A Research into Global Branding and Advertising Strategy within the Fashion Retail Sector: A Case Study Michael Kors
Student Name
University Affiliation
Course
Date
1. Introduction
This chapter takes a broader picture to understand the advertising and branding and advertising initiatives adopted by Kors Michael and the way they increase the reputation and performance of the company’s brand. The chapter provides insights into the background of the study and the problem statement in describing why branding and advertising strategies are ideal in the contemporary global business environment in enhancing reputation and triggering higher profits.
1.1 Background of the study
Michael Kors is a renowned multinational that has won several awards in the luxury accessories and ready to wear segments. Established1981; the company has made significant strides in providing consumers with a wide range of products including footwear, watches, jewellery, and fragrance items that meet the interests of diverse consumers (Fonseca, 2015). The company’s headquarters are in New York, but the firm has since expanded its operations to various parts including Asia, Europe, and South America. The rapid expansion of the firm aligns with the existence of a 360 degrees communication strategy focused on reaching out to millions of consumers through multiple channels to increase sales and profits (Fonseca, 2015). The different communication platforms used by Michael Kors are the reasons for the increased reputation in the luxury fashion industry, but the firm has to adopt initiatives that will help it understand cultural influence on buying decisions.
Michael Kors’s success reveals that a brand is more than the visual symbol and the tagline consumers can memorize. A brand, therefore, entails the vision, mission and the philosophy of an organization to help the firm cope with different preferences across the world (Alam, 2016). Moreover, the brand arises from a long-term commitment by a company to create a lasting impression in the minds of consumers and use the positive reputation to drive profitability and sustainability. It is necessary for studies to identify the factors that provide firms with the strategies of aligning their business practices with the values and culture of buyers. Since branding and advertising are complementary functions, every firm has the role of communicating their objectives to consumers and using the brand to influence the attitudes and perceptions of buyers (De Mooij & Hofstede, 2002).
The success of Michael Kors depends on the way it understands and responds to the needs and expectations of the target markets since globalization creates opportunities for multinationals to extend their influence beyond local and regional markets. In this paper, there is a major focus on the branding and advertising in global scenarios and the need for firms to adhere to the culture of the consumers in specific segments. Using the example of Michael Kors, culture has a unique role in international marketing strategies and is among the factors that determine successful entrance, growth, and stability in new environments. While buyers around the world recognize popular brands such as Michael Kors, the option for firms is to understand the consciousness of consumers and the cognitive factors that influence their buying decisions. The consumers in global scenarios should find it easier to differentiate products of Michael Kors from those of competitors with advertising and branding strategies acting as the forces driving the reputation of an entity.
1.2 Statement of the problem
The brand and culture of a specific country have a positive correlation with reputation since they influence the way consumers evaluate the brand and the perceptions that shape their purchasing behaviour. Developing advertising and branding strategies that reflect the cultural preferences of different countries provide firms with another dimension to help them remain competitive in global environments. Several studies have reflected the positive correlation between culture and marketing strategy for various industries including fashion and perfume segments with emphasis on understanding the nature of messages communicated to consumers (Etzel et al., 2007). The messages about a brand should resonate with the identity and behaviour of consumers and should present a convincing story about the values of the brand.
From the consumer's view, advertising and branding strategies promote the brand by introducing the nature of offering and distinguishing them from those offered by competitors (De Mooij, 2010). The appropriateness of branding and advertising strategies, therefore, creates competitive advantage in local, regional, and international segments and serves as the mediator between the products provided by Michael Kors, the consumers, and rivals. An enterprise should define what its values and beliefs to allow consumers and shareholders associated with its identity and commitment to meeting their needs (Kluyver & Pearce, 2006). For instance, the pricing and promotion strategies should resonate well with the values, attitudes, and lifestyles of the target market with the branding practices allowing a firm to spread information to a larger audience. This study, therefore, focuses on the fact that branding is a form of public relations aimed at preserving the image of organizations and using the reputation to sustain stronger financial performance. The branding and advertising initiatives should persuade a high number of consumers to have a positive viewpoint of the products and the value derived from using the different items.
1.3 General objectives of the study
• To understand the link between culture and the strategies on advertising and branding employed by Michael Kors.
1.4 Study specific objectives
• To investigate strategies on branding taken up by Kors Michael.
• To determine and establish the strategies on adverting that were adopted by Kors.
• To come up with an analysis on the effects that is brought about by advertising and branding strategies on the reputation and performance of Kors brand.
1.5 Study research questions
• What strategies on branding are employed by Kors?
• What strategies on adverting are employed by Michael?
• How do international strategies on adverting and branding affect the reputation and of Michael Kors brand?
1.6 Justification of case study
Multinationals do not depend on their local stations as their source of revenues because of the immense opportunities created by globalization. Brands such as Michael Kors have achieved success from their internalization ambitions that allow them to reach out to a larger market share. The success of multinationals depends on the suitability of their advertising strategies since they determine the ability to capture attention of consumers and convince them about the need to maintain their loyalty (Krueger & Nandan, 2008). However, the relevance of this study arises from the fact that its emphasis on the notion that advertising does not guarantee success in a target market since firms have to get attention on the uniqueness of the branding message and the way they relate with the values, attitudes, and behaviour of consumers. This study reveals the need for firms to identify the best ways of investing their finances in marketing by stressing the need to take an extra step to understand the cultural trends in new and existing markets.
Moreover, this study reveals the need for firms to track their advertisements to ensure they meet the expectations of specific segments and constantly respond to the changing lifestyles of consumers. This study links branding and advertising to the influence of culture on consumption patterns since values, beliefs, and attitudes have positive correlation with marketing strategies employed by firms. This study aims to reveal the need for firms to have accurate knowledge on the cultural aspects of their target markets if they are to design proper strategies that resonate well with the interests of many consumers and shareholders (Nakata, 2009). For instance, firms have to respond the preferences of firms by ensuring their advertising strategies reveal commitment to the values and lifestyles of people to attract and sustain their reputation.
1.7 Scope of project
This report investigates the nature of international advertising and branding initiatives adopted by multinationals and their link with reputation and performance of the brand in specific markets. The study uses both primary and secondary sources to gather data on the practices involved in branding and advertising. The secondary information will be from websites, reports, and journal articles published by various scholars while the primary data will come from respondents in interview sessions. Six employees from Michael Kors marketing division will form part of the respondents required to provide details on the current marketing practices used by the firm and the options available to improve advertising and branding activities.
LITERATURE REVIEW
2.1. Introduction
This study is about the global branding and advertising strategies of Michael Kors. It will help us document the branding strategies adopted by Michael Kors, establish the advertising strategies adopted by Michael Kors and investigate the effects of global branding and advertising strategies on the performance and reputation of the Michael Kors brand. In this chapter, all the literature that is relevant to the research phenomena that the researcher is studying will be reviewed and presented. A theoretical literature review and an empirical literature review will be presented。
2.2. Theoretical literature review
“A theory is an idea or a collection of ideas that are either suggested or presented, with possible truth in them, yet this possibility is not proven” (Zima, 2011). A researcher applies a theory or theories in their research to explain the phenomena that he or she is studying (Literacy Research Association, 2015). According to Hargie (2017), “ theory provides the basis for establishing the hypotheses to be tested in the study.” This study specifically made use of one theory namely, the Hofstede’s dimension model a country’s culture, because its tenets demonstrate a relevant relationship to the parameter that is being studied.
2.2.1. Hofstede’s dimension model a country’s culture
The researcher applied the Hofstede’s dimension model to have a clear understanding concerning the global branding and advertising strategies of Michael Kors. According to the Hofstede dimensional model, there are five distinct aspects of culture. The five aspects include. Short/long-term orientation, Feminine/masculine, Collective/individual, Uncertainty avoidance, and Power distance which clarifies the diverse aspects, which identify with the consumer's conduct and have an effect on the branding and advertising strategies adopted by a business enterprise.
1. Short/long term orientation - It refers to the extent to which a society can exhibit a future that is pragmatic rather than a conventional historic or short-term point of view’. Having a sense of shame, thrift, ordering relationships by status and perseverance are long-term orientation values, and the focus is on the pursuit of peace of mind. This is different from a short-term orientation where the values respect for tradition, and stability, & steadiness and the focus is mainly on happiness. People would always invest in the future in long-term oriented societies (De Mooij, 2010).
2. Feminine/masculine - 'The prevailing esteems in a masculine culture are accomplishment and achievement; the predominant esteems in a feminine culture is concern towards others and quality of life.' In a masculine society for an individual to show his or her status, they would purchase products from some of the worlds renowned brands (De Mooij and Hofstede, 2002; De Mooij, 2010). Role differentiation is also an important aspect of this dimension, for example, in a masculine society males are more concerned about the purchase of health insurance policies because they are the main financiers of their families while in a feminine society females would also purchase these policies.
3. Collective/individual - Is defined as 'individuals caring for themselves and their close family, versus individuals who belong in in-groups and each member care about the other so that they can receive loyalty in return.' Individualistic societies it is all about ‘I,’ and these individuals believe that their esteems are legitimate in the entire world. In these societies, the communication is a low context, and verbal communication is more explicit. Collectivist’s societies it’s all about ‘We,’ communication is more of an indirect style, and in these cultures, their personality depends on the social framework to which they have a place and people prevent themselves from undertaking initiatives that would distance them from the rest of the group members. During marketing, in collectivist’s societies business concentrates more on building relationships and trust with their customers while in individualistic societies it is more about persuasion and business are more of self-cantered.
4. Uncertainty avoidance - It’s 'the degree to which individuals feel undermined by vulnerability and uncertainty, and they try hard to maintain a strategic distance from these circumstances.' In societies where uncertainty avoidance is high, there is a requirement for formality and standards of structure life. Individuals would always believe the advice of experts and they would attempt to search for the truth. Individuals with high uncertainty are less open to change and development than individuals of low uncertainty avoidance (Yaveroglu & Donthu, 2002; Yeniurt & Townsend, 2003; Tellis et al., 2003). People will always have the passive attitude to health in high uncertainty avoidance societies while in societies with low uncertainty avoidance their attitude to health is more (De Mooij & Hofstede, 2002; De Mooij, 2010).
5. Power distance – It is 'the degree to which less effective individuals from a general public acknowledge and expect that power is disseminated unequally'. In societies where power distance is large, everybody has his or her legitimate place in a social chain of importance. The legitimate place idea is critical for understanding the part of worldwide brands. Prestige products serve this purpose and individuals will purchase them because these reflect their social status.
The linkage between cultural difference and brand management
The case of Michael Kors provides insights about management of luxury brands and cultural factors. The brand reveals the extent to which cultural factors influence marketing of luxury brands with the masculine and individualistic societies placing a higher value on the goods and services that reflect a higher status (Fonseca, 2015). In the masculine, individualistic, and societies with high power distance, consumers prefer brands such as Michael Kors that assure them of uniqueness and give them a sense of pride. The implications of such cultural trends are that Michael Kors needs to sustain its position an organization committed to assuring consumers of a unique taste and creativity (Fonseca, 2015).
In most cases, the hierarchies in the society rely on material possessions consequently portraying the aspects of individualism and masculine dominance. For instance, in the western countries, the luxury products sold by Michael Kors are reflections of a sense of differentiation where individuals define themselves by having a product not owned by many people in the society. Firms have to establish brand management practices that make them identify unique opportunities to leverage their growth ambitions and expand their competitive advantage in the international business environment.
2.2.2. Cultures exchanges and how they affect branding and advertising strategies
Culture affects the implementation of branding and advertising strategies. It is important for business enterprises to have a clear understanding concerning the cultures of their markets to design branding and advertising strategies that resonate well with their target market (Nakata, 2009). For example in individualistic societies such as the United States, function and relation differences bring about the synonymous exchange of information. This has made business enterprises adopt entries such as the magazine advertisement that employs appeals to individual benefits, independence, personal success, and preferences. This is different from collectivists’ culture such as Japan where business enterprises are adopting advertising and branding strategies that emphasize in-group benefits, family integrity, and harmony largely (Miracle, 1987). A clear understanding of the cultural exchange and its influence on brand and advertising strategy is very important because it will make the design of business enterprise brand and advertising strategy, to attract consumers and target market-marketing activities.
Hofstede’s theory applies to branding and advertisements by arguing on the options marketers have in reaching out to individuals from different cultures. The cultural dimensions provide insights into consumer behaviour. The power dimension reveals the inequalities associated with wealth, lifestyle, and the level of acceptance in the societies. Individuals with more power have the privilege to purchase high-quality goods and services irrespective of the prices as they seek to develop and sustain their power distance (Cayla & Arnould, 2008). In the cultures with high power distance, the social status provides insights about the role of international branding and advertising concerning the luxury or fashion brands. With the high power distance, businesses opt for celebrity endorsements as a way of persuading the audience and convincing them that the products reflect their status.
2.3. Empirical literature review
2.3.1. Global branding strategies
A business enterprise brand is far more than their brand visual symbol and its tagline that its consumers and customers can remember (Wendell, 2011). A brand embeds the organization visions, missions, operating principles and their tactics. “A brand is symbol, design, term, name, or any other feature that identifies one seller's products to be differentiated from the other sellers”(Skinner, 1994). The main reason that makes business enterprise brand is to create a long-lasting impression in the eyes and minds of their target market concerning their reputation, culture, and their core values concerning the offered products and services in that market. This is an indication of the difference between advertising and branding.
Branding is a marketing communication tools that ensures business enterprises attain their objectives, therefore, it is a marketing strategy that determines whether these business enterprises would succeed in their operation or not depending on their branding strategies that they are employing (Fritz, 2011). During marketing, a brand acts as a spokesman for the business enterprises and these strategies determine whether these organizations would be legit in their target market or not this is because it affects the attitude and perception of the consumers concerning the products that are offered by the business enterprise.
What a business enterprise stands for and their belief (values), the association between the business enterprise and its stakeholders (behaviour), the perception and position of the consumers concerning the business enterprise logos, visual standards, and verbal themes is known as organizational identity. There is a correlation between a business enterprise vision and its success and this mainly relies on the branding strategies that they are implementing. For example through the adoption of product pricing policies, promotional strategies, modification of their products in order to resonate well with the cultural sentiments, language, and lifestyle patterns of their target market is necessary. According to Bloomberg (2017). According to Grunig et al. (1984), branding is described as the art of managing information spread between organizations and individual’s o (such as a business, government agency, or a non-profit organization) and the public. PR as a branding strategy makes it possible for business enterprises to preserve their image and how they are seen by their customers. There are various stakeholders that a business wishes to communicate with to enhance their brand's reputation and performance in their target market and these individuals include the customers, media, employees, neighbours, financial institutions, and the government as shown in figure 1. Persuasion is key in any PR campaign, and business enterprises communicate a positive viewpoint concerning their products such as their benefits, and this ensures that consumers will purchase those products in the end due the benefits that accrue from the usage of those commodities.
Figure 1: Public relations stakeholders
Source: Mathew Cabot (2012)
2.3.2. Advertising strategies
Globally, “there are brands that do not rely on domestic markets as their main source of revenue comes from the sale of the products in the international market; examples of such brands include Coca-Cola, Heineken and Michael Kors” (Journey, 2013; Bloomberg, 2017; Zacks Equity Research, 2017). These brands have succeeded from internationalization, and their success mirrors other business enterprises to start selling in the international context. However, their success is dependent on the advertising strategies that they are implementing. Advertising is the practice where an advertiser calls the attention of the consumers or populace to the products (Macrury, 2009). To increase the sale of their products, business enterprise will go an extra mile through the implementation of advertising strategies to market their products. Advertising does not guarantee that the business enterprise would succeed in their target market especially when these organizations are implementing advertising strategies that are the same as the ones being implemented by their competitors. Therefore, this success mainly depends on the type of advertising strategies being implemented, and it has to be unique diverse from the ones implemented by their competitors so that the target market can easily distinguish business products from the ones sold or produced by their competitors (Jefkins, 2016).
Diverse advertising strategies are being adopted by business enterprises to market their products (Forbes, 2015). Some business enterprises are investing in the digital space and use the online means to communicate with their target market concerning their products. Digital advertising is seen where business enterprises are frequently purchasing airtime in some of the popular TV programmes, which have a larger audience such as the Super Bowl in the United States to market their products. Some business enterprises have also employed sales personnel in their retail outlets such as wholesale stores, and supermarkets to persuade consumers to purchase from their brand. Print advertising, email marketing, and outdoor marketing are other strategies adopted by business enterprises such as placing billboards in the case of outdoor marketing to market organization products in their target market.
2.3.3. Effects of global branding and advertising strategies on the performance and reputation of a brand
The ultimate goal of any marketing communication is to ensure that the brand has a sustaining, long-term, and superior performance (De Kluyver & Pearce, 2006). A long-term and a sustaining performance are usually seen in the context of higher demand and supply of the business enterprise products (Cooper et al., 1997). The reputation of a business enterprise is usually seen regarding how the consumers perceive the brand and the products that they are selling in their target market. Business organizations must set and implement clear goals in line with their objections and these goals are usually reflected by their vision and mission. In a situation where the target market has a negative perception concerning the products that are produced and sold by a business enterprise, branding, and advertising strategies come to their aid to set a positive notion concerning their products. For example, PR can be adopted where the business enterprise communicated the value of using its products reducing their negative impact and at the same time enhancing the reputation of their brand (Kotler & Armstrong, 2005). This ensures the existence of mutual benefit between the business enterprise and the public upon which its success depends on.
Implementation of effective and efficient branding and advertising strategies also enhance the performance of a brand. Credibility is an important aspect that is usually considered by business enterprises especially when they are carrying out their branding and advertising campaigns. They always to be credible especially when they are communicating with their stakeholders such as; media analysts, policy influencers, policy makers, customers。 The low tone should be used during the relay of these marketing communication messages, and this enhances the target market awareness, understanding, and commitments towards the brand. Consumers will end up loving the brand, purchase its products, and increase the demand and sale of the organization products leading to better returns from trade.
COLLECTION OF DATA AND RESEARCH METHODS
The methods are introduced in this chapter of the research utilized during the thesis undertaking process. Additionally, the research methods justification has also gets included in the episode. The study collection of primary data also was introduced in the section, which consists of questionnaires distributed online as well as an online interview.
3.1 Methods
The study utilized qualitative research as the base of the survey the qualitative research allowed for interviewing the UK Michael Kors’s products consumers. In addition, online questionnaires were used to gather data from target customers. To create a valid data the study compared the data collected facts of review of the literature with questionnaires and interview. Through the comparison of the results, the study was able to expand the topic of the thesis understanding. The study chooses to gather data from qualitative research since the research basis of the results is descriptive. Somewhat, than the use of numbers, the qualitative analysis answers the question ‘why’ and how customers have the specific behaviour of purchase for instance.
Qualitative research conduct is through data gathering of information about opinions and attitudes of customers. Since it allows feedback from customers, companies can make practical changes on the products and service they offer. Additionally, the qualitative research becomes a great new information source about the image and the level of brand awareness. In the paper, qualitative research undertook collected information on the opinions and attitudes of customers in the UK market about Kors brand and the luxurious consumption of products in the country (Lea-Greenwood, 2012, p. 165).
As the main method of collecting data primarily for the study, the study carried out an online questionnaire for bloggers of fashion, which were sent through e-mail. We sent the surveys to 170 bloggers, from which 55 received answers. The bloggers selected were those that utilize the most popular blogging fashion site in UK Interflow. The blogs representation is the area of blogging matters “fashion” on the Website. The study identified bloggers as the holder of relevant study knowledge as they were informed and had a direct interest in fashion. In addition, there were samples represented respondents who were able to represent different occupations and age groups. Further, the description of the sampled Michael Kors brand target group took places.
As the other qualitative data sources, the study interviewed Michael Kors brand biggest retailer operating in the UK. An online discussion was initiated between the owner and the manager of the UK Zara a fashion boutique, Iñigo de Llano. The store opened in Britain July 2015. It is 3,877sq meters and portrays dreamy shoppers’ paradise. The boutique is a subsidiary of the Spain Zara founded in 1974 by Amancio Ortega Gaona and Rosalía Mer. The boutique constitutes a massive range of products and markets a different number of luxury brands that included Michael Kors brand. The boutique became preferences as an option for obtaining primary data resources. Since the boutique has been operating for over many decades throughout Europe and in the UK for over five years, it has developed comprehension of brand clientele sales (Tugby, 2015).
3.2 The research questions
The research question basis is a framework in theory that was introduced in the paper. Unique factors of culture vary across nations and affect the luxury brand. Among the variables of culture that influence the consumption, patterns of consumers are norms and values.
After these facts acknowledgment and consideration, brands that are luxurious can undertake development and make appropriate adjustments to their management and marketing strategy accordingly. The current Michael Kors retailers in the UK as well as the brand itself, have to understand the UK market through looking at the primary values of the UK market and how it influences the business procedure before moving in into the market. The problem of the research is establishing cultural effects on the enterprise strategies and branding that will allow it to attain success in the new UK market.
The research questions below are aimed at finding answers to the problem of research holistically.
• What are the Michael Kors adopted strategies?
• What are the potential Michael Kors branding strategies that can get adapt to venture into the UK fashion market?
• What cultural aspects affect the marketing and management of brand in the new potential market?
• What strategies on adverting are adopted by Michael Kors?
• How do international advertising and branding strategies affect the performance and reputation of Michael Kors’ brand?
The primary study question, what cultural aspect of the UK culture affects the brand Michael Kors when going into the UK luxury markets and its advertising strategies in the new Market?” Seeks to find some of the cultural aspects that might affect the brand when going into the UK market and the strategic marketing plan it uses to market its brand. The question also aims to identify the UK co-cultural groups that make up the actual market base of Michael Kors brand. Ultimately, the study seeks to find the channels that can be utilized to reach the market base of the brand most efficiently and see which strategy will fit in the market correctly and establish whether such procedures can be applied on a global scale not only by Michael brand but also by other fashion brands worldwide.
The study first sub-question, “What are the branding strategies adopted by Michael Kors? Aims to identify the brand current strategies and their effectiveness. Through answering the question, the study establishes if its strategy is suitable for the new market. The second –sub-question,” What are the branding strategies that Michael can adapt to venture into the UK fashion market? Seeks to identify the brand current image in the UK among consumer. The internationalization process demands branding communication, and branding and receptivity are significant. Through researching the current brand image in the new market, the study can gather vital information for suggestions that have a good roundness on how to get to the potential consumer most efficiently in the UK
4 RESULTS
The section constitutes the study results. The study introduces the study interview and its answers, which collection took place through e-mail to fashion bloggers. In addition, the findings from the online questionnaires issued through e-mail to bloggers who deal with fashion were summarized and presented.
4.1 Data Description
The survey aimed to collect description about the brand Michael Kors customer base their power of purchase, the distribution age, and size. In addition, the study wanted to find out if the recession influenced the Zara UK customer behaviour of purchase. Further, hoped to identify whether the downturns in economics reduced the shop operations profit. It provided relevant data relating on the culture of the UK affect that luxury products consumption, specifically on the use of Michael Kors’ UK consumption. In addition, it was crucial for the research to come up with a development on a comprehension of how store described the products line from Michael Kors as trendy and modern. Additionally, the company’s brand offer products of excellent and high quality with excellent ratios of price performance, tells Iñigo de Llano.
Usually, a copy of the product of a brand in most cases is an indication that the brand is not only appreciated but it is highly desirable. Zara main brand is not Michael Kors, but as per Iñigo de Llano, the brand has its base of the regular consumer. From the line MICHAEL Kors line, the store sells wallets, accessories, bags, and shoes. The owner estimates that 10-15% of the revenue from the boutique emerges from the sale of the products of the brand. In addition, the study asked what ages found the brans appealing and made purchase it, options 18-30 years, 31-54 years, 55-65 year and 66-80 years. Iñigo de Llano indicated that the distribution could start at a lower age of 13 years. Despite the line, Michael solid customer base being made up of young adults, all ages of people buy the product steadily from store Zara. Nonetheless, the manager indicated that customers from the age of 35 typically make the most purchases of the product.
The Zara store sale has remained steady even with the recession that has affected entire Europe, as have the Michael Kors line. As per Iñigo de Llano, there have been fluctuations in the trading of other brands in the store, but store total sales net have not declined or changed. The manager was clear that the Michael Kors brand never felt the effects of the recession. However, Iñigo de Llano, cannot confirm whether the sales net of the brand could have increased if the recession never happened. In addition, the managers feel that the economic downturn has affected the luxury products patterns, in terms that the consumer became more considerate when buying products. The quality of them, however, is emphasized massively: individuals may make fewer purchases, but they buy products that are better. The channels that Zara uses to reach to customers include social media and digital channels of marketing.
The store nonetheless for purposes of promotion use Instagram, Facebook and newsletter clientele. Iñigo de Llano indicated to promote the brand Michael Kors the store utilizes those same channels. As a storekeeper, Iñigo de Llano trusts that to develop a real customer relationship high-quality services development become inherent. To build relationships that are reliable with the customer, where the store loyalty increases, it becomes critical to offer a new and classical selection of product. Iñigo de Llano explains that the trust the consumer has on the conventional product are many and most time the loyalty to the store is motivated by such classic products. Nonetheless, to sustain and create piquing interest of consumer it is vital to come up with a product introduction that is interesting. The UK culture, in the opinion of Iñigo de Llano, does affect the luxury products consumption in the country. The believe Iñigo de Llano has is that the UK consumer perception on price differs from one nation to the next.
As a result, the British consider average prices of the Zara products fair, while other countries like Spain would think that product pricing as high. Also. Iñigo de Llano feels that the women in the UK consume more and buy more products that have class than other women in countries like Spain. However, each store has its base of customer that differentiates them from other stores with different purchase limits and requirements. This price is not a central concern as long as it does not exceed the limits set, for instance, the high-end prices. According to the manager, the Michael Kors line best-selling item is the bags, and other small accessories such as shoes and wallets in the UK Zara opened the store. Iñigo de Llano feels that the UK market is ideal massively for freestanding stores big, prestigious brands that sale luxury products. At the moment, the international brands in the UK with “freestanding stores are limited. Therefore, in the country, the Kors line future success is high, if there is centralised distribution was among store including multiple brand lines. Regarding customer satisfaction, a freestanding store might be worn out rapidly if a brand has to satisfy the needs of customers faster.
Fig 1: Respondents Profession
The participants further represent different professions. The students represented 44% of the respondents; 37% expressed working-class, 11% constituted high executives or employers. 6% of the respondents were mum staying at home, and 2% were individuals with no job. When respondents were asked whether they were familiar with the Michael Kors brand, 59%, which is more than 50% of the respondents’ number, indicated that they knew the brand. The respondents that meant that the brand was very familiar with them were 35%. 6% reported that the familiarity with the brand was minimal. None of the respondents stated that the brand was not familiar to them.
Additionally, the study asked “how acquainted the respondents were to the brand logo?” the entire respondent indicated they had great awareness of the brand’s logo. 55% of the respondent gave a yes answer to the question “are there any Michael Kors products getting advertised in the UK?” However, to the same question, 41% stated that they had seen such advertisements in UK (Appendix 1).
Figure 2: Michael Kors Brand Reputation in the UK
The study also asked the participants their opinion on the Michael Kors brand reputation in the UK. 85% which was the majority of the respondents, answered that brand in the UK had a right image. The rest believed that the image of the brand was moderate (Figure 2). The next question the study provided several options (adjectives) to choose. The respondents must favourite answer was adjectives “expensive” selected 33 times, “high-quality” selected 32 times and “diverse products offering” selected 24 times. However, the adjective “bad quality” was also chosen three times by the participants. In addition, the adjectives “affordable” and “ethical” in a single instance (Appendix 1.)
Fig 3: Adjective that represents the Brand Best
Regarding the question, in what range of price do you believe the Michael Kors product ought to be positioned? 28 respondents who are more than half respondents number, thought that the product where affordable. Nonetheless, 20 respondents indicated that the brand was expensive to purchase. (Appendix 1).
Figure 4: What can allow a Michael Kors Brand Store Thrive in the UK
7% of respondents indicated the store had a chance of excelling in the UK. 65% showed it would do well which was the majority of the respondents. 22% reported moderate success level and 6% did not have an opinion. However, there were o respondents who thought that the stores would fail in the UK. (FIGURE 4.)
When asked about the availability of the brand product in the country currently, 40% of the respondents indicated that it had enough presence. 20% felt that the availability was limited, 9% stated possibility the availability was limited. On the other hand, 22% reported that there were unsure of the same. (Appendix 1.).
To the question on the access to Michael Kors brand, 76% of the respondents indicated that yes they could access the brand products from a point. Four% felt that they cannot get the product quickly. Another, 19% of the respondents could not confirm such access ease and 2% were unsure of the availability ease of the product. (Appendix 1.).
Figure 5: Customer Purchase Point of the Brand Michael Kors
When asked purchase point of the Michael Kors product in the past, 18 of the respondents stated they purchased the brand online, 16 noted that such purchase was from a UK departmental store. 9 of the 55 respondents indicated they bought the product abroad while five pointed out that the purchase was from a UK retailer. (Figure 5).
Figure 6: Age Group Likely To Purchase the Michael Kors Brand
When asked the age group that was likely to purchase the company product from a retail store in the UK, most of the participants stated that the age group 18-34 would make such purchases. The most likely group as per the respondents was the age group 31-54, the third possible age group as per the respondents was the 35 to 54. The other group was the 55 to 65 age group, and the fourth most likely age group was that of 66 to 75. (Figure 6.)
Figure 7: The Product of the Michael Kors Brand that is Likely to Sell Best in the UK
In regards to the Product of the Michael Kors Brand that is Likely to Sell Best in the UK, as per the respondents it would most likely be watches and bags. In addition, in the UK shoes and accessories would even succeed in the country. Of the five provided option respondents indicated that women and men’s fashion products would sell least in the region. (Figure 7).
Figure 8: in the UK, which Channel of Marketing would Prove Most Appropriate for the Michael Kors Store
Different options were given to the participants regarding the question “In the UK is there a Channel of Marketing would Prove Most Appropriate for the Kors Store?” The participants answered that the internet and magazines on fashion were the appropriate channels for promoting a Michael Kors’ store in the UK. 46 times respondents choose fashion magazines and the internet. The events for PR were also seen as appropriate channels for such marketing and hence 31 times the channel was selected by respondents. 20 times the respondents select road campaigns, and television was selected 14 times as an appropriate channel. Radio was picked five times, but none of the respondents though newspapers were channels that were appropriate for such marketing. (FIGURE 8.).
Open-ended questions
The section offers results analysed of the questions in the questionnaires submitted online. The surveys asked questions that were open-ended. The issue related to the consumption of the luxury brand in the UK, the Michael Kors retail store prospects of success in the UK and the influence the UK culture would have on the brand. The question brought forth three crucial themes that the study has repeatedly used.
Culture Impact
In regards to culture, respondents indicated that the impact of culture on the brand would be minimal. Very few respondents felt that the cultural difference might affect the brand UK performance in a negative manner. The UK people experienced with luxury product buying, as they believe in value for money. Additionally, other respondents thought that the English are the sort to purchase products that are expensive and individuals perceived the products are expensive for a person of average income to purchase. In addition, the respondents that thought the English culture would affect the brands indicated that it was best to promote the brand as a quality product rather than a luxury brand.
They believed the English tend to have more consideration when purchasing products that are considered as luxury products. Nonetheless, as a culture in the world evolves more and more individual in the UK are going for luxury brands and are growing conscious for brands. As per the respondent, the survey believes the culture in the UK has changed positively toward consumption of luxury products further turning in a better direction. People have now value for an appearance, quality, durability more and hoping to pay less.
Success Factors
The study hoped to identify what factors would influence the Kors Store success in the UK. Some participants indicated that disposable income, product price, and other economic situations would have an affect the prosperity of the store in the UK. Most of the respondents cited location as the primary factor that would affect the brand. Other respondents stated the promotion and marketing efforts undertaken by the brand would have an influence. The brand is known in the UK, and hence the most crucial outcome of promotion has already been attained. Excessive development may become irritating to some individuals. Among young people, Michael Kors is a brand that is often discussed and the brand being known abroad increased the brand trend. However, they are those that feel the brand becoming too common is negatively affecting its value.
The motivation for Consuming Luxury
The study wanted the blogger to give an opinion on the factors influencing the decision to purchase a luxury commodity. Several participants cited an appearance as the motivator for purchasing luxury products. Others pointed out that the brand itself is a motivator. However, other though brand only cannot drive purchase. In addition, most respondents have invested in luxury products due to its good quality. The answer indicates that the life of a product is particularly critical. Most participants cited that products of high quality, with designs that are classic and beautiful, are likely to attract a UK customer.
4.3 Data SWOT Analysis
Figure 9: SWOT Analysis of Data
4.4 Conclusions
The questionnaire and the interview offered opinions and descriptions of individuals selected that had a connection to the fashion industry. The two sources demonstrated that Michael Kors is a brand with the great image in the UK. The products were massively described positively, and the purchasing decision critical factors were a classic design, durability, and high quality, as well as the product trendiness, is as per the answer of most respondents. The respondents also mostly indicted that a freestanding store for the brand is a place they would visit. However, the respondent clarified that that purchase of luxury products is something they do rarely or annually. Both the questionnaire and the interview indicated bags and smaller accessories as Michael Kors best- selling products. The blogger stipulated that young adults between the ages of 18 and 30 would have a greater interest in purchasing the products of the brand.
On the contrary, the respondents thought a freestanding store would not get a customer guarantee as they felt the customers’ number would not prove sufficient. There those that stipulated that the competition from existing brands might limit the success of Michael brand. Moreover, the preferred point of purchase for the brand is online. Further, the online promotion was deemed the appropriate channel to promote the brand. The questionnaire and the interviewee both found traditional media as unfavourable for the promotion of the brand.
5. DISCUSSION
5.1 Results Overview
The questionnaire sent to bloggers in “in the flow” website blogging on fashion indicted the following: Michael Kors current image in UK and consumption of luxury and the behaviour of purchase in the country. Also, the culture was another discussion factor and its possible effect on the profitability of the brand of a potential store with only the brands ‘products and the way it ought to market in the new market. Despite the respondents that responded being 55 out of 170 bloggers the questionnaire were deemed representative as the number exceeded the third limit of the total group. In addition, the response represents individuals of different ages. The interview included Zara UK manager, Iñigo de Llano. The interview was a means to gain insight into the Michael Kors clientele in the country: their power of purchase, their distribution age, and size. The manager has been working in the sector for numerous years hence had a great concept of the UK luxury spending and their behaviour of purchase. The questionnaire and interview offered data that was primary combined with other information sources about the Michael Kors in UK current image and the most effective channels to promote the brand for the group targeted.
5.2 Recommendations
The Michael Kors brand has made major steps and has proved that it can increase its share of the market as they have the market and success capability outside the US. Moreover, enterprises have a unique cultural conception and they hope to have an expansion of the business to new specific markets. Since culture is, a factor that has potential to affect the brand established in the UK. The brand should take advantage of the evolution of culture to capture the youth who are champions of culture change. Moreover, such a group is living a lifestyle that is fast and wants something trendy. This particular demographic segment is accurate. Such a demographic group constitutes individuals who desire luxury products typical features. Moreover, customer services that are proficient and reliable will help the brand establish a “Love mark” position hence the brand can improve its reliability. If the brand can incorporate this recommendation, it can guarantee increased sales and a larger customer base from their physical store.
References
Alam, M., 2016. Brand building challenges in global market: an overview. International Journal of Management and Applied Science, 2(5), pp. 146-151.
De Mooij, M. & Hofstede, G., 2002. Convergence and divergence in consumer behaviour: Journal of Retailing, Volume 78, pp. 61-69.
De Mooij, M., 2010. Global Marketing and Advertising, Understanding Cultural Paradoxes New York: Sage.
Kluyver, C. & Pearce, J., 2006. Strategy: A View from the Top. 4th ed. New York: Pearson
Krueger, D. & Nandan, S., 2008. Branding in the Global Arena: The Role of Culture. Marketing Management Journal, pp. 30-39.
Nakata, C., 2009. Beyond Hofstede: culture frameworks for global marketing and management. London: Palgrave MacMillan.
Fonseca, C., 2015. How can Michael Kors Learn from Coach Inc. mistakes and transformation plan in the paradox of growth and brand identity safekeeping? New York: NOVA
Bloomberg. (2017). About Heineken NV. (Online). Retrieved from:
https://www.bloomberg.com/quote/HEIA:NA
Cayla, J., & Arnould, E. (2008). A Cultural Approach to Branding in the Global Marketplace. Journal of International Marketing, 88–114.
Cooper KF, et al. (1997) Stress and developmental regulation of the yeast C-type cyclin Ume3p
(Srb11p/Ssn8p). EMBO J 16(15):4665-75
De Kluyver, C. A., & Pearce, J. A. (2006). Strategy: A View from the Top (4th Edition). New
York: Pearson.
De Mooij, M. (2010) Global Marketing and Advertising, Understanding Cultural Paradoxes
(3rd edn). Thousand Oaks, CA: Sage.
De Mooij, M. & Hofstede, G. (2002) Convergence and divergence in consumer behaviour:
implications for international retailing. Journal of Retailing, 78, pp. 61–69.
Etzel, M. J., Walker, B. J., & Stanton, W. J. (2007). Marketing. Maidenhead, McGraw-Hill
Education.
Fonseca, C. (2015). How can Michael Kors Learn from Coach Inc. mistakes and transformation plan in the paradox of growth and brand identity safekeeping? NOVA.
Forbes. (2015). Unilever Turns to Online Sales to Expand Presence in China.
https://www.forbes.com/sites/greatspeculations/2015/06/25/unilever-turns-to-online-sales-to-expand-presence-in-china/#15c23a7219da
Fritz, J. (2011). Five steps to defining-profit’s brand. About.com Retrieved from:
http://nonprofit.about.com/od/nonprofitpromotion/fr/branding.htm.
Grunig, James E, & Hunt, E (1984). The Managing Public Relations, Harcourt Brace
Jovanovich College Publishers.
Hargie, O. (2017). Skilled interpersonal communication: Research, theory, and practice.
Rutledge. New York.
Jefkins, F. (2016). Advertising. Elsevier Science. http://www.myilibrary.com?id=932313.
Jones, M. (2007). Hofstede - Culturally questionable? Oxford: Oxford University Press.
Journey, S. (2013). Coca-Cola International President Discusses Global Business, Growth
Prospects. Coca-Cola. (Online). Retrieved from: http://www.coca-colacompany.com/stories/coca-cola-international-president-discusses-global-business-growth-prospects
Kotler, P. T. (2006), Principles of Marketing. Pearson Prentice Hall.
Literacy Research Association. (2015). Literacy research: theory, method, and practice.
http://journals.sagepub.com/home/lrx/.
Macrury, I. (2009). Advertising. London, Rutledge.
http://www.crcnetbase.com/isbn/9780203493199.
Mattew, C. (2012). Introduction to public relation. San Jose State University.
Miracle, G.E. (1987) Feel-do-learn: an alternative sequence underlying Japanese consumer
response to television commercials, in Feasley, F. (ed.) Proceedings of the
1987 Conference of the American Academy of Advertising, USA, pp. R73–R78.
Nakata, C. (2009). Beyond Hofstede: culture frameworks for global marketing and management.
Basingstoke [England], Palgrave Macmillan. http://public.eblib.com/choice/publicfullrecord.aspx?p=533591
Normandy, M. (2010). For Unilever branded drama is unbeatable in China.
http://adage.com/china/article/china-news/for-unilever-branded-drama-is-unbeatable-in-china/145338/
Skinner, S. J. (1994). Marketing, (2nd ed.). Boston: Houghton Mifflin Co.
Tellis, G.J., Stremersch, S. & Yin, E. (2003). The international take-off of new products: the role
of economics, culture, and country innovativeness. Marketing
Science, 22(2), pp. 188–208.
Wendell, M. (2011). Branding. BelleBooks. Retrieved from:
http://www.myilibrary.com?id=788977.
Yaveroglu, I.S. & Donthu, N. (2002) Cultural influences on the diffusion of new products.
Journal of International Consumer Marketing, 14(4), pp. 49–63.
Yeniurt, S. & Townsend, J.D. (2003) Does culture explain acceptance of new products in a
country? International Marketing Review, 20(4), pp. 377–396.
Zacks Equity Research. (2017). Can Michael Kors Strategic Growth Plan Combat Comps
Woes? (Online). Retrieved from: https://finance.yahoo.com/news/michael-kors-strategic-growth-plan-133901656.html
Zima, P. V. (2011). What is theory? Cultural theory as discourse and dialogue. Jaipur, Rawat Publications.
Anon., 2010. The Future of Luxury in Recession. [Online]
Available at: http://luxurysociety.com/articles/2010/05/thefuture-of-luxury-in-a-recession
[Accessed 9 March 2018].
Anon., n.d. Investors. Corporate Profile. [Online]
Available at: http://phx.corporate-ir.net/phoenix.zhtml?c=235654&p=irol-homeprofile
[Accessed 10 March 2018].
Creswell, J. W., 1998. Qualitative inquiry and research design: Choosing among five traditions. Oaks, CA: Sage.
Lea-Greenwood, G., 2012. Fashion Marketing Communications. Somerset, NJ USA: John Wiley &Sons.
LoveMarks, n.d. The future beyond brands. [Online]
Available at: http://www.lovemarks.com/index.php?pageID=20020
[Accessed 10 March 2018].
Tugby, L., 2015. Zara owner Inditex appoints Iñigo de Llano as new UK managing director. [Online]
Available at: https://www.retail-week.com/fashion/zara-owner-inditex-appoints-inigo-de-llano-as-new-uk-managing-director/5071374.article?authent=1