Assessment Task 3 MK

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Assessment Task 3 MK

Assessment Task 3

Michael Kors

Introduction

Market Research is a continuous process for collecting, investigating and interpreting information about a particular market a company operates in or a product/service the company offers for selling in that market, and also about potential and existing competitors and the past, present and potential customers who purchase and consume the offered product/service. Conducting market research means making an analysis of all information about the market, product/service, customers and competitors in order to investigate possible ways for the company to successfully operate in the market, sell the product/service, attract the target audience and gain competitive advantages.

There is no doubt about the importance of market research. To prove this statement, let’s view why you should research markets. Market research is important for your business because it provides you with the following opportunities:

  • Increased Sales. Through researching your market you gain valuable information that helps you identify how successful your product/service is likely to be, what the best price you can set for the product/service, and which customers are interested in purchasing and consuming the product/service. Having investigated this information helps you increase sales.
  • Better Customer Management. The importance of market research is that you can use tools of marketing campaigns (questionnaires, meetings, discussions, messaging) to reach a wide audience of customers, reduce the timeframe within which your product/service reaches the customers, investigate current and future needs and expectations of the customers, and achieve higher customer satisfaction.
  • Business Growth. As due to market researching your sales tends to an increase and your customer management gets better, your company gains an opportunity for further business growth and development.
  • Project Scope

    Resources required

  • Financial resources
  • Building and facilities
  • Equipment
  • IT systems and database
  • Stock, raw material and supplies
  • Human resources
  • Vehicles
  • Michael Kors will need to consult multiple people like the managers, employees, different departments like the IT department, Marketing, HR etc because they have different tools and equipment that need to be moved. You need consultation for this information because, they cover many areas of the organisation. The accountant will be a useful source. The office manager will also be useful for stock, raw material and supplies. The managing director should also know a detailed amount about certain equipment, machinery and building facilities that are required.

    Background issues

    Michael Kors succeeded because it was the first retailer to hit the market’s sweet spot: people with money to spend but who aren’t rich. Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear. His namesake company, established in 1981, currently produces a range of products under his signature Michael Kors Collection and MICHAEL Michael Kors labels. These products include accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, eyewear and a full line of fragrance products.

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    Assessment Task 3 MK
    Last updated: Feb 2024

    Page 1

    Michael Kors is a world-renowned, award-winning designer of luxury accessories and ready-to-wear. His namesake company, established in 1981, currently produces a range of products under his signature Michael Kors Collection and MICHAEL Michael Kors labels. These products include accessories, footwear, watches, jewelry, men’s and women’s ready-to-wear, eyewear and a full line of fragrance products.

    Michael Kors stores are operated, either directly or through licensing partners, in some of the most prestigious cities in the world, including New York, Beverly Hills, Chicago, London, Milan, Paris, Munich, Istanbul, Dubai, Seoul, Tokyo, Hong Kong, Shanghai and Rio de Janeiro.

    Fashion designer Michael Kors continues to rip pages from the playbook rival handbag maker Coach has long since discarded, which helps to explain why Kors is on the decline and Coach is rising.

    Michael Kors seemed to copy everything Coach did following its successful IPO back in 2011, developing a robust mix of retail stores, factory outlet shops, and partnerships with department store chains for its handbags and fashions, while also expanding internationally. It had been a recipe for meteoric growth when Coach implemented it, and it generated dramatic results for Kors too when it pasted the plan onto its own business model.

    But Coach soon realized there was a problem: All the discounting it was doing was undermining the cachet it had built into its aspirational luxury brand. When a customer pays thousands of dollars for a leather bag at one of a brand’s full-price retail stores, only to see someone else paying just hundreds for something similar at its outlets, they grow less likely to return to the full-price store again.

    Target Market

    Michael Kors’ marketing seems to target HENRY (“High Earners Not Rich Yet”) consumers. These are the people who make between $100,000 and $250,000. This segment is increasing steadily not just in the USA, but all across the globe. Even after admitting the fact that HENRYs individually have a far lower spending threshold than ultra-affluents, there are 13 HENRY households for every ultra-affluent. That is why with a total of 22.3 million households, the HENRY segment is a critically important part of the consumer market. With $550 handbags and $350 watches Michael Kors is becoming a better choice for HENRYs, as they can flaunt it without putting too much burden on the pocket.

    A. Resources Required

    Human Resources

  • Manager
  • Marketing consultant
  • Employees
  • Customers – The most important stakeholders to liaise with would be the customers. The customers are the ones who will be purchasing the products and services and be dealing with the services every day and therefore, their opinions are the most important if customers do not like how a provider operates, they will change providers as soon as their contract finishes.
  • Owners – The owners must also be liaised with to make sure that the questions in the survey comply with privacy laws and regulations.
  • Team members – the team members will be the ones that are going to try collecting the data and therefore must be liaised with to ensure…
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    Assessment Task 3 MK
    Last updated: Feb 2024

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