3. āFor 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 Pradaās 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 fashionā.
Miuccia Prada and Patrizio Bertelli
5/18/2012
4. Brief outlook
ļ¶ 1913 ā Mario Prada opens a luxury store (handbags, shoes, trunks,
luxury accessories, etc.) Handcrafted, sophisticated goods ā rapidly
ļ¶ 70ās ā the new era of Miuccia Prada & Patrizio Bertelli has started. They
turned the label towards haute couture and internationalization.
ļ¶ 1985 ā Pradaās classic elements with mohandbag (parachute nylon).
ļ¶ 1984 - expansion across continental Europe.
ļ¶ 1989 - PrĆŖt-Ć -porter collection
ļ¶ 90ās ā Fondazione Prada. New brand image blending traditional and
architectural setting - benchmark for luxury retail.
ļ¶ 1992 ā worldās expansion
5/18/2012
7. Positioning
Target
1. Cultural creative, intellectualists, innovators.
2. Affluent customers willing to spend more than most.
ļ¶ Mario Pradaās initial collection of high-quality, functional travel
accessories
ļ¶ Miuccia Pradaās creative vision and passionate exploration for fabric
and design innovation (i.e. fashional/functionable; simple; elegant)
ļ¶ Classic and elegant collections while other fashion houses
concentrated on sexuality
ļ¶ Modern innovation through experimentation with unconventional
fabrics and artistic backdrops in Prada retail stores
5/18/2012
9. Brandās PODs
ļ¶ Visual Identity/Architecture ā 6 stores, designed by Prada (NY,
Tokyo, San Francisco etc.)
ļ¶ Singularity: new materials in each new collection
ļ¶ Usage of art in collections and supporting of contemporary art -
Fondazione Prada
ļ¶ Special collections designed for some stores
5/18/2012
10. Brand analysis
ā¢ Market Segmentation
Market nicher, also working with customization through
Prada Made-to-order collection
ā¢ Market nicher strategies
Quality-price specialist
Product line specialist
ā¢ Managing Brand Equity
Brand reinforcement through new and innovative collections.
Extensive brand portfolio through Flanker products, such as
eyewear, fragrances and Leather Goods
5/18/2012
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
5/18/2012
13. SWOT analysis
Strengths Weaknesses
ā¢Loyal audience ā¢Private company ā difficulty in acquiring funding;
ongoing battle with corporate debts
ā¢Multi brands stores all over the world
ā¢57% of sales- leather goods
ā¢Successful alliances with LG and Toyota
ā¢ Weak e-commerce participation
ā¢Bright well-known, recognizable advertising
company ā¢ Unfriendly policy to environment
ā¢ Unique heritage under Miuccia Prada
Opportunities Threats
ā¢ Global markets growth -Asia esp. China ā¢ Transparency of Internet lead to price consistency
or āBurberry effectā
ā¢ Outsourcing production
ā¢Falsifications (esp e-market, touristic countries)
ā¢Product alliances with new partners
ā¢Existing competitors and rising fashionable catwalk
ā¢Franchises
copycats (H&M, Zara)
ā¢Digital market
ā¢ European crisis
ā¢Capture the younger generation consumers
5/18/2012
16. #1. Geographical expansion
The Luxury market is expected to
grow 65% by 2015!
Points to considerā¦..
ļ¶ Today Prada gets more than 42% of itĀ“s
sales from Asia, more specifically from China.
But recently this market has slowed down
ļ¶ Middle east market is expected to
double by 2015
ļ¶ The travel retail channel is key. Sales to
travelers grew by 10pp in recent years
5/18/2012
17. #1. Geographical expansion
ļ¶ Expand presence in Middle east , especially UAE and Saudi Arabia.
ļ¶ Reinforce presence and communication efforts is well known high
end tourists destinations, such as Monaco, French Riviera.
ļ¶ LatAm (focus on Brazil)
Big market opportunity due
to thriving economic
conditions and the hosting
of major events
(World Cup, Olympics)
5/18/2012
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?
WHILEā¦
ļ¶ 65% increase in spending on luxury goods
expects by 2015
ļ¶ 98% of target audience is spending 13.1
hours pw online doing research before
making purchases
ļ¶ 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 Donāt have 169 K 374 K 993 K
5/18/2012
19. #2. digital presence
Attract your audience. Create a desire!
Increase awareness and work for long-term sales.
ļ¶ Tell the story
ļ¶ Communicate the creative idea of Prada
ļ¶ Convey your exclusivity
ļ¶ Bring up younger luxury consumers
Through
ļ¶ The 360 ādegree marketing strategy
ļ¶ Connection between offline and online
ļ¶ Using the mobile channel
5/18/2012
20. #2. digital presence
Make a purchase process easy!
Increase sales right now.
ļ¶ develop e-stores (web, mobile
app), focus on the well-developed
and developing markets (Europe,
UK, China, Japan)
ļ¶ offer there incomparable
exclusive service
And Prada become available to anyone around the
world!
5/18/2012
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.
5/18/2012
23. What is in it for us?
For customers For Prada
ļ¶ The opportunities to try a new ļ¶ Production price reduction
product ļ¶ Sales increase
ļ¶ A sense of excitement and ļ¶ Coverage of the wide audience ,
adventure, new market group
ļ¶ Special Prada design with Nine ļ¶ Test sales in the middle class
West reliable quality audience
ļ¶ For Nine West fans- the prove of ļ¶ Marketing resonance
the brand high standards ļ¶ Test E-sales
5/18/2012
24. Game plan to protect the exclusivity of untouchable
brand
ļ¶ A star launch party with performances by
celebrities on the preview
ļ¶ Mass Media Resonance, promo in e-media
ļ¶ Very limited availability and only in select stores.
ļ¶ Short-term Sales
So!
ā 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.ā
Versace for H&M preview
26. Introducing a new form of beauty in the modern dayā¦.one that of
paradoxical nature, āa girly edge, but in the end it is nastyā ā
Miuccia Prada
Thank you.
Questions?
5/18/2012
