Prada’s Marketing Strategy
Prada is one of the world’s most famous brands when it comes to clothing and fashion accessories. The process to become a market leader in the fashion industry can be traced back to the early 90’s when the company was started in Italy. In 1913, Mario Prada came up with the idea of starting Prada, with the goal of serving mostly the aristocrats and the European elite . This vision was realized through the first store located in Galleria Vittorio Emanuele II, which was stylish and focused on the sale of luxury goods and accessories targeting the elite in the society. By 1919, Prada’s store had been contracted to be the supplier of fashion accessories to the ruling family in Italy.
Like every major successful company in history, the plan to go global did not take long to materialize. In the 1970’s, Mario Prada's granddaughter Miuccia Prada, in collaboration with her partner Patrizio Bertelli rolled out the plan to spread the company across Europe . This expansion plan laid the foundation for the modern-day success that the company enjoys regarding being one of the world’s biggest fashion houses. Prada Group is currently a market leader in dealing with world renown luxury items.
The company’s international network is spread out in more than 70 countries with a total of not less than 594 stores. In addition, Prada Group has 35 franchised stores that help in spreading the Prada brand . Since its start, Prada Group has dealt with fashion wear for both men and women. These are items not limited to leather items, clothes, and footwear. In recent times, the company’s portfolio has grown to include items such as fragrance and mobile phones. In regard to manufacturing, Prada Group has 13 sites where all of its products are produced. 12 of these are in Italy, while the other is in Britain. According to the company, the close proximity of the manufacturing sites is to ensure that quality control and close monitoring are possible . The success Prada Group has enjoyed is seen through its finances. The latest statistics value the company 9.2 billion Euros . In addition, the company is ranked position 69 in the world’s top 100 most valuable companies. This success can be attributed to the fact that the company has been prudent in its marketing strategy. Prada’s marketing strategy has a number of key features which are discussed in detail in this paper.
Innovation
An important aspect of any company’s strategic marketing plan is keeping the customer always interested in company products . Apart from the fact that a company has particular items that are critical to its success, being innovative sets successful companies apart from lesser successful ones. Innovation is an important aspect that allows a company to be in touch with the trends in the market. To this end, a company designs its portfolio of products to meet these trends and therefore keep competition at bay. Through innovation, a company adds value to its brand, since customers like to deal with a company that is exciting in regards to its products .
The aspect of innovation is one Prada Group has excelled in. The company, via the observation and analysis of the evolution of culture and fashion trends, has been able to creatively meet the fashion needs of its clients. Innovation and creativity have, therefore, been the building blocks of Prada’s marketing strategy . In the fashion world, most of the competitors of Prada use sexuality to dictate the products they produce. Prada, however, has taken a different route by focusing on the production of elegant and classic fashion, infused with innovative modern day additions. Through innovation, the company has been able to successfully transits from solely focusing on high-quality collection and functional travel accessories into being a market leader in fabric manufacturing and design.
The level of success a company enjoys is partially determined by the location strategy that a company employs. Being at the right location is important for businesses since it ensures that a company has the access to the targeted audience . Designing an effective location strategy ensure that a company is able to meet its marketing needs and ensures high returns are realized. This is an aspect that Prada has excelled in, and makes up part of the company’s strategic marketing campaign.
Since its inception, Prada has emphasized on having its stores located in high-end areas, where a majority of its clientele frequent. The retail locations are very stylish and have proven to be an effective platform upon which the company interacts with the clients . According to the company management, having the stylish locations in high-end areas ensure that Prada is able to swiftly showcase new products and designs, while offering the company the ability to get direct feedback from the customers . A testament to Prada’s desire to portray the company as a stylish brand is the latest development regarding locations. “Prada Epicenters” which refer to new magnificent stores designed by global-acclaimed architects, including Herzog and de Meuron, have enhanced the company’s image to its clients .
Pricing strategy
Successful companies have established the power that lies in the pricing strategies that a company employs. To this end, companies have realized that the price a company sets is not solely focused on increasing the profit margins of the company. The price can be strategically set to give the company an edge over competitors or even increase the market share . To effectively set prices, a company needs to have a full realization of the impact that pricing has to the business.
Prada’s pricing strategy has been excellent and has contributed to the making of Prada a household name in regards to luxury fashion items and accessories. The pricing strategies applied by the company have especially aided the company in its global expansion. The strategy has led to the development of high levels of customer loyalty across the globe since the price of Prada products is standards, making them affordable for many clients . Another aspect that has helped in Prada’s pricing strategy is the vast collection of fashion accessories, which ensure that the needs of customers of different economic abilities are catered for. In addition, the company has entered into strategic partnerships with brands such as LG and Toyota, which allow customers to make purchases at subsidized prices.
Segmentation
The concept of market segmentation is one that has sparked the interest of many stakeholders in business. The concept refers to the breaking down of a large market into small groups of customers according to their needs and preferences. Through the insight gained via market segmentation, companies are more informed when designing products and services . To this end, an effort is made to ensure that the products are designed to meet the needs of each market segment. After market segmentation, companies need to be careful to not solely focus on one market segment, thus ignoring the needs of other segments. In addition, a company needs to ensure that it keeps in touch with the evolving needs of each market segment .
Prada, in its strategic marketing plan, has succeeded in market segmentation by ensuring that the company has a wide variety of groups within its worldwide clientele. To this end, the company has a segmented market, where the products are designed to ensure that different customers with a variety of needs are catered for under the Prada umbrella . The success of market segmentation can be seen through the fact that the company has sustained its success in different parts of the world despite the unique challenges that each country offers. Despite this form of segmentation, the company still struggles with catering for consumers with limited finances to use in luxury items. The company has, however, excelled in regional segmentation, where the transportation of goods in different regions of the world is easy and timely .
Technology
Sensitivity to changes in technology remains to be one of the essential aspects for companies with the desire to succeed in the modern day business environment . The modern day customer is technologically oriented, with virtually every activity being conducted online. To this end, companies have had the challenge of keeping in touch with the evolving trends in technology in the modern day world.
Prada has made impressive strides in regards to technology, where the company has invested in anonymous shopping cards, which offer the clients more freedom when making their purchases. Besides, the company has also invested in technology that aids the clients easily try out their clothes in technologically advanced fitting rooms. The introduction of Prada online shops is another effective stride that Prada has made towards customer satisfaction. Through the online platforms, it has become easier for clients to make purchases without the necessity of visiting the physical stores .
Prada has enjoyed considerable success since it started its operations in 1913. Its success can be partially attributed to the fact that the management has employed strategic marketing which has worked perfectly for the company. Critical aspects of this strategy include the embracing of technology, having a proper location strategy, being prudent in pricing, being innovative and succeeding in market segmentation.
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