PRADA Marketing strategy
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Слайд 1 Competitive Strategy 1 5/18/2012 Brief outlook Brand analysis SWOT Analysis Brand strategy References 5/18/2012 “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 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 5/18/2012 Brief outlook 5/18/2012 Brief outlook 5/18/2012 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 Target 1. Cultural creative, intellectualists, innovators. 2. Affluent customers willing to spend more than most. Miuccia Prada’s creative vision (unbounded by former institutional training) and passionate exploration for fabric and design innovation: (i.e. fashional/functionable; simple;elegant) 7 5/18/2012 The Prada brand is defined by a system of attributes: Physical Attributes Silver “Prada” symbol recognized throughout Europe and North America Muted colours and modern lines emphasized through unconventional, yet luxurious fabrics Intangible Attributes Basic colours and clean lines that contribute to an understated, yet powerful (confident) look Prada customers are viewed as classic, intellectual individuals who are unafraid of expressing a creative and artistic side of themselves The brand creates a lasting impression with its classic style, but its modern touch also keeps it fashionable every season Attributes 5/18/2012 Brand mantra Emotional: Stylish, Sexual Descriptive: Contemporary Classic, Elegant Brand Function: Self-Expression 5/18/2012 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 5/18/2012 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 5/18/2012 Prada’s commercial http://www.youtube.com/watch?v=TjXhSQHMphc&feature=related 5/18/2012 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 5/18/2012 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 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 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 5/18/2012 #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) 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? 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 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 Competitor Performance Market 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 convenience 19 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 The 360 –degree marketing strategy Connection between offline and online Using 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) 20 5/18/2012 #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! Can the Luxury fashion brand store atmosphere be transferred to the Internet? By Uche Okonkwo (Miss) 21 5/18/2012 #2. digital presence Digital is a part of puzzle. Your audience want you to be presented there. 22 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 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. 5/18/2012 Target 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 Demographic Women all over the world Higher income level From 18 to 42 Psychographics Materialistic Dress for success Established themselves as a professionals Confident, independent Knowledgeable about pop-culture 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 5/18/2012 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 5/18/2012 And the result surprises you… 5/18/2012 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 5/18/2012 5/18/2012 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-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.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, 2010 http://www.marketingmagazine.co.uk/news/1104353/