MICHAEL KORS

Founded: 2002
Annual Revenue: $18.7m

Kylie DeBari, Ashtyn Brown-Hurley, Emily Bohlen, and Addison Taylor

EXECUTIVE SUMMARY
In this report we will show the client:
How Michael Kors (MK) differentiates itself from
the competition.
Who MKs target market is.
What the brand and the company represent as a
whole.
The best regions for MK to advertise in.
The best times for MK to advertise nationally and
in the spot locations.
Finally, which specific vehicles would be effective
for MK to advertise in.

COMPETITIVE NATURE OF THE OVERALL INDUSTRY

The fashion industry is currently a globalized sector that works to meet the
demand for apparel and dictates the trends for what should be worn.

Total global sales of luxury goods were approximately $251.5 billion in

2011, $277.7 billion in 2012, and are estimated to be approximately $284.3
billion in 2013.
Demand for the worldwide luxury goods industry is predicted to grow
from approximately $277.7 billion in 2012 to between $295.6 billion
and $301.3 billion in 2014.

The U.S. apparel market is the largest in the world; comprising about 28
percent of the global total.

MEDIA MIX (CMR DATA)

Expenditures

Brand

Total Media

Magazine

Nat. Newspapers

Outdoors

Network TV

Spot TV

Cable TV

Radio

Michael Kors

80,100

36,045

4,005

16,020

8,010

8,010

8,010

Ralph Lauren

165,200

66,080

16,520

33,040

16,520

16,520

16520

Calvin Klein

170,000

51,000

13,600

30,600

34,000

25,500

15,300

Marc Jacobs

124,000

50,840

11,160

16,120

12,400

18,600

12,400

Donna Karan

80,200

24,060

5,614

8,020

8,020

8,020

16,040

2,406

*amount in thousands

MEDIA MIX %
Media Mix

Brand

Total Media

Magazine

Nat. Newspapers

Outdoors

Network TV

Spot TV

Cable TV

Radio

Michael Kors

100%

45%

5%

20%

10%

10%

10%

0%

Ralph Lauren

100%

40%

10%

20%

10%

10%

10%

0%

Calvin Klein

100%

30%

8%

18%

20%

15%

9%

0%

Marc Jacobs

100%

41%

9%

13%

10%

15%

10%

0%

Donna Karan

100%

30%

7%

10%

10%

20%

20%

3%

Most brands primarily use magazines to advertise.

Outdoor mediums are used frequently as well.
All brands focus on commercial advertisement on a variety of different television
types to reach different consumers but focus in metropolitan areas with SPOT
TV to target individuals.
Radio is primarily NOT used.

SHARE OF VOICE %
SOV shows that MKs strength is in Magazines and TV Ads, but are weak in Radio and Newspapers.
Brand

Total Media

Magazine

Nat. Newspapers

Outdoors

Network TV

Spot TV

Cable TV

Radio

Michael Kors

80,100

36,045

4,005

16,020

8,010

8,010

8,010

Ralph Lauren

165,200

66,080

16,520

33,040

16,520

16,520

16,520

Calvin Klein

170,000

51,000

13,600

30,600

34,000

25,500

15,300

Marc Jacobs

124,000

50,840

11,160

16,120

12,400

18,600

12,400

Donna Karan
Total Category

80,200
619,500

24,060
228,025

5,614
50,899

8,020
403,800

8,020
78,950

8,020
76,650

16,040
68,270

2,406
2,406

This information shows us that magazines and TV are the best mediums to place MKs ads
because the visual attraction creates the consumers want for the product.
Brand

Total Media

Magazine

Nat. Newspapers

Outdoors

Network TV

Spot TV

Cable TV

Radio

Michael Kors

12.9

16

7.8

15.4

10.1

10.4

12

Ralph Lauren

26.7

29

32.5

32

21

21.6

24

Calvin Klein

27.4

22.4

26.7

29.4

43.1

33.3

22.4

Marc Jacobs

20.0

22.3

22

15.4

15.7

24.3

18.2

Donna Karan

13.0

10.6

11

10.2

10.4

23.4

100

Total Category

100

100

100

100

100

100

100

100

MICHAEL KORS

Tone: MK designer styled apparel gives off an air of luxury, sophistication,

and prestige.
Positioning: The position MK has is that although it is a designer brand,
it can be available for more than one market. MK aims to serve a more high
end clientele as well as the middle class. Celebrities like Kate Hudson are
seen wearing the spring line, while middle-class mothers carry around last
seasons tote.
Creative Ad Strategy: Michael Kors uses advertisements in Magazines
to promote luxury products with celebrity endorsements. MK uses their
signature logo on all products and ads.
Target Market: MK appeals to mid-high class females who are known for
having a trend-setting style; the apparel is high end, but afforadable for
them.

KEY COMPETITORS
1. MARC JACOBS
2. CALVIN KLEIN, INC
3. RALPH LAUREN CORPORATION
4. DONNA KARAN INTERNATIONAL INC.

OVERALL INDUSTRY COMPETITION

Marc Jacobs (MJ):

Tone: MJ is a trademark brand of off-kilter fashion that speaks to renegade style-setters.
Positioning: MJ sells in high-end department stores as well as their own retail stores, focusing on
off the runway looks for both women and men.
Creative Ad Strategy: MJ creates interesting and unusual advertisements, catching the eye of
magazine readers and social media users alike.
Target Market: MJ targets unique men and women who are into upscale and beautiful products.

Calvin Klein (CK):

Tone: CK offers modern and sophisticated styles for men and women who are into minimalistic

styles.
Positioning: CK provides a focused, consistent approach to global brand growth and
development.
Creative Ad Strategy: CK has ubiquitous and controversial ad campaigns.

Target Market: CK is inspired by the fresh and unpretentious style of New Yorks urban youth.

OVERALL INDUSTRY COMPETITION

Ralph Lauren (RL):
Tone: RL offers a classic look and feel to their products that attracts an older audience.
Positioning: The diversity of RLs brand ranges from red carpet to sporting events.
Creative Ad Strategy: RLs strategy focuses on advertisements in specialty magazines that
prioritize upper class sporting events such as polo or horse races to emulate their sophisticated
customers.
Target Market: RL targets men and women alike who enjoy a sophisticated and comfortable
lifestyle.

Donna Karan (DK):

Tone: DKI focuses on the life and style of the artist, focusing on lifestyles rather than clothes.
Positioning: DKI sells to upscale department and specialty stores as well as their own retail
stores.
Creative Ad Strategy: DKIs ad strategy is fast paced and modern, embodying the urban and
dark style of the artist while focusing mainly on social media.
Target Market: DKI appeals to womens needs and desires, embodying the pulse of New York in
its style.

SORORITY SHOPAHOLICS
Sorority Shopaholics are
females.
Sorority Shopaholics are 1824 year old independant
singles who have attended
college at least 1-3 years.
It is important for Sorority
Shopaholics to look attractive
to others. Therefore, they are
willing to spend more than
they can afford to get the
clothes they want.
They are sociable, excitable,
and fun.

SORORITY SHOPAHOLICS
Bought Apparel in the last 12 Months

Brand Loyal

Approval Seeking

(000)

111578

41114

34928

Index

100

100

100

(000)

11753

3533

7175

Index

88

72

171

(000)

97655

21542

19682

Index

170

102

109

(000)

25103

8502

7535

Index

104

96

100

(000)

36899

15412

15506

Index

118

134

158

(000)

4258

2801

4243

Index

101

180

313

Total

Age 18-24

Female

Attended College (1-3 years)

It is Important to look
Attractive to Others

Willing to spend more than I

can afford, to get the clothes
I want

TRENDY UP-AND-COMER
Trendy up-and-comers are
made up of female, college
graduates between the ages
of 25-34.
Average income is between
$60,000-$74,999
Like to keep up with the
latest fashions, but are also
refined, gracious,
sophisticated, and dignified.
Trendy up-and-comers enjoy
buying products that will
keep them in line with what
is trendy today.

TRENDY UP-AND-COMER
Bought apparel in the last 12 months

Brand Loyal

Approval Seeking

(000)

111578

41114

34928

Index

100

100

100

(000)

97655

21542

19682

Index

170

102

109

(000)

19746

5276

7586

Index

101

73

123

(000)

5102

2468

1619

Index

91

120

92

(000)

19339

5876

5301

Index

113

93

99

(000)

17057

8746

9177

Index

116

162

200

Total

Female

25-34

Income between $60,000-$74,999

College 4 years (Graduated)

Refined, gracious, sophisticated,

dignified

THE GIFTERS
Gifters are males and females
Gifters are between the ages
of 30-49 years old.
They graduated college with a
bachelors degree and went on
to graduate school.
Income is between $100,000
to $149,999

Gifters have enough money to

buy products for their friends
and family.

THE GIFTERS
Bought apparel in the last 12 months

Brand Loyal

Approval Seeking

(000)

111578

41114

34928

Index

100

100

100

(000)

97655

21542

19682

Index

170

102

109

(000)

13923

19571

15246

Index

26

98

90

(000)

40971

12784

11874

Index

103

87

95

(000)

2716

1588

815

Index

77

122

74

(000)

34886

12874

8283

Index

113

113

86

Total

Female

Male

30-49

Income between
$100,000-$149,999

Graduated college or more

MR. MONEYBAGS
Mr. Moneybags is a male who
enjoys owning good quality
things.
Mr. Moneybags is between ages
30-49
Income is between $150,000 to
$249,999
For Mr. Moneybags, money is
the best measure of success. He
will strive to keep his image
intact.
Mr. Moneybags is confident
and stylish. Most likely to buy
watches or wallets.

MR. MONEYBAGS
Bought apparel in the last 12 months

Brand Loyal

Approval Seeking

(000)

111578

41114

34928

Index

100

100

100

(000)

13923

19571

15246

Index

26

98

90

(000)

40971

12784

11874

Index

103

87

95

(000)

729

536

*142

Index

74

147

*46

(000)

28785

17167

12853

Index

102

165

145

(000)

5332

4047

4699

Index

81

167

228

Total

Male

Ages 30-49

Income between $150,000 and

$249,999

Enjoy owning good quality things

Money is the best measure of

success

SELECTION OF TARGET MARKET

Our recommendation for the target
market is Trendy Up-and-comers.
Michael Kors prides itself in high
quality, designer clothing.
Our media strategy would be to
target Trendy Up-and-comers
through magazines, social media,
and online shopping websites.
Michael Kors ultimate goal would
be to make Trendy Up-and-comers
brand loyal to our company to the
point that they influence others to
buy our products as well.

COMPETITION

The major competitors for Michael Kors are

Calvin Klein, Marc Jacobs, Donna Karan, and
Ralph Lauren.
Each competitor has a unique way of making
their brand stand out whether it be with an
innovative marketing and advertising, global
market positioning, extensive brand imagery,
or modern design.
However, Michael Kors differentiates itself
from its competitors with its simple, sleek,
and high end styles. Because of this, our
products can still have the same luxurious
quality while still being affordable.

CONSUMER

The targeted market for Michael Kors is

the market of Trendy Up-and-Comers
(Trend-Setters) which are 25-49 years old
female college graduates.

Their income is rather high and range from

$75,000 to $99,999 (leaving room for
plenty of disposable income.)

Trend-Setters revolve around upscale

clicks and buy often from online apparel
sites.

CONSUMER ATTITUDES AND INSIGHT

The attitudes of the trendsetters are refined, gracious,

sophisticated and dignified.
They keep up with all of the
latest trends and fashions and
believe in looking good in order
to gain approval through their
lifestyle and clothing choices.
Trend-Setters believe in the
concept that if they look good
they feel good. They believe that
it is important to look attractive
and strive to set trends that
others will follow.

BRAND

Brand Inspiration/Promise:
Stay sophisticated.
Support:
The look and feel of Michael Kors products is unique and classic, just like
the people who are wearing them. Our products give off an air of simple
elegance and keep up with the latest trends, leaving our target audience
wanting more.
Brand Personality:
Michael Kors is for a fun, trend-setting individual who finds every
opportunity to be the most stylish person in the room - like Lauren Conrad.
Lauren Conrads style is one of a kind, and she exemplifies high status,
sophistication and poise. She knows how to dress for day to day
happenings, as well as celebratory events, while accessorizing from head to
toe.

CATEGORY DEVELOPMENT INDEX

Population
(000)
Regions
Northeast
Midwest
South
West

41,170
49,417
84,694
51,728

Popluation
%
18.7
22.2
36.9
22.2

CDI

BDI

103
102
99
97

166
96
70
101

Category Development Index (CDI) shows how well the category (fashion) is
doing in a specific area and Brand Development Index (BDI) shows how well
Michael Kors is doing.

The Northeast contains the highest CDI, which is 103. The West contains the
lowest CDI of 97. The Midwest has a CDI of 102 and the South has a CDI of
99. The average for CDI is 100.

Michael Kors should increase advertising in the South and the West.

We are choosing the South because we would like to increase both CDI and
BDI in that region. The category is high enough to where it can be enhanced,
and we would like to improve brand sales in that area.

PERCENT FACTOR SPREADSHEET

Cities

Atlanta
Albuquerque
Austin
Baton Rouge
Birmingham
Charlotte
Charleston
Columbia
Dallas
Greensboro
Houston
Jacksonville
Jackson
Lousiville
Little Rock
Lexington
Miami
Memphis
Nashville
New Orleans
Oklahoma City
Orlando
Raleigh
San Antonio
Tampa
Total

Population %

Female %

2.80%
3.50%
5.50%
1.40%
1.30%
4.90%
0.70%
0.80%
7.80%
1.70%
13.60%
5.20%
1.00%
3.70%
1.20%
1.90%
16.20%
4.00%
3.70%
2.30%
3.70%
0.10%
2.60%
8.70%
2.10%
100

2.70%
3.34%
5.20%
1.40%
1.33%
4.90%
0.80%
0.83%
7.53%
1.80%
12.90%
5.13%
1.10%
3.60%
0.12%
1.90%
15.92%
4.10%
3.70%
2.31%
3.64%
1.55%
2.62%
8.53%
2.13%
100

Income %

4.40%
4.30%
4.81%
3.44%
3.90%
4.70%
4.53%
3.70%
4.41%
3.70%
4.02%
4.00%
2.92%
3.94%
4.01%
4.32%
3.84%
3.30%
4.20%
3.31%
4.03%
3.80%
4.90%
3.80%
3.90%
100

Store Count %

7.40%
1.90%
3.70%
1.90%
3.70%
7.40%
3.70%
1.90%
11.11%
0.00%
7.40%
1.90%
1.90%
3.70%
0.00%
1.90%
13.00%
0.00%
3.70%
1.90%
3.70%
9.30%
3.70%
3.70%
1.90%
100.00%

% Total

Estimated Value

17.30%
13.04%
19.21%
10.04%
10.23%
21.90%
9.73%
7.23%
30.85%
7.20%
37.92%
16.23%
6.92%
14.94%
5.33%
10.02%
45.96%
11.40%
15.30%
9.82%
15.10%
14.80%
13.82%
24.73%
10.03%
400

4.30%
3.30%
4.80%
2.50%
2.60%
5.50%
2.40%
1.80%
7.70%
1.80%
9.50%
4.10%
1.70%
3.70%
1.30%
2.50%
11.50%
2.90%
3.80%
2.50%
3.80%
3.70%
3.50%
6.20%
2.50%

SPOT SELECTIONS
The Top 8 cities are 1. Miami, 2. Houston, 3. Dallas, 4. San
Antonio, 5. Charlotte, 6. Austin, 7. Atlanta, 8. Jacksonville.
We have selected these cities because they have high
populations and highest estimated value for the Southern
region.
Also, they have high female populations and each city has a high
store count percentage. For example, Miami has 13% of the
stores in this region and Dallas has 11.1%.

SCHEDULING

A pulsing schedule was chosen for the best advertising results.

The months with the heaviest advertising will be the months around
Fashion Week: February, May, August, and November.

The months with moderate advertising will still keep Michael Kors
present in peoples minds without overwhelming them. These months
are January, March, April, June, July, September, October, and
December.

The heavy months will have more advertisements in different areas

whilst the moderate months will have advertising in not as many areas.

FREQUENCY AND REACH GOALS

Michael Kors is an established brand with many different competitors. The

products can be used year round as each new seasonal fashion line rolls out.
During these seasonal fashion line months, it is important to keep the brand
in the consumers mind and reach new people. For this reason, reach was
more important for our campaign.

The national reach goals for our heavy months were 85% for national. The
frequency goals for national during the heavy months were 3.6. The spot
reach goals for our heavy months were 90% so we can reach a good amount
of households in our 8 cities. The frequency goals for spot during the heavy
months were 3.8. This keeps us in the households during fashion heavy
months.

The national reach goals for our moderate months were 60% and the
frequency goals for national were 2.6. The spot reach goals for our moderate
months were 65% and the frequency goals for national were 2.8. This is just
enough to keep us in peoples minds without overwhelming them year
round.

MEDIA BUYS
GRPS

CPP

CPM

Total Cost
(000)

Heavy Months

337

16954

582

3747

Moderate
Months

176

20669

172

2843

Total

513

37623

754

6590

MEDIA BUYS
Reach Goals

Reach
Achievement

Frequency Goals

Frequency
Achievement

Heavy Months

90

89.0

3.8

3.9

Moderate Months

65

65.7

2.8

2.7

VEHICLES

TV channels like E!, Lifetime, and Bravo with shows like Fashion Police and The
Real Housewives are geared towards women in our target market. Late night
shows like SNL or Jimmy Fallon would also be ideal because people in this age
range may stay up later to watch them. We will also advertise on network stations
that have shows geared towards women like Revenge and Scandal.

Magazines like Cosmopolitan, Vogue, People, Elle and Glamour are also geared
towards women in our target market and would be good places to advertise in.

Pop music stations, talk radio, and news radio stations would be ideal places to
advertise for our target market.

Local news stations will also be ideal for advertising in our spot cities.

CONCLUSION
In the competitive fashion industry, Michael Kors sets itself apart
by being high quality and affordable.
The target market is Trendy Up-and-Comers, young, middle-class
women who set trends for others.
MKs image is upscale and sophisticated, instilling a feel of elegance
in the consumer.
The southern region is the best area for MK to advertise in. Miami,
Houston, Dallas, San Antonio, Charlotte, Austin, Atlanta, and
Jacksonville are the top 8 cities to advertise in.
MKs heavy advertising months are February, May, August and
November. The most effective vehicles are television and
magazines.

MICHAEL KORS