MICHAEL KORS

Competitive Analysis done by:

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

ABOUT:
Michael Kors (USA) dresses the stars, both real and
imagined. The company designs, distributes, and
sellshigh-fashion apparel, footwear, and accessoriesfor
men and women. Ithas expanded its products portfolio in
recent yearsby inkingseveral licensing agreements, such
as watches with Fossil, eyewearwith Marchon,and
fragrances withEste Lauder. Thefirm's collections include
three brands --Michael Kors,MICHAEL Michael Kors,
andKORS Michael Kors. The company sells its products
through its own retail network, as well as through high-end
specialty department stores as a wholesaler. Michael Kors
maintains a presence online, assisted by Neiman Marcus.
The company is owned by Michael Kors Holdings.
Founded: 2002
Annual Revenue: $18.7 (mil)

MARKET CLIMATE
Serves more than one market
High end clientele: geared toward luxury
line
Middle class: targeted more to the
affordable line
Cheaper than other luxury brands, but has
Target
Audience
the same
appeal
x Mainly target women
x Women spend more money on clothing
x Pay more attention to marketing emails
x Mid 20s-40s
x Married, people with families
x Starting to gear more towards single
young adults

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

OVERALL INDUSTRY COMPETITION

Marc Jacobs:

Perhaps the only direct competitor that sells designs that are
trendy with the younger market that Kors is currently
dominating.
Jacobs introduced the Marc by Marc Jacobs line, which is in
direct competition with the Michael Michael Kors line.
The different price points of the two lines make it more
accessible than other luxury companies and a threat to Kors
and his different lines.

Calvin Klein:
Provides the opportunity to market products both domestically
and internationally at various price points, distribution channels
and to different consumer groups.
A tiered-brand strategy was established to provide a focused,
consistent approach to global brand growth and development.
Each of Kleins brands occupies a distinct marketing identity

OVERALL INDUSTRY CONT.

Ralph Lauren:

+ThelooksaremuchmoretraditionalthanKorsandtendtoappealtoanolder
audiencethanthosewhoarefondofKors.
+Thediversityofthebrandrangesfromredcarpetgownstoathleticwearforsporting
events.
+RalphLaurenisknownforhavinghisclothesintheOlympicsaswellasinnumerous
sportingeventsthroughouttheworld.
+RalphLaurenoffersamoreclassiclookandfeeltotheirstoresandproductsthan
Kors.
+Theymaywanttocreateanotherlinethatismoremodernandappealstothe
audiencethatisinterestedinKorsupdatedlooks.
+Laurenalsoneedstoincreasetheirsocialmediapresence.
Donna Karan (DKI):
+DKIsellstoupscaledepartmentandspecialtystoresandthroughitsownretailstores
+DKIhasloggedsalesgainsintheUSandoverseas,post-recession.
+Thelabelattributesthepositivemomentumtofashionshowsanditsimagemakeover
inrecentyears.
+DKIconcentratesonbest-sellersanditsconceptofdesigningacollectionthat
transitionswellfromdaytoevening
+DKIsellsprimarilytoupscaledepartmentandspecialtystoresandthroughthe
company's15full-pricestoresand50-plusdiscountoutletsintheUSandtheUK.

MEDIA MIX (CMR DATA)

Expenditures

Brand
Michael
Kors
Ralph
Lauren
Calvin
Klein
Marc
Jacobs
Donna
Karan

Total
Media
80,100

Magazin Nat.
e
Newspapers
36,045

Outdoor Network
s
TV

Spot
TV

Cable
TV

Radio

4,005

16,020

8,010

8,010

8,010

165,200

66,080

16,520

33,040

16,520

16,520

16520

170,000

51,000

13,600

30,600

34,000

25,500

15,300

124,000

50,840

11,160

16,120

12,400

18,600

12,400

80,200

24,060

5,614

8,020

8,020

8,020

16,040

2,406

MEDIA MIX
Media Mix

Brand
Michael
Kors
Ralph
Lauren

Total
Media

Magazine

Nat.
Newspapers

Outdoors

Network
TV

Spot TV Cable TV Radio

100%

45%

5%

20%

10%

10%

10%

0%

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 Billboards are used frequently as well
All brands focus on commercial advertisement to 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

SOV
Brand

Total
Media

Michael Kors

80,100

Ralph Lauren

165,200

Calvin Klein
Marc Jacobs
Donna Karan
Total
Category

Brand
Michael Kors
Ralph Lauren
Calvin Klein
Marc Jacobs
Donna Karan
Total
Category

Magazin Nat.
e
Newspapers
36,045

Outdoor Network
s
TV

Spot
TV

Cable
TV

Radio

4,005

16,020

8,010

8,010

8,010

66,080

16,520

33,040

16,520

16,520

16,520

170,000

51,000

13,600

30,600

34,000

25,500

15,300

124,000

50,840

11,160

16,120

12,400

18,600

12,400

80,200

24,060

5,614

8,020

8,020

8,020

16,040

2,406

619,500

228,025

50,899

403,800

78,950

76,650

68,270

2,406

Total
Media

Magazin Nat.
e
Newspapers

Outdoor Network
s
TV

Spot
TV

Cable
TV

Radio

12.9
26.7
27.4
20.0
13.0

16
29
22.4
22.3
10.6

7.8
32.5
26.7
22
11

15.4
32
29.4
15.4
8

10.1
21
43.1
15.7
10.2

10.4
21.6
33.3
24.3
10.4

12
24
22.4
18.2
23.4

0
0
0
0
100

100

100

100

100

100

100

100

100

SOV shows that the brands strength is in Magazines and TV Ads,

but are weak in Radio and Newspapers

POV

After completing this analysis, our final

insights on the Michael Kors Inc.

Third in the industry

Spending 10% too much on ads given
profit
etc