. It is harder for a new company

to enter the market if existing companies have patented their technology and the cost of starting

up is higher for some countries. However, in the fashion industry it is not easy for new brands to

emerge as one of the main players as the brand needs to gain some fame. As the Internet has low

barriers to for entry, new players begin from the online sector.

3. Target Market

Marketing Segmentation is the process of dividing the market into segments or groups by

identifying similar needs and wants, based on the idea that there are differences in the needs of

individuals (Kotler et al., 2012). Hence, it is important to segment the market so that the

company can select one or more segments it can serve efficiently and effectively with products

or services to meet the distinct needs of the target market (Kotler et al., 2012).



Throughout the years, Michael Kors has expanded from North America to other geographical

markets worldwide, such as Europe and Asia. The brand has a strong presence in North America

due to it being the company’s largest geographical market (Turano, 2012). Michael Kors is still

slowly expanding to other markets, China as their priority for its growth potential, in an effort to

increase sales revenue and international brand awareness (Turano, 2012; Plopan, 2014).

Michael Kors appeals to a variety of demographic market segments. From startup until present,

the company primarily targets women, as women make up a majority of 82% of its audiences,

for the reason that women in all age groups seem to spend more than men on apparels (Plopan,

2014; McGowan, 2014). Michael Kors targets consumers from the age range of 25 years old to

54 years old (Business Wire, 2013).

The two collections of the company, Michael Kors and MICHAEL Michael Kors, differs in the

pricing, therefore, it targets a considerably wide income range. However, Jones (2014) stated that

age influences an individual’s willingness to spend, rather than income. Jones (2014) claimed

that “Consumers under the age of 45 spend enough to be one of the top two highest-spending

customer demographics, along with those earning $250,000 or more a year.” Which explains the

growth potential of younger demographics.

Michael Kors Collection

Michael Kors luxury collection, targets middle to upper class income as it offers high-quality

leather and exotic skins accessories, footwear and apparels, for men and women, ranging from

US$40 to US$10,000 (Michael Kors, 2015).

Women’s line

The pricing of Michael Kors luxury women line products ranges from US$300 to US$6,000

(Michael Kor, 2015). It targets Achievers mainly from Gen X and early Gen Y, assumingly to be

of age 30 to 54 years old, from a segment group under the VALS framework. Female Achievers

that Michael Kors are targeting for this product line, are PMET (Professionals, Managers,

Executives, and Technicians) from the upper class income of above US$100K annually, who are

primarily motivated by achievements (Plopan, 2014). The interests of affluent consumers from

45 to 54 years old are global and pleasure travelling, and high-end retail or catalogue shopping

(Harland Clarke, 2015). Achievers are also high resource consumers who value success, status,



work, and family (Marketing91, n.d). They are image- and peer-conscious, which are the bases

of their preference over products that portray their achievements, thus, they are attracted by

established and prestige products (Lynch, n.d).

Michael Kors luxury collection appeals to Achievers who are especially in North America, for

the brand is well-established in the continent. Michael Kors aims to increase their international

brand presence, particularly in China, to target Achievers in that market, as the Chinese prefer

brands that are well-known internationally (Plopan, 2014).

Men’s line

Males in the 21st century, are more image-conscious and more fashionable, hence, they put

effort into their appearances and they are more willing to spend on aesthetics. Although the

men’s line is under Michael Kors collection, the price of products can be considered as

“affordable” luxury. Michael Kors menswear ranges from US$50 to US$1,300.

The target segments of this product line are Gen Y (25 to 34 years old) white-collar male

Experiencers and Strivers, largely earning a middle income of US$30K to US$100K annually.

Strivers are similar to Experiencers, they are trendy, novelty-seeking, and they are motivated to

purchase goods that are able to show that they are successful and wealthy. However, the

difference between Strivers and Experiencers is that Strivers have low resources, and

Experiencers have high resources. Strivers are usually young working professionals from Gen Y

(25 to 29 years old), who have just stepped into the working society, hence, their earning power

is middle to low (annual income of approximately US$40K and below), hence they do not have

the ability to purchase their desired high-end brands like Louis Vuitton, Gucci, etc. Thus,

Michael Kors men’s line is able to cater to the needs and wants of Strivers due to the affordable

pricing, and allowing them to carry the internationally well-known luxury brand, Michael Kors.

MICHAEL Michael Kors Collection

MICHAEL Michael Kors accessible luxury collection targets middle class income, as it offers

women’s wear, footwear, and accessories exclusively in women’s styles with prices ranging

from US$45 to US$600 (Michael Kors, 2015).



The brand is currently highly sought by younger generations, a high growth potential target

market, which can significantly increase the sales revenue gradually (Plopan, 2014; Jones, 2014).

In addition, the offered products appeal to women who prefer to be associated with younger age

groups as they want to feel youthful (Plopan, 2014).

Experiencers from the targeted age market segment of MICHAEL Michael Kors, are generally

young white-collar trendy females from Gen Y (25 to 35 years old) who have either just started

their career or have years of work experience, earning middle income but in the higher range of

US$50K to US$100K. This group of consumers have high resources (i.e. income, education,

intellectualism, etc.) and they are motivated by self-expression (Strategic Business Insights, n.d).

They are enthusiastic, seek novelty and social acceptance, and they keep themselves updated on

the latest trends and fashions (Kotler et al. 2012). Experiencers spend a high portion of their

income on entertainment, fashion, and social activities (Marketing91, n.d). According to

statistics, the majority of these consumers are still living at home, hence, they possess more

discretionary income because they do not have to pay for housing (Plopan, 2014).

4. Product Level

Figure 4.1 An image of Michael Kors Riley Tote. (Mulkerrins, 2015)

According to Mulkerrins, Michael Kors Riley Tote is one of the two bags that helped MK earn a

profit of £2.2 billion in 2014. (Mulkerrins, 2015)

Figure 4.1 Shows the product level of a MK Riley Tote.



Figure 4.2 Three product levels of Michael Kors

5. Marketing Objectives and Strategies

Objective 4P classification Strategy specification

Increase annual total revenue by

175% of FY2015 by FY2018

Product Increase product offerings

Place● Increase global geographical presence

● E-commerce strategy

CoreSocial StatusSatisfaction from owning a fashionable itemCarrier for all the items

ActualAvailable in more than 10 colours.Made with 100% Cow leather, rhodium hardware and 100% polyester for internal lining.Comes with 1 internal, 1 external top zip and 1 key fobRemovable and adjustable shoulder strap 18” – 20”Center Zip compartment1 interior zip pocketDust-bagAvailable in 3 sizes : Small:Top Handle: 4" 13.5” X 9” X 5”2 open pockets(Kors, 2015)Medium:Top Handle: 4" 15" X 10" X 5.5"3 open pockets(Kors, 2015)Large:Top Handle: 5"16.5" X 11" X 6"3 open pockets(Kors, 2015)

Augmented1 year product warranty from date of purchase (Kors, 2015)Free shipping and returns for online purchases within United States, Puerto Rico and Guam. (Kors, 2015)Gift-wrapping service in storeExquisite packaging with every purchase.



Digital marketing efforts:

● Increase social media following

by 5% every month

● To take over Ralph Lauren as the

top online luxury leader by

increasing online market share to

23.1%

Promotion● To increase awareness

● To highlight brand differentiation

Protecting brand value Price

● Maintaining ‘luxury’ status

● Control supply-demand for product

exclusivity

Table 5.1: Marketing objectives, 4P classification and strategy specifications

Objective 1: Increase annual total revenue

We propose four strategies to increase annual total revenue. The addition of a children’s line will

motivate spending not only from MK’s existing customers but create a new market segment for

MK to penetrate. MK also stands to achieve market penetration from an increase in global

geographical presence, opening more channels to generate revenue. However, MK needs to

extensively research on customer needs and demands that vary according to geography. Location

of the stores also need be strategically planned in order to reap the most benefits. To further

tailor marketing efforts to the respective regions, MK may consider appointing celebrities to

represent the brand e.g. MK may appoint Bingbing Fan, a renowned Asian actress to represent

the brand in Asia. Asian audience will find Bingbing Fan familiar and more relevant to their

lifestyles, therefore improving acceptance of MK’s brand in Asian markets.

E-commerce is particularly lacking in MK; MK only offers e-commerce in the United States and

Canada (Michael Kors Holdings, 2015). We propose that MK develops e-commerce on

respective regions to fully maximise profitability on their existing distribution channels. The

support from digital marketing campaigns (to be detailed in Objective 2) seeks to convert online

traffic into real statistics of sales and profits.

Objective 2: Digital marketing efforts



Digital marketing is the main driver of MK’s digital campaigns. MK is on social media’s biggest

platforms: Facebook, Instagram, Twitter, Pinterest and Youtube (Michael Kors Holdings, 2015).

MK is already leading its competitors in terms of digital marketing. Therefore, MK needs to

continue its practice of precise and carefully curated social media postings and execute search

engine optimisation campaigns to capture stray online traffic. These social media postings

highlight brand differentiation, engaging followers in accepting the brand, looking to convert

them into customers and ultimately loyal fanatics. For example, even though MK’s Twitter

(Michael Kors, 2015) notes lesser frequency (8,085 tweets) compared to those of Marc Jacobs

(18,000 tweets, there is only a marginal difference of followers (3.12 million versus 3.76

million). The statistics prove the importance and impact of carefully curated content on digital

marketing. The search engine optimisation campaigns capture online traffic previously not

captured, featuring MK’s site in the top search results and in turn increase overall awareness.

The objective to be achieved by this strategy is for MK to absorb market shares, becoming the

top online luxury retailer by beating Ralph Lauren’s current market share of 23.1% (Experian

Marketing Services, 2014)

Objective 3: Protect brand value

MK’s clear segregation of its two sub-brands – the catwalk range Michael Kors collection and

‘affordable luxury’ MICHAEL Michael Kors collection determines not only its price range but

also specifically defining the target market the products are intended for. MK needs to preserve

its premium ‘luxury’ status through price control. All MK products must be sold at fixed prices.

Prices should be adjusted accordingly to inflation rates, and should either remain unchanged or

higher, never lower. MK retail spaces in departmental stores should also be excluded from any

special discount activity. ‘Marking down’ prices is absolutely disadvantageous to MK; such

actions will jeopardise MK’s brand value of being an aspirational brand. Customers are willing

to pay for its high price but if prices are unstable or not being marked up for prolonged periods,

many consumers are able to get it and once everyone has the product, it would no longer be a

product of a premium status (Lutz.A, 2015).

MK’s brand value can be further protected by ensuring exclusivity of its products. Product

quantity must be carefully planned in the prediction of supply-demand. The more exclusive the

item is, the higher it creates for MK’s brand value. For example, the jacket worn by Mrs



Michelle Obama at a national event was sold out overnight (Nessif, 2015). The item was already

out in the market for quite some time prior to Mrs Obama’s appearance. MK did not further mass

produce the item to maintain exclusivity; various e-commerce platforms carrying MK products

state that the jacket is ‘unavailable’ (Nordstrom, 2015), or ‘sold out (Polyvore, 2015)’.

Customers who bought the jacket, therefore, enjoy the exclusivity of owning the exact piece

from Mrs Obama’s wardrobe, feeling for themselves to be special and honoured. The likes of

this exclusivity work not only to protect, but also to further heighten MK’s brand value.

6. Action plan timeline

Action 2015 2016 2017 2018

Precise and carefully curated social media postings

Search Engine Optimisation campaign

New products, items

Open new stores in and out of United States

Regional e-commerce

No sales or discounts in retail stores

Product quantity planned in prediction of supply-

demand

Table 6.1: Action Plan timeline



7. Projected Financial Forecast

Figure Michael Kors Financial Trend from Year 2013 to 2015 interim statistics (Michael Kors

Holdings, 2015)

MK’s total revenue has been increasing steadily over the years; net sales, gross profit and total

revenue had increased two-fold from 2013 to 2015. However experts (Loeb, 2014) (Lewis, 2014)

(Kierulf, 2014) are pessimistic on MK’s future, predicting it to become the next Coach due to

brand overselling.

Based on the assumptions of (Dey, 2015) (Bryan, 2015) (Conerly, 2015)-

● Euro will continue to be weak, but may in turn motivate tourism spending,

● United States will be recovering slowly in their economy, which may increase sales in

their home ground,

● China however may experience slowdown on growth, affecting the global economy to a

certain extent, nevertheless luxury spending will still go strong;

We therefore predict (McGrath, 2014):



Financial Year /

AspectsFY 2016 FY 2017 FY 2018

Total Revenue USD 5.1 billion USD 6.5 billion USD 9 billion

Net Sales USD 4.7 billion USD 6.9 billion USD 8.5 billion

Gross Profit USD 3.1 billion USD 3.9 billion USD 5.2 billion

Table: Financial Forecast for Michael Kors

MK’s performance for Financial Year (FY) 2016 will be a dismal one, we will see revenue

growth becoming stagnant due to brand overselling in reference to reports of Kierulf (2014) and

Lewis (2014). However there is little possibility of MK being the next Coach as FY 2017 will

see improved earnings from whatever marketing efforts MK will undertake in FY 2016 to ‘save’

its brand. Our estimate for FY 2018 is bold as we see increased global geographical presence and

new sub-brands from MK generating revenue therefore, FY 2018 will achieve a 175% increase

of FY 2016’s total revenue amount as above mentioned.

8. Contingency Planning

Our financial forecast predicts global economy on a slow rebound which MK will observe

opportunities for revenue growth. However certain factors will affect MK’s strategies (Laudicina

& Peterson, 2015):

Euro still remains comparatively weak; external influences may further weaken the Euro,

therefore affecting Euro’s regional spending on MK, delaying MK’s Europe geographical

expansion. Economic powerhouses facing a crisis e.g. the Chinese economy transition is putting

China at risk of economic crisis should the transition fail. Asian countries of close geographical

proximity and share strong economic ties, global markets where China has a pivotal role in will

be impacted adversely. Political conditions e.g. MK’s expansion into Russia is highly difficult

due to high tensions between Russia and the United States over the Ukraine crisis. As such,

Russia’s foreign policies had been extremely unfavourable for foreign businesses to enter their

local markets. Should Russia exert its influence over neighbouring countries, the overall outlook

for MK to expand businesses in this particular region is negative.



In this case whereby MK’s global geographical presence and international sales is threatened, we

propose e-commerce strategy to counter the threat. The key is to avoid highly possible losses in

entering new markets, and to focus on existing channels to maximise profitability. As mentioned

earlier, MK only offers e-commerce in the United States and Canada, launching of regional e-

commerce sites seeks to increase international awareness, convert online traffic to sales, and also

to impress MK’s local presence to residents of the region. A regional e-commerce centre to be

appointed in each region, and customers can either opt for delivery or self-collection at any of

their physical stores. During this ‘lie-low’ period, MK should undertake intensive preparations

for new channels, working to enter these markets. If conditions should be ideal for MK, MK can

enter these markets with a lower cost compared to entry during a high economy; and

immediately benefit once the regional/global economy turns for the better.

9. Conclusion

MK‘s excellent marketing planning elevated itself as the luxury brand powerhouse today,

surpassing competitors like Coach. While MK’s products have a competitive advantage, more

needs to be done to ensure long-term sustainability of its business. Our marketing plan proposes

objectives such as increasing revenue, digital marketing efforts and protecting brand value,

through various strategies. These strategies include increasing product offerings and global

geographical presence, increase awareness on brand and product differentiation, maintaining

luxury status and controlling supply-demand for product exclusivity. Our marketing plan

encourages not only business sustainability, but also looks to build resilience against economic

uncertainties.