Ch. 11 Developing and Managing Products

A large part of Michael Kors' current success is due to innovation. By definition (in the marketing world), is a product perceived as new by a potential adopter. As I mentioned in prior posts Michael Kors originally had a target market consisting of the wealthy (social lites, actresses, singers etc). However, he eventually saw there was a need/want and/or demand for his product (handbags) in a different market. So he took his product, added a twist to the brand name, slightly altered some of the the stitching and released it to the new target market. It was a work in progress in regards to winning over the consumers who were loyal to the number one brand (at the time) Coach in that market.  Everyone knew he was a designer for the wealthy and now he designed for the working class-chic-sophisticated-everyday-modern fashionista. This line was called the "Lifestyle Brand". You could carry these handbags, clutches etc etc not just to exclusive parties but to work and school as well. Success for this line of handbags wasn't an instant hit but they kept at it and have surpassed the giant Coach in this market. Im not sure how long it will be before some other company enters the market but I'm going to continue to be a loyal MK customer.