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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 MK’s 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 0
Ralph Lauren 165,200 66,080 16,520 33,040 16,520 16,520 16520 0
Calvin Klein 170,000 51,000 13,600 30,600 34,000 25,500 15,300 0
Marc Jacobs 124,000 50,840 11,160 16,120 12,400 18,600 12,400 0
Donna Karan 80,200 24,060 5,614 8,020 8,020 8,020 16,040 2,406
*amount in thousands
MEDIA MIX %
● 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.
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%
SHARE OF VOICE %
SOV shows that MK’s 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 0
Ralph Lauren 165,200 66,080 16,520 33,040 16,520 16,520 16,520 0
Calvin Klein 170,000 51,000 13,600 30,600 34,000 25,500 15,300 0
Marc Jacobs 124,000 50,840 11,160 16,120 12,400 18,600 12,400 0
Donna Karan 80,200 24,060 5,614 8,020 8,020 8,020 16,040 2,406
Total Category 619,500 228,025 50,899 403,800 78,950 76,650 68,270 2,406
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 0
Ralph Lauren 26.7 29 32.5 32 21 21.6 24 0
Calvin Klein 27.4 22.4 26.7 29.4 43.1 33.3 22.4 0
Marc Jacobs 20.0 22.3 22 15.4 15.7 24.3 18.2 0
Donna Karan 13.0 10.6 11 8 10.2 10.4 23.4 100
Total Category 100 100 100 100 100 100 100 100
This information shows us that magazines and TV are the best mediums to place MK’s ads
because the visual attraction creates the consumers want for the product.
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 affordable 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 York’s 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 RL’s brand ranges from red carpet to sporting events.
○ Creative Ad Strategy: RL’s 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: DKI’s 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 women’s needs and desires, embodying the pulse of New York
in its style.
SORORITY SHOPAHOLICS
● Sorority Shopaholics are
females.
● Sorority Shopaholics are 18-
24 year old independent
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.
Bought Apparel in the last 12 Months Brand Loyal Approval Seeking
Total
(000) 111578 41114 34928
Index 100 100 100
Age 18-24
(000) 11753 3533 7175
Index 88 72 171
Female
(000) 97655 21542 19682
Index 170 102 109
Attended College (1-3 years)
(000) 25103 8502 7535
Index 104 96 100
It is Important to look
Attractive to Others
(000) 36899 15412 15506
Index 118 134 158
Willing to spend more than I
can afford, to get the clothes
I want
(000) 4258 2801 4243
Index 101 180 313
SORORITY SHOPAHOLICS
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.
Bought apparel in the last 12 months Brand Loyal Approval Seeking
Total
(000) 111578 41114 34928
Index 100 100 100
Female
(000) 97655 21542 19682
Index 170 102 109
25-34
(000) 19746 5276 7586
Index 101 73 123
Income between $60,000-$74,999
(000) 5102 2468 1619
Index 91 120 92
College 4 years (Graduated)
(000) 19339 5876 5301
Index 113 93 99
Refined, gracious, sophisticated,
dignified
(000) 17057 8746 9177
Index 116 162 200
TRENDY UP-AND-COMER
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.
Bought apparel in the last 12 months Brand Loyal Approval Seeking
Total
(000) 111578 41114 34928
Index 100 100 100
Female
(000) 97655 21542 19682
Index 170 102 109
Male
(000) 13923 19571 15246
Index 26 98 90
30-49
(000) 40971 12784 11874
Index 103 87 95
Income between $100,000-
$149,999
(000) 2716 1588 815
Index 77 122 74
Graduated college or more
(000) 34886 12874 8283
Index 113 113 86
THE GIFTERS
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.
Bought apparel in the last 12 months Brand Loyal Approval Seeking
Total
(000) 111578 41114 34928
Index 100 100 100
Male
(000) 13923 19571 15246
Index 26 98 90
Ages 30-49
(000) 40971 12784 11874
Index 103 87 95
Income between $150,000 and
$249,999
(000) 729 536 *142
Index 74 147 *46
Enjoy owning good quality things
(000) 28785 17167 12853
Index 102 165 145
Money is the best measure of
success
(000) 5332 4047 4699
Index 81 167 228
MR. MONEYBAGS
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 Trendy Up-
and-Comers 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.
● Trendy Up-and-Comers 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 Conrad’s 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
● 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.
Population
(000)
Popluation
% CDI BDI
Regions
Northeast 41,170 18.7 103 166
Midwest 49,417 22.2 102 96
South 84,694 36.9 99 70
West 51,728 22.2 97 101
PERCENT FACTOR SPREADSHEET
Cities Population % Female % Income % Store Count % % Total Estimated Value
Atlanta 2.80% 2.70% 4.40% 7.40% 17.30% 4.30%
Albuquerque 3.50% 3.34% 4.30% 1.90% 13.04% 3.30%
Austin 5.50% 5.20% 4.81% 3.70% 19.21% 4.80%
Baton Rouge 1.40% 1.40% 3.44% 1.90% 10.04% 2.50%
Birmingham 1.30% 1.33% 3.90% 3.70% 10.23% 2.60%
Charlotte 4.90% 4.90% 4.70% 7.40% 21.90% 5.50%
Charleston 0.70% 0.80% 4.53% 3.70% 9.73% 2.40%
Columbia 0.80% 0.83% 3.70% 1.90% 7.23% 1.80%
Dallas 7.80% 7.53% 4.41% 11.11% 30.85% 7.70%
Greensboro 1.70% 1.80% 3.70% 0.00% 7.20% 1.80%
Houston 13.60% 12.90% 4.02% 7.40% 37.92% 9.50%
Jacksonville 5.20% 5.13% 4.00% 1.90% 16.23% 4.10%
Jackson 1.00% 1.10% 2.92% 1.90% 6.92% 1.70%
Lousiville 3.70% 3.60% 3.94% 3.70% 14.94% 3.70%
Little Rock 1.20% 0.12% 4.01% 0.00% 5.33% 1.30%
Lexington 1.90% 1.90% 4.32% 1.90% 10.02% 2.50%
Miami 16.20% 15.92% 3.84% 13.00% 45.96% 11.50%
Memphis 4.00% 4.10% 3.30% 0.00% 11.40% 2.90%
Nashville 3.70% 3.70% 4.20% 3.70% 15.30% 3.80%
New Orleans 2.30% 2.31% 3.31% 1.90% 9.82% 2.50%
Oklahoma City 3.70% 3.64% 4.03% 3.70% 15.10% 3.80%
Orlando 0.10% 1.55% 3.80% 9.30% 14.80% 3.70%
Raleigh 2.60% 2.62% 4.90% 3.70% 13.82% 3.50%
San Antonio 8.70% 8.53% 3.80% 3.70% 24.73% 6.20%
Tampa 2.10% 2.13% 3.90% 1.90% 10.03% 2.50%
Total 100 100 100 100.00% 400
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 people’s 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 consumer’s 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 people’s 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.
MK’s 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.
MK’s heavy advertising months are February, May, August and
November. The most effective vehicles are television and
magazines.
MICHAEL KORS

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Michael Kors Media Plan

  • 1. MICHAEL KORS Founded: 2002 Annual Revenue: $18.7m Kylie DeBari, Ashtyn Brown-Hurley, Emily Bohlen, and Addison Taylor
  • 2. EXECUTIVE SUMMARY In this report we will show the client: How Michael Kors (MK) differentiates itself from the competition. Who MK’s 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.
  • 3. 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.
  • 4. 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 0 Ralph Lauren 165,200 66,080 16,520 33,040 16,520 16,520 16520 0 Calvin Klein 170,000 51,000 13,600 30,600 34,000 25,500 15,300 0 Marc Jacobs 124,000 50,840 11,160 16,120 12,400 18,600 12,400 0 Donna Karan 80,200 24,060 5,614 8,020 8,020 8,020 16,040 2,406 *amount in thousands
  • 5. MEDIA MIX % ● 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. 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%
  • 6. SHARE OF VOICE % SOV shows that MK’s 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 0 Ralph Lauren 165,200 66,080 16,520 33,040 16,520 16,520 16,520 0 Calvin Klein 170,000 51,000 13,600 30,600 34,000 25,500 15,300 0 Marc Jacobs 124,000 50,840 11,160 16,120 12,400 18,600 12,400 0 Donna Karan 80,200 24,060 5,614 8,020 8,020 8,020 16,040 2,406 Total Category 619,500 228,025 50,899 403,800 78,950 76,650 68,270 2,406 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 0 Ralph Lauren 26.7 29 32.5 32 21 21.6 24 0 Calvin Klein 27.4 22.4 26.7 29.4 43.1 33.3 22.4 0 Marc Jacobs 20.0 22.3 22 15.4 15.7 24.3 18.2 0 Donna Karan 13.0 10.6 11 8 10.2 10.4 23.4 100 Total Category 100 100 100 100 100 100 100 100 This information shows us that magazines and TV are the best mediums to place MK’s ads because the visual attraction creates the consumers want for the product.
  • 7. 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 affordable for them.
  • 8. KEY COMPETITORS 1. MARC JACOBS 2. CALVIN KLEIN, INC 3. RALPH LAUREN CORPORATION 4. DONNA KARAN INTERNATIONAL INC.
  • 9. 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 York’s urban youth.
  • 10. 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 RL’s brand ranges from red carpet to sporting events. ○ Creative Ad Strategy: RL’s 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: DKI’s 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 women’s needs and desires, embodying the pulse of New York in its style.
  • 11. SORORITY SHOPAHOLICS ● Sorority Shopaholics are females. ● Sorority Shopaholics are 18- 24 year old independent 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.
  • 12. Bought Apparel in the last 12 Months Brand Loyal Approval Seeking Total (000) 111578 41114 34928 Index 100 100 100 Age 18-24 (000) 11753 3533 7175 Index 88 72 171 Female (000) 97655 21542 19682 Index 170 102 109 Attended College (1-3 years) (000) 25103 8502 7535 Index 104 96 100 It is Important to look Attractive to Others (000) 36899 15412 15506 Index 118 134 158 Willing to spend more than I can afford, to get the clothes I want (000) 4258 2801 4243 Index 101 180 313 SORORITY SHOPAHOLICS
  • 13. 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.
  • 14. Bought apparel in the last 12 months Brand Loyal Approval Seeking Total (000) 111578 41114 34928 Index 100 100 100 Female (000) 97655 21542 19682 Index 170 102 109 25-34 (000) 19746 5276 7586 Index 101 73 123 Income between $60,000-$74,999 (000) 5102 2468 1619 Index 91 120 92 College 4 years (Graduated) (000) 19339 5876 5301 Index 113 93 99 Refined, gracious, sophisticated, dignified (000) 17057 8746 9177 Index 116 162 200 TRENDY UP-AND-COMER
  • 15. 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.
  • 16. Bought apparel in the last 12 months Brand Loyal Approval Seeking Total (000) 111578 41114 34928 Index 100 100 100 Female (000) 97655 21542 19682 Index 170 102 109 Male (000) 13923 19571 15246 Index 26 98 90 30-49 (000) 40971 12784 11874 Index 103 87 95 Income between $100,000- $149,999 (000) 2716 1588 815 Index 77 122 74 Graduated college or more (000) 34886 12874 8283 Index 113 113 86 THE GIFTERS
  • 17. 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.
  • 18. Bought apparel in the last 12 months Brand Loyal Approval Seeking Total (000) 111578 41114 34928 Index 100 100 100 Male (000) 13923 19571 15246 Index 26 98 90 Ages 30-49 (000) 40971 12784 11874 Index 103 87 95 Income between $150,000 and $249,999 (000) 729 536 *142 Index 74 147 *46 Enjoy owning good quality things (000) 28785 17167 12853 Index 102 165 145 Money is the best measure of success (000) 5332 4047 4699 Index 81 167 228 MR. MONEYBAGS
  • 19. 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.
  • 20. 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.
  • 21. 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.
  • 22. CONSUMER ATTITUDES AND INSIGHT ● The attitudes of the Trendy Up- and-Comers 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. ● Trendy Up-and-Comers 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.
  • 23. 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 Conrad’s 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.
  • 24. CATEGORY DEVELOPMENT INDEX ● 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. Population (000) Popluation % CDI BDI Regions Northeast 41,170 18.7 103 166 Midwest 49,417 22.2 102 96 South 84,694 36.9 99 70 West 51,728 22.2 97 101
  • 25. PERCENT FACTOR SPREADSHEET Cities Population % Female % Income % Store Count % % Total Estimated Value Atlanta 2.80% 2.70% 4.40% 7.40% 17.30% 4.30% Albuquerque 3.50% 3.34% 4.30% 1.90% 13.04% 3.30% Austin 5.50% 5.20% 4.81% 3.70% 19.21% 4.80% Baton Rouge 1.40% 1.40% 3.44% 1.90% 10.04% 2.50% Birmingham 1.30% 1.33% 3.90% 3.70% 10.23% 2.60% Charlotte 4.90% 4.90% 4.70% 7.40% 21.90% 5.50% Charleston 0.70% 0.80% 4.53% 3.70% 9.73% 2.40% Columbia 0.80% 0.83% 3.70% 1.90% 7.23% 1.80% Dallas 7.80% 7.53% 4.41% 11.11% 30.85% 7.70% Greensboro 1.70% 1.80% 3.70% 0.00% 7.20% 1.80% Houston 13.60% 12.90% 4.02% 7.40% 37.92% 9.50% Jacksonville 5.20% 5.13% 4.00% 1.90% 16.23% 4.10% Jackson 1.00% 1.10% 2.92% 1.90% 6.92% 1.70% Lousiville 3.70% 3.60% 3.94% 3.70% 14.94% 3.70% Little Rock 1.20% 0.12% 4.01% 0.00% 5.33% 1.30% Lexington 1.90% 1.90% 4.32% 1.90% 10.02% 2.50% Miami 16.20% 15.92% 3.84% 13.00% 45.96% 11.50% Memphis 4.00% 4.10% 3.30% 0.00% 11.40% 2.90% Nashville 3.70% 3.70% 4.20% 3.70% 15.30% 3.80% New Orleans 2.30% 2.31% 3.31% 1.90% 9.82% 2.50% Oklahoma City 3.70% 3.64% 4.03% 3.70% 15.10% 3.80% Orlando 0.10% 1.55% 3.80% 9.30% 14.80% 3.70% Raleigh 2.60% 2.62% 4.90% 3.70% 13.82% 3.50% San Antonio 8.70% 8.53% 3.80% 3.70% 24.73% 6.20% Tampa 2.10% 2.13% 3.90% 1.90% 10.03% 2.50% Total 100 100 100 100.00% 400
  • 26. 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%.
  • 27. 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 people’s 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.
  • 28. 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 consumer’s 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 people’s minds without overwhelming them year round.
  • 29. 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
  • 30. 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
  • 31. 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.
  • 32. 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. MK’s 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. MK’s heavy advertising months are February, May, August and November. The most effective vehicles are television and magazines.