Ch. 3 - Ethics & Social Responsibility

Michael Kors, like every other company has their Code of Ethics and Business Conduct where they go into detail about employees required commitment to honesty, integrity, and accountability outlines in the basic principles and policies.

Michael Kors also has a long lasting relationship with the United Nations World Food Programme which is dedicated to helping solve the international hunger crisis. This is the cornerstone of Kors' philanthropic platform. For over 50 years, the WFP has been providing needed food assistance to vulnerable people. Its spreads across over 70 countries world wide and has serviced over 90 million people annually. Michael Kors' job is to raise awareness and funds for the program to get rid of what WFP has made "the world's most solvable problem". MK has been able to raise millions of dollars in awareness focus campaign. Mr. Kors made a $5 million donation to God's Love We Deliver. In honor and appreciation for over 20 years op support, God's Love We Deliver has named their expanded home "The Michael Kors Building"

Ch. 7 - Business Marketing

All of Michael Kors products used to make all the accessories are processed but natural materials. On the website, there is a tab where it explains the care needed for each accessory product sold both on the website and in the store. For example, under handbags, it lists the various materials used and how to care for each handbag of a particular kind.

The demand for Michael Kors has become a major upside potential for the company where the stores are expected to rise a full 25% with total sales in the range of $525 million to $535 million for the third fiscal quarter. Not much is discussed about this particular subject for the business, however the company is very optimistic about the continuous business growth. "Our strong performance in the quarter was driven by continued growth in comparable-store sales, strong performance of our new stores, and the advances in out international expansion strategy as we continue to build brand awareness," said Mr. Idol, CEO of Michael Kors USA, Inc. 

Ch. 8 - Segmenting and Targeting Markets

The name Michael Kors has become synonymous with the jet set luxurious lifestyle that is timeless and elegant. All is expressed through the sophisticated accessories and ready-to-wear collections. 

Michael Kors, over time, have developed a strategically controlled global distribution network focused on company operated retail stores, leading department stores, specialty stores and select licensing partners. Business is operated in three segments: retail, wholesale, and licensing. The retail segment engages in the sales of all the products, including licensed products. As of March of last year, retail obtained 196 stores in North America and 46 internationally, including concessions in both Europe and Japan. The wholesale segment sells most of the products, including women's and men's apparel, accessories, and footwear to department stores and specialty stores in both North America and Europe. There are 2,027 department and specialty store doors in North America and 650 international department and specialty store doors. The licensing segment licenses MK's trademark on all its products as well as licenses rights to sell to geographical  regions such as: Korea, The Philippines, Taiwan, Malaysia, The Middle East, Turkey, China, Singapore, Hong Kong, and Macau. Geographically, we plan to increase our international retail store base to 100 locations in Europe and another 100 locations in Japan in addition to expanding our shop-to-shop footprint in department stores in both Europe and Japan.

Michael Kors targets all possible genders, ranging from 16 - 60 years of age who obviously have money to spend. The company made changes in the target market from people who are wealthy to the middle class, people who are not necessarily wealthy by have money to spend. This change broadened the lines of who can buy the products, thus allowing MKUSA to make more money. MK reaches out to its customers looking to improve their status related motives. And for those whose social status is already established, Michael Kors is simply the icing on the cake.

Michael Kors does collaborations, called Kors Collaborations, as an initiative to aim at showcasing the special relationships and unique dialogues between Kors himself and creative talents across the cultural spectrum. The most recent collab, the third installment of the series, featured British model and muse, 23 year old Amber Le Bon. These collaborations will continue to roll on a quarterly basis.

Ch. 11 - Developing and Managing Products

Michael Kors USA, Inc. has been defined down to one word, classic. As of 2011 Michael Kors has become one of the most successful American fashion designers. The company's take on product development and management is simplicity. MK focuses on the simple part of life and is able to create his unique, classic sportswear.













The line productions are based on neutrals with pops of color and the least amount of pattern. Highlighting the luxurious fabric and a woman's figure is Michael Kors' design approach rather than that of color or pattern.

"When you purchase a Michael Kors product, you are making an investment."

Ch. 10 - Product Concepts

Bearing the name of an award-winning luxury clothing and accessories designer with over 300 retail stores located across the globe, Michael Kors has become a powerful brand with worldwide growth in multiple

product lines.


The company has two levels of products, a high-end collection and the MICHAEL collection. The high-end collection is sold through the company's "collection" stores and high-end department stores like Bergdorf Goodman and Harrods. The MICHAEL collection is sold in upper mid tier department stores like Bloomingdale's, Nordstrom and in it's own "Lifestyle" stores.
The company's product lines consist of the following:
 - Michael Kors Beauty Collection
 - MICHAEL Michael Kors
 - KORS Michael Kors
 - Michael Kors Designer Collection

Over the years, MK's product lineup has expanded to include more than just clothing. Each of these product lines consist of several product items. Michael Kors Beauty Collection splits into three main categories of cosmetics; sporty, sexy, and glam. The MICHAEL Michael Kors collection includes women's handbags and shoes as well as ready-wear-apparel. The KORS Michael Kors collection includes footwear and jeans. The Micheal Kors Designer collection includes all runway styles that range between $400 - $6000 in apparel, handbags, and footwear.

Though the effort to reach beyond the high end of the marketplace to gain more consumers is a common goal among luxury companies, there are a limited amount of consumers available at the top of the retail market. Therefore, the shift to lower becomes a necessity to gain more consumers. Michael Kors has successfully managed to balance the acts of keeping high-end customers happy with the differentiation of the products marketed to them. preventing the mid-tier products from tarnishing the brand's high-end image.

Ch. 18 - Sales Promotion and Personal Selling

MK does participate in sales promotion unlike other luxury brands. However, these promotions are mainly online. You find that they would have a clearance section in some of the stores and sales in the outlet stores but not in all of them. They don't broadcast sales in the store like other stores. The broadcasting is done online, in catalogues, and in the emails of existing customers. There are also promotions when there is a new theme. Whether it be face-to-face, over the telephone, videoconferencing, or through interactive computer links between the buyer and seller, personal selling plays a huge role for this company. MK sales associates have to meet high standards and cannot be a beginner in retail selling. 

Ch. 17 - Advertising and Public Relations

Michael Kors has become one of the most innovative, most looked for brand name of its kind. Consistent successful advertising is a must. The company focuses mainly on paper advertisement such as billboards, subway station walls, magazines and newspapers. Also, this year the company added ad placement to digital and mobile outlets, social media platforms along with the traditional outdoor advertisement. 

The 2013 Spring Ad Campaign has the world in a daydream of the jet set lifestyle with extra bold bright colors, sunshine, and road trips. This season's campaign was shot by Mario Testino in LA, California with Simon Nessman and Karmen Pedaru as the models bringing the collection to life.

The most recent ad campaign was posted in the February issues of magazines such as Vogue, Harper's Bazaar and the W. In March, the ad campaign was posted in 12 different international magazines. In total, the ad placement reached to 25 different countries, with big first timers in Poland, Sweden, Norway, Australia and Denmark.