In reading the case study, I found the key problem that Kate Spade New York (KSNY) faced was how to penetrate the global market and increase their revenue without diluting the integrity of their brand. The need to increase their already high revenue via global luxury accessories market became paramount to them. In researching, their executive management team found that the two ways this goal could be achieved was figuring out how to create new KSNY products for new customers and widen the demographics of their current products though they already had a loyal following of customers. Now the next step would be to know the exact path to follow. This problem that KSNY faced was important because the fashion industry is vast, fast-paced and ever evolving. For KSNY not to focus on tapping into global luxury accessories market would be the beginning of their downfall. If they don’t follow the evolving trend of the …show more content…
Using this brand strategy would be beneficial to both customers and the KSNY. The first reason for my recommendation, terms primarily from loyalty and integrity. It is important that the original loyal customers still feel the same sense of trust and pride in the brand they’ve been devoted to. In maintaining the original expensive line of products, KSNY can achieve the latter statement. Keeping the original line going respects their original customers as well as keeps their already know revenue flowing. Secondly, through their research, KSNY realized that the demographics between the ages of 16 to 24 years loved their brand but couldn’t afford it. This in my opinion was enough data collection to diffuse the brand to make it affordable for the new customers. When you know the ‘want’ is there, why not provide the product; would be unwise and not a good business model not to do so. The desire to own a KSNY product is already there, but judging the human psyche, most will get the next best thing to the