Ch.4 The Marketing Environment

Michael Kors handbags have been selling like hotcakes. The recently released 2014 3rd Quarter sales numbers show substantial growth. Michael Kors decided to separate his brand into 3 divisions: Michael Kors, Kors and Michael. Michael Kors is the runway collection. Kors is the luxury brand. Their handbags, clutches, wristlets and wallets range from $500 - $6,000. The mainstream collection (Michael) ranges from $200 - $800. They are able to price their products this way because their target markets which are generation x (born between 1965-1978) and y(born between 1979-1994) women whose taste vary from high maintenance and sophisticated to casual yet classy. His handbags appeal to almost all women. I mean who doesn't love a good looking purse?? As I stated in one of my earlier blogs Michael Kors has been expanding, opening stores in Europe and Asia as well as opening more locations within the United States. In addition to opening more stores, MK has stopped manufacturing their bags in Italy. They are now made in China and Korea. Unlike the reports of hazardous conditions in the Apple manufacturing warehouses, I was unable to find anything similar regarding MK (thank GOD). Despite where they are made I still love my MK bags.  If I'm feeling casual to run errands, sexy to go out on the town or classy when going to work there are plenty of options to choose from.