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Marketing - Term Paper Example

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The article Michael Kors: Retail’s next billion dollar man discusses the trajectory of Michael Kors and his company. Michael Kors is a fashion designer who at 50 becomes the youngest winner of the Council of Fashion Designers of America awards (Prasso, 2010)…
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Download file to see previous pages Branding strategies enables companies to charge a premium price (Kotler, 2003). Michael Kors built his retail empire by joining forces with some smart investors that had lot of experience and success in the retail industry. In 2003 Lawrence Stroll and Silas Chou bought a controlling interest of 85% in Kors brand for $100 million. These two entrepreneurs invested in Tommy Hilfiger in 1989 and three years later they turn his company into a publicly traded corporation. The process to turn a company from a private business into a public firm that can sell its stock in the open market is known as an initial public offering (IPO) (Investopedia, 2011). Kors has implemented a lot of smart marketing strategies that have allowed his brand to differentiate from other designers. The firm recently introduced a new collection of clothes that has the same prestige of the Kors line, but at a lower price point. Another strategy that Kors utilized to increase the profitability of the company was product diversity. The utilization of a product diversification strategy enables companies to expand their market (Theproduct, 2011). Kors began selling perfumes, handbags, and watches. These products have a higher profit margin than clothes. These new products are considered cash cow products. A cash cow is a product that produces a constant dependable source of income (Answers, 2011). ...Download file to see next pagesRead More
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