1. Patricia Araujo Orsolya Fogas Myriam Mizouni Julie Tan Tiffany Yu Ying Xin

2. the Prada girl is reading Proust in a cafe.
While the Gucci girl is swigging shots of tequila in the back of a nightclub wearing a miniskirt and halter top…
the Prada girl is reading Proust in a cafe.
Brand wears the individual and not the other way around

3. Mario Prada – Humble Birth
1913, Milan - Mario Prada started leather goods company
Prada label as the « Fratelli Prada » located in Galleria Vittorio Emanuele II
Frequent traveller (exploration of new techniques & materials)
Handbags, shoes, trunks
Suitcases of walrus skin turned to be too heavy  waterproof light materials and concentration on leather accessories

4. Miuccia Prada – The Muse
Birth of Mario Prada’s granddaughter
She designed the Black waterproof backpack out of a nylon fabric (“Pocone”)
Five years studying at Milan’s Teatro Piccolo
Had a PhD in political science
She took over the company
Miuccia married Patrizio Bertelli, who became the business manager of the company
Miuccia was recently voted one of the 30 Most Powerful Women in Europe by the Wall Street Journal, while Forbes estimated her fortune at $1.4 billion

5. Prada Empire under Miuccia
Miuccia Prada turned the label towards haute couture and internationalization
Classic Prada handbag (parachute nylon) and a line of women footwear
Prêt-à-porter collection (RTW)
MiuMiu debuted
1993- Fondazione Prada
Won the Concil of Fashion Designers of American International Award for clean and stylish design, fine materials and exiquisite craftsmanship
Foundation Prada: sponsor contemporary artists for decade New York’s Tribeca Film Festival

6. Corporate Portfolio

7. Prada’s positioning
Mario Prada’s initial collection of high-quality, functional travel accessories
Miuccia Prada’s creative vision (unbounded by former institutional training) and passionate exploration for fabric and design innovation: (i.e. fashional/functionable; simple;elegant)
Transition into the world of Haute Couture
High prices that create a sense of exclusivity
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

8. Positioning Target Cultural creatives, intellectualists, innovators.
Affluent customers willing to spend more than most.
Fashion Content: Fashion
Price Range: High price products
Style
Contemporary classic, subtle and subdued
Symbolic and evocative elements (art)
Comfortable, pure, graceful and minimalistic

9. Positioning (cont.) Product Categories Womenswear and menswear
Core business of accessories (hand bags, suitcases, shoes, wallets, belts and sunglasses)
Beauty and fragrance
Life Occasions
Special occasions, business travelers
Functional hand bags for daily use
Prada Sport for casual and leisure wear
Long-term Brand Identity
What about product extenstion/line? Fragrances and beauty

10. Brand Definition 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
The brand is defined by a system of attributes:
• phisical attributes, brand system of signs (name, logo, colors,
pay off)
• intangible attributes, brand values and associations as perceived
by consumers: “a long term relationship with clients”

11. Brand Equity, Branded Differential
Brand Differential
SALES
Customers are willing to pay a premium price for popular Prada products because of the status associated with the brand. Prada consumers are considered to be intellectual, creative and artistic with a flair of elegance. Over time, Prada has developed itself into a luxury brand with strong brand equity to warrant higher prices.
Brand Equity, Branded Differential
TIME

12. Stylistic Identity & Codes
Colors
Basic: black, green, brown, cream, grey
Fabrics
Innovative, creative, luxurious
Eg. Parachute nylon “Pocone,” crunchy polyester, leather, synthetic fabrics, sequences
Lines
Elegant, simple and clean to create functional, yet fashionable pieces
Stylistic Symbols
Classic Prada handbag (nylon bag made of “Pocone”)
Distinct silver Prada symbol
Are stylistic identity and stylistic codes synonymous?
Silver “triangle?”

13. Retail Identity
Stores create an experience for the consumer that includes a radically new, creative and artistic landscape
Use of cutting-edge technology and 21st century customer service to revolutionize the luxury store concept
180 DOS with sales accounting for 54% of company’s revenues
Enlisted talents of architect, Rem Koolhaas, to design retail space
Prada Epicentres located in Soho (New York), Aoyama (Tokyo) & Beverly Hills
Lack of products on display characterizes to the exclusive nature of the brand
“It's an enormous empty space and a small selling floor space.” - Bertelli
Enormous empty space but still earning money
180 DOS with sales accounting for 54% of the company’s revenues Tokyo prada Aoyama district june 7, 2003, Swish architect Herzog & de Meuron's Jacques Herzog

14. Communication Identity
Prada advertisements are:
Classic
Cultural
Minimalistic
Conservative
Implicit
Confidence
Graceful
Consumers are able to interpret the ads personally and adopt as means of expressing their individualities: simple contemporary form of beauty.
Part of the only active online Prada takes part in is the fragrance for Women: launched a movie about women in various disguises
Prada Parfums

15. Brand Identity Model Contemporary Classic, Culturally Elegant
Maintain their brand image without compromise.
Adaptation to changes in various customers’ needs and desires through brand/line extension.
Seek ways to attract younger generation consumers
Inward-directed, understated luxury
History of functionality and elegance in travel accessories and hand bags
Contemporary Classic,
Culturally Elegant
Classic, cultural, confident, minimalistic, conservative and implicit
Creative use of fabrics & basic colours to create simple modern lines; nylon bags and silver Prada symbol
Innovative, creative and artistic landscapes with an exclusive layout
Social Context
The eighties was a decade where luxury was explicitly displayed. However, today, luxury is more implicit and recognizable only by insiders; it is more subtle and not as openly displayed.Young generations are paying more attention to high fashion, convenience and availability. Which encourages Prada to push towards the online market participation, though it must be careful as it is endangers its brand image of subtlely yet timelessness. Foundation Prada: sponsor contemporary artists for decade New York’s Tribeca Film Festival . MiuMiu caters to the high fah
Prada website not available, ease into the online market
STYLISTIC ID
Creative use of fabrics & materials
Simple, modern lines to create functional, yet fashionable products
Basic colours
Classic Prada handbag (nylon bag made of “Pocone”)
Distinct silver Prada symbol
Retail ID
Stores create an experience for the consumer that includes an Innovative, creative and artistic landscape
Enlisted talents of architecture, Rem Koolhaus, to design retail space
Lack of products on display adds to the exclusive nature of the brand
Distribution strategy Direct Operated Sales
Communication ID
Prada advertisements are classic, cultural, minimalistic, conservative, and implicit, leaving it to the consumer to interpret them.

16. Prada SWOT Analysis Weaknesses Strengths
Shorter heritage compared to competitors such as Chanel, Christian Dior
Private company – difficulty in acquiring funding; ongoing battle with corporate debts
No active website, no ecommerce participation
Multi-brand portfolio restructuring
Strengths
Made in Italy – allure of century old craftsmanship
Strong leadership under Patrizio Bertelli in commercial side of products and retail strategy
Strong brand identity- high-quality
Unique heritage under Miuccia Prada
Opportunities
Global markets growth -Asia esp. China
Outsourcing production
Utilize internet as marketing and sales tool to offer convenience and availability to customers
Potential IPO talks in later year 2005
Threats
Transparency of Internet lead to price consistency or “Burberry effect”
Online presence lack in-store experiences
Existing competitors (LVMH) and rising fashionable catwalk copycats (H&M, Zara)
Capture the younger generation consumers
Made in Italy: glamour, sophistication, exotic, simplicity, exclusivity of Italian way of life
Company heritage: family lineage- credibility
China new frontier of wealth to be explored and eagerness to purchase anything Italy target new buyers and on product unreachable to masses

17. STRENGTHS Italian brand – conveys “made in Italy” quality
Prada’s heritage – creative force is part of the family lineage, establish (Miuccia Prada)
Strong leadership under Patrizio Bertelli
MiuMiu brand tapping in markets outside Europe
Launch Prada men’s fragrance in 2006
Expand product lines such as Prada Sport denim collection
Strong brand identity and heritage of consistent high quality and standardized service
Retail expansions: end of January DOS with sales accounting for 54% of the company’s revenues

18. WEAKNESSES
Shorter heritage than competitors Louis Vuitton, Hermes, Chanel
Ongoing battle against corporate debts at Prada SpA Group subsidiary and parent ITMD Investments
Jan Prada SpA Group’s debts came to 818M euros, with 420M euros owed to holding companies elsewhere in Prada structure
Private company
Seek funding through real estate properties sale, reliance on bank creditors, selling minority stake in its Church’s brand
No active website, no e-commerce, no online customers
Multi-brand portfolio restructuring
Relying on Prada and MiuMiu brands for profit
Turning around smaller brands such as Jil Sander and Helmut Lang post
Jil Sander must find new designers; let Helmut Lang go by selling to other companies
Oct. 31, 2005 WWD
Forecast: Prada SpA see 2005 sales 6.9% to 1.29B euros, post net profit of 51.7M euros
2004 (transition period) net loss of 61.96M euros

19. OPPORTUNITIES
Utilizing the internet as marketing and sales tool (e-marketing)
Allows extensive distribution
Reaching more customers where physical retail stores are not possible
Emphasizing brand identity while online by informing product launches or new season ranges
Expanding global markets further – reaching to Asia, especially China with the rising class of wealthy, willing-to-spend consumers
Japan 15% 2004 Sales, rest of Asia 14% (still room for growth)
Outsourcing production: cost advantageous processes
Potential talks about IPO in later year 2005 (alleviate Prada’s financial burdens)
Global markets: Japan 15% 2004 sales, rest of Asia 13%

20. THREATS
Growth means competition with other multi-brand focused companies or conglomerates such as LVMH
Rising rivals such as Zara and H & M pressure with their inexpensive but fashionable copies of catwalk designs
Transparency of internet – difficult to maintain price differences among regions : late comers to the e-commerce market
Burberry effect: decreasing exclusivity can “cheapen the brand”
Online opportunities will not match the level of service and attentiveness provided by in store personnel
Recapture and offer the in-store experience
Maintain congruence & appeal of brand heritage to the perceptions of younger generation consumers
Luxury brand industry:
Increasing strength of euro eating into margins since raw materials and workers paid in euros; sell F.G. outside euro zone (thus, unfavorable exchange rate environment)

21. Introducing a new form of beauty in the modern day…
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