Competitive Strategy

Brief outlookBrand analysisSWOT AnalysisBrand strategyReferences5/18/2012

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

Brand mantra Emotional: Stylish, Sexual Descriptive: Contemporary Classic, Elegant Brand Function: Self-Expression 5/18/2012

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

Pradas commercial http://www.youtube.com/watch?v=TjXhSQHMphc&feature=related5/18/2012

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 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, 2010http://www.marketingmagazine.co.uk/news/1104353/ 5/18/2012