For Prada, fashion, luxury and style have always been core
aspects of a project that goes beyondproduction of clothes,
footwear and handbags. Careful observation and interest in the
world, society,and culture are at the core of Pradas creativity and
modernity. This has pushed Prada beyond thephysical limitations of
boutiques and showrooms, leading us to interact with diverse,
seemingly distantworlds, and introducing, very naturally, a new way
of creating fashion.Miuccia Prada and Patrizio
Bertelli5/18/2012
Brief outlook 1913 Mario Prada opens a luxury store (handbags,
shoes, trunks, luxury accessories, etc.) Handcrafted, sophisticated
goods rapidly 70s the new era of Miuccia Prada & Patrizio
Bertelli has started. They turned the label towards haute couture
and internationalization. 1985 Pradas classic elements with
mohandbag (parachute nylon). 1984 - expansion across continental
Europe. 1989 - Prt--porter collection 90s Fondazione Prada. New
brand image blending traditional and architectural setting -
benchmark for luxury retail. 1992 worlds expansion5/18/2012
Brief outlook5/18/2012
Brief outlook5/18/2012
Positioning Target 1. Cultural creative, intellectualists,
innovators. 2. Affluent customers willing to spend more than most.
Mario Pradas initial collection of high-quality, functional travel
accessories Miuccia Pradas 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 stores5/18/2012
Brands PODs Visual Identity/Architecture 6 stores, designed by
Prada (NY,Tokyo, San Francisco etc.) Singularity: new materials in
each new collection Usage of art in collections and supporting of
contemporary art -Fondazione Prada Special collections designed for
some stores5/18/2012
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 aseyewear, fragrances and Leather Goods5/18/2012
Brand competitive analysis Value Innovation, Superior quality,
Sexy, cutting Britishness, Proposition elegance, Style Classical
edge, Democratic luxury contemporary Audience Intellectual and
Self-made, Modern urban, Smart, authentic creative successful
fashion- aware individuals fashionistas people people Leather
goods, Leather goods, Leather goods,Range of authority Leather
goods, Clothing, Clothing, eyewear, Clothing, eyewear, Clothing,
home, eyewear, fragrances, stationery, jewellery fragrances, silks,
fragrances, beauty, jewellery jewellery jewellery Self expression,
Achievement, Confident, stylish Heritage, Innovation Relationship
superior taste career success and intuition 5/18/2012
SWOT analysis Strengths WeaknessesLoyal audience Private
company difficulty in acquiring funding; ongoing battle with
corporate debtsMulti brands stores all over the world 57% of sales-
leather goodsSuccessful alliances with LG and Toyota Weak
e-commerce participationBright well-known, recognizable
advertisingcompany Unfriendly policy to environment Unique heritage
under Miuccia Prada Opportunities Threats Global markets growth
-Asia esp. China Transparency of Internet lead to price consistency
or Burberry effect Outsourcing production Falsifications (esp
e-market, touristic countries)Product alliances with new partners
Existing competitors and rising fashionable catwalkFranchises
copycats (H&M, Zara)Digital market European crisisCapture the
younger generation consumers 5/18/2012
#1. Geographical expansion In 2011 were opened 69 stores over
the world5/18/2012
#1. Geographical expansion5/18/2012
#1. Geographical expansion The Luxury market is expected to
grow 65% by 2015!Points to consider.. Today Prada gets more than
42% of itssales from Asia, more specifically from China.But
recently this market has slowed down Middle east market is expected
todouble by 2015 The travel retail channel is key. Sales
totravelers grew by 10pp in recent years 5/18/2012
#1. Geographical expansion Expand presence in Middle east ,
especially UAE and Saudi Arabia. Reinforce presence and
communication efforts is well known highend tourists destinations,
such as Monaco, French Riviera. LatAm (focus on Brazil) Big market
opportunity dueto thriving economicconditions and the hostingof
major events(World Cup, Olympics) 5/18/2012
#2. digital presence Who wants to walk down Bond Street in the
rain when you can sit on the sofa with a glass of wine, surfing the
Web?WHILE 65% increase in spending on luxury goodsexpects by 2015
98% of target audience is spending 13.1hours pw online doing
research beforemaking purchases in the USA reviews influence
purchasingdecision of 89% target audienceFacebook 1,719 K 7,957 K
7,948 K 12,836 KTwitter Dont have 169 K 374 K 993 K 5/18/2012
#2. digital presence Attract 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 Through The 360 degree marketing
strategy Connection between offline and online Using the mobile
channel 5/18/2012
#2. digital presence Make a purchase process easy! Increase
sales right now. develop e-stores (web, mobileapp), focus on the
well-developedand developing markets (Europe,UK, China, Japan)
offer there incomparableexclusive service And Prada become
available to anyone around the world! 5/18/2012
#3. alliances 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.5/18/2012
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 alsotend like other fashion brands such asChlo,
Dior, Brora, Myla and Nine West.People who like this brand tend to
dislikefashion brands such as Claires, H&M, Dorothy Perkins,
Coach and Bhs.
What is in it for us?For customers For Prada The opportunities
to try a new Production price reduction product Sales increase A
sense of excitement and Coverage of the wide audience , adventure,
new market group Special Prada design with Nine Test sales in the
middle class West reliable quality audience For Nine West fans- the
prove of Marketing resonance the brand high standards Test
E-sales5/18/2012
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 mainstreamstore,
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
And the result surprises you5/18/2012
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 Thank you. Questions?5/18/2012
By: Olga Dyachuk & Darya Motornova & Alexandre
Ferreira5/18/2012
References
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competitor-performance-134669478.html
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Luxury-Goods Stocks are Flying High, MSN Money, December 20,
2010http://www.marketingmagazine.co.uk/news/1104353/ 5/18/2012