Michael Kors “Good As Gold� Merchandise Management Online 3910-02 Samantha Grala
Table of Contents Executive Summary of Project Inspiration Images Company Mission Statement /Vision Statement /Social Responsibility Customer Profile Brand Extension Rationale Group Overview Images Assortment/Classification Plan Assortment – Master Page Cost Sheets Line Sheets Brand Identity/Competitive Edge Development Calendar Purchase Order/Unit Distribution Sheet Sale Projection Marketing Budget Marketing Plan: Objective/Strategy/Tactic/Control Method Press Release Designer Bio Bibliography
Executive Summary
The Michael Kors Corporation will be introducing a cosmetics line for the Holiday 2012 season. The new line will called “Good As Gold” and will be carried at seven Macy’s locations for loyal brand customers and also new customers. The cosmetics line will fit the jet set lifestyle that the Michael Kors brand offers. It will be for the women on the go but who still wants to look fresh and flawless. The line will start will 13 products and range from eye, lip, and face wear along with makeup tools. The new line will reach out to customers because it is a designer label brand with affordable prices. Customers will benefit from the quality the products truly offer. There is a competitive edge on this makeup line because it completes the lifestyle of Michael Kors for loyal customers. It creates a one stop convenience shopping experience. The new line is expected to increase sales of the overall Michael Kors brand and grow to the point where developing additional products will be possible. The focus is to strengthen the product image and to eventually increase profits over the next year. By retaining the strong brand loyalty and gaining more exposure by becoming a trusting brand, sales should grow substantially.
Mission part A “Michael Kors is the leading American fashion designer for luxury accessories and sportswear. The company’s heritage is rooted in producing polished, sleek, sophisticated American sportswear with a jet-set attitude. Whether Aspen, Palm Beach or Capri, our mission is to bring our vision of a jet-set, luxury lifestyle to women and men around the globe. Our products, emblematic of the highest standard of quality, include apparel, accessories, and beauty. Our lifestyle- driven company embraces the highest standards of creativity, quality, technology, and human resources.” Mission part B “Michael Kors is the leading American fashion designer for luxury accessories and sportswear. The company’s heritage is rooted in producing polished, sleek, sophisticated American sportswear with a jet-set attitude. Our products, emblematic of the highest standard of quality, include apparel, accessories, beauty, and cosmetics. Our lifestyle-driven company embraces the highest standards of creativity, quality, technology, and human resources.” Vision Statement “At Michael Kors it is our vision to become the most well known apparel, accessories, and cosmetic brand in the world and to grow both financially as a company and a team. We hope to increase sales for the company as a whole by 15% each year.” Social Responsibility Michael Kors is part of the Phillips-Van Heusen (PVH) Corporation and their corporate social responsibility report shows their commitment to CSR management. Aside from that, Michael Kors himself is known to be a philanthropist. Michael Kors also works with and gives back to the Breast Cancer Research Foundation charity.
BRAND EXTENSION: My brand extension for Michael Kors is a cosmetic line. I am creating a line of eye, lip, mineral powder, blush, and bronzer wear, along with makeup accessories like proper brushes, and makeup kits.
FILLING A NICHE/ VOID IN THE MARKET: I think by creating a cosmetic line the Michael Kors brand would be opening a window of competition. I feel as if it would help the brand create more of a lifestyle which would then help gain brand loyalty. I think a designer line of makeup would catch consumer’s attention and then keep their attention with the affordable and quality products.
Geographic Segmentation Region City Size Population Density Climate
North, South, East, West Up to 100,000+ Urban Hot, Temperate, Cold
Age Gender Household Size Income Occupation
20-39 Female 1-4 people 25,000 and over Professional or Part Time
Education
High School or College graduate
Culture Religion National Orgin Race Social Status Marital Status Psychographics
American, European, Asia Catholic, Jewish American, European, Asian Cacuasion, French, Oriental Middle to Upper-class Single, Married, or Divorced Achievers
Degree of knowledge Benefits sought Attitude
Expert Prestige Positive
Brand loyalty Store loyalty Usage rate User status Payment method Media Usage Usage situation
Undivided loyalty Undivided loyalty Medium Current user Cash or Credit Magazines Work or Home
Demographic Segmentation
Customer Profile Sociocultural Segmentation
Effective and Cognitive Segmentation
Behavioral Segmentation
BRAND IDENTITY: Alluring. Glamorous. Fresh. SELLING APPEAL: Michael Kors is known for having the appeal of classic yet simple chic taste that shows throughout the products, as well as the durability and quality. The same goes for the new cosmetics line. The new line offers that classic look while keeping a fresh and natural finish. One of the benefits of the new makeup line is the long-lasting wear that the makeup provides. Loyal customers will see the Michael Kors status shine through with the makeup line, and the window shoppers, they will stop and stare at the new line in awe. ▪ Status ▪ Quality ▪Classic DISTINCT CHARACTERISTICS: The “MK” or Michael Kors logo is embedded on each individual product in the classic gold to match and blend with the rest of the company’s brand. The cosmetics line is only starting out with 13 products, which separates from the competition by focusing more time and care with making these products the best they can be. With a smaller line customers will be able to get a complete look without buying too much or getting overwhelmed. This cosmetics line sticks to the basics and makes them quality driven. ▪ Logo ▪ Less is more ▪ Strong quality RETAILER: The new cosmetics line will be carried by one retailer. It will be available at Macy’s Department store.
GEOGRAPHIC LOCATIONS: Chicago, New York, Los Angeles .
Date: 2/19/12 Product Description: "Natural" Eye Quad Sizes: 0.17 Fluid Ounces Colors: Light brown, dark brown, beige, coral
Product Cost Sheet
MATERIAL Boron Nitride Magnesium Myristate Lauroyl Lysine Oryza Sativa (Rice) Extract Caprylic/Capric Triglyceride
TOTAL MATERIAL COST PACKAGING Gold trim Mirror Labels Boxed
TOTAL PACKAGING COST
LABOR Hand packaging
Oz. 5 4 4 2 1
Style # : 1E1A02 Season: All seasons Wholesale: $20.00 Sug. Retail: $40.00
PRICE AMOUNT $0.25 $1.25 $0.20 $0.80 $0.15 $0.60 $0.12 $0.24 $0.11 $0.11
PRODUCT SKETCH
$3.00 AMOUNT $2.50 $0.50 $1.00 $1.00
$5.00
AMOUNT $2.00
Swatch TOTAL LABOR COST
TOTAL COST OF PRODUCT:
$2.00
10
Development Calendar- Season: Winter/ Holiday Selling 2012 Step 1 Sept 2011: Market Research Step 2 Oct 2011: Begin to design and formulate Step 3 Nov 2011: Begin to make samples Step 4 Dec 2011: Conduct focus groups Step 5 Jan 2012: Early production, retailer places order Step 6 Feb 2012: Prepare retailers order Step 7 March 2012: Major productions begins Step 7 April 2012: Major production continues Step 8 May 2012: Major productions continues Step 9 June 2012: Shipping period begins Step 10 July 2012: Shipping period continues, records period Step 11: Aug 2012: Shipment enters store, prepare for set up Step 12: Sept 2012: Launch begins
Product Purchase Order/ Unit Distribution
8042442
Michael Kors
New Order ___X__
Beg. Ship
Complete Terms Label Dept Season Date 8/25/201 Cosmetic 7/21/201 8/11/2012 2 COD MK s Fall/ Holiday 2
Confirmatio n _____ X
Shipped:
Ordinary_ ____ X
PO#
Retailer
13591 Macy's Special______
Ounces Ounces Ounces Ounces Style #
Description
Color
TTL Units Wholsale Retail
TWS
TR
1E1A02 Natural Look eye quad 01-Neutral
150
150
$20.00 $40.00 $
3,000.00 $ 6,000.00
1E1A02 Smokey Look eye quad 02-Grey Mineral Powder 1D3C22 Bronzer 01-Beige
200
200
$20.00 $40.00 $
4,000.00 $ 8,000.00
75
75
$14.00 $28.00 $
1,050.00 $ 2,100.00
75
75
$14.00 $28.00 $
1,050.00 $ 2,100.00
1E3B92 Mineral Powder Blush 02-Pink 1E2A91 "Delicate" Lip
01-Neutral
50
50
$8.00 $16.00 $
400.00 $
1E2A101 "Lust" Lip "Shimmer Sweet" 1E3B91 Gloss
02-Red
80
80
$8.00 $16.00 $
640.00 $ 1,280.00
03- Pink
50
50
$11.00 $22.00 $
550.00 $ 1,100.00
1E4B51 Blush Brush
01-Black
15
15
$17.50 $35.00 $
262.50 $
525.00
1E4A51 Shadow Brush
02-Black
20
20
$11.50 $23.00 $
230.00 $
460.00
1E4C51 Bronzer Brush
03-Black
15
15
$20.00 $40.00 $
300.00 $
600.00
1E3B51 Eye Liner
01- Black
100
$9.50 $19.00 $
950.00 $ 1,900.00
1E3A21 Foundation
02-Beige
80
$16.00 $32.00 $
1,280.00 $ 2,560.00
1E1C61 Mascara
03-Black
100
$8.00 $16.00 $
800.00 $ 1,600.00
100 80 100
$ 1010
- $
800.00
-
$ 14,512.50 $ 29,025.00
Sales Projection Introduction - 4 wks Product Eye quads Mineral Bronzer Mineral Blush Delicate Lip Lust Lip Shimmer Gloss Eye Liner Foundation Mascara Bronzer Brush Blush Brush Shadow Brush Total
Units 350 75 75 50 80 50 100 80 100 15 15 20 1010
Sold 100 50 30 15 20 20 50 30 50 5 5 10 385
On Hand 250 25 45 35 60 30 50 50 50 10 10 10 625
Maintanence - 4 wks Product Eye Quads Mineral Bronzer Mineral Blush Delicate Lip Lust Lip Shimmer Gloss Eye Liner Foundation Mascara Bronzer Brush Blush Brush Shadow Brush Total
Units 250 25 45 35 60 30 50 50 50 10 10 10 625
Sold 100 7 13 11 18 11 15 15 15 3 3 5 216
On Hand 150 18 32 24 42 19 35 35 35 7 7 5 409
Clearance - 2wks Product Eye Quads Mineral Bronzer Mineral Blush Delicate Lip Lust Lip Shimmer Gloss Eye Liner Foundation Mascara Bronzer Brush Blush Brush Shadow Brush Total Clearance - 2wks Product Eye Quads Mineral Bronzer Mineral Blush Delicate Lip Lust Lip Shimmer Gloss Eye Liner Foundation Mascara Bronzer Brush Blush Brush Shadow Brush Total Replenishment Product Eye Quads Mineral Bronzer Mineral Blush Delicate Lip Lust Lip Shimmer Gloss Eye Liner Foundation Mascara Bronzer Brush Blush Brush Shadow Brush Total
Units 150 18 32 24 42 19 35 35 35 7 7 5 390
Sold 45 5 9 7 12 5 10 10 10 2 2 1 118
On Hand 105 13 23 17 30 14 25 25 25 5 5 4 291
Units 105 13 23 17 30 14 25 25 25 5 5 4 291
Sold 50 6 11 8 15 7 12 17 17 3 3 3 152
On Hand 55 7 12 9 15 7 13 8 8 2 2 1 139
Units 55 7 12 9 15 7 13 8 8 2 2 1 139
Purchase 345 90 80 81 90 75 75 95 95 15 15 25 1081
On Hand 400 97 92 90 105 82 88 103 103 17 17 26 1220
Total Wholesale Total Stores
Marketing Budget
$14,512.50 7 $101,587.50 $20,317.50
Marketing Plan: Objective/Strategy/Tactic/Control Method
Marketing Execution Team Tactic
Person Responsible
Completion
MICHAEL KORS MEET & GREET- SEPTEMBER 7
PR Team
Approve invitations to the meet and greet
Marketing Manager
August 7th
Approve thank you letter by Michael Kors
Marketing Manager
August 7th
Set up stage
Associates
September 6th
Set up big sceen televisions
Associates
September 6th
"HOSTING THE HOLIDAYS" EVENT-NOVEMBER 30
PR Team/ Event Coordinator
Approve invitations to the event
Marketing Manager
September 30th
Send out to members on mail list
PR Team
September 30th
Track RSVP's
Marketing Manager
November 9th
CUSTOMER SURVEYS- JANUARY 1-31
Marketing Manager
Approve survey questions
Marketing Manager
December 1st
Make new receipts
Marketing Manager
December 1st
MAC Cosmetics
Makeup chair
Chanel
Clinique
Michael Kors Extra Product
Makeup chair
News Release FOR MORE INFORMATION, CONTACT: Samantha Grala Tel: 312-543-9878 Director of Media Relations Fax: 847-547-9673 samantha.grala@loop.colum.edu
Michael Kors Collection Page 2
FOR IMMEDIATE RELEASE Saturday, August 25, 2012 A New Line Enters the Competition for Michael Kors Michael Kors is pleased to announce his latest “Good As Gold” holiday collection of 2012. This collection is completely new for the designer and the brand. It will be a cosmetics line coming to 7 stores within the cities of Chicago, Los Angeles, and New York starting the first week of September. The cosmetic line expands the jet set lifestyle that the Michael Kors brand has become well known for. The line will be for the woman on the go who wants to look fresh and beautiful. The “Good As Gold” cosmetics line will consist of thirteen products for the launch release. After the holiday season is complete and if sales went well the line will undergo plans of expanding and developing additional products. The idea was to start out with the basic makeup essentials for loyal Michael Kors customers. There will be events taking place in September for the launch of the line as well as in November for customers to stock up on holiday gifts. Customers will be able to benefit from store promotions on the products during the months of the holiday season as well.
“We are thrilled to start entering new arenas of competitions and to keep building our brand. We have wonderful products to start us off with neutral colors for the less is more woman, and pops of color that are perfect for the holidays. We kept our customers in mind the whole time while creating this line so we are looking forward to how they react to the collection, and hopefully it truly is as good as gold,” says designer, Michael Kors on the new cosmetic holiday collection.