PRADA

PRADA COMPANY HISTORY

Prada is an Italian Luxury Fashion House, specializing in ready-to-wear leather and fashion accessories, shoes, luggage, perfumes, watches, phones etc., founded in 1913 by Mario Prada.Today Prada was recognized as one of the 100brands with the most value in the world.

• Prada Group manufacturing is concentrated in 11 plants

• Prada Group products are sold in more than 70 countries and distribution network is composed of 461 directly operated stores.

MAREKET SEGMENTATIONMarket segmentation is a marketing strategy that involves in dividing a broad target market into subsets of consumers who have common needs and priorities

Criteria for segmenting

An ideal market segment meets all of the following criteria:

•It must be large enough to earn profit.•It is possible to measure.•It must be stable enough that it does not vanish after some time.•It is possible to reach potential customers via the organization's promotion and distribution channel.

PRADA Demographic Segmentation

“Today the PRAD brand includes men’s and women’s leather goods……”

Demographic segmentation divides the market into groups based on demographic variables including age, gender, family size and life cycle.

PRADA Geographical Segmentation

Under geographical segmentation, product or service is divided according to geographic units, such as nations, states, regions, countries, cities, or neighborhoods.

“Directly operated stores, including the Epicentres, are designed, constructed and managed in accordance with precise guidelines: location chosen are among the most prestigious…..”

PRADA Psychographic SegmentationPsychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics.

“The PRADA brand targets an international customer base that is modern, sophisticated, attuned to stylistic innovations, and expects craftsmanship of the highest quality”

“Church’s, one of the world leaders in the men’s handmade luxury footwear industry…”

PRADA Segmentation Based on Behaviour Or Benefit

Behavioral segmentation is dividing a population based on their behavior, usage rates, by Loyalty and Occasions, the way the population respond to the product.

“Car Shoe is a symbol for exclusive lifestyle and luxury driving”

“Car shoe products are targeted at a sporty and elegant clientele”

Have PRADA focused on wrong segment or in other words; Should PRADA satisfy all the customers in the market rather than satisfying only an exclusive group of customers?

MILES & SNOW'SRaymond Miles and Charles Snow suggest that business level strategies generally fall into one of four categories

ProspectorDefenderAnalyzerReactor

Defenders

Which have narrow product-market domains.

Top managers in this type organization are highly expert in their organization’s limited area of operation

But do not tend to search outside their narrow domains for new opportunities.

Methods of operation. Instead, they devote primary attention to improving the efficiency of their existing operations.

“Patrizio Bertelli is the first in the Luxury industry to introduce a new business model, applying uncompromised quality through the whole production chain and a constant”

Prospectors

Which almost continually search for market opportunities, andthey regularly experiment with potential responses to emerging environmental trends.

Thus, these organizations often are the creators of change and uncertainty to which their competitors must respond.

 Methods of operation. Instead, they devote primary attention to improving the efficiency of their existing operations.

PRADA has produce Mobile phones, Eye wear, Fragrances

“In 2006 the PRADA group entered into an agreement with LG, electrical one of the world leaders in mobile telecommunications technology to develop an “innovative and iconic” mobile telephones”

Analyzers

Which operate in two types of product-market domains, one stable, the other changing.

In their stable areas, these organizations operate routinely and efficiently through use of formalized structures and process

In their more turbulent areas, top managers watch their competitors closely for new ideas, and then rapidly adopt those which appear to be the most promising

Reactors

In which top mangers frequently perceive change and uncertainty occurring in their organizational environment

But are unable to respond effectively.

Because this type of organization lacks a consistent strategy-structure relationship, it seldom makes adjustments of any sort until forced to do so by environmental pressures

BURBERRYBurberry Group plc. is a British luxury fashion house, distributing clothing, fashion accessories.

Burberry is most famous for its trench coat, which was designed by founder Thomas Burberry.

BCG MATRIX

Star Question mark

Cash Cow Dog

BCG MATRIX

Star Question mark

Cash Cow Dog

Stars:-“In March 2001, it announced that its sales had

nearly doubled,to £425 milion,while profits had tripled to £69.5 milion.”

Cash Cows:-“Check accesories such as scarves are burery’s cash

cows.”

Question Marks:-“Accessories are Burberry's question marks. “

Dogs:-“The 1990s began badly for a weary and outmoded

Burberry. Its umbrellas & raincoats did well with Japanese businessmen who admired Brtish style, but elsewhere its trademark check was no longer considered a guarantee of quality.”

FIVE FORCES ANALYSIS

This model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths.

BARGAINING POWER OF SUPPLIERS(HIGH)

• This is normally rated as high, because Burberry has few selected suppliers to deal with as they require higher quality exclusive products.

BARGAINING POWER OF BUYERS(MODERATE)

• Due to relatively uniform product performance there is an inverse relationship between brand loyalty and buyer power.

THREATS OF SUBSTITUTES(MODERATE)

• Burberry has a higer range of product catagury witch provide same satisfaction for each product.

THREATS OF NEW ENTRANCE(LOW) • Due to the Brand loyalty & High-end of product

most new entrants will not be true competitors.

INTENSITY OF COMPETITIVE RIVALRY(MODERATE)

• At Burberry everything begins and ends with great product, combining a focus on core categories with continuous inovation.

THANK YOU!

At this time, we will open the floor for any questions.