Ch. 8 Segmenting and Targeting Markets

The market that Michael Kors operates in is a lucrative market. If you can build a likable and valuable brand, you can be very successful. I feel this to be true because in the fashion accessories industry there are millions of people who want and/or need handbags, purses, bookbags, clutches or wallets. Those who want these items are also willing to spend the necessary money on the things they deem are valuable and worthy of their hard earned money. Michael Kors identified his market and capitalized on the wants/needs of consumers and the demands they expressed for these products.

When you want to focus on a specific part of a market to pursue market segmentation comes not play. MK took the fashion market and broke it up so he could concentrate on a particular a field. He figured out that there was an opportunity to increase his market share by creating a more affordable line. he approached this opportunity with demographic segmentation.

His repositioning of the now "lifestyle" brand is what catapulted the MK brand into the dominate
position it currently holds. Innovation was also a part of the process as he took his line and changed some things (style, fabric, price, target market,marketing etc) and named it a "lifestyle" brand for the everyday working, chic sophisticated adult. This change worked well as we can see and the brand has been able to attract more shares of the market and shed light on their available other products.