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Competitive Strategy1

5/18/2012Brief outlookBrand analysisSWOT AnalysisBrand strategyReferences

5/18/2012For 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 Pradas 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

5/18/20121913 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 expansionBrief outlook

5/18/2012

Brief outlook5/18/2012

Brief outlook

5/18/2012PositioningMario 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 sexualityModern innovation through experimentation with unconventional fabrics and artistic backdrops in Prada retail storesTarget1. Cultural creative, intellectualists, innovators.2. Affluent customers willing to spend more than most.Miuccia Pradas creative vision (unbounded by former institutional training) and passionate exploration for fabric and design innovation: (i.e. fashional/functionable; simple;elegant)

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5/18/2012The Prada brand is defined by a system of attributes:

Physical AttributesSilver Prada symbol recognized throughout Europe and North AmericaMuted colours and modern lines emphasized through unconventional, yet luxurious fabrics

Intangible AttributesBasic colours and clean lines that contribute to an understated, yet powerful (confident) lookPrada customers are viewed as classic, intellectual individuals who are unafraid of expressing a creative and artistic side of themselvesThe brand creates a lasting impression with its classic style, but its modern touch also keeps it fashionable every seasonAttributes

5/18/2012Brand mantraEmotional: Stylish, SexualDescriptive: Contemporary Classic, ElegantBrand Function: Self-Expression

5/18/2012Brands 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

5/18/2012Brand analysis Market Segmentation Market nicher, also working with customization through Prada Made-to-order collection

Market nicher strategiesQuality-price specialistProduct line specialistManaging Brand EquityBrand reinforcement through new and innovative collections.Extensive brand portfolio through Flanker products, such as eyewear, fragrances and Leather Goods

5/18/2012Pradas commercial

http://www.youtube.com/watch?v=TjXhSQHMphc&feature=related 5/18/2012

Brand competitive analysisValue PropositionAudienceRange of authority Relationship

Innovation, elegance, StyleIntellectual and creative fashionistasLeather goods, Clothing, eyewear, fragrances, jewellerySelf expression, superior tasteSuperior quality, ClassicalAchievement, career success

Self-made, successful peopleSexy, cutting edge, contemporaryModern urban, fashion- aware peopleConfident, stylish Leather goods, Clothing, eyewear, fragrances, silks, jewelleryLeather goods, Clothing, eyewear, stationery, jewelleryBritishness, Democratic luxurySmart, authentic individuals Heritage, Innovation and intuitionLeather goods, Clothing, home, fragrances, beauty, jewellery

5/18/2012SWOT analysis StrengthsLoyal audienceMulti brands stores all over the worldSuccessful alliances with LG and ToyotaBright well-known, recognizable advertising company Unique heritage under Miuccia PradaWeaknesses Private company difficulty in acquiring funding; ongoing battle with corporate debts57% 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 partnersFranchisesDigital marketCapture the younger generation consumers

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

5/18/2012#1. Geographical expansion

In 2011 were opened 69 stores over the world

5/18/2012#1. Geographical expansion

5/18/2012#1. Geographical expansionThe Luxury market is expected to grow 65% by 2015!

Points to consider..Today Prada gets more than 42% of its 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

5/18/2012#1. Geographical expansionExpand 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)

5/18/2012#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?FacebookTwitter

1,719 KDont have7,957 K

169 K7,948 K374 K12,836 K993 KWHILE 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

Global Luxury Retailing: Market Size, Brand Strategies and Competitor Performance (Prnewswire), NEW YORK, Nov. 29, 2011 /PRNewswire/ 2. Global Luxury Retailing: Market Size,Retailer Strategies and CompetitorPerformanceMarket size, retailer strategies and competitive performance (Verdict Research, Part of Datamonitor group)3. iProspect research

the target market is the cash-rich and time-poor, who place a high value on convenience19

5/18/2012#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 strategyConnection between offline and onlineUsing the mobile channel

Through (shows, fashion weeks, events such as a launch of a new store, exhibitions in foundation etc.) through all available world wide sources (facebook, youtube, twitter, google+ etc.), own websites, and mobile apps with last news, collections, activities etc.

(e.g. app with last models or app for customization)

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5/18/2012#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 serviceAnd Prada become available to anyone around the world!

Can the Luxury fashion brand store atmosphere betransferred to the Internet?By Uche Okonkwo (Miss)21

5/18/2012

#2. digital presenceDigital is a part of puzzle. Your audience want you to be presented there.

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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#3. alliances

Why Nine West?Similar target audienceFocus on shoes, leader in the industryNine West is especially strong in advertising, digital marketingCo-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 asChlo, 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.

5/18/2012Target Audience

Young to middle-aged women who strive to be, or are already successful, have an education and are highly involved in what brand they wear

DemographicWomen all over the worldHigher income levelFrom 18 to 42PsychographicsMaterialisticDress for successEstablished themselves as a professionalsConfident, independentKnowledgeable about pop-culture

What is in it for us?For customersThe opportunities to try a new productA sense of excitement and adventure, Special Prada design with Nine West reliable qualityFor Nine West fans- the prove of the brand high standards

For PradaProduction price reductionSales increaseCoverage of the wide audience , new market groupTest sales in the middle class audienceMarketing resonanceTest E-sales5/18/2012

Game plan to protect the exclusivity of untouchable brandA star launch party with performances bycelebrities on the previewMass Media Resonance, promo in e-mediaVery 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

5/18/2012And the result surprises you

5/18/2012Thank 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 Ferreira5/18/2012

5/18/2012Referenceshttp://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.htmlhttp://www.prnewswire.com/news-releases/global-luxury-retailing-market-size-brand-strategies-and-competitor-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.htmlhttp://www.slideshare.net/brlippert/nine-west-crative-briefhttp://advertising.microsoft.com/research/luxury-lovers Luxury-Goods Stocks are Flying High, MSN Money, December 20, 2010http://www.marketingmagazine.co.uk/news/1104353/