MAREKET SEGMENTATION

2. 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.

3. • 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.

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

5. 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.

6. 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.

7. 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…..”

8. PRADA Psychographic Segmentation
Psychographic 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…”

9. 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”

10. 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?

11. MILES & SNOW'S
Raymond Miles and Charles Snow suggest that business level strategies
generally fall into one of four categories
 Prospector
Defender
Analyzer
Reactor

12. 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”

13. Prospectors
Which almost continually search for market opportunities, and
they 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”

15. 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

16. 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

18. BURBERRY
Burberry 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.

19. BCG MATRIX
Star Question mark
Cash Cow Dog

20. BCG MATRIX
Star Question mark
Cash Cow Dog

21.  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.”

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

23. 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.

24. BARGAINING POWER OF BUYERS(MODERATE)
• Due to relatively uniform product performance there is
an inverse relationship between brand loyalty and
buyer power.

25. THREATS OF SUBSTITUTES(MODERATE)
• Burberry has a higer range of product catagury witch provide
same satisfaction for each product.

26. THREATS OF NEW ENTRANCE(LOW)
• Due to the Brand loyalty & High-end of product most new
entrants will not be true competitors.

27. INTENSITY OF COMPETITIVE RIVALRY(MODERATE)
• At Burberry everything begins and ends with great product,
combining a focus on core categories with continuous
inovation.

28. THANK YOU!
At this time, we will open
the floor for any questions.