Kate Spade Case

Kate Spade

Opportunity

* Cost: Growing and expanding the brand and product line.

* Customers: Customers seeking a bridge level fashion accessory.

* Competition: Other Bridge level fashion accessories such as Polo Ralph Lauren.

* Context: Kate Spade is a fashion label which was created to offer customers a handbag that was just below the established luxury handbag brands. The company differentiates itself by focusing on fabric bags. The company has experienced a fair bit of success and the founders are now considering various options to grow the brand and extend its product line. They are considering four options of potential investment into ate Spade.

People

* Katy Brosahan-Co Founder of Kate Spade. She began the original ground work to build the company. She is also the chief creative force behind the company. She has a clear vision for Kate Spade and a which position it should occupy in the fashion market.

* Elyce Cox- Co-owner of Kate Spade. She was instrumental in the birth of the Kate Spade idea. Before coming back to join Kate Spade, she gained extensive marketing and public relations experience and Marithe & Francois Girbaud North America.

* Andy Spade- Husband and co-founder of Kate Spade and husband of Katy Brosnahan. His income from his regular job helped fund Kate Spade in the earl days.

* Pamela Bell- Joined Kate Spade in 1993. Has a strong entrepreneurial spirit and already owned her own jewelry business.

Key Success Factors

* Selection of the right investors

* Protecting the vision and position the brand

* Establishment of key strategic partnerships to help grow the business

Deal

What should the Kate Spade owners do?

I believe the owners of Kate Spade should seriously consider if the options listed are truly necessary. The have created a unique brand that is well positioned in the market. This brand runs the risk of losing its focus if it becomes part of a portfolio of fashion brand as it will be in most of the proposed deals. I believe the company has the right fundamentals to continue its slow but steady growth rate while maintaining its identity. Of all the deals outlined, I would suggest Option A in the event they absolutely need partners. This deal allows them to retain control of the brand while also providing the necessary management expertise needed to grow the brand.