“Kate Spade Everyday” Marketing Plan
Shelby Murphy
MK411
Executive Summary
Kate Spade New York got their start in 1993 when accessories editor at Mademoiselle, Kate
Spade, set out to design the perfect handbag. She came up with six designs, creating a new style
using utilitarian shapes and unique color palettes. Fashion lovers across the world fell in love
with the fresh designs, and the company began to grow. Kate Spade opened their first store in
1996 in New York, and they soon became a brand recognizable throughout the world for their
graphic approach and trademark wit. When Kate Spade turned the company over to Kate Spade
& Company, formerly Liz Claiborne Inc., new chief creative officer and president Deborah
Lloyd began expanding the brand to lines of clothing, jewelry, bedding, and fragrance. Their
mission is to inspire customers to “Live Colorfully” through their products, and to stay true to
who they are with their commitment to curiosity and passion to “Live Colorfully”.
As a company who focuses on high quality, their prices are rather high as well. This marketing
plan is to introduce a new line of Kate Spade products that would be more successful in the
lower to middle class market. These products will have the same style and feel of a Kate Spade
product, but in hopes of expanding our target market, this line will have products that are priced
lower than the traditional Kate Spade product. The line will be called “Kate Spade Everyday”
Situation Analysis
Kate Spade New York has a great opportunity to enter a market that they have not yet
joined, a line of lower price products. Currently, Kate Spade handbags run from $80 for a
small clutch purse, to $1,200 for a larger handbag. With the median household income in
the United States being $53, 891 in August 2014 (CNN), the average American doesn’t have
the discretionary income to spend on an extremely expensive handbag, therefore it would
be greatly beneficial for Kate Spade to enter a new market, with lower priced products that
can be marketed to the average American.
Market Summary
With the “Kate Spade Everyday” line, the target market is slightly different from that of the
traditional Kate Spade products.
Market Demographics
The profile for the typical Kate Spade Everyday customer consists of the following
geographic, demographic, and behavior factors.
Geographics

Kate Spade Everyday will aim for markets that are not high-income and high-priced
areas. It will be marketed more in the Midwest, and less on the coasts.

Approximately 15 million will be targeted. The Midwest has a population of
approximately 68 million (Census), and with our narrow market, 15 million as a
target is a good start.
Demographics

Female

Ages 16-35, with a majority falling in the 16-24 range.

Some college, associates, or bachelors degrees.

Income between $25,000 and $50,000, individually, with a majority falling in the
$40,000 to $50,000 range.
Behavior Factors

Enjoy following the latest fashion trends, but has some traditional classy style.

Makes regular purchases of fashion accessories.

Enjoys saving money, but still having high quality products from a recognized brand.
Market Needs
Kate Spade Everyday is intended to provide women who have always wanted the image of
having a prestigious brand of a handbag, but couldn’t afford it. We hope to meet these
needs of our customers:

Quality handbags and accessories

Affordable prices

Stylish, yet timeless, style
Market Trends and Growth
Kate Spade Everyday will be distinguished by offering products under the Kate Spade
brand, at prices that have not been available before. In the past, if consumers wanted a
purse under the brand Kate Spade, they were paying around $300. This brand will make it
affordable to own a Kate Spade purse. The market for this line of products is growing.
Consumers are constantly tightening their pocketbooks, and wanting to save money. But on
the same hand, women still enjoy having good quality luxury products. This product will
allow them to have the best of both worlds, save money, and own a Kate Spade purse.
SWOT
The following SWOT analysis identifies the strengths, weaknesses, opportunities, and
threats of the current Kate Spade brand, as well as those that will come from the new Kate
Spade Everyday brand.
Strengths

Strong brand identity and brand loyalty

Kate Spade is a recognizable brand

Strong web and social media presence

Wide variety of products

New line: affordable prices

Brick and mortar locations, as well as online and in stores such as Nordstrom and Neiman
Marcus
Weaknesses

Not as recognizable as competitors

Not as many stores as competitors
Opportunities

Gain customers from a new target market

Open more retail locations, and sell in stores that cater to their new target market such as
Macy’s or Dillard’s.
Threats

Competition

Lack of knowledge about the new line of lower priced products

Consumers fear that quality will lack because of the lower price
Competition
When looking into competition for the Kate Spade Everyday brand, it is key to look into
competitors that are selling their product at Macy’s and Dillard’s, since this will be the
channel in which we begin offering the Kate Spade Everyday brand. The handbags and
accessories that we will be offering are different from ones that are sold in our price range
at these retail locations, because they are not from a designer brand like Kate Spade. This
will be the first designer brand to create a line of lower priced products, under the same
brand. This gives Kate Spade Everyday a competitive advantage.
Product Offerings
With the new line of lower priced Kate Spade New York products, Kate Spade will offer:

Handbags in many styles: cross body, totes, clutches, and satchels. These handbags
will take the same shape and style as the traditional Kate Spade New York line, to
maintain the current brand recognition.

Wallets will also be offered in three different sizes and styles. One will be a small
wallet that can be attached to your car keys, and that has a spot for an ID. This wallet
zips closed and will be approximately 5x3 inches. The second will be the a two
sided, snap to close wallet. This size allows more area for organization, and more
room for storage. The third style is an accordion style wallet that has a zip closure.
This style has the most room for storage and organization.
Distribution
Kate Spade Everyday products will be distributed through retailers throughout the United
States, and globally. Macy’s and Dillard’s will be the main channel partners that will be
distributing our products, as well as through their websites. Kate Spade Everyday will also
be sold in Kate Spade retail locations across the United States, and globally. The products
will also be available through Kate Spade’s website.
Marketing Strategy
Mission/Objectives (Marketing and Financial)
For the first season of market entry (Fall 2015), we hope to gain 1% market share of the
women’s accessories market through sales volume of 750,000 products, which is equal to
one product per person of 5% of our targeted customers. Within the second season (Winter
2015-2016) we hope to gain another 1% market share, and sell 1.5 million products, one
product per person of 10% of our targeted customers.
Target Markets
Target Markets

Middle Class Females

Young Mothers

Young Professionals

Females in College
Positioning
Part of the positioning for Kate Spade Everyday is in the name of the brand. We are
positioning Kate Spade Everyday as the handbag/accessory that you’re comfortable using
everyday, not just on special occasions. And with our high quality, low price approach, we
are positioning it as the luxury handbag and accessory brand for the everyday woman.
Strategies
Product- Kate Spade Everyday products will be sold as previously stated in the product
offerings section. For sales promotion purposes, with all purchases, customers will receive
a key chain with the Kate Spade logo printed on it. The key chains will be in shapes such as
bows, hearts, circles and spades, all of which are typically used in Kate Spade designs. This
will keep the image of Kate Spade in their mind. The Kate Spade logo will also be featured
on all products sold under the Kate Spade Everyday line.
Price- Kate Spade Everyday products will run from $20-$100, with wallets being offered in
the $20-$40 range. Handbags will be priced according to size and material. The handbags
will run from $20-$100, with clutches being on the low end, and tote’s being on the high
end.
Distribution- We are choosing to use selective distribution by only choosing to market
Kate Spade Everyday in Macy’s, Dillard’s, and through Kate Spade retail locations. Until the
market is informed of the new line of products being offered, we will refrain from offering
Kate Spade Everyday products through any other retail locations.
Marketing communications- All advertisements will contain a similar theme. The
advertisements will also contain the similar phrases, emphasizing the introduction of the new
product line at a more affordable price. Repetition through all advertisements will help to
increase recognition, and will use integrated marketing communications to receive a better
response. After a series of ads stating that there is a new line “Coming in Fall 2015”, a series of
ads will run stating that the new line is now available. Media used for this campaign will be print
advertisements in magazines, advertisements in Macy’s or Dillard’s circular ads, and Internet
advertisements. A series of print advertisements will be featured in women’s fashion magazines
such as InStyle, Elle, and Marie Claire. We will also use in store displays in Macy’s and
Dillard’s to promote the new line.
Marketing Mix/Programs
In order to achieve our goals, advertisements will begin to be run in the Summer of 2015.
Below is a timeline of activities that will be used to implement our marketing
communications for the Kate Spade Everyday line.

July: Advertisements will be released to customers of Macy’s and Dillard’s through
email and circular ad’s stating “Coming in Fall 2015”. These ad’s will also run on
women’s fashion websites and magazines.

August: We will release a “sneak peek” online of the products that will be available
beginning in September. Customers will be notified of the “sneak peek” through
banner advertisements on Kate Spade’s website, fashion websites, and Macy’s and
Dillard’s websites.

September: Products will begin being sold. In-store display’s will be implemented,
as well as ad’s online, in magazines, and circular ad’s for Macy’s and Dillard’s. These
methods will continue to be used throughout the selling of the new products.
Marketing Research
Through research we will find out specifically what styles of products our target market is
looking for, and at what price would they pay for these products. We will be using survey’s
online, as well as in store at Macy’s and Dillard’s. Prior to the release of the Kate Spade
Everyday line, we will conduct a survey after customers view the “sneak peek” of the
products to see what they think of them. We will then use this research to begin planning
for the products that will be sold in the second season of the Kate Spade Everyday line. We
will then conduct customer satisfaction surveys after the release of the products.
Financials
We project the first season’s sales of the line to be $18.75 million, with the average price of
our products at $50 sold to 750,000 customers, and the average variable cost being $25 per
unit.
Break-Even Analysis
Through break-even analysis we have calculated that Kate Spade Everyday will break even
when sales reach 800,000 units, which would be in the second season based on our
calculations. This assumes the fixed cost of $20 million, variable cost of $25 per unit, and an
average of $50 per unit. Below is the break even calculation:
20,000,000
= 800,000 𝑢𝑛𝑖𝑡𝑠
$50 − $25
Controls
Various controls are being put into place to ensure proper implementation of the
marketing activities surrounding the Kate Spade Everyday product line, and to evaluate the
effectiveness of our marketing activities.
Implementation
We are ensuring that the activities surrounding the sale of our product are monitored, and
that the entire company stays true to our mission, to inspire customers to “Live Colorfully”
through their products, and to stay true to who they are with their commitment to curiosity and
passion to “Live Colorfully”. We will have a team devoted solely to the Kate Spade Everyday
line, with customer service representatives trained in this line of products ready to handle any
problems that arise with our products.
Marketing Organization
Kate Spade’s Chief Marketing Officer Mary Beech will be head of all marketing activities for
Kate Spade, including Kate Spade Everyday. A new department of marketers has been hired
and assigned strictly to Kate Spade Everyday, but will have contact with the head’s of the
overall marketing department.
Contingency Planning
Difficulties and Risks

Difficulty generating brand loyalty and recognition

Targeting a market that doesn’t care as much about brand name’s
Worst-Case Risks

Not breaking even, and sales not growing

Having to reduce prices so much that profits are not achievable
References
Luhby, T. (2014, August 20). Median income is on the rise ... finally! Retrieved February 24,
2015, from http://money.cnn.com/2014/08/20/news/economy/median-income/
United States Population Growth by Region. (n.d.). Retrieved February 24, 2015.