Making Michael Kors more original so that it cannot be
mimicked or copied and sold for cheaper or lesser value
Prepared for
John Idol, CEO for Michael Kors
And
Michael Kors, President and Chairman
Prepared by
Sierra Reed
Head Design Coach for Michael Kors
March 23, 2013
To: John Idol, CEO of Michael Kors and Michael Kors President and
Chairman
From: Sierra Reed, Head Design Coach for Michael Kors
Date: March 23, 2013
Subject: To make the company itself more original and to reduce the
making or Knock offs and sold for lesser Value.
Michael Kors is world wide and known by a lot of individuals. Is has
been pushed to the limit it its company ways. Michael Kors has
produced many different style to suit any and every type of preson. It is
the gift of comfort and stylish that can take and ordinary woman from 6
to a 10 with just an accorie.
Micheal Kors was the under dog brand when it first startedbut now
the companies has triple is profits and expanded their company to a
whole new level. With doing this Micheal Kors became more known
and also more popular.
This makes becoming original a little bit harder than unual. But the
soulution for trying to craeta a company that is original and cannot be
mimicked is to add certain preks that cannot be found on Knock off
bags.
It can have double stiching , a same trademark, or even a special gift in
the instead to show our gratitude for shopping with our company. This
will some how decrease the possible knock off that will be make but
false companies.
Ever though it would be impossible to stop people from mimicking the
companies brand add certain trademarks can reduce the number of
mimicked items sold to customers.
Industry Overview
A brief history of Michael Kors
Michael Kors was born on August 9, 1959, on Long Island, New York. He moved to New York
City to attend the Fashion Institute of Technology, but dropped out after two semesters. Kors
launched his women's collection in 1981 and became a judge on Project Runway in 2004.
In 1978, Kors went to work at the French boutique Lothar's, which allowed him to design and
merchandise his first fashion collection. The well-received collection generated enough interest
that Kors was able to start his own fashion line. Michael Kors Women's Collection launched in
May 1981, and was sold in the high-end department stores Bergdorf Goodman and Saks Fifth
Avenue.
Factors that affected Micheal Kors business Growth
In 1990, however, Kors; company was forced to reorganize under Chapter 11 bankruptcy. After
getting back on his feet, Kors launched KORS Michael Kors, a lower-priced line. He also
became the creative director of Celine, a French fashion house, in 1997.
Leading Businesses in the Industry
Leading businesses in the industry is theMicheal Kors Women’s line which is ran by Kors
significant other Lance La Pere. He is also the President of the Women’s design.
Estimated size of the industry
Micheal Kors is sold in many differ up scale deparment stores such as Dillard, Macys, and
Marshals. They also have Launched many different stores opening up themselves in Malls
without going through department stores. They tend to grow more and more every year.
Sales
The luxury apparel and accessory designer, Michael Kors earned 34 cents a share on net income
of $68.6 million during the first quarter of 2013 -- a 162% year-over-year climb -- and revenue
of $414.9 million -- a 71% year-over-year increase. The recent quarterly performance of rivals
Ralph Lauren (RL_) and Coach (COH_) pale in comparison. Wall Street analysts were expecting
Michael Kors to generate earnings of 20 cents a share and sales of $368.3 million for the three
months ending in June, reported The street.
Despite rivals citing economic weakness in Europe, Michael Kors is reaping the benefits of its
strong brand recognition amongst affluent consumers. The company's revenue increased 110% to
$33 million in the region, with same-store-sales rising 24%.
Michael Kors released figures for the third quarter ended Dec. 29 this week.
Retail net sales increased 66.8 percent to $332.6 million. This figure was driven by a 41.4
percent increase in comparable store sales and 66 store openings since the end of the third
quarter of fiscal 2012, per the company.
Also, wholesale net sales increased 77.4 percent to $274.3 million and licensing revenue
increased 52.1 percent to $29.8 million.
Gross profit increased 72.8 percent to $383.5 million.
Likewise, total revenue for the first nine months ended Dec. 29 was $1,584.6 million. This is a
71.8 percent increase from the year-ago period.
Also during this time, retail net sales increased 73.6 percent to $789.9 million.
Comparable store sales increased 41.4 percent, wholesale net sales increased 73.6 percent and
licensing revenue increased 39.8 percent.
Michael Kors released its outlook for the fourth quarter of fiscal 2013 as well. It anticipates total
revenue to be $515-$525 million.
The fashion empire is likely at a peak of success due to the company’s reliance on multiple
commerce channels.
Marketing Staregies
To Market a business such as Michael Kors is not challenging at all, due to the fact that the
brand is well known. Enve though the business is well known their could never be enough
Markting to take the company to the next level of Greatness. I feel to get the brand and the
company more aquitted to other genders and middle class lifestyle people Marketing should aim
not only toward woman but it should aim toward everyone. This will make the company more
known better acquainted to everyone.
Another way of Marketing in Celebrity Promotional Wearing Here Michelle Obama is wearing a
Michael Kors dress on more than one occasion.
Michelle in Michael. Michelle Obama as she wears Michael Kors the once in 2009 for a Meet
and Greet and another time in 2009 for the presidential inauguration Dinner.
Other strategies of marketing that are used are magazine promotions like this one here found in
Fashion Trend Magazine .
Seasonal Industry
Micheal Kors is a seasonal company which provides many different styles and qualities. They
also provide all sizes and shapes form petite to curvy women, winter to spring, and summer to
fall.
Coclusion
Michael Kors Company is a very up scale and popular company known globaly. They give men
women and children the style and essence they all deserve.even though Michael kors material is
mimicked and said to be th real thing even though it is not, the realmaterial from Micheal Kors
can make bring out the best in a person. As a company we will find new ways to make Michael
Kors original and authentic.