Strategic Marketing and Innovation for Michael Kors - Case Study Example

Table of Contents Background 2 Overall Strategy 2 Business Situation 3 Target Market, Opportunities & Threats 4 Market Segmentation 6 Creative Strategy 6 Objectives 7 Media Strategy 8 Budget 10 Conclusion 10 References 12 Background Michael Kors works in the retail industry and is based in Australia. The retail player has established its market in Australia and is looking to improve its market share by identifying the correct targeted market, the market segment which will help them to improve productivity and developing proper marketing strategies which will help the business achieve its goals. The retail giant also look at having a fully developed action plan with allocated budgets so that the business is able to work on the correct dimensions and develop a niche market for its products and services. The store looks at offering a one shopping roof experience for the high end clothing by the proposed venture will offer the organization increased market competitiveness in the market. In contrast, the existing high end clothing industries offer single line products in the market. To be effective and improve their market share it is imperative that appropriate marketing strategy which is aimed towards developing the business fundamentals and strengthening their core values is addressed. This will help to find out the different dimensions and areas through which overall productivity will improve and will add towards better contribution in the business. Overall Strategy Australian economic development is on the rise as well as illustrating a growing and increasing per capita and disposable income values. As such, Butlin (2013) stated that the rise of an increased middle level society has enabled them purchase and buy products of the middle and high prices values. Therefore, this opens up the market to not only the traditional clothes products supplied by the indigenous Australian firms, but also a market for high profile clothes form international cloths industry brands across the world such as Michael Kors. As such, the expected and forecasted continued growth of the industry into the future illustrates that the proposed venture products demand will expand and grow into the future making it increasingly viable for investment. Michael Kors needs to use those opportunities and to gain a sustainable market share they need to position their products among the customers who will seek at purchasing the products again and again and will be different from what the other competitors are looking to work at. This will require niche branding of their product and differentiating their products from others in the market. The ideal result for Michael Kors will be to bring about a change in the perception of people towards clothing and developing the required desire and will to purchase expensive clothes. This will require identifying the different core areas and having an associating with the customers so that they are able to relate to the product and are able to bring about a change in their purchasing habits. Business Situation Michael Kors at the present moment is experiencing stiff competition from other players in the market. The organization like any other players working in the retail sector is aiming towards attracting customer based on their quality offerings. The slight difference which Michael Kors has in comparison to others is that the organization looks to attract people especially the luxury segment due to the different products being offered by them. This requires that Michael Kors is able to identify the correct market and develop strategies which will act as a differentiating factor from other players (Belout, Dolan & Saba, 2001). This will require that Michael Kors focuses on the niche market and aims towards developing creative strategies so that they are able to attract and retain more customers. The present situation requires Michael Kors to understand the manner in which the market is evolving and needs to develop marketing strategies so that they are able to attract people towards the different offerings. Target Market, Opportunities & Threats The proposed venture identifies its target consumer base as both the Australian locals as well as the international global tourists into the market. On one hand, the venture targets the Australian consumer base. In this case, it mainly targets the society in the middle class as well as the high end class in the society. In this regard, the identified consumer base is actively seeking out for high end products clothes included but lack such required variety under one roof. On the other hand, the proposed venture targets international tourists in the Australian market. In this regard, the consumers seek out high end Australian products all under one roof and with a variety of the products due to their time constraints in their planned tours and travels. Therefore, the above double target consumer base for the key consumer base for the proposed organizational consumer base in the Australian clothes industry. As discussed in this evaluation, the overall Australian society in the market is gradually changing and evolving. In this case, the overall economy is gradually developing and changing in the market. As such, rising economic growth rates in the market will expand and increase into the forecasted future to allow for strategic middle and upper classes increment. This has thereby helped Michael Kors to be able to determine the market based on their offerings and look at attracting people so that they are able to create a niche market for its product. The different opportunities which is present before Michael Kors is as Change in customer taste and preference towards products which are trendier and of better quality. This will create a new scope for Michael Kors as the business caters to the different needs and requirements of the business. This creates an opportunity based on which Michael Kors can develop their niche market Increase in consumer income and growth in GDP is another factor which is favorable for Michael Kors. This creates an opportunity as increase in the consumer income will ensure that more and more people will be willing to spend money on different clothes and will thereby be able to cater to a niche market through which the overall business development becomes possible The other opportunity for Michael Kors is that there is hardly any player who offers different products under a single roof. This will help Michael Kors to attract people as all the products can be purchased easily under one place and will thereby multiply the different opportunities for the business to improve their opportunities The threats which Michael Kors faces is as Increase in competition from other players like Little Joe and David Jones. This has made it difficult for Michael Kors to be able to work on the same fundamentals as the business needs to identify a differentiation point through which the overall phenomenon will be determined The customer attitude towards the product is continuously changing and has thereby made it difficult for the business to be able to work on same line. This will require that Michael Kors keeps on changing and evolving so that they are able to deal with the changing business needs. Market Segmentation The market opportunities, threats and target market has highlighted that Michael Kors looks at attracting people belonging to the middle and upper segment of the society. Michael Kors has divided their market based on income level of people within the society and looks at developing ways through which they are able to cater to the correct market segment. The phenomenon of selecting the market segment is based on different dimensions and looks at determining the manner in which Michael Kors will be able to cater to the required market segment. Creative Strategy The creative strategy which Michael Kors has looked towards developing for its products has been divided under the following Selling different products under a single roof and thereby acting as a differentiator from other players in the market Bringing a change in the perception of people towards clothes and making changes in the attitude of people so that they look at purchasing products which are of better quality at a slightly higher price Using media and being creative by developing different ways which focuses on making changes in the decision making process so that people get attracted towards the product Associate the product with the different benefits as customers don’t have to spend time moving from one place to another for different products by ensuring availability of all products under a single roof The product thereby looks to be creative and identifying ways through which they are able to create better awareness among the people. This will require working on the different fundamentals and identifying the different campaign which will help to attract people and create a niche market for the different offerings (Barnes, Blake & Pinder, 2009). The process which Michael Kors has to adopt has to such which acts as a differentiating point and helps to create a niche market through which the overall different dimensions are better achieved and the business is able to work on the different areas through which business will improve. Objectives The development of the creative idea by Michael Kors will look at achieving the following objectives and will help to provide the following outcomes Objectives Outcomes Within the execution of the advertising campaign the following is hoped to be achieved after six months Creating more awareness about the products among the customers Increase the number of stores and operation of working in different areas Create a niche market for its products Awareness about the product will act as a strong factor in determining the performance of the organization Awareness will help to increase the market share and will provide an opportunity through which competition will be better dealt Awareness will help to understand the different level based on which purchase decision is being made by the customers After the completion of the campaign the following will be achieved in a period of one year Increase in the market share of Michael Kors Development of better strategies to deal with competition from other players in the market Retaining customers and attracting the same base again and again The campaign will help to identify the different points based on which Michael Kors can improve their performance Help to find out the different points which act as a differentiating point and helps to create a niche market through which business differentiation becomes possible Media Strategy Michael Kors to attract and retain customers will look at developing strategies which are creative and helps to create a niche market for its offerings TVC: Michael Kors will develop a TVC plan to attract people by highlighting the different products which are offered by them. The organization will use different slogans and catchy lines so that people are able to associate with the product and the process helps Michael Kors to attract people easily. The process will look at developing ad campaigns which are creative and directed towards the correct customer base. This will require identifying the different areas and advertising their product so that people acceptance towards the product increases Point of Sale Display: Michael Kors will look to display the different offerings so that people can see, touch and feel the product. This will help to provide better understanding of the different offerings and will help to differentiate their products from others. This will also provide an opportunity through which the point of display will help to attract people and help them understand the product better Event Sponsorship & Promotions: Michael Kors will look at associating with different events by acting as a sponsor for those products. This will help to attract more and more people as associating with the product will become easy. The process will also help to ensure that awareness will be created about the product and will thereby help to attract more and more people. Michael Kors will further look at ensuring that different strategies are developed which will be aimed towards promoting the products. Michael Kors will look at providing different rewards to the loyal customers and will promote their products so that more and more awareness about the product can be created. Website: Michael Kors will also take help to their website to create awareness among the people. In addition to it Michael Kors will also advertise in other websites and will look towards attracting people through a different way (Taylor, 2013). Advertising their different offerings and providing an opportunity to purchase online will also act as a differentiator and will help to create different campaign strategies through which business fundamentals can be improved. Online Advertising: Michael Kors will also use different online advertising medium through which the overall fundamental will be aimed towards technology loving people. This will help to attract people and will determine the path through which the business fundamentals will be better developed. Budget Michael Kors while looking to carry out the different activities have to ensure that all the activities are carried within the allocated budget. This will require determining the different areas where the budget will be spent and monitoring the manner in which the different expenses fetches maximum returns. Michael Kors will look to spend a maximum part of their budget on advertising and creating awareness among the people. The different budgeting cost which the business needs to look at spending is as Miscellaneous expenses which will form a small part of the entire expenses which has been paid Agency cost which will be spend on different areas like creative, design and so on Research cost which will be spend to find out the manner in which creativity will be garnered and researching the manner in which better awareness strategies will be developed Advertising expenses will form a major part of the budget as the expenses will be made to create awareness and attracting people so that they are able to associate with the product The different budgeting cost thereby looks to be creative and creating awareness so that more and more people can be attracted and retained. This will act as a differentiation strategy and will help Michael Kors to be able to target the correct segment of customers in the society and also ensure that they remain creative in their activities. Conclusion The paper thereby brings about the different strategy which Michael Kors needs to adopt so that they are able to be creative and create a different niche market for its offerings. This will help Michael Kors to function as a special group which helps to fulfill the different needs of the customers and ensuring that the business is better placed. This will also help to deal with the evolving business environment and will ensure that the overall business process gains the required effectiveness. References Barnes, C., Blake, H., & Pinder, D. (2009). Creating & delivering your value proposition: Managing customer experience for profit. London: Kogan Page. Belout, A., Dolan, S. L., & Saba, T. (2001). Trends and emerging practices in human resource management - the Canadian scene. International Journal of Manpower, 22(3), 207-215 Taylor, G. (2013). Give your marketing a digital edge. S.l.: Global & Digital. Read More