Case Study Michael Kors
1 Background of the study Michael Kors is a renowned multinational that has won several awards in the luxury accessories and ready to wear segments. Established1981; the company has made significant strides in providing consumers with a wide range of products including footwear, watches, jewellery, and fragrance items that meet the interests of diverse consumers (Fonseca, 2015). The company’s headquarters are in New York, but the firm has since expanded its operations to various parts including Asia, Europe, and South America. The rapid expansion of the firm aligns with the existence of a 360 degrees communication strategy focused on reaching out to millions of consumers through multiple channels to increase sales and profits (Fonseca, 2015). The different communication platforms used by Michael Kors are the reasons for the increased reputation in the luxury fashion industry, but the firm has to adopt initiatives that will help it understand the cultural influence on buying decisions.
2 Statement of the problem The brand and culture of a specific country have a positive correlation with reputation since they influence the way consumers evaluate the brand and the perceptions that shape their purchasing behaviour. Developing advertising and branding strategies that reflect the cultural preferences of different countries provide firms with another dimension to help them remain competitive in global environments. Several studies have reflected the positive correlation between culture and marketing strategy for various industries including fashion and perfume segments with emphasis on understanding the nature of messages communicated to consumers (Etzel et al. The messages about a brand should resonate with the identity and behaviour of consumers and should present a convincing story about the values of the brand.
From the consumer's view, advertising and branding strategies promote the brand by introducing the nature of offering and distinguishing them from those offered by competitors (De Mooij, 2010). 6 Justification of case study Multinationals do not depend on their local stations as their source of revenues because of the immense opportunities created by globalization. Brands such as Michael Kors have achieved success from their internalization ambitions that allow them to reach out to a larger market share. The success of multinationals depends on the suitability of their advertising strategies since they determine the ability to capture the attention of consumers and convince them about the need to maintain their loyalty (Krueger & Nandan, 2008). However, the relevance of this study arises from the fact that its emphasis on the notion that advertising does not guarantee success in a target market since firms have to get attention on the uniqueness of the branding message and the way they relate with the values, attitudes, and behaviour of consumers.
This study reveals the need for firms to identify the best ways of investing their finances in marketing by stressing the need to take an extra step to understand the cultural trends in new and existing markets. It will help us document the branding strategies adopted by Michael Kors, establish the advertising strategies adopted by Michael Kors and investigate the effects of global branding and advertising strategies on the performance and reputation of the Michael Kors brand. In this chapter, all the literature that is relevant to the research phenomena that the researcher is studying will be reviewed and presented. A theoretical literature review and an empirical literature review will be presented。 2. Theoretical literature review “A theory is an idea or a collection of ideas that are either suggested or presented, with possible truth in them, yet this possibility is not proven” (Zima, 2011).
A researcher applies a theory or theories in their research to explain the phenomena that he or she is studying (Literacy Research Association, 2015). Feminine/masculine - 'The prevailing esteems in a masculine culture are accomplishment and achievement; the predominant esteems in a feminine culture is concern towards others and quality of life. ' In a masculine society for an individual to show his or her status, they would purchase products from some of the worlds renowned brands (De Mooij and Hofstede, 2002; De Mooij, 2010). Role differentiation is also an important aspect of this dimension, for example, in a masculine society males are more concerned about the purchase of health insurance policies because they are the main financiers of their families while in a feminine society females would also purchase these policies.
Collective/individual - Is defined as 'individuals caring for themselves and their close family, versus individuals who belong in in-groups and each member care about the other so that they can receive loyalty in return. ' Individualistic societies it is all about ‘I,’ and these individuals believe that their esteems are legitimate in the entire world. The legitimate place idea is critical for understanding the part of worldwide brands. Prestige products serve this purpose and individuals will purchase them because these reflect their social status. The linkage between cultural difference and brand management The case of Michael Kors provides insights about management of luxury brands and cultural factors. The brand reveals the extent to which cultural factors influence marketing of luxury brands with the masculine and individualistic societies placing a higher value on the goods and services that reflect a higher status (Fonseca, 2015).
In the masculine, individualistic, and societies with high power distance, consumers prefer brands such as Michael Kors that assure them of uniqueness and give them a sense of pride. Hofstede’s theory applies to branding and advertisements by arguing on the options marketers have in reaching out to individuals from different cultures. The cultural dimensions provide insights into consumer behaviour. The power dimension reveals the inequalities associated with wealth, lifestyle, and the level of acceptance in the societies. Individuals with more power have the privilege to purchase high-quality goods and services irrespective of the prices as they seek to develop and sustain their power distance (Cayla & Arnould, 2008). In the cultures with high power distance, the social status provides insights about the role of international branding and advertising concerning the luxury or fashion brands.
What a business enterprise stands for, and their belief (values), the association between the business enterprise and its stakeholders (behaviour), the perception and position of the consumers concerning the business enterprise logos, visual standards, and verbal themes is known as organizational identity. There is a correlation between a business enterprise vision and its success, and this mainly relies on the branding strategies that they are implementing. For example through the adoption of product pricing policies, promotional strategies, modification of their products to resonate well with the cultural sentiments, language, and lifestyle patterns of their target market is necessary. According to Bloomberg (2017). According to Grunig et al. Advertising does not guarantee that the business enterprise would succeed in their target market especially when these organizations are implementing advertising strategies that are the same as the ones being implemented by their competitors.
Therefore, this success mainly depends on the type of advertising strategies being implemented, and it has to be unique diverse from the ones implemented by their competitors so that the target market can easily distinguish business products from the ones sold or produced by their competitors (Jefkins, 2016). Diverse advertising strategies are being adopted by business enterprises to market their products (Forbes, 2015). Some business enterprises are investing in the digital space and use the online means to communicate with their target market concerning their products. Digital advertising is seen where business enterprises are frequently purchasing airtime in some of the popular TV programmes, which have a larger audience such as the Super Bowl in the United States to market their products. Credibility is an important aspect that is usually considered by business enterprises especially when they are carrying out their branding and advertising campaigns.
They always to be credible especially when they are communicating with their stakeholders such as; media analysts, policy influencers, policy makers, customers。 The low tone should be used during the relay of these marketing communication messages, and this enhances the target market awareness, understanding, and commitments towards the brand. Consumers will end up loving the brand, purchase its products, and increase the demand and sale of the organization products leading to better returns from trade. COLLECTION OF DATA AND RESEARCH METHODS The methods are introduced in this chapter of the research utilized during the thesis undertaking process. Additionally, the research methods justification has also gets included in the episode. In the paper, qualitative research undertook collected information on the opinions and attitudes of customers in the UK market about Kors brand and the luxurious consumption of products in the country (Lea-Greenwood, 2012, p.
As the main method of collecting data primarily for the study, the study carried out an online questionnaire for bloggers of fashion, which were sent through e-mail. We sent the surveys to 170 bloggers, from which 55 received answers. The bloggers selected were those that utilize the most popular blogging fashion site in UK Interflow. The blogs representation is the area of blogging matters “fashion” on the Website. The boutique became preferences as an option for obtaining primary data resources. Since the boutique has been operating for over many decades throughout Europe and in the UK for over five years, it has developed comprehension of brand clientele sales (Tugby, 2015). 2 The research questions The research question basis is a framework in theory that was introduced in the paper.
Unique factors of culture vary across nations and affect the luxury brand. Among the variables of culture that influence the consumption, patterns of consumers are norms and values. The internationalization process demands branding communication, and branding and receptivity are significant. Through researching the current brand image in the new market, the study can gather vital information for suggestions that have a good roundness on how to get to the potential consumer most efficiently in the UK RESULTS The section constitutes the study results. The study introduces the study interview and its answers, which collection took place through e-mail to fashion bloggers. Also, the findings from the online questionnaires issued through e-mail to bloggers who deal with fashion were summarized and presented.
1 Data Description The survey aimed to collect description about the brand Michael Kors customer base their power of purchase, the distribution age, and size. Silas indicated that the distribution could start at a lower age of 13 years. Despite the line, Michael solid customer base being made up of young adults, all ages of people buy the product steadily from store Zara. Nonetheless, the manager indicated that customers from the age of 35 typically make the most purchases of the product. The Zara store sale has remained steady even with the recession that has affected entire Europe, as have the Michael Kors line. As per Silas, there have been fluctuations in the trading of other brands in the store, but store total sales net have not declined or changed.
Nonetheless, to sustain and create piquing interest of consumer it is vital to come up with a product introduction that is interesting. The UK culture, in the opinion of Silas, does affect the luxury products consumption in the country. The believe Silas has is that the UK consumer perception on price differs from one nation to the next. As a result, the British consider average prices of the Zara products fair, while other countries like Spain would think that product pricing as high. Also. 6% of the respondents were mum staying at home, and 2% were individuals with no job. When respondents were asked whether they were familiar with the Michael Kors brand, 59%, which is more than 50% of the respondents’ number, indicated that they knew the brand.
The respondents that meant that the brand was very familiar with them were 35%. 6% reported that the familiarity with the brand was minimal. None of the respondents stated that the brand was not familiar to them. Nonetheless, 20 respondents indicated that the brand was expensive to purchase. (Appendix 1). Figure 4: What can allow a Michael Kors Brand Store Thrive in the UK 7% of respondents indicated the store had a chance of excelling in the UK. 65% showed it would do well which was the majority of the respondents. 22% reported moderate success level and 6% did not have an opinion. Figure 5: Customer Purchase Point of the Brand Michael Kors When asked purchase point of the Michael Kors product in the past, 18 of the respondents stated they purchased the brand online, 16 noted that such purchase was from a UK departmental store.
9 of the 55 respondents indicated they bought the product abroad while five pointed out that the purchase was from a UK retailer. (Figure 5). Figure 6: Age Group Likely To Purchase the Michael Kors Brand When asked the age group that was likely to purchase the company product from a retail store in the UK, most of the participants stated that the age group 18-34 would make such purchases. The most likely group as per the respondents was the age group 31-54, the third possible age group as per the respondents was the 35 to 54. Radio was picked five times, but none of the respondents though newspapers were channels that were appropriate for such marketing. (FIGURE 8. Open-ended questions The section offers results analysed of the questions in the questionnaires submitted online.
The surveys asked questions that were open-ended. The issue related to the consumption of the luxury brand in the UK, the Michael Kors retail store prospects of success in the UK and the influence the UK culture would have on the brand. Success Factors The study hoped to identify what factors would influence the Kors Store success in the UK. Some participants indicated that disposable income, product price, and other economic situations would have an effect the prosperity of the store in the UK. Most of the respondents cited location as the primary factor that would affect the brand. Other respondents stated the promotion and marketing efforts undertaken by the brand would have an influence. The brand is known in the UK, and hence the most crucial outcome of promotion has already been attained.
3 Data SWOT Analysis Figure 9: SWOT Analysis of Data STRENGTH • Products of High-quality • Good pricing • Effective promotional tools: digital marketing as well as social media • Great selling items: smaller accessories and bags • Great Brand Image WEAKNESSES • High imitation • Competition of Freestanding stores from other big brands such as Gucci OPPORTUNITIES • Wider customer base attraction due to quality products and favourable prices • All ages group brand purchase • The desire of the customer to get quality products THREATS • Some English might consider averaged priced products as expensive • Brand might get worn out through free standing 4. 4 Conclusions The questionnaire and the interview offered opinions and descriptions of individuals selected that had a connection to the fashion industry. The two sources demonstrated that Michael Kors is a brand with the great image in the UK.
The products were massively described positively, and the purchasing decision critical factors were a classic design, durability, and high quality, as well as the product trendiness, is as per the answer of most respondents. The respondents also mostly indicted that a freestanding store for the brand is a place they would visit. Also, the culture was another discussion factor and its possible effect on the profitability of the brand of a potential store with only the brands ‘products and the way it ought to market in the new market. Despite the respondents that responded being 55 out of 170 bloggers the questionnaire was deemed representative as the number exceeded the third limit of the total group. Also, the response represents individuals of different ages.
The interview included Zara UK manager, Silas. The interview was a means to gain insight into the Michael Kors clientele in the country: their power of purchase, their distribution age, and size. If the brand can incorporate this recommendation, it can guarantee increased sales and a larger customer base from their physical store. References Alam, M. Brand building challenges in the global market: an overview. International Journal of Management and Applied Science, 2(5), pp. De Mooij, M. Branding in the Global Arena: The Role of Culture. Marketing Management Journal, pp. Nakata, C. Beyond Hofstede: culture frameworks for global marketing and management. London: Palgrave MacMillan. Journal of International Marketing, 88–114. Cooper KF, et al. (1997) Stress and developmental regulation of the yeast C-type cyclin Ume3p (Srb11p/Ssn8p).
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