MICHAEL KORS REBRANDING
Assignment 3 Nicole Soheilifar, Karine Hawawini, Yara Katbe, Rama Saffouri FSM 504 Fashion Branding - Sue Seel
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American eponym fashion brand founded in 1981 3 lines: ○ Michael Kors Collection ○ MICHAEL Michael Kors ○ Michael Kors Mens MKC: “Sophisticated designer collection for women based on a philosophy of essential luxury and pragmatic glamour” Ready-to-wear, accessories, handbags, small leather goods, & high-quality footwear. Handbags and small leather goods retail from $300 to $6,000 Rebranding to focus on Michael Kors Collection handbags
REASON FOR REBRANDING ●
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Michael Kors Holdings Annual Report 2017 ○ Decline in income from retail operations by $341.6 million $116.0 million from wholesale operations ○ Announced closure of 100 – 125 of underperforming retail stores to “generate cost savings” ○ Fewer promotions during holiday season Handbags Focus ○ Accessories account for 70% of revenue Rebranding to: ○ Disassociate MKC brand from MMK as it adopts lower pricing strategy & aimed at a different market ○ Strengthen brand identity and positioning as a luxury brand, increase brand awareness ○ Attract a more affluent consumer (online luxury goods market alone, to reach $79 billion by 2025. (Bain, 2018))
CURRENT BRAND POSITION ● ●
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Michael Kors competes with Tapestry (formerly Coach), Kate Spade, Marc Jacobs, Tory Burch, Calvin Klein Michael Kors Collection is the luxury segment of Michael Kors brands ○ Higher and more exclusive positioning ○ Compete with more luxurious brands such as Chloe, Saint Laurent, Givenchy and Proenza Schouler Confused positioning as Michael Kors Collection not differentiated enough from MICHAEL Michael Kors range ○ MICHEAL Michael Kors is at a lower price point and has more accessible positioning ○ Michael Kors Collection aims to target a more affluent customer and offers more elegant products ○ Brand identities should be separate
MMK
MKC
MICHAEL KORS COLLECTION POSITIONING MAP
MICHAEL KORS TARGET CONSUMER
PROPOSED REBRANDING STRATEGY: WHAT ● ● ●
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Change name from Michael Kors Collection to KORS New visual identity and display of brand name on handbags Raise price point of handbags with introduction of higher quality materials, exotic skins and personalisation features Renovate designated KORS retail spaces Launch new ad campaign that focuses on product placement and new style of photography and aesthetic and separate campaigns for KORS brand Maximise reach and engagement with consumers across all touchpoints: social media, website, KORS VIP
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Event & Show to unveil new handbag collection at NYC Flagship at Rockefeller Center December 2018 See Now, Buy Now, available on e-commerce following day Live-stream event + interaction on social media for maximum coverage and engagement for customers Less visible stock and more space at retail stores, focus on experiential retail Ad campaign to feature KORS handbags photographed on modern furniture pieces from London-based interior designer Francis Sultana
New Retail Moodboard
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NYC Flagship
PROPOSED BRANDING STRATEGY: HOW & WHEN
PROPOSED REBRANDING STRATEGY: WHY ● ● ● ● ● ●
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Reposition KORS as a more luxurious brand, reignite publicity for KORS, attract and engage a more affluent consumer Consumers responded to innovative products at higher price points introduced throughout MK ranges this quarter - potential for success with raising the price point for Kors products (Michael Kors Holdings, 2018) Personalisation allow clients to add their own personal touch and raises uniqueness of products Launch event during holidays as it is the season that generates the most revenue (Michael Kors Holdings, 2018) Location at Rockefeller Center store during annual Christmas tree lighting ceremony will maximise publicity as it attracts 800,000 people See Now, Buy Now: ○ Tommy x Gigi See Now, Buy Now increased web traffic by 900% in 48 hours (Interlaced, 2017) ○ #InstaKors on Instagram allows customers to buy products before they are launched in store Campaign style signals something new to existing and potential customers, directs focus to products Renovated retail spaces will better communicate KORS brand identity and incorporates experiential luxury trend (Arienti et al, 2017)
KORS NEW TARGET CONSUMER
KORS NEW VISUAL IDENTITY ● ● ● ●
Associations with MMK could be limiting to KORS therefore name change is considerable (Murto,2010) Name change from Michael Kors Collection to KORS ○ Simplified, recognisable and memorable Emboss the KORS brand name into products, looks more elegant, sleek and luxurious New visual identity in addition to new products will build brand awareness and add greater brand value to consumers
COLOUR SCHEMES & FABRICS Python
Crocodile
Ostrich
Lambskin
KORS NEW CAMPAIGN & RANGE ● ●
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Range designed to appeal to a more affluent consumer High quality and exotic fabrics such as: lambskin, crocodile, python, lizard, and ostrich in a variety of colors, ranging from classic earth tones to electric hues Images shot with emphasis on product Collection will be showcased on furniture pieces designed by London based Francis Sultana adding a sense of comfort with fur covered luxury chair line.
CAMPAIGN (cont.)
CAMPAIGN (cont.)
KORS NEW POSITIONING MAP
KORS NEW BRAND PRISM
SOCIAL MEDIA & WEBSITE
RETAIL RENOVATION MOODBOARD
KORS SWOT
CONCLUSION ●
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Rebranding strategies implemented will help reposition KORS as a more luxurious fashion brand, build brand identity and awareness ○ Introduction of higher quality materials, exotic skins, personalisation features ○ Launch event and show at NYC flagship to maximise publicity and live-stream will encourage customer engagement ○ New KORS visual identity is memorable, recognisable and display on products gives a sleek and luxurious look ○ New style of advertising to indicate newness, appeal to new and existing customers If KORS handbag range is successful, KORS rebranding will be implemented throughout all product categories Potential future projects: ○ Collaboration with a luxury travelling company (eg: Gucci with Globe Trotter) to further emphasize brands “jet-set aesthetic” ○ Extend KORS brand name to KORS Boutique Hotels in major fashion cities (London, Paris, New York and Milan) ○ Using Kors brand name beyond fashion will confirm its credibility in the luxury world.
BIBLIOGRAPHY “Ad Technology News: All the Latest from the World of Ad Tech.” Marketing Tech News, www.marketingtechnews.net/categories/advertising-technology/. Arienti, P., McArthur, K., Perkins, B. and Pope, N. (2017). Global Powers of Luxury Goods. [ebook] Deloitte University EMEA CVBA. Available at: https://www2.deloitte.com/content/dam/Deloitte/global/Documents/consumer-industrial-products/gx-cip-global-powers-luxury-2017.pdf [Accessed 6 Jan. 2018].
Business, S., Management, S., Service, C., Marketing, S., Structure, A., CRM, S., Integrations, O., Questions, F. and In, L. (2018). 18 Instagram Stats Every Marketer Should Know for 2018. [online] Sprout Social. Available at: https://sproutsocial.com/insights/instagram-stats/ [Accessed 10 Apr. 2018]. Beule, S. and Beule, S. (2018). The 80/20 Rule: Why Just 20% of Your Social Media Content Should be About Your Brand. [online] Social Media Today. Available at: https://www.socialmediatoday.com/content/8020-rule-why-just-20-your-social-media-content-should-be-about-your-brand [Accessed 4 Apr. 2018]. Everts, T. (2018). 53% of mobile users abandon sites that take longer than 3 seconds to load | SOASTA. [online] SOASTA. Available at: https://www.soasta.com/blog/google-mobile-web-performance-study/ [Accessed 10 Apr. 2018]. Ewing, Michael. “Michael Kors Set to Open Flagship in Soho.” Commercial Observer, Commercialobserver, 15 Jan. 2013, commercialobserver.com/2013/01/michael-kors-set-to-open-flagshipin-soho/. Globe-Trotter. (2018). THE GUCCIFICATION OF GLOBE-TROTTER | Globe-Trotter. [online] Available at: https://www.globe-trotter.com/guccification-globe-trotter/ [Accessed 18 Apr. 2018]. Investors.MichaelKors.com. (2018). Michael Kors Annual Report 2017. [online] Available at: http://s2.q4cdn.com/702269136/files/doc_financials/annual_report/Annual-Report-FINAL.PDF [Accessed 18 Apr. 2018]. Marketing.conference-services.net. (2018). [online] Available at: https://marketing.conference-services.net/resources/327/3554/pdf/AM2013_0038_paper.pdf [Accessed 11 Apr. 2018]. Michael Kors Holdings (2018). [webcast] Q3 2018 MICHAEL KORS EARNINGS CONFERENCE CALL. Available at: http://investors.michaelkors.com/events-presentations/event-details/2018/Q3-2018Michael-Kors-Earnings-Conference-Call/default.aspx [Accessed 19 Mar. 2018]. Social Media Agency London | Truffle Social. (2018). Social Media Agency London | Truffle Social. [online] Available at: https://www.trufflesocial.com/single-post/2017/12/22/Fashion-Brands-Killing-it-onInstagram [Accessed 9 Apr. 2018]. “Michael Kors.” Michael Scherer / Project Manager, www.scherer-portfolio.com/michael-kors/.