Different Marketing Theories of Prada

Different Marketing Theories

In order to expand activities in the international market it is essential for management of Prada to focus on different marketing theories that would support them in determining their target audiences as well as it will also assist in segmenting and positioning their fashionable travel accessories in the international market (Papadopoulos and Heslop, 2014). In addition to this, understanding different marketing theories will support Prada in making strategic decisions related to expanding its business activities in the international market. The different marketing theories are...

Marketing Mix elements

Another marketing theory is focusing on marketing mix elements for Prada so that they can easily enter the international marketplace. The marketing mix element generally focuses on four elements that are Price, place, promotion, and products (Leonidou, Palihawadana and Theodosiou, M., 2011).

Products

Prada products basically consist of a wide range of luxurious and high-end clothes for both men and women, travel accessories, cosmetics, fragrances, etc. All these products are the key elements that Prada will distribute within the market to keep attracting their customers.

Place

In the present scenario, Prada is operating their stores in 65 different countries with 250 total number of stores. Further, to succeed in the competitive environment Prada may also adopt online techniques for distributing their fashionable and stylish products to international customers.

Price

Another effective element of the marketing mix is focusing on pricing strategy for their variety of fashionable products so that they can easily satisfy and meet the requirements of their customers (Kemper, Engelen, and Brettel, 2011).

Promotion

The last element of the marketing mix focuses on the promotion of Prada's fashionable products within the international market. For promotion, Prada features their ads in Vogue and Elle magazines. Furthermore, the brand also hosts fashion shows for displaying their variety of products. Thus, both marketing tools are considered persuasive tools in the fashion industry for enhancing the brand image in the international market (Piekkari, Plakoyiannaki, and Welch, 2010).

Therefore, in order to make any strategic decisions for Prada regarding entering into the international market then SWOT analysis would be an effective marketing theory for Prada. However, the marketing mix theory is being used by the Prada brand to ensure the proper selection of each and every element that results in the successful accomplishment of capturing the international market.

Globalization: Advantages And Disadvantages

Globalization is the key aspect in the present scenario that has a huge impact on the fashion industry as through globalization Prada can easily target large customers across international boundaries. Various luxurious fashion brands like Louis Vuitton, Michael Kors, Gucci, etc. have experienced immense growth with the globalization of their business activities. In the present scenario, the fashion industry has been increasing at a fast pace with the changing needs and preferences of the customers. According to Ruzo, Losada, and Díez (2011), the favorable impact of globalization on the fashion industry is that through this Prada can easily provide the latest fashionable clothes and accessories to global customers (Ruzo, Losada, and Díez, 2011). Furthermore, another advantage of globalization is that it results in modifying individual preferences as they follow the latest trends and unique stylish clothes. As per the view of Sethuraman, Tellis, and Briesch (2011) the advantage of globalization is that through this Prada can easily unleash the different cultural designer clothes that depict or showcase the traditional and cultural aspects of countries (Sethuraman, Tellis, and Briesch, 2011).

On the other hand, there are also some disadvantages or adverse effects of globalization on the business activities of Prada that is according to Nath, Nachiappan, and Ramanathan (2010) with globalization companies outsource their products as well as services in totally different markets. Thus, it results in incurring high costs for Prada to outsource their production (Nath, Nachiappan and Ramanathan, 2010). Therefore, to overcome the financial burden companies often raise the prices of their products that act as negative impact on the image of a company. As per the view of Rodrik (2011) another disadvantage of globalization is that with the increasing technology, Prada often uploads images of their designer clothes and accessories over the internet medium resulting in the stealing of their design (Rodrik, 2011). Therefore, it may result in duplication of the products.

Furthermore, there are various relevant factors of globalization that are applied to Prada that support the firm in expanding its activities in the international marketplace that is-

Technological factor

The foremost factor of globalization that is being applied to Prada for expanding its activities in the global market includes increasing technological factors. Enhancing technological factor also help Prada in globalizing its products and services in the different international markets (Hamilton and Webster, 2012). For instance; with the increasing technological factor customers can conveniently purchase fashionable products and clothing apparel through using internet mediums.

Change in the taste and preferences of customers

Another relevant factor to Prada is a continuous change in the requirements and preferences of the customers also result in the globalization of their products and services (Arnold, 2004). For instance; with the increasing competitors in the fashion industry, there are a wide variety of options available to the customers. Therefore, changing tastes and customers willing to purchase foreign products support Prada in initiating globalization activity.

Competitive Advantage

The fashion industry is considered a highly volatile industry that keeps changing with the emergence of new trends and fashionable clothing products in the market (Turnbull and Paliwoda, 2013). The different premium brands existing in the fashion industry include Gucci, Louis Vuitton, Burberry etc. The foremost premium brand in the fashion industry is Prada which is known for leather traveling accessories that match the individual lifestyle and needs of the customers.

For instance; Gucci is also considered a renowned brand in the fashion industry that focuses on distributing travel accessories to different segments of customers. Prada is a highly luxurious brand that deals in providing premium travel products and leather accessories to customers. Both brands have an international presence in different marketplaces that keep attracting their large customers to their fashionable and stylish accessories and products (Moore and Doyle, 2010).

However, both the companies has distinguished business approaches from each other that is Gucci is the one that determines the power of celebrity endorsement by associating with great American and Italian movie stars as compared to Prada. On the other hand, Prada has not initiated celebrity endorsement for promoting and marketing their products and accessories in the international market.

Furthermore, through comparative analysis, it can be stated that Gucci also engaged in aggressive international expansion through keep focusing on and targeting different important cities such as San Francisco, New York, London, etc. On the other hand, Prada has only focused on acquiring domestic share by targeting to meet the demand of domestic customers (Grönroos, 2011). It can be also said that Gucci has different licensing agreements for enhancing its brand image in the international market that are not being used by Prada to extend its brand image.

From the above table it can be assessed that the revenue of Louis Vuitton is quite higher than Prada and Burberry. Through this, it can be stated that the revenue of Louis is higher than the other luxurious brands.

Conclusion

From the above report, it can be concluded that to sustain itself in the contemporary environment it is essential for Prada to focus on the international expansion of their business activities so that it can capture a large market share. From the above analysis it can concluded that luxurious brand also requires effective international marketing strategies to expand their activities in the international marketplace. Thus, will support Prada's manager for international expansion that is.

Celebrity endorsement

From the case study of Prada, it can be assessed that the fashionable brand is not engaged in any sort of celebrity endorsement. Thus, for expanding their services in the international marketplace it is essential for Prada to engage in promotional and marketing activities through ensuring celebrity endorsement. Furthermore, this will also support the brand in enhancing the image of premium and luxurious products in the global market.

Alliance with new firm

Furthermore, it has been also recommended that Prada manage while expanding and enhancing their reach in the international market. They must focus on alliances with new firms and partners that would reduce additional costs for Prada.

Using a digital or online platform

From the above analysis, it has also been focused that Prada managers must use digital or online platforms for promoting and marketing their luxurious products in the international market.

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References

• Arnold, M., 2004. The mirage of global markets: how globalizing companies can succeed as markets localize. 2nd ed. FT Prentice Hall.
• Grönroos, C., 2011. A service perspective on business relationships: The value creation, interaction, and marketing interface. Industrial marketing management. 40(2). pp.240-247.
• Hair, J. F., Sarstedt, M. and Mena, J. A., 2012. An assessment of the use of partial least squares structural equation modeling in marketing research. Journal of the academy of marketing science. 40(3). pp.414-433.
• Hamilton, L. and Webster, P., 2012. The International Business Environment, Oxford University Press.
• Jain, S. C. and Griffith, D. A., 2011. Handbook of research in international marketing. Edward Elgar Publishing.

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