Marketing Proposal: A Case Study of Prada New Zealand

Desklib provides past papers and solved assignments for students. This report analyzes Prada's digital marketing strategies.

MARKETING IN A DIGITAL AGE ASSESSMENT 2 – MARKETING PROPOSAL
ASSIGNMENT
A CASE STUDY OF PRADA NEW ZEALAND
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Table of Contents
Introduction......................................................................................................................................3
Existing marketing strategies of Prada............................................................................................4
Literature Review............................................................................................................................5
Market Research..............................................................................................................................7
Marketing Concepts.........................................................................................................................9
Evaluation of marketing strategies................................................................................................10
Development of New Digital Marketing Campaign for Prada......................................................12
Conclusion.....................................................................................................................................15
References......................................................................................................................................16
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Introduction
Digital marketing state that marketing of product and service by the use of digital channels like
the internet or other electronic devices. The organization understands the significance of digital
marketing. So, they applied various types of marketing strategies which used digital marketing
methods or some offline strategies. The research evaluates the concept of digital marketing
strategies used by Prada. Prada has been located in St, Auckland, New Zealand. It is the most
leading fashion brand. They are dealing with clothing, perfume, bags etc. This report includes a
literature review of Prada marketing strategies. Other companies influence these strategies and
start adopting in their business. This report analyses the impact of technology in the fashion
industry to enhance organization growth and understand customer values. On the basis of
evaluating the marketing campaign will be designed and integrate digital marketing.
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Existing marketing strategies of Prada
Prada is one of the most leading brands in fashion industry of the world. Prada leather handbags,
watches, perfumes, ready to wear; shoes and fashion accessories are most favorites among
fashion lovers. Prada has been actively following its offline and digital marketing strategies
which are running this brand successfully.
Prada launched its online app named II Palazzo in 2012. This app features its latest collections.
In this app, customers can view its latest fall/winter/summer collection and accessories. They can
make their purchase from the app and it helps customers in fast and secure payment gateways.
They can view 150 charcoal illustration of the collection on the app. Prada associate with parallel
universe for new marketing campaign which is one of most successful marketing campaigns of
Prada till now. Parallel universe creates the series of animated GIFs about their new spring
summer men/women accessories collection of 2012 (Whatley, 2012). Those illustrations were
very interesting for promoting products. The images and illustrations were created by graphic
artist Vahram Muratyn. According to the today’s fast running world requirement Prada make
some partners for selling their products online. Net-a-porter and Mytheresa.com are its online
partners because Prada wants to enter into this e-commerce world with some online expertise
brands that can represent their products to their customer through this online medium. Prada
started this online selling a little late and after so many other brands (Referal Candy, 2018). They
started this in 2016 and represent pre fall and fall runway collection online at first. Sales on
social media one more innovative marketing strategy of Prada because making payment through
social sites is new trend and very popular among social media fans because different social
media handles offers many discounts, coupons or sales to their followers if they buy something
by using their deals or discount coupons. Prada accepts payment through social media which is
one of the good running marketing strategies of the company. Pop up stores are new concepts.
Running a high profile luxury fashion store is not easy even for a leading fashion brand.
Company management decides to adopt this pop up stores idea as their new strategy. It is one of
most new and innovative step while it comes to marketing for Prada. Pop up stores is a concept
where stores will not open for more than 3 weeks. It is a low risk setting strategy. In 3 weeks,
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products get all the attention from their prospective customers and three weeks doesn’t cost
much for running any store.
Literature Review
The strategy of organization combines all the marketing aims and objective into a single
complete plan. High-quality marketing strategies come after the implementation of market
research.
According to Robinson, 2018, digital marketing help the business to reach its effective
effectiveness and global reach. Prada uses different digital marketing strategies which used for
maximize their marketing research. According to the Sabheea, 2014, whenever a user visits an
official website of any company, they don’t immediately purchase the product as well. Company
targets those visitors in the same manner. They show their product as a reminder on their website
or their app. Customer doesn’t visit the website in a specific period. The company should
provide a discount for them. These strategies are followed to attract the customer through their
product and they force them to access their website again. Retarget the visitor is the method to
increase the traffic on the official website which is also a source of income.
According to the survey of Facebook ad management proves that they are one of the best service
providers for promotion or marketing. Prada is one of the most leading fashion brands which are
well known to millions of people globally. The competition increases day by day. Prada
maintains its brand value by spreading brand awareness in its new and existing customer. They
used different marketing strategies on social media or also redirect target to the visitor on their
website. As per the views of Gurung, 2014 , The offline marketing strategy is participating in the
various event like shows, fashion week. It increases brand awareness in the public. Prada
launched their new bags and clothing in some huge fashion week. They used a great stage to
launch their product. By the help of this people understand the quality and get the idea of a new
trend. Nowadays, people believe in the gift. They give the gift on various occasions to their close
ones. Prada offers a discount to their customer on the occasion.
According to the Bayne, 2013, Conduct a social media event on any social media website. In
which the winner get products worth $17. This attracts the followers on the social media page of
the brand after the distribution of the prize. The number of followers rose approximately 70%.
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Competition should be conduct in a specific interval of time. Prada conducts various event or
sponsored other event where they offer the gift to the winner from their side. It is the strategy to
attract the new consumer. In the words of Yotka, 2015, Advertisement in the magazine is the
easiest way of advertisement but top magazine rate of advertisement are high but they attract
those customers who really have an interest in the specific brand. Prada helps from VOGUE
magazine to publish their advertisement post regarding their fashion products.
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Market Research
Prada is doing well with its marketing strategies because they have a good team who creates
different marketing strategies for the company. In this borderless digital fast moving world, if
company wants to stay in the market for long run then company needs to follow innovative and
unique marketing strategies. The Prada app known as name of II pallazo is an innovative
concept.
Other fashion brands app are fast and has so many options for the visitors to see and buy and for
trial but this app is a not a very highly rated and appreciated app among all the online fashion
brands app. Popular designer brands are often have very loyal following that means most of the
time their prime customers often wait for their collections to launch. There are perceptions about
designer brands that they would be exclusive and limited by the point of price and limited
accessibility.
Prada focuses on their prime customer who are first liners but now company launch their
collections on different price levels (Parisi, 2017). It is good for different income group people
that they can experience their products on other available pricing. The brand owns car shoes,
church shoes and Miu Miu luxury brand other than its luxury products. The brand opened up for
the public at Hong Kong stock exchange in 2011 which increase the capital that now they can
open and run 80 more luxurious stores for the next 3 years.
Prada offers the custom made orders like most other brands are offering these days. But having
this facility with Prada is very much attraction point for the customers who are plus sizes, not
according to the ideal standard sizes and want something very special for their loved ones
because earlier with most of fashion brands it facility was not associated with. Especially this
customization is increasing the number of their customers rapidly.
According to the globalization world became a borderless country now which increases the reach
of the company to different people from other countries. Burberry has a very strong management
team who makes very unique marketing strategies for the company. Prada have to hire few more
experienced persons according to the market trends. Gucci is one of the most iconic and biggest
competitors of Prada and Gucci is very popular among men and women especially Gucci loafers
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are still favorite of men. Prada have to analysis Gucci marketing strategies for understanding the
concept of their plans because mainly they both have same class customers. Gucci’s big part of
the revenue is generating from the leather goods of it. It becomes the world leading leather goods
brand.
Luxury brands like Rolex and others are associating with younger athletes to promote their
special edition. These brands are promoting their products through advertisement even on sports
channels like ESPN and others. Prada have to understand these brands marketing concepts
because these are its biggest competitors in the market and they have some successfully running
marketing campaigns too. If Prada is able to understand their business models, it would be very
easy for make company’s strategies more effective (Winans, 2017).
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Marketing Concepts
Runway fashion week plays an important role for all the companies in globally industry. These
companies show case their collections on different fashion shows. In fashion show, they endorse
their brand with few of the relevant celebrities and influencers. They make one celebrity their
show stopper who represents the best product of their company. Sometimes they endorse with
more and one celebrity. It’s all depending on the collection. They decide different and unique
themes according to the season while they are representing their collections (Arienti, 2017).
Pop up stores are the new concept of Prada because having many fashion stores and running
them successful is always a big task especially financially it will create a big burden on the
company. Few stores perform well because of the location, crowd like big cities stores Milan,
New York but few stores couldn’t perform will due to many reason like location and income
group of population there. Because of this problem, management decided to invest in that pop up
store trend. In this trend, company will open store for just 3 weeks at one place. It going to grab
all the attention because it would be there for just 3 weeks and it will definitely going to low the
cost of the store. Running a store for the longer time and just for 3 weeks makes a huge
difference financially (Levy, 2012) .
Earlier Company was dealing through just with offline stores mode but now Prada did some
association with online partners who sell its products online. It is very require strategy for any
fashion brand because people now like to do online shopping. Company handover the whole part
of their online sell and distribution to them and itself handles only stores.
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Evaluation of marketing strategies
Fashion shows are the important tool for the company to showcase their products and new
collections. Endorsing with any local influencer or celebrity can increase the attention of people.
They will promote company’s products to their fans too. Fashion show offers company to
represent their summer/spring/winter collections of clothing and accessories. Prada have to
endorse with new talented designer to increases their uniqueness of the products. Prada have to
associate with some popular celebrities in New Zealand to make their products more popular
here especially among their winter season collection. Taking inspiration from the environment,
cultural of New Zealand, will be helpful to grab more attention in this country.
Prada already launched its mobile app quite late if compare to other fashion companies and yet
it need many more improvement in that app. Few other companies are offering so many options
in the app but in this app everything is quite limited. Company has to make it updated with more
information about the products. Other companies’ apps are very easy to handle so Prada
definitely need to work on its mobile app (Dhaoui, 2014). Company should make it faster in that
payment segment so buying any products that process will be easier for the user of company’s
mobile app.
These days each and every brand is making their advertisement very inclusive, conscious and
targeted whether is sports brand or clothing or jewel line brands. These brands want to target to
the most possible prospective bunch of customers. Prada start its digital advertisement few years
back just an ad is not important. A touching intense advertisement is the most important part for
marketing their products like Nike is making the best of their advertisement of digital platforms.
Visual advertisement makes huge impact on customer’s mind and even for a longer period so
Prada need to first target their audience and then have to make new, innovative and intense
advertisement for digital media.
Company started making their collections according to different income groups but their prime
customers are rich people who like to spend for the luxury products. Those people like to own
limited edition of any brand. Limited edition means, company will not make them more than few
pieces and going to sell them to very limited people. Having these limited edition products is
now days a symbol of high class. Company must need to prepare some major marketing
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strategies for those limited edition products and have to only focus on the targeted customers.
Company must need to invest in good and separate marketing team for these types of campaigns
to achieve more targeted group of customers.
Social media is everywhere now. People from all over the world are using social media for
connecting to other people and now days it is one of the most important tools for the companies
to promote their products and to more engage with their customers. Instagram is playing big role
when it comes to fashion industry. Prada is already a brand but if Prada endorse with some
celebrities to promote their products as using them on daily basis and uploading pictures on
social media is a great way of promotion among their millions of fans (Thabit & Raewf, 2017).
Few of the companies from the same industry, are offering the virtual assistance to their
customers like Tiffany & Co. offers a virtual hand selfie with the chance of trying different rings
virtually. Their ring finder app increases their sale by 20%. They launched it in 2015 and it is one
of most quick responsive engagement within social media. People want to try Prada products
virtually and company need to add this segment in their mobile app to attract more and more
people. Company has to invest in good technology to arrange this virtual concept online. It will
going to increases the number of sales definitely.
Social causes are indirectly playing an important role in sales and profitability of the company.
People all around the world are very sensitive about other human beings, pets, animals etc.
People often protests against getting leather from animal skin or using animal skin as fur clothes
and many more other issues. If company organizes the any charity for the developing nation,
poor people or for any cause, people going to actively participate in the charity. It creates good
image of the company. Goodwill is the key for staying in market in the long run. Prada is a
renowned brand and if Prada associate with any of social causes, much more people can connect
with the organization because it proves that company thinks about humanity and not just focused
on making profit.
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Development of New Digital Marketing Campaign for Prada
Digital marketing strategies ensure that Prada requires some more innovative ideas to improve
their existing state of the brand. They already used digital marketing scheme but they require
adopting in an organized manner. The major aim of the campaign is to increase the efficiency of
digitization in the Prada. Modernization brings digitalization world with it. Every task performs
on the internet, via the internet (Ryan, 2016).
Target Market: Prada requires evaluating their market for campaigning. Instead of another
market their first priority is New Zealand Public. Marketing campaign introduces various
technologies used by them which help them to raise their sales rate in the year. Their next target
is a worldwide consumer; Prada launched its new product on their official website.
Figure 1: Target market of the company
Source: Author
The national public should aware of the brand awareness of the company. They have a strong
comparison tool by which they evaluate or measure how Prada is the best leading brand from
other competitors. Target market helps to attract new customer from worldwide as well. The
international consumer knows about their product and the technology they used by which
consumer easy to receive the original brand product without involving the mediator.
Prada offers the discount offers to the national public and aware them from the copied version of
the product. Contribute to the various activities held in the country as well as international.
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Target
Market
National
Public
Intenational
Public