Final Marketing Management
Michael Kors: Internal issues: Cheap material, Fad?, Hasn’t been around long enough in the light.
Strengths: cost advantage, online growth, loyal customers, brand equity
Weaknesses: not innovative, not diversified, poor supply chain, brand recognition
Opportunities: emerging markets, innovation, online
Threats: competition, cheaper technology, price wars
Competitors- Marc Jacobs, Calvin Klein, Luis Vitton
Trends ethnic looks may be returning, by seizing this market it may be an added boon, animal prints this is a direction we haven’t seen yet. Tribal fabrics are a path that can be explored and capitalized on also.
Channel Changes: There are new outlets that are selling Michael Kors products, but for the most they are outlets. There is rumors that a Michael Kors store is heading to Oklahoma which has been referred to as the end of the line for any company in terms of expansion. So it will be interesting to make out what they will accomplish there. This can fall into a threat that the company can capitalize off of.
Consumer Behavior: Potential Markets: There is the North American market which is kind of locked in for now, but their loyalty is questionable, Asia is highly anticipated, but Coach has 95 stores over there already so they will have quite an uphill battle for that territory, and Europe as the last unexplored market actually has received Michael Kors well, even with their limping economy. These groups are not changing as of yet due to the fact that the handbag industry has a locked in consumer trait.
Market Segments: Two types arise here, unlike Coach which enjoyed more than a few, the only segments for Michael Kors are 1. Fad buyers are interested in what is cool, chic and popular these groups don’t really put to much thought into the quality of the item they just want it now before it goes out of style, which brings us...