Operational Marketing of Prada - Essay Example

?IM, Prada Table of Contents Overview 3 Introduction 3 Culture 4 Philosophy 5 Structure 5 Marketing Practices 7 Awards 7 Charity and Sponsorship 8 Prada Educational Foundation 8 Other Integrated Actions 9 Integrated Marketing Communication (IMC) in Prada 10 Integrated Marketing (IM) in Prada 11 Conclusion and Recommendations 13 References 14 References 16 Overview Prada is a fashion store located in Italy that specializes in luxury products including clothing, accessories for leather bags and shoes. It was founded in the year 1913 by Mario Prada as a luxury store principally focused on selling handbags and other accessories of leather which in turn proved highly beneficial to enlarge its product line (Prada, 2013). It is worth mentioning in this context that Prada has been quite successful in inculcating the changes identified in its external business scenario. According to the reports presented in 2012, the group functions in 70 countries with 388 operating stores and 30 franchise stores along with a wide network of selected department and multi branded stores (Prada, 2013). It is in this context that Prada focuses on using the concepts of Integrated Marketing Communication (IMC) and Integrated Marketing (IM) in its highly diversified and broadly assorted business operations. Theoretically addressing these two managerial concepts, critics have often argued that these concepts differ significantly in terms of their behavioral characteristics and concerns although, in often instances, these concepts have been observed to be used interchangeably. Introduction Prada operates as a renowned Italian fashion label company which specializes in offering luxurious products and fashion accessories to both the customer groups of women and men. It was founded in 1913 by Mario Prada. Eventually, Prada became an ultimate point of reference for modern trends in Europe and across the world. In its initial years of establishment, Prada was the official supplier in the Italian Royal Family, which rewarded it with immense prestige and a recognised brand status in the luxury fashion market (Prada, 2013a). This paper dwells on the following issues: culture, philosophy, structure, marketing practices and awards gained by Prada owing to its effective business operations. The focus of the paper will be given to charity as well, along with sponsorship, educational foundation and other integrated actions related to marketing of Prada. Culture In its current operations, Prada represents the finest culture possessing classy style and uncompromising quality aspects in the organizational context. Relating to the aspect of culture, Prada is considered to be one of the fashion brands that tend to render significant consideration towards innovative branding strategies which in turn have contributed to its capability of setting fresh trends in the global market context. The organizational culture of Prada usually depends upon the values that are guided by the decisions taken with due significance to its interests of its stakeholders for maintaining consistency in performing business activities establishing effective communication as well as maintaining productivity throughout the organizational context. Correspondingly, with greater transparency in organizational context, Prada has been able to efficiently maintain a superior responsiveness with the changing tastes and preferences of the customers and thus sustain in this competitive landscape. Prada’s modernity and creativity aspects ultimately supports to form as well as to develop a unique culture enabling it to compete with major rivalries and thereby, attaining superior competitive position (Cpp Luxury, 2009). Philosophy In its philosophical concern, Prada focuses on designing the products, which are manufactured and sold particularly to the female section of the society of the United States, in such a way that should be expressive and apparently reward a feeling of durable quality along with maintenance of craftsmanship. Thus, on the basis of this assumption, the philosophy of Prada has been viewed to be emphasising upon creating the products based on traditional aspects in a different manner and making designs through innovativeness (Prada, 2013a). Structure The organisational structure of Prada can be better understood with the help of the following pictorial illustration. Source: (Prada, 2013b) From the above graphical representation, it can be observed that the organizational structure of Prada consists of different departments like finance, legal, business control, engineering, human resource, information technology and relation with investors. In relation to the position of Board of Directors, there pertain two different aspects such as corporate affairs and internal auditing. With regard to Prada’s organisational culture, it has also been apparently observed that the company focuses on its diverse functional aspects for meeting the demands of the customers in the global market context (Prada, 2013b). Moreover, Prada also emphasizes on introducing along with developing its flexibility in terms of finances, resource usage and designing with the sole intention to develop attractive products as per the convenience of the customers in global context (Sottoriva, 2011). Marketing Practices The success of Prada usually depends on integrity, recognition and image of the brands that produced by the company in the global market context. The marketing practices of Prada include various determinants which include production, distribution, culture and art. It is to be stated that Prada emphasizes on generating along with developing attractive advertising campaigns for launching its broad assortment of products to the worldwide business markets where it operates. Specially mentioning, it has been viewed that the significant aspect of human resources is regarded as one of the fundamental assets for the company assisting towards developing its overall business or operational performances and most vitally aiding in accomplishing superior competitive position by a considerable level. It has also been viewed that Prada uses various marketing techniques in order to promote its broad array of products to the worldwide business markets. In this regard, the company has been viewed to place the advertisements of its different products into magazines and also by displaying the products in exhibitions (Sottoriva, 2011). Awards It has been viewed that Prada is considered as one of the reputed brands in the global market context providing quality products to customers on national as well as international basis. Relating to the awards, it has been viewed that Prada was presented the award of ‘Council of Fashion Designers of America’ in the year 1993 for dealing with various fashion related products as well as accessories (Council of Fashion Designers of America, 2013). Charity and Sponsorship Prada, one of the reputed brands in America which is quite renowned for its quality products and accessories has been noted to engage in various charitable dimensions. This can be justified with reference to the fact that Prada often involves in providing gifts for children as well as kids and donating substantial amounts to small organisations requiring assistance (Kids, 2012). In terms of sponsorship, Prada has been viewed to be one of the providers of outfitting for sailing team of Italy participating in Olympics 2012. Moreover, Prada was also noted to be the sponsor for Italian National sailing team participating in Paralympics games which held in the year 2012 (SponsorPitch, 2012) Prada Educational Foundation Prada Educational Foundation was established in the year 1991 particularly in the United States. It has been viewed that the foundation which formed by Prada encourages people as well as individuals in the global context to connect, think and share better knowledge along with skills through the usage of technology assisting in building potentiality amid different individuals and transform into a new society. It can be also be stated that Miu Miu, one of the latest brands of Prada, provides dynamic educational facilities for the students as well as the individuals on a global basis in terms of offering management courses and courses relating to fashion designing among others (GuideStar USA, Inc., 2013). Other Integrated Actions The Integrated Marketing (IM) process of Prada is based on customization the offers for customers through targeting different business market segments. The process of integrated marketing of Prada emphasizes on innovation. Through following an efficient IM approach, Prada has been capable of designing the products effectually selling the customers in the global market context at a timely basis. This resulted in development of Prada on a continuous basis (Bertelli, 2012). In relation to Integrated Marketing Communication (IMC), it can be stated that Prada heavily emphasizes on activities linked with brand promotion. Moreover, social networking also assisted Prada to generate greater revenue through making greater awareness of brands for customers in the global markets. Moreover, in order to attract as well as to retain its existing customers, Prada emphasizes on utilizing seasonal products for the customers in the global business market (Boundless, n.d). By the execution of the model concerning customer excellence, it can be stated from a broader perspective that with the adoption of pre and post-event of marketing, both existing and emerging customers can be provided with quality products which would help Prada to raise profitability along with productivity by a greater level. Moreover, the aforesaid approach will also support Prada to establish in-depth affiliation with the customers in global markets (Luxury Education Foundation, 2012). Integrated Marketing Communication (IMC) in Prada IMC fundamentally focuses on identifying the communication prospects which in turn influences the challenges for business activities related to issues of marketing in the modern day context. The concept further emphasizes the integration of tools used by companies for promotion purposes with the other various notions of its marketing initiatives (MMC Learning, 2009). Contextually, the various components of IMC include brand focus, experience of consumers’ tools for promotion and communication as well as corporate culture (Boundless, n.d). The brand focus implies logo, tagline, corporate identity and style among others; while, the communication tool implies every mode of direct marketing, online communications and social media among others. Again, the promotional tools comprise of personal selling, consumer promotion, database marketing and public relations among others (Boundless, n.d). With reference to IMC, it can be stated that Prada extensively focuses on brand promotion activities. Notably, the fashion outlet has currently started taking the advantages of social networking with the aim to provide adequate information to the customers and generate better brand awareness among the global marketplace. Apparently, such IMC initiative not only assisted Prada in generating profits for the organization but also acted as a promotional tool for capturing valuable customers possessing likeliness towards branded products. It can also be stated that with assistance of communication in social networking sites, Prada has been able to generate effective sales by identifying and satisfying the demands of the customers with quality product deliverance (Aarhus University, 2012). The company emphasizes on brand and quality, along with the demands of customers which helps in maintaining the heritage of the organization as well as generating effective revenues by selling quality and creative products. With the intention to attract customers, Prada also focuses on utilizing of seasonal designing initiatives (Prada, 2013). Integrated Marketing (IM) in Prada In the similar context, IM is often regarded as the process of customizing the offers made by customers on the basis of target segments that are individually carried out through alterations in marketing mix strategies of an organization (Bhasin, 2012). As the process suggests, it emphasizes on customization of offers made by customers through target segments. Contextually, it can be observed that Prada initiates strategies related to marketing of its products through innovation. In the integrated marketing there are various processes which Prada focuses on in order to maintain its growth of sale, sustainability along with profitability. The IM approach of Prada is carried out in an effective manner as the activities performed by the organization are closely linked with employees and manufacturers during the formulation of the designing process, which assists in the flow of information facilitating continuous development of the workforce and quality aspects to contribute towards its brand value. It is worth mentioning in this context that through the IM approach, Prada has been able to deliver the customers on a timely basis and according to their demands in the global market, with the assistance of greater customization of products. This further facilitated Prada to maintain its effective growth and generate profitability to a considerable level obtaining greater advantages over its competitors (Bertelli, 2012). Conclusion and Recommendations From the above observation, it can be comprehended that Prada is viewed to be one of the reputed brands which established in the year 1913 by Mario Prada. For several years, Prada is being emphasising upon building its product range effectually through generating greater awareness of brands and executing innovative thinking or ideas while producing any product. Through greater offerings of seasonal products to the customers, Prada raises its productivity as well as sales by a considerable level. It is to be recommended that with the introduction of latest brand Miu Miu, Prada would be facilitated with gaining greater amount of sales and productivity. Moreover, execution of better and innovative marketing strategies would assist in promoting the sales and profits of Prada. This would ultimately result in establishing greater connectivity with customers, knowing their demands and act accordingly for maintaining greater sustainability in the business markets of America as well as globally. References Boundless, No Date. Integrated Marketing Communication Components. Marketing. [Online] Available at: https://www.boundless.com/marketing/integrated-marketing-communication/integrated-marketing-communication/determining-budget/ [Accessed May 07, 2013]. Bertelli, P., 2012. Prada's CEO on Staying Independent in a Consolidating Industry. The Magazine. [Online] Available at: http://hbr.org/2012/09/pradas-ceo-on-staying-independent-in-a-consolidating-industry/ [Accessed April 07, 2013]. Cpp Luxury, 2012. The Secrets behind Prada’s Continued Success, In an Interview with CEO Patrizio Bertelli. News. [Online] Available at: http://www.cpp-luxury.com/the-secrets-behind-pradas-continued-success-in-an-interview-with-ceo-patrizio-bertelli/ [Accessed May 7, 2013]. Council of Fashion Designers of America, 2013. CFDA Fashion Awards. About. [Online] Available at: http://cfda.com/cfda-fashion-awards [Accessed May 7, 2013]. GuideStar USA, Inc., 2013. Prada Educational Foundation. Summary. [Online] Available at: http://www.guidestar.org/organizations/36-3765760/prada-educational-foundation.aspx [Accessed May 7, 2013]. Kids, 2012. Gifts in Kind and Secondments. Information. [Online] Available at: http://www.kids.org.uk/information/100349/100415/103121/gifts_in_kind_and_secondments/ [Accessed May 7, 2013]. Luxury Education Foundation, 2012. The Growth and Development of Prada's Sister Brand: Miu Miu. Home. [Online] Available at: http://www.luxuryeducationfoundation.org/programs/master-class/120 [Accessed May 7, 2013]. Prada, 2013a. History. Group. [Online] Available at: http://www.pradagroup.com/en/group/history [Accessed May 7, 2013]. Prada, 2013b. Organizational Structure. Group. [Online] Available at: http://www.pradagroup.com/en/group/organizational-structure [Accessed May 7, 2013]. Sottoriva, C. 2012. Prada Group Annual Report. Academia, pp. 1-155. SponsorPitch, 2012. Sponsor. Home. [Online] Available at: http://sponsorpitch.com/sponsors/2127 [Accessed May 7, 2013]. References Aarhus University, 2012. Introduction. Files. [Online] Available at: http://pure.au.dk/portal-asb-student/files/45325191/Analysing_the_effectiveness_of_Facebook_as_a_marketing_communication_tool.pdf [Accessed April 07, 2013]. Bertelli, P., 2012. Prada's CEO on Staying Independent in a Consolidating Industry. The Magazine. [Online] Available at: http://hbr.org/2012/09/pradas-ceo-on-staying-independent-in-a-consolidating-industry/ [Accessed April 07, 2013]. Boundless, No Date. Integrated Marketing Communication Components. Marketing. [Online] Available at: https://www.boundless.com/marketing/integrated-marketing-communication/integrated-marketing-communication/determining-budget/ [Accessed April 07, 2013]. Bhasin, H., 2012. Integrated Marketing. Home. [Online] Available at: http://www.marketing91.com/what-is-integrated-marketing/ [Accessed April 07, 2013]. MMC Learning, 2009. What is IMC? Home. [Online] Available at: http://www.multimediamarketing.com/mkc/marketingcommunications/ [Accessed April 07, 2013]. Prada, 2013. Group Profile. Brands. [Online] Available at: http://www.pradagroup.com/en/group/group-profile [Accessed April 07, 2013]. Prada, 2013. History. Group. [Online] Available at: http://www.pradagroup.com/en/group/history [Accessed April 07, 2013]. University of Colorado, 1997. A Selection of IMC Quotes (1990-1997). Difference between IMC and IM. [Online] Available at: http://spot.colorado.edu/~moriarts/imcquotes.html [Accessed April 07, 2013]. Read More