PROJECT REPORT

ON

“STUDY OF INTERNATIONAL BRANDS IN THE EMERGING INDIAN

MARKETS:-A CASE STUDY OF PRADA”

UNDER SUPERVISION OF:

…………….

SUBMITTED BY:

PRAGATI GUPTA

ENROLLMENT NO : ……………

Submitted in partial fulfillment of the requirements for qualifying

 INDEX TABLE

MBA

In

IB

INSTITUTE OF MANAGEMENT TECHNOLOGY

CENTRE FOR DISTANCE LEARNING
GHAZIABAD

2018
SL.NO CONTENTS PAGE NO.

1
PART – I
2 TO 12
 EXECUTIVE SUMMARY
PART – II
2  INTRODUCTION TO THE STUDY 13 TO 25
 INDUSTRY PROFILE

PART - III
3 26 TO 57
 INTRODUCTION OF COMPANY

PART - IV
4 58 TO 60
 RESEARCH METHDOLOGY
 OBJECTIVES OF THE STUDY

6
PART - V 61 TO 72
 DETAIL DESCRIPTION
PART - VI
7 73 TO 80
 REVIEW, DATA ANALYSIS AND INTERPRETATION

PART – VII

 FINDINGS, INDUSTRY ANALYSIS, TRENDS

8 81 TO 97
 RECOMMENDATIONS

 CONCLUSIONS.
ANNEXURE
9  BIBILOGROPHY. 98 TO 99
EXECUTIVE SUMMARY

 INDUSTRY PROFILE.
 COMPANY PROFILE.
 NEED FOR THE STUDY.
 OBJECTIVES OF THE STUDY.
 SCOPE OF THE STUDY.
 LIMITATIONS OF THE STUDY.
PART - I
 METHODOLOGY.
 FINDINGS.
 SUGGESTIONS.
 CONCLUSION.

EXECUTIVE SUMMARY

 INDUSTRY PROFILE.
 COMPANY PROFILE.
 NEED FOR THE STUDY.
 OBJECTIVES OF THE STUDY.
 SCOPE OF THE STUDY.
 LIMITATIONS OF THE STUDY.
 METHODOLOGY.
 FINDINGS.
 EXECUTIVE SUMMARY

Title of the study:

“STUDY OF INTERNATIONAL BRANDS IN THE EMERGING INDIAN MARKETS:-A CASE STUDY OF PRADA”

As a part of curriculum, every student studying MBA has to undertake a project on a particular subject

assigned to him/her. Accordingly I have been assigned the project work on the study of International

Brands in the Emerging Indian Markets:-A Case Study of Prada.

Prada is an Italian luxury fashion house, specializing in leather handbags, travel accessories, shoes,

ready-to-wear, perfumes and other fashion accessories, founded in 1913 by Mario Prada.
The company was started in 1913 by Mario Prada and his brother Martino as a leather goods shop –

Fratelli Prada – in Milan, Italy. Initially, the shop sold animal goods and imported English steamer trunks

and handbags.

Mario Prada did not believe that women should have a role in business, and so he prevented female

family members from entering his company. Ironically, Mario's son harbored no interest in the business,

so it was his daughter Luisa Prada who took the helm of Prada as his successor, and ran it for almost

twenty years. Her own daughter, Miuccia Prada, joined the company in 1970, eventually taking over for

her mother in 1978.

Miuccia began making waterproof backpacks out of Pocone. She met Patrizio Bertelli in 1977, an Italian

who had begun his own leather goods business at the age of 24, and he joined the company soon after.

He advised Miuccia on company business, which she followed. It was his advice to discontinue importing

English goods and to change the existing luggage.

So, during this report I do complete studies and research on said company and try to fulfill all objective

as mention.

India was a promising market to many international brands, it was not completely immune to the global

economic flu. More than its primary impact on the economy, it sobered the mood in the consumer

market. Even the core target group for international brands, that had just begun to splurge, apparently

without guilt, tightened the purse strings and either down-traded or postponed their purchases. The

study of showing International brands value in the Indian Market. It attempts to understand the buyer

decision processes/buyer decision making process, both individually and in groups. It studies
characteristics of individual consumers such as demographics, psychographics, and behavioral variables

in an attempt to understand people's wants.

I also present all research work related to this company and provide some Suggestions & Conclusions on

the basis of my Project Study.

COMPANY PROFILE

Logo
Prada is an Italian luxury fashion house, specializing in leather handbags, travel accessories, shoes,

ready-to-wear, perfumes and other fashion accessories, founded in 1913 by Mario Prada.

The company was started in 1913 by Mario Prada and his brother Martino as a leather goods shop –

Fratelli Prada – in Milan, Italy. Initially, the shop sold animal goods and imported English steamer trunks

and handbags.

Mario Prada did not believe that women should have a role in business, and so he prevented female

family members from entering his company. Ironically, Mario's son harbored no interest in the business,

so it was his daughter Luisa Prada who took the helm of Prada as his successor, and ran it for almost

twenty years. Her own daughter, Miuccia Prada, joined the company in 1970, eventually taking over for

her mother in 1978.

Miuccia began making waterproof backpacks out of Pocone. She met Patrizio Bertelli in 1977, an Italian

who had begun his own leather goods business at the age of 24, and he joined the company soon after.

He advised Miuccia on company business, which she followed. It was his advice to discontinue importing

English goods and to change the existing luggage.

With the Howley Brother’s growing reputation for designing and installing ground source system s in

challenging environments, it came as no surprise that Prada, probably one of the most iconic brands in
the w orld of high class fashion, had learned of the pioneering open loop ground source system installed

by them at Scott’s of Mayfair restaurant in 2006. Prada wanted to und erstand more about how they

could potentially install a system that would allow them to service their soon to be refurbished flagship

store in Old Bond Street, London. With a cha llenging timeframe ahead of them Iain and Andy Howley

set to work with Prada’s engineering team (ESA Engineering of Milan) and architects Gregori Chiarotti.
The Prada building had an initial estimated colling demand of ~ 380kW. ESA were looking for a flow

demand of approx 12l/sec to service the facility. On investigation it was discovere d that there was a

potential to expand the site and so the te am were advised to test the wells at a higher demand to

“future -proof” the system.

A site survey showed that it was going to be extremely difficult to install wells on the site. At the frront

of the property, there was scope to drill through old coal vaults that extended from the building façade,

which whilst a challenge, was something that we had done on a nu mber of occasions previously for

other clients.

The second location was one to really test our Engineer’s mettle. A stairwell at the back of the buildi ng

which was open

to the atmosphere was the only place to realisitically place a well. We devised an entry route to take the

rig and equipment through the front of the shop b y removing a 2.8m wide plate glass window. The

basement void beneath the shop floor traversed by the plant had to be fully propped to take the weight
of the equipment. A specialised platform was designed and constructed to take the weig ht of the

drilling rig to allow the work to take place.

Much like Scott’s, because there was limited space between the wells and a reasonably sizeable load to

be services, the Prada team were advised that our aquifer thermal modelling work would almost

certainly show intolerable thermal interference between wells at some point in the future. Our

Designers therefore using the most advanced 3D numerical modelling software, modelled the system

with and without the inclusion of a “bleed off” facility to identify the potential volumes to be discharged

off site to make the system sustainable. The final de sign incorporated a motorised valve automatically

activated by controls acting on a signal showing increased abstraction water temperature. This system

would allow the groundwater temperatures to stabilise and switch back when it had done so.

With the Prada team fully up to speed with our intentions and all enabling and design works complete,

the drillers moved in to start the main phase of the onsite works. Casing was engineered in short leng

ths to allow them to be handled inside the building. The work area had to be kept to an absolute

minimum to allow other trades to do their works – including Italian craftsme n laying marble floors

whilst the wells were being tested!. The wells were acidised and successfully tested at the target flow

rate of 18l/sec.

The project was complete d in early 2012 and serves as our most complex open loop project by a

country mile. A challenge that was met by Our skilled and experienced team. Iain Howley commented

“Little did I know what lay ahead for the design team after taking the initial call from Paolo Chiarotti.

With a very tig ht programme and an even tighter site to be accessed this was right up our street! I
would be lying if I said there weren’t odd nights lying in bed staring at the ceiling but it is engineering

challenges like this that we really like to get our teeth into. It was great to work directly for an

organisation like Prada and off the back off this project we are now progressing with another world

famous fashion label just up the road. Iain joked… we are quickly asserting ourselves as the mo st

fashionable ground source designers in Britain. Seriously though, Prada really is one to be proud of.”

NEED FOR THE STUDY

India was a promising market to many international brands, it was not completely immune to the

global economic flu. More than its primary impact on the economy, it sobered the mood in the

consumer market. Even the core target group for international brands, that had just begun to

splurge, apparently without guilt, tightened the purse strings and either down-traded or

postponed their purchases.

So, the need for study of showing International brands value in the Indian Market and the study of

International Brands in the Emerging Indian Markets, with Case Study of Prada.

OBJECTIVES OF THE STUDY

Fixing the objective is like identifying the star. The objective decides where we want to go, what we

want to achieve and what is our goal or destination.

1. To study the customer perception & awareness towards the International brands.

2. To study the international Prada brands in the Indian Markets.

3. To know the main factor which motivates customer to buy international brands?
 4. To know the main source of awareness in them about the international brands.

5. To study the influence of international brands to Indian market.

SCOPE OF THE STUDY

The scope of the study is identified after and during the study is conducted. The main scope of the study

was to put into practical the theoretical aspect of the study into real life work experience. The study of

Prada Group give complete knowledge related to this brand and I also know about the study of

International Brands in the Emerging Indian Markets.

LIMITATIONS OF THE STUDY

 The study duration is less for complete research work.

 The analysis is limited to just two year data as per availability.

 Limited interaction with the concerned heads due to their busy schedule.

 The findings of the study are based on the information retrieved by the selected unit.

METHDOLOGY

In preparing of this project the information collected from the following sources.
Primary data:

The Primary data has been collected from Personal Interaction with CEO, Director and other staff

members.

Secondary data:

The major source of data for this project was collected through annual reports, profit and loss account

of 5 year’s period from & some more information collected from internet and text sources. Some

Historical Data also used to complete this report from internet, journal and Magazine.

SAMPLING DESIGN
Sampling unit : Product & Services

Sampling Size : Last Five years statements.

Tools Used: MS-Excel has been used for calculations and Ms Word used for Reporting

FINDINGS:

 To study the customer perception & awareness towards the International brands.

 To study the international Prada brands in the Indian Markets.

 To know the main factor which motivates customer to buy international brands?

 To know the main source of awareness in them about the international brands.
SUGGESTIONS

In the face of globalization of market, the globe has become narrower in terms of culture and

consumer behaviour. Many of the reputed global firms have transformed multinational

strategies to global marketing strategies. In the face of these global trends, we are interested in

knowing how Indian consumers are reacting to new business trends. The objective of this study

was to find out the attitude of Indian University students towards local versus foreign clothing

brand. The respondents were asked to evaluate a popular local Indian casual brand and

International Brand like Prada. The variable examined were emotional value, perceived quality,

brand loyalty, brand association, overall brand equity, and purchase intention of local versus

foreign brand. From our study it was found that foreign clothing brand is highly preferred over

most popular local clothing brand on the emotional parameters taken. From the independent t

test, it was clear that there is no gender bias in developing favourable attitude toward foreign

clothing product. The finding of the study will encourage foreign retailers for successful entry

into Indian marketplace.

CONCLUSION:

Indian consumers are changing-disposable income is rising, consumption patterns are changing,

and the level of brand consciousness is rising. This has led to the growth of modern retail, and

many global and Indian corporate are either investing or planning to invest in the Indian retail
sector. Based on a pan-India survey of rich and middle-income consumers, this paper examines

consumer shopping behavior for brands across different product categories and knowledge and

perception of foreign brands.

I also study of International Brands in the Emerging Indian Markets with Case Study of Prada

Group.

PART - II

 INTRODUCTION TO THE STUDY

 INDUSTRY PROFILE
 INTRODUCTION TO THE STUDY

In the face of globalization of market, the globe has become narrower in terms of

culture and consumer behaviour. Many of the reputed global firms have transformed

multinational strategies to global marketing strategies. The main thrust for globalization

of market arose from Levitt. Levitt opined that the “global corporation” that has been

created does not cater to local differences in taste. These differences were being

overwhelmed by the ability of global corporation to market standardized products of

high quality at a cost lower than that of the competitors. Levitt’s main argument is that

standardized marketing strategies lead to scale economics, cost reduction and better
profits. The consensus emerging from country of origin research suggests that

consumers use country of origin information to evaluate products.

Consumer is the King of market and all the marketing activities of all the business and

industrial enterprises of today go around the habits, tastes, preferences, perception and

attitudes of consumers. All efforts are being made to provide maximum satisfaction to

maximum consumers. Goods and Services are produced according to the specifications

of these needs and wants and these goods and services are distributed to the consumers

at the right time and place through most suitable channels of distribution. Marketers

have come to realize that no marketing efforts can be successful if the choices, tastes

and attitudes of consumers are not properly considered. Therefore, they lay stress upon

marketing research and study consumer behaviour. Further, a buyer purchases a product

because of certain physical, social and economical forces creating a desire or a want for

the product. A decision to buy a product is taken after passing through different stages.

Need recognition is the first thing in the buying stages, which is followed by product

awareness, interest, evaluation and intention, source of information, purchase and post

purchase behaviour. A decision to buy a product of daily use may be taken in few

seconds while the decision to buy a durable product is taken after critical study of many

factors. According to recent survey by FICCI, India’s rapid economic growth has set the

stage for fundamental change among the country’s consumers. There is discernible shift

in consumer preference in favour of higher-end and technologically superior branded

products. The demand is being spurred by increasing consumer awareness and

preference for new models. The changing dynamics of consumer behaviour reflects that

luxury goods are now being perceived as necessities with higher disposable incomes
being spent on lifestyle products. A large number of domestic and multinational

companies are already competing in the market and the challenges would force

companies to be more dynamic to adapt the rapidly changing needs and incomes of the

consumers. In recent years, consumers have shown inclination for foreign goods and

Indian goods are also at par global standard.

In the face of these global trends, we are interested in knowin g how Indian consumers

are reacting to new business trends. The objective of this study was to find out the

attitude of Indian University students towards local versus foreign clothing brand. The

respondents were asked to evaluate a popular local Indian casual brand and an Prada

Group. The variable examined were emotional value, perceived quality, brand loyalty,

brand association, overall brand equity, and purchase intention of local versus foreign

brand. From our study it was found that foreign clothing br and Prada Group is highly

preferred over most popular local clothing brand on the emotional parameters taken.

From the independent t test, it was clear that there is no gender bias in developing

favourable attitude toward foreign clothing product. The find ing of the study will

encourage foreign retailers for successful entry into Indian marketplace.

INDUSTRIAL PROFILE

HISTORY
Prada is an Italian luxury fashion house, specializing in leather handbags, travel accessories, shoes,

ready-to-wear, perfumes and other fashion accessories, founded in 1913 by Mario Prada.

The company was started in 1913 by Mario Prada and his brother Martino as a leather goods shop –

Fratelli Prada – in Milan, Italy. Initially, the shop sold animal goods and imported English steamer trunks

and handbags.

Mario Prada did not believe that women should have a role in business, and so he prevented female

family members from entering his company. Ironically, Mario's son harbored no interest in the business,

so it was his daughter Luisa Prada who took the helm of Prada as his successor, and ran it for almost

twenty years. Her own daughter, Miuccia Prada, joined the company in 1970, eventually taking over for

her mother in 1978.

Miuccia began making waterproof backpacks out of Pocone. She met Patrizio Bertelli in 1977, an Italian

who had begun his own leather goods business at the age of 24, and he joined the company soon after.

He advised Miuccia on company business, which she followed. It was his advice to discontinue importing

English goods and to change the existing luggage.

Founding

The company was started in 1913 by Mario Prada and his brother Martino as a leather goods

shop – Fratelli Prada – in Milan, Italy. Initially, the shop sold animal goods and imported

English steamer trunks and handbags.

Mario Prada did not believe that women should have a role in business, and so he prevented

female family members from entering his company. Ironically, Mario's son harbored no interest

in the business, so it was his daughter Luisa Prada who took the helm of Prada as his successor,
and ran it for almost twenty years. Her own daughter, Miuccia Prada, joined the company in

1970, eventually taking over for her mother in 1978.

Miuccia began making waterproof backpacks out of Pocone. She met Patrizio Bertelli in 1977,

an Italian who had begun his own leather goods business at the age of 24, and he joined the

company soon after. He advised Miuccia on company business, which she followed. It was his

advice to discontinue importing English goods and to change the existing luggage.

Development
Miuccia inherited the company in 1978 by which time sales were up to U.S. $450,000.

With Bertelli alongside her as business manager, Miuccia was allowed time to

implement her creativity in the company's designs. She would go on to incorporate her

ideas into the house of Prada that would change it.

She released her first set of backpacks and totes in 1979. They were made out of a

tough military spec black nylon that her grandfather had used as coverings for steamer

trunks. Initial success was not instant, as they were hard to sell due to the lack of

advertising and high-prices, but the lines would go on to become her first commercial

hit.

Next, Miuccia and Bertelli sought out wholesale accounts for the bags in upscale

department stores and boutiques worldwide. In 1983, Prada opened a second boutique in

the centre of the Galleria Vittorio Emanuele in Milan's shopping heart, on the site of the

previous historic "London House" emporium run by Felice Bellini from 1870 to the

1960s, reminiscent to the original shop, but with a sleek and modern contrast to it.
The next big release was a nylon tote. That same year, the house of Prada began expansion
across continental Europe by opening locations in prominent shopping