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.

Ch. 15 - Retailing

I visited Zara and Michael Kors during my spare time before my next scheduled class for the day. I will tell a little about each store, beginning with Zara.


Zara is a specialty store, selling only clothing, shoes, and accessories as their merchandise. The design of the store and its environment shows that they value their merchandise moderately but want everything and as many of it to be accessible to their customers. Everything was stock-piled, broad. The store, generally, is very dim but has ceiling-to-floor windows. The items that are on display are highlighted with a spot light overhead basically shutting out everything else that is in the light.
Visiting this store as a potential customer was ultimately a bad experience for me. I received no attention from any of the employees or anyone. I wanted to purchase a jacket for my daughter but because of the poor treatment, my visit resulted in me leaving the store.

Michael Kors is also a specialty store, selling only clothing, shoes, and accessories as their merchandise. The design of the store and its environments show they value their merchandise very highly. Everything was minimal to show its luxury and simplicity. The store is very bright, there are no dim areas. The brightness of the store makes everything look like its on display. This also ties in with the employees who will have to always be on sight to help customers get what they desire rather than the customers being able to just help themselves.
Visiting this store as a potential customer, I can see why Michael Kors has lived up to its name. I received attention as soon as I entered the store door. Everyone is so full of energy and happy as if they enjoy their job. I wasn't stalked around the store and I didn't feel uncomfortable no matter how I was dressed. I felt welcome. Now, though I didn't purchase anything that time, I was able to see and try on what I wanted. I was very satisfied.

Ch. 6 - Consumer Decision Making

Michael Kors has found the sweet spot of the fashion industry, consumers with money who aren’t rich yet, serving the lower-upper class, the upper-middle class and the aspiring middle class. This consumer market will allow the brand to grow in many different directions. With MK’s stock more than doubling this fiscal year, it has been able to outperform some of its other high-end luxury competitors, Coach and Tiffany, who have both started to decline in growth charts due to the Chinese, their main dependent, spending less on luxury products.

Michael Kors is the most searched-for brand on the web because of it newest lower-priced line which has brought in a wider range of consumers and expanded the awareness of its brand.

The company has been able to grasp a hold on its consumers by conforming to the proper needs of each consumer, straddling generational and social lines, meeting all cultures and classes. Each product is made to be simple, made-well, not trendy, elegant, wearable, luxurious and timeless.

Ch. 5 - Developing a Global Vision

In 2002, Michael Kors LLC opened its first international stores in London and Tokyo. It has been expanding immensely since then with over 350 stores worldwide. Being the smaller luxury retailer in its category, Michael Kors has and still is successfully establishing its brand in all parts of the world.
With China being one of Michael Kors’ manufacturers, and the handful of stores that are already located there, the company has appointed the chief executive to plan to expand its presence in the greater China. By the year 2015, China will account for about 20 percent of the global luxury market. 

Since 2000, Michael Kors LLC has been signing global licensed agreements with other companies to further expand its brand name in stores other than its own in various parts of the world, such as the following:

• Schwartz & Benjamin  - licensee to produce a full range of shoes
• Le Tanneur & Cie - worldwide licensee (excluding Japan) to produce the line of collection handbags and small leather goods
• The Charmant Group - worldwide licensee to produce and distribute a full range of MK spectacles and sunglasses
• Gibo SpA (a unit of Onward Kashiyama Japan) - licensee to manufacture and distribute worldwide (excluding USA) the collection line
• The Estee Lauder Companies - global licensee to sell the designer’s signature scent in more than 20 countries and territories

Micheal Kors LLC, who is known for its glitzy designs and primarily caters to women, reported robust quarterly results as its namesake luxury brand saw strong demand, and said it expects to drive profits in the coming quarters.

Sources: reuters, estee lauder company, CPP Business of Luxury