3. “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
5/18/2012
4. Brief outlook
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
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7. Positioning
Target
1. Cultural creative, intellectualists, innovators.
2. Affluent customers willing to spend more than most.
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
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9. Brand’s 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 stores
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10. Brand analysis
• Market Segmentation
Market nicher, also working with customization through
Prada Made-to-order collection
• Market nicher strategies
Quality-price specialist
Product line specialist
• Managing Brand Equity
Brand reinforcement through new and innovative collections.
Extensive brand portfolio through Flanker products, such as
eyewear, fragrances and Leather Goods
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12. 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
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13. SWOT analysis
Strengths Weaknesses
•Loyal audience •Private company – difficulty in acquiring funding;
ongoing battle with corporate debts
•Multi brands stores all over the world
•57% of sales- leather goods
•Successful alliances with LG and Toyota
• Weak e-commerce participation
•Bright well-known, recognizable advertising
company • 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 catwalk
•Franchises
copycats (H&M, Zara)
•Digital market
• European crisis
•Capture the younger generation consumers
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16. #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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17. #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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18. #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 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
Facebook 1,719 K 7,957 K 7,948 K 12,836 K
Twitter Don’t have 169 K 374 K 993 K
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19. #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
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20. #2. digital presence
Make 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!
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21. #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.
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22. 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 as
Chloé, Dior, Brora, Myla and Nine West.
People who like this brand tend to dislike
fashion brands such as Claire's, H&M, Dorothy Perkins, Coach and Bhs.
23. 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-sales
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24. Game plan to protect the exclusivity of untouchable
brand
A star launch party with performances by
celebrities 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
26. 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
