Competitive Strategy

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Brief outlookBrand analysisSWOT AnalysisBrand strategyReferences

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“For Prada, fashion, luxury and style have always been core aspects of a project that

goes beyond production of clothes, footwear and handbags. Careful observation and

interest in the world, society, and culture are at the core of Prada’s creativity and

modernity. This has pushed Prada beyond the physical limitations of boutiques and

showrooms, leading us to interact with diverse, seemingly distant worlds, and

introducing, very naturally, a new way of creating fashion”.

Miuccia Prada and Patrizio Bertelli

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1913 – Mario Prada opens a luxury store (handbags, shoes, trunks, luxury accessories, etc.) Handcrafted, sophisticated goods – rapidly

70’s – the new era of Miuccia Prada & Patrizio Bertelli has started. They turned the label towards haute couture and internationalization.

1985 – Prada’s classic elements with mohandbag (parachute nylon).

1984 - expansion across continental Europe. 1989 - Prêt-à-porter collection 90’s – Fondazione Prada. New brand image blending traditional

and architectural setting - benchmark for luxury retail. 1992 – world’s expansion

Brief outlook

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Brief outlook

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Brief outlook

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Positioning

Mario Prada’s initial collection of high-quality, functional travel accessories

Miuccia Prada’s creative vision and passionate exploration for fabric and design innovation (i.e. fashional/functionable; simple; elegant)

Classic and elegant collections while other fashion houses concentrated on sexuality

Modern innovation through experimentation with unconventional fabrics and artistic backdrops in Prada retail stores

Target1. Cultural creative, intellectualists, innovators.

2. Affluent customers willing to spend more than most.

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Brand mantra

Emotional: Stylish, SexualDescriptive: Contemporary Classic, ElegantBrand Function: Self-Expression

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Brand’s PODsVisual Identity/Architecture – 6 stores, designed by

Prada (NY, Tokyo, San Francisco etc.)Singularity: new materials in each new collectionUsage of art in collections and supporting of

contemporary art - Fondazione PradaSpecial collections designed for some stores

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Brand analysis• Market Segmentation Market nicher, also working with customization

through Prada Made-to-order collection

• Market nicher strategiesQuality-price specialistProduct line specialist

• Managing Brand EquityBrand reinforcement through new and innovative collections.Extensive brand portfolio through Flanker products, such as eyewear, fragrances and Leather Goods

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Prada’s commercial

http://www.youtube.com/watch?v=TjXhSQHMphc&feature=related

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Brand competitive analysis

Value Proposition

Audience

Range of authority

Relationship

Innovation, elegance,

Style

Intellectual and creative

fashionistas

Leather goods, Clothing, eyewear,

fragrances, jewellery

Self expression, superior taste

Superior quality, Classical

Achievement, career success

Self-made, successful

people

Sexy, cutting edge,

contemporary

Modern urban, fashion- aware

people

Confident, stylish

Leather goods, Clothing, eyewear, fragrances, silks,

jewellery

Leather goods, Clothing, eyewear,

stationery, jewellery

Britishness, Democratic

luxury

Smart, authentic individuals

Heritage, Innovation and

intuition

Leather goods, Clothing, home,

fragrances, beauty, jewellery

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SWOT analysis Strengths

•Loyal audience•Multi brands stores all over the world•Successful alliances with LG and Toyota•Bright well-known, recognizable advertising company • Unique heritage under Miuccia Prada

Weaknesses •Private company – difficulty in acquiring funding; ongoing battle with corporate debts•57% of sales- leather goods • Weak e-commerce participation• Unfriendly policy to environment

Opportunities• Global markets growth -Asia esp. China• Outsourcing production •Product alliances with new partners•Franchises•Digital market•Capture the younger generation consumers

Threats• Transparency of Internet lead to price consistency or “Burberry effect”•Falsifications (esp e-market, touristic countries) •Existing competitors and rising fashionable catwalk copycats (H&M, Zara) • European crisis

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#1. Geographical expansion

In 2011 were opened 69 stores over the world

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#1. Geographical expansion

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#1. Geographical expansion

The Luxury market is expected to grow 65% by 2015!

Points to consider…..Today Prada gets more than 42%

of it´s sales from Asia, more specifically from China. But recently this market has slowed down

Middle east market is expected to double by 2015

The travel retail channel is key. Sales to travelers grew by 10pp in recent years

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#1. Geographical expansion

Expand presence in Middle east , especially UAE and Saudi Arabia.

Reinforce presence and communication efforts is well known high end tourists destinations, such as Monaco, French Riviera.

LatAm (focus on Brazil) Big market opportunity due to thriving economic conditions and the hosting of major events (World Cup, Olympics)

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#2. digital presenceWho wants to walk down Bond Street in the rain when you

can sit on the sofa with a glass of wine, surfing the Web?

Facebook

Twitter

1,719 K

Don’t have

7,957 K

169 K

7,948 K

374 K

12,836 K

993 K

WHILE… 65% increase in spending on luxury goods expects by 2015

98% of target audience is spending 13.1 hours pw online doing research before making purchases

in the USA reviews influence purchasing decision of 89% target audience

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#2. digital presenceAttract your audience. Create a desire!

Increase awareness and work for long-term sales.

Tell the story Communicate the creative idea of Prada Convey your exclusivity Bring up younger luxury consumers

The 360 –degree marketing strategy Connection between offline and online

Using the mobile channel

Through

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#2. digital presenceMake a purchase process easy!

Increase sales right now.

develop e-stores (web, mobile app), focus on the well-developed and developing markets (Europe, UK, China, Japan)

offer there incomparable exclusive service

And Prada become available to anyone around the world!

Prada for Nine West Featuring cobranded luxury goods in a fast fashion store acts as a

gateway for mass market customers to enter the luxury goods arena.

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#3. alliances

Why Nine West? Similar target audience Focus on shoes, leader in the industry Nine West is especially strong in advertising, digital

marketing Co-operation with large number of magazines- Easy Living, Cosmopolitan, Instyle, Glamour, Vogue etc. According to media research Prada customers are loyal

to Nine West brand*

*People who like this brand also tend like other fashion brands such asChloé, Dior, Brora, Myla and Nine West.People who like this brand tend to dislikefashion brands such as Claire's, H&M, Dorothy Perkins, Coach and Bhs.

What is in it for us?For customers The opportunities to try a new

product A sense of excitement and

adventure, Special Prada design with

Nine West reliable quality For Nine West fans- the prove

of the brand high standards

For Prada Production price reduction Sales increase Coverage of the wide

audience , new market group Test sales in the middle class

audience Marketing resonance Test E-sales

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Game plan to protect the exclusivity of untouchable brand

A star launch party with performances bycelebrities on the preview Mass Media Resonance, promo in e-media Very limited availability and only in select stores. Short-term Sales

So!‘ While there is always a risk in rolling out a high-end brand in a

mainstream store, it can be done right. Even if your prices have to come down to reach the masses, you can make it work by maintaining a level of exclusivity in the shopping experience. And, no matter what, always

stay on brand.’Versace for H&M preview

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And the result surprises you…

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Thank you.Questions?

Introducing a new form of beauty in the modern day….one that of paradoxical nature, “a girly edge, but in the end it is nasty” – Miuccia Prada

By:

Olga Dyachuk & Darya Motornova &

Alexandre Ferreira

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References• http://theglassmagazine.com/forum/feature.asp?tid=614#title • http://www.pradagroup.com • http://www.americascup.com/en/Teams/Luna-Rossa-Challenge-2013/The-Boats/ • http://www.cheapprada.org/blog • http://fondazioneprada.org/ • http://www.prada.com/en / • www.youtube.com • http://

www.prnewswire.com/news-releases/global-luxury-retailing-market-size-brand-strategies-and-competitor-performance-134669478.html

• http://www.bloomberg.com/news/2011-12-16/prada-poised-to-extend-slump-as-china-s-shoppers-cut-back-spending-retail.html

• http://www.independent.co.uk/life-style/fashion/features/one-step-ahead-an-exclusive-behindthescenes-look-at-what-makes-prada-the-worlds-most-influential-fashion-label-1818812.html

• http://www.internetmarketingsolution.com.au/Internet_marketing__luxury_brands.html• http://www.prnewswire.com/news-releases/global-luxury-retailing-market-size-brand-strategies-and-competit

or-performance-134669478.html

• http://blogs.forrester.com/sucharita_mulpuru/12-02-27-us_online_retail_hits_200b (Forester Research)• “The luxury consumer in the new digital: then & now. 2012 Report” • http://www.ninewest.co.uk/• http://answers.google.com/answers/threadview/id/749041.html• http://www.slideshare.net/brlippert/nine-west-crative-brief• http://advertising.microsoft.com/research/luxury-lovers • “Luxury-Goods Stocks are Flying High”, MSN Money, December 20, 2010http://www.marketingmagazine.co.uk/news/1104353/