Integrated Project

On
Extension of a International Brand to India – Miu
Miu

Presented By: Rajlaxmi Singh Khushboo

Aggarwal
 Declaration
I have hereby that the project work entitled “Report on Miu Miu – International brand Extension”,
submitted to the Pearl Academy, is a record of an original work done by me under the guidance of Ms
Poonam Kumar, Course Leader of Post-Graduation Diploma in Fashion Business Marketing and
Merchandising, and this project is submitted in the partial fulfilment of the requirements for the award
of the degree of Post-Graduation in Fashion Business Marketing and Merchandising. The results
embodied in this work have not been submitted to any other University or Institute for the award of
any degree or diploma.

Name of the student:

Khushboo Aggarwal

Raj Laxmi Singh

Signature

1|Page
 Acknowledgment
I am highly grateful to the course leader of Post-Graduation Diploma in Fashion Business

Marketing and Merchandising, Dr. Poonam Kumar for her constant guidance and supervision as

well as for providing necessary information regarding the project and also the support and

motivation for the completing the project. I have made a lot of efforts in this project,

however, it would have not been possible without the kind support and help of many

individuals, I would like to convey my heartiest gratitude and thanks to Dr. Poonam Kumar

Ms. Deepmala Moorjani, Ms Preeti Goel, Mr Gaggan Bhatia and Mr Varun Duggal for giving

me such attention and time. Without their kind word, friendly advice during the project, this

would have not been possible.

In the end I would like to express my gratitude towards my parents and friends for kind co-

operation and encouragement which help me in completion of this project.

Name:

Khushboo Aggarwal

Rajlaxmi Singh

Course: PG Fashion Marketing and Merchandising

Cohort- 2017-19

2|Page
S.NO TOPIC
• Chapter- 1
Brand Overview
History
Brand Identity
Mission & Vision
Brand Element
Logo
Rationale
• Chapter-2
Literature Review
• Chapter -3
Objectives
Research Overview
4 P’s
Pest
Swot
Brand Prism
Segmentation Targeting Positioning
Merchandising
Retail Merchandising
Range Plan
Merchandising Budget
Business Environment
HR policies
CSR policies
Product Extension
Rationale
Swot
STP
VALS Model
Brand Prism
CBBE Model
Business Communication
Logo
Letter Head
Visiting Card
Online Website
Retail Outlet
Financial Report
• Chapter-4

3|Page
 Questionnaire Analysis
Recommendation
Conclusion
Bibliography
Reference
Annexure

4|Page
Chapter 1
1.1 Brand Overview

“Fashion is a popular style or practice especially in clothing, footwear and accessories. Fashion is
distinctive and constant trend in style in which a person dress.

Miu Miu is also a brand which is all about fashion apparel and accessories. It is a high fashion woman
clothing and accessories brand fully owned addition of Prada. This brand was launched in 1993, and
the headquarter was situated in Milan Italy and is the expansion of Prada latest fashion house. The
original name of Miu Miu is ‘Muccia Prada’. (anonymous,2015) The replica set by the brand was
womanish and anti-follower and even difficult at times. It set the image of the brand in the form for
which they gained the following of woman who are not afraid to be a bit different, in a very short
period of time despite being an expensive brand .Miu Miu products appeal to women in 20
something who can get away with wearing ,say ,patent leather platforms with carved wood soles to
work .The brand gets a good goodwill in the market and year after they received the Council of
Fashion Designer of American International Designer Award for their most beautiful Miu Miu
collection. From 1993 to 2008, the brand had the collection for both men and woman. But after
seeing the sales, the brand stopped the production of men’s line and only focused on woman
products. They are basically focusing on the girls of young generation. Miu Miu not only produces
apparel but other products like shoes. Some of them are Ballerina flat, heeled leather boot and
masculine makeup. These are the first Miu Miu shoe collection and very soon they also came up with
sunglasses collection. They also do the campaign for their brand which was done by Chloe Sevigny,
Lou Dillon and even young Hailee Stein Feld. (anonymous,2015)

1.2 History:
1993:
•Miu Miu brand was originally designed as an extension rich anti fashion secondary line to Prada
•The brand was consistently and apathetically positioned as a standalone brand

2006:
•Brand tag moved from Milan to Paris to get more maintain and self-reliant in New York times
•Miu Miu is nick name of 'Muccia Prada' and called the “master of look of not quite right”

2009:
•A fall in the season of 2009 collection like bare backs, fur tippets and exposed bras with study in
hotness that I am a woman with no need to roar.
Source: www.fashionbia.com

5|Page
1.3 BRAND IDENTITY

• OUTPOST FOR THE MOST REFINED FEMININITY

• WAY TO EXPERIMENTATION
• SENSUAL AND INTELLECTUAL
• A BOUNDLESS CREATIVITY

1.4 MISSION VISION AND USP:

Vision: To create an identity that was more experimental, edgy and eclectic, yet still with a feminine
feel.

Mission: MIU MIU focus on the women who are driven by a modern spirit of exploration and
experimentation in their fashion choice.

USP: MIU MIU is the fashion oriented, more casual and with youth targeted market.
It is renowned for clean chic designs and modern youthful spirit.

1.5 Brand elements:

Logo:

• The company was started in 1993 by Muccia Prada.

• Miu Miu is the childhood name of Muccia Prada.
• The granddaughter of the founder of Prada and the current head designer at Prada.
• Miu Miu is the younger sister of Prada.
• The intention was to create more playful and Avant- Garde clothes that contain the
signature quality of Prada.
• “One way that Miu Miu differentiate itself from parent company is with its Whimsical
logo”.

• The Miu Miu logo uses a bold design of white text on a black background to create a
strong graphical impression.

6|Page
 • Miu Miu uses a custom font that consists of single, curving lines with equal thickness,
straight ends, and no serifs.
• Both the M’s and the U’s have a line of white going through the middle of the letter.
This clever use of negative space creates a linear effect that is visually pleasing without
making the text unreadable.
• The top of the M’s and the bottoms of the U’s are minutely extended to cause a
slightly off-balance effect that ensures the logo does not look too bland.

SHAPE:

• The Miu Miu logo originally used M’s and U’s that extended farther above the I’s.
• It was also slightly more elongated when it was first created.
• The logo’s shape has been gently altered to make it look relatively shorter and wider.
COLOR:

• Most instances of the Miu Miu logo use black text on a white background.
• Many of the store fronts show the logo as a gold or silver colour, and in print ads, the
logo can be red, green, pink, or any other shade that matches the colour scheme of the
image.

1.6 Rational

1.6.1 WHY INDIA?

India is the second largest contributor in the apparel industry, when we study the market of the
India, it is filled with the young population and they are fashion conscious.
The population of the millennial will lead to the success of the brand of Miu Miu, because when we
study the market with the figures, large population of India played role in increasing the promising
growth rate of the clothing industry to 9.7 percent. When it comes to the Indian market penetration
of the retail in clothing, it provides flexibility to the company or the brands who want to shoot the
Indian market.

The latest update in the policy of the Indian textile market have been the policies that they have
created and targeted, plus the job opportunities they want Indian market to achieve till 2024-
2025.The investment government is looking forward is $120 billion additional investment from the
global retailers, creating the $35 million jobs by attracting the foreign investment through the blue
print of the plan known as “Vision, strategy and action plan”. Under this draft, the ministry of textile
reviews the National textile policy 2000, so that the change in the policy can attract the global
import and exports in the Indian apparel industry. (anonymous,2018)

1.6.2 Government Initiatives

The government allowed the foreign direct investment to be 100% through the automatic route, the
future of the textile industry is buoyed with the strong domestic consumption as well as the export
demand, which resulted in the high disposable income on the rise, already the market is estimated
to US$85 billion, is expected to reach US$160 billion by 2025.
The representation of the Indian apparel exports through graph:

7|Page
 Source: Self

1.6.3 Growth Strategy in India:

In India there are many brands like Zara, H&M etc. which are high fashion brands in woman apparel
and they are doing good in India because they are well established in India, so bringing the woman
apparel and accessories in India is not a good option as there are multi competitors standing
between the growth of the company as well as it is also in the mature stage, so taking risk in the high
end fashion when the competitors are so established is not at all good.

Target audience:

Miu Miu is characterized by its Avant grade sensual and provocative style featuring good natured
collections that seeks to evolve a luxurious sense of freedom as well as intimacy.
Its customer is driven by a modern spirit of exploration and experimentation in their fashion
choices. Not anyone and everyone can shop in Miu Miu. The brand sits in a high-end luxury position
in the market because of its different manufacturing techniques blended with experimental designs.
The brand extends itself in the form of clutches, handbags, sunglasses, shoes and perfume.

Miu Miu caters to those consumers who are ready to pay high price for exclusivity and status, who
love to stay ahead of fashion trends.
It’s like an investment in style and a belief that buying their products constitutes the customers
position in society and therefore worth it. It generally targets the younger audience in the society.
Miu Miu’s entrance in India would mainly target the upper urban class and higher middle-class
section of society who are fashion conscious and prefer paying extra for better quality, comfort and
luxury. Under the urban upper class and higher middle class, it will target men as well women who
are 20 and above who are not afraid to be a bit different when it comes to fashion. The main focus
will be on the men’s collection as there are less options when it comes to luxury brand in men’s wear
in India.

8|Page
Product Line

In Miu Miu there are six categories which are:

• Ready to wear
• Handbags
• Shoes
• Accessories
• Eyewear
• Fragrances

9|Page
How will Miu Miu add value to Indian market?
Recently, the inclination of Indian consumers towards international brands has become pertinent.
After liberalization, as the economy opened up to the international market, imported goods
gradually gained traction among Indian buyers. Foreign brands are becoming more popular amongst
Indian buyers gradually turning as cofactors to mould their preferences, buying habits and thereby
lifestyle. Following the trends of international markets, Indian consumers are transforming as global
buyers preferring foreign origin goods. (Sengupta, 2014)

Consumer lifestyle in India has been through a massive transformation. This transition in the country
is influenced by socio-cultural factor, geo-demographics, psychographics, preferences, norms, and
behaviour of consumers. Indian consumers now prefer a deluxe life full of luxury and comfort. The
buying preferences of the burgeoning Indian middle class have been influencing the consumer
culture of the country. The reason is: fast growth of services sector per capita income of the
populace has increased. Apart from this, rise of disposable income continues to drive increase
spending on consumer goods from the foreign market. In this market scenario, Miu Miu will have a
great advantage as the luxury fashion segment is in its growing stage amongst urban upper class and
higher middle class as well. Avant-garde fashion promoters in India like Sonam Kapoor have created
a market for high fashion and Miu Miu will supply the demands of the market just right along with
the status and class symbol of its parent brand Prada. (Sharma, 2015) The current generation, care
less about paying an extra for better quality, facility and ambiance. Mass media, internet, and
communication have been the factors driving awareness about international lifestyle and culture
amongst Indian buyers. This awareness leads to further want of goods and services as Indian
consumers tend to follow international lifestyle. Therefore, consumer culture has been reinforcing a
globalized lifestyle within Indian buyers. International brands are coming up as the mediator of this
globalized living. The mass fashion market segment in India is already saturated and has a lot of
competition hence lower profit margins, but the high fashion segment is far from its maturity stage
and is in the early growing stage. In this situation, Miu Miu while catering the needs of the Indian
consumers will also see growth in its revenues and profits, thus proving to be a value addition to
both India and the brand.

10 | P a g e
Difference and Point of Parity:

Points of difference and points of parity are both utilized in the positioning of a brand for a
competitive advantage. While it is important to establish points of difference, it is equally important
to nullify the competition by matching them on the point of parity. As a late entrant into the market
the brand should look at making the competitor's points of difference into a point of parity for the
category and alongside introduce a new point of difference thereby creating a leadership position in
the market.

Burberry, Versace, Fendi, Louis Vuitton etc. having physical presence in India poses a direct
competition to Miu Miu whereas brands like Marc Jacobs, Moschino, Valentino, etc. serve an
indirect competition with its online presence in the Indian market (Wanichsarut,2015)

Similarities between Miu Miu and its Competitors:

1. Category:

All the high fashion brands posing threat to Miu Miu have a diverse product portfolio similar to the
former including eyewear, fragrances, handbags and shoes apart from apparel, hence providing their
customers a complete head to toe look.

2. Segment and Target group:

Miu Miu and its competitors are serving to a segment of premium elite fashionable group of people
and their target customer group is the urban upper class with extensive disposable income. Being an
elite and high fashion brand, they're also prone to recession and economic downturns and also the
highly fragmented fashion industry results into low brand loyalty.

Source: MiuMiu.com

3. Positioning:

Be it Burberry, Versace, Louis Vuitton or Fendi, all the brands in one way or another try to position
themselves as a premium fashion brand and a status symbol similar to that of Miu Miu. People pay
extensive prices for a product that might be available in the market for much cheaper rates because
of the brand name, class and the status symbol that comes with it. This is the vision that high fashion
brands work on and is more than often a point of parity for the competing brands. (kallon,2011)

11 | P a g e
Points of Differentiation between Miu Miu and its Competitors -
1. Easy Recognition:

Miu Miu's creative designs are easily recognizable because of its crystal and weaving finish
(Matelassé) on its signature products.

2. Distribution Network:

Prada, the parent brand of Miu Miu has strong distribution networks and connections in the industry
which will give the brand edge over its competitors, if put into use wisely.

3.Style

Even though the product categories and diversification of Miu Miu is similar to that of its
competitors but it differentiates itself in terms of designs and style as the inclination is towards

Avant Grade, sensual and provocative which will help the brand to acquire a fair market share as the
awareness and fashion enthusiasm in India is in its growing stage.

12 | P a g e
Chapter-2
Literature Review
1.1 Shift from Goods-dominant logic to Service-dominant logic

Generally, showcasing embraced a goods-dominant (G-D) logic from financial aspects, which
concentrated on operand assets, the physical great, the exchange and value that was installed in the
physical great and exchanged to the client amid the trade. Vargo and Lusch (2004) contended that
marketing believed was joining in such a way that new-predominant rationale, a service dominant
(S-D) logic, has risen. S-D logic is basically client driven and market driven. Esteem is offered to
clients as a value suggestion. The client must take an interest in the trade for incentive to be made. A
refinement was made between value in-return, which was the concentration of G-D logic, and
esteem being used, the concentration of S-D logic. S-D logic expresses that value is together made by
the client and the supplier. What’s more, the provider, and not exchanged amid the exchange
(Vargo, Maglio and Akaka, 2008). The provider exhibits the value suggestion to the client, and when
the client acknowledges the strategic offer and takes an interest in making value it gets to be esteem
being used (Ballantyne and Varey, 2006). S-D logic incorporates the exchange of both substantial
items and impalpable administrations. Exchanges including unmistakable items utilize the item as a
vehicle on which operant assets can be conveyed (Ballantyne and Varey, 2006; Vargo et al., 2008). S-
D logic has a few hidden rules that separate it from the traditional G-D logic. Fundamental principles
of S-D logic are

• Service is the fundamental basis of exchange.

• Indirect exchange masks the fundamental basis of exchange

• Goods are a distribution mechanism for service provision

• Operant resources are the fundamental source of competitive advantages

• All economies are service economies.

• The customer is always a co-creator of value.

• The firm cannot deliver value, but only offer value prepositions.

• A service centred view is inherently customer oriented and relational.

1.2 Co-create value for luxury brands

In this paper, (Tynan, C McKechnie, S &Chhuon, C 2010) have examined how marketers and
consumers co-create value in the luxury goods through an exploratory study. The made a theoretical
frame works of the types of value for luxury brands. They used case study to research, to explore
many types of value which customer seek and receive from luxury brands. In the luxury market,
interactions are multi-layered and complex, and not simply comprising interaction between the firm
and the customers. They also include regular interactions with other luxury brand owners, the
informed and partisan brand community, opinion leaders, and the owners, employees and the
customers of other non-competing luxury brands. The customer favour high status individuals as this
offers them privileged access to information. It is essential that not exclusively is the experience
about encouraging connection amongst customer and the organization and its employees, yet
likewise the experience concerns cooperation and encounters shared with complementarily and
similarly positioned brands, and encounters with different individuals from the first class. So, in

13 | P a g e
terms of the developing service orientation predicated on processes of joint value creation, a system
gets to be distinctly vital for luxury brand owners in offering open doors for co-creating value with
different brands in the system and different individuals from the 16-brand group through fulfilling
and fitting brand experiences in view of connections with brand staff, customers and their partners.

1.3 Influence of co-creation process in shaping customer satisfaction

In the literature it is clarified that co-creation happens when a customer and a marketer cooperate
to make value and a consumption experience that drives the customers buying behaviour. Although
different creators have proposed this thought, this examination reports the primary experimental
review connecting co-creation, confide in, fulfilment, relationship quality, attitudinal steadfastness
and behavioural devotion. This research paper opens respondents to situations that vary in the
degree of co-

creation while holding precisely the same inevitable buy 17 results; the examination factors (Co-
creation, Trust, Satisfaction, Relationship Quality and Loyalty) are then measured. A structural
condition display demonstrates that there exist positive conjectured connections, where co-creation
certainly affects relationship quality through expanding levels of fulfilment and trust. In the
customary firm-driven perspective of marketing, connection happens where the firm
markets its offerings in trade of its financial incentive from the customer and the value is made by
the firm through its value chain. On the other hand, when firms co-create, the entire procedure gets
to be customer driven, customer takes part effectively in value creation process and outlines value
that customer needs out of the marketing. Customer toward the end is not just fulfilled by the value
he escapes the item however a more prominent fulfilment from the entire experience of associating
with organization

14 | P a g e
CHAPTER 3
3.1 OBJECTIVES
Objective 1:
To study the brand Miu Miu in depth as a whole.

To study in - depth analysis of Miu Miu

Research Design - Exploratory

Data collection method-Qualitative

Primary Secondary
Case study
Research paper
Website

15 | P a g e
Objective 2:
To analyse the Consumer Behaviour for foreign brand in India.

2.1 To investigate customers perception on brand loyalty for fashionable line in India

2.2 To study the product attributes that are mostly considered by consumers when buying

a brand.

2.3 To study the demographic characteristics of consumer who buy foreign brand.

Hypothesis 1: Gen x will accept Indo western style more than Gen y

Hypothesis 2: Female will prefer Indo western style more than male in Delhi (NCR)

To analyse the Consumer behaviour for foreign brand in India

Research Design - Exploratory

Data collection method-Quantitative

Primary
Questionnaire
Secondary
Nethnography Research paper

16 | P a g e
Objective 3:

To study the competitor’s analysis for the brand Miu Miu globally and nationally.

3.1 To Conduct a comparative analysis of the industry.

3.2 To Study the closest competitors.

3.3 It will help us to choose the right strategies for beating our competitor’s and their current
standing in India.

To study the competitors analysis for Miu Miu

Research Design - Exploratory

Data collection method-Qualitative

Primary Secondary
Observation Case study
In- depth interview Research paper
Website

17 | P a g e
Objective 4:
To study the retail merchandise mix of the brand Miu Miu
4.1 Studying the retail merchandising will us to understand the way how the brand miu miu
attracts the customers.

4.2 It will help us to formulate new strategies to attract the customers in India.

4.3 It will help us to design the layout of the store. And to maintain the ethos of the brand in
India.

To study the retail merchandise mix of the Miu Miu

Research Design - Exploratory

Data collection method-Qualitative

Primary Secondary
Observation Case study
Research paper
Website

18 | P a g e
Objective 5
To study the product merchandise mix of the brand Miu Miu

5.1 To understand the product lines offer by the brand Miu Miu.

5.2 To understand the product unique selling point(USP) of the brand Miu Miu

5.3 To help us in deciding the product line which will be best for the Indian consumer.

To study the Product merchandise mix of the Miu Miu

Research Design - Exploratory

Data collection method-Qualitative

Primary Secondary
Observation Case study
Research paper
Website

Objective 6: To develop an online website for the brand extension of the Miu Miu.

19 | P a g e
3.2 Research Overview

. Research Tool

To gather the research information, we have chosen Questionnaire method for the better
understanding of the brand and also to know the purchase intention of the buyers related to the
products made by the all saints. It would contain multiple choice questions.

Sampling
The sampling method we have chosen for the research is Random Sampling Method in which the
sample size was 200 with target age groups and income groups.

Data Collection
We have chosen both the methods such as PRIMARY & SECONDARY data collection. Primary sources
were questionnaire, information from magazines such as VOGUE and COSMOPOLITAN and
secondary information we have gathered from some fashion websites such as fashion united.com,
business of fashion, - bres2fashion.

Analysis
We have chosen SEM for the data analysis technique.

Hypothesis 1: Gen x will accept Indo western style more than Gen y

Hypothesis 2: Female will prefer Indo western style more than male in Delhi (NCR)

Limitation
Following were the limitations we faced while conducting the research.

• Using only one analysis (SEM) method limited the scope of the research.

• Sample size is less.

• We can only do the sampling in Delhi.

Future Scope of Research

Following could be the future scope of the research.

• We can do the sampling not only in Delhi but also in different states.

• Using different statistical methods (Z test, ANOVA etc.) to prove the research effective.

• Sample size could be bigger.

20 | P a g e
 3.3 Marketing Mix
Product
In 1993 Prada made its make a big appearance in menswear. The same year Miu Miu was built up.
People being modern, smart lady who adore to remain ahead of patterns.
The item run incorporates, prepared- to- wear attire, packs, footwear, eyewear, extras and scents.
Miu Miu accounts for a noteworthy share of the Prada Bunches deals.

Ready to wear

Fragrances

Shoes
Eyewear

Handbags

Price
As every one of the items are rich things with brilliant craftsmanship and imaginative outlines, the
pricing must be premium since they take into account a high-class world class zone where cash does
not make any difference. The pricing policy of the brand is subject to many elements. Miu Miu is
both a luxury brand and a worldwide organization and thus its costs are reliable around the globe
wherever in light of the fact that value separation will bring about weakening its image picture. The
worldwide advertising group of Miu Miu is in charge of the pricing methodologies after substantial
assessment about the item request, statistical surveying and competitor’s price.

21 | P a g e
Place
Miu Miu’s markets include Asia Pacific, Europe, America, Japan and the Middle East. Buildings
that protect people’s, creativity’s and fabricating stories inside their dividers - as
the workplaces of by means of Bergamo in Milan, an adaptable research
facility, stylishly fundamental and useful, where every day work streams persistently;
to gather central command in Valvigna, close Arezzo in Tuscany, where design meets
nature agreeably.

Northampton Bergamo, Milan

Promotion

Miu Miu have constantly centred in development and imagination and they have dependably turned
out with various approaches to advance their image. They have constantly received a forceful
advertising blend limited time system to advance their brands. Miu Miu conducts design
demonstrates which ended up being exceptionally profitable and enticing particularly in the form
business. They additionally had different promotions on Magazines like Vogue and Elle. Miuccia
Prada sorted out a venturing out workmanship exhibition to interface with the more youthful age
that she focused through her Miu mark. Miu Miu also has an ongoing short film series called
woman’s tales, which launched in 2012 in partnership with the Venice Film festival. The series work
only with woman directors.

Source: www.miu miu. com

22 | P a g e
 Magazine advertisements

3.4 PEST

POLITICAL
• The Textile & Clothing sector has been subjected to the maximum types of Non-Tariff
Barriers. These barriers range from Labelling restrictions, Certification requirements,
Minimum Import Prices, Import restrictions, Additional documentation, Rules of
origin. Labor and environmental standards.
• The new Prime Minister has a good chance of resuscitating the country’s
underperforming economy.
• Having majority in the parliament it should ease the decision make process.
• A majority of the CEOs said they want to do business in India but the government
needs to tackle the problem of crumbling infrastructure.
• Goods and services tax is a game changer for investors and manufacturers. It will ease
out business operations while broadening the tax base.
Source: makeinindia.com

23 | P a g e
 ECONOMIC
o Opening up of 100% FDI has given chance to various international brands to open its
exclusive brand outlet but the conation remains that it should have at least 30%
sourcing from India
• Indian apparel exporters seek special considerations as the sector adds exceptional
value to export revenue generation. They expect the Government to encourage large
scale investment and take initiatives to minimize production, and transaction costs.
They also seek Government action in emphasizing price stability in the domestic
sector.
• Indian economy expanding by 5.5% in 2015, owing to the fall in crude oil prices and
interest rates.
• “Make in India campaign” with the aim to give the Indian economy global recognition.
This initiative is expected to increase the purchasing power of common man, which
would further boost demand and hence spur development, in addition to benefiting
investors.
• Labor, capital, land market distortions limit economic growth.
Source: makeinindia.com

SOCIAL
• India presently has entered the second phase of growth and is witnessing a massive
rise in the domestic demand. This is primarily due to the rise in the standard of living
caused by the rise in the middle-income groups and there is an increase in the
disposable income of the people.
• Today, consumers have become more fashion conscious. They like to experiment new
products or fashion which is available in the market. They are mostly early adopters.
• Children constitute an important target market segment and merit attention from a
marketing perspective. The role that children play in making decisions concerning the
entire family unit has prompted researchers to direct attention to the study of
influence of children
• Most of the people nowadays are early adopters

TECHNOLOGY

24 | P a g e
 • The funds allocation under the Technology Up Gradation Fund (TUF) scheme has not
been increased in the budget of 2010-11. To encourage an additional participation,
the Government recently reduced interest rates to 2.5-3.0 percent for investments
made by larger cotton-processing units.

• In 2001, the Government established the high-level Technology Mission on

Cotton (TMC) to direct, coordinate, and fund initiatives to raise the productivity
and quality of Indian cotton and strengthen returns to growers.
• A massive digitization program has been launched to increase technology use in
government and rural India.

3.5 SWOT

STRENGTHS WEAKNESSES
Strong Distribution Channel Limited brand awareness
Innovative Designs Intense competition
Diverse Portfolio Reach
Easily Recognized designs

SWOT
OPPOURUNITIES THREAT
Endorsement with celebrities Competition by the new entrants
Collaboration with young generation Highly Fragmented Market

STRENGTHS
• Strong Distribution Channel: The brand Miu Miu has a strong distribution channel as the
parent company Prada has strong face value. It also helps Miu Miu to gain assistance from
the parent company.

• Innovative designs: The brand provides new pioneering and modern designs from an
established fashion house.

• Diverse Portfolio: Miu Miu has assortments of products such as eyewear, fragrances,
handbags, shoes, apart from the apparel.

25 | P a g e
 • Easily recognized Products: The product of miu miu are easy recognizable because of its
crystal and weaving finish on its signature products

• Availability: The brand is available at all leading e – retailer sites such as net- a -porter,
mysea.com etc. and also has its own website.

WEAKNESSES
• Limited brand Awareness: The brand has limited awareness than its Parent brand i.e. Prada

• Intense Competition: The brand faces intense competition from its competitors.

• Reach: The brand is still trying to penetrate into international markets.

OPPORUNITIES

• Endorsement: The brand can tie up with the famous celebrities and super star who have
influence on the customers and can also increase the demand in the domestic market

• Expansion of brand awareness: The brand Miu Miu can increase their presence or
awareness in the market

THREATS

• Competition: The other premium brands offering the similar kind of clothes at a lower rate

• Highly Fragmented Market: The highly fragmented market results in low brand loyalty.

Brand Prism
The Brand Prism is represented by a hexagonal prism which defines 6 characters of a brand. Just like
a person is known by his name, job, education, physical and emotional traits, a brand can be
identified by the following: -

Physique: - Salient physical qualities which are seen by the target audience-like its colour, shape, logo
or anything that brings an image in the mind of the consumer when thinking or talking about the
brand. When people think about the brand ‘Miu Miu’, following things come in their mind:

• Red, black and white color Logo

Brand Personality: - This defines the brand's personality or character. Here the brand is
personified and its traits are perceived in the eyes of the consumer in a particular way. Disney is
perceived by people as:

• Bold
• Sensual
• Chic
• Experimental

26 | P a g e
 Brand Culture: - This represents the values and principles a brand stand for. For example, a brand
that has a 'Go Green' motto will be eco-friendly is all its aspects- from manufacturing to marketing.

• Italian company
• High Fashion

Brand Relationships: The relationship a brand has, with its customers, the way each
communication relates to its target audience or how brands influence and provide a particular service
to its customers. Following is the relation that Miu Miu tries to create with its audience and has
succeeded so far.

• Confidence
• Fashionable
• Comfort

Customer Reflection: - How a customer reflects with a particular brand. This is different with how
customers perceive the brand. This talks more about the consumers who use the brand as opposed
to the brand itself. When we analysed our consumer responses, we recorded brand’s reflection over
its consumers.

• Youthful
• Timeless Experience
• Trendy

Customer Self Image: - This explains how a customer perceives himself by using the brand. For
example: - how men and women differentiate certain brands as being masculine or feminine

• Stylized products
• Fashionable identity

27 | P a g e
Understanding the Brand's prism can help you position your brand better and design effective
marketing strategies related to the brand's identity. The brand can be communicated better if its
identity is well established. This helps to streamline your marketing campaigns in a certain direction.
It is useful to understand the Brand Prism in the early stages of launching the product into the market
itself, by doing a comparative analysis of your brand's prism with other brand prisms.

Competitor Analysis:

Basis Miu Miu Burberry Valentino Fendi

Market share

Sales per year 515 (M) 2776 (M) 370(M) 110 (B)

No. of employees 4,567 10,056 4,364 5,032

No of store 250 498 - 381

Categories WOMEN- Ready Women-Make up, Woman: Apparel, Women

to wear, shoes, Scarves, bags, Bags, Shoes, Man
Handbags, clothing, shoes, Fragrances. Kids
Fragrance, Gifts. Man Watches
Accessories. Men Gifts Gifts
Kids

Source: www.wallsjournals.com

Finding of competitor analysis:

The major finding is that competitor brands have different categories like men, women, kids
etc. while Miu Miu has only one category for women.

SEGMENTATION TARGET POSITION (STP)

Segmentation

Segmentation by a brand is done based on certain parameters as discussed below:

28 | P a g e
Demographic segmentation

Demographic segmentation is market segmentation according to age, race, religion, gender, family
size, ethnicity, income, and education. Demographics can be segmented into several markets to help
an organization target its consumers more accurately.

Geographic segmentation

Geographic segmentation is a common strategy when you serve customers in a particular area, or
when your broad target audience has different preferences based on where they are located.

Psychographic segmentation

Psychographic segmentation involves dividing your market into segments based upon different
personality traits, values, attitudes, interests, and lifestyles of consumers.

Income: While segmenting, we have chosen upper middle class & above, to target as our audience.

Family size: joint/nuclear families.

• Demographic:

Demographic • 18-30 years old

• Female
• Middle and Upper-Middle class

Geographic • Lives in Urban settings and

• most likely fashion capital

• Fashion conscious
Psychographic • Not afraid to experiment
with different styles

Miu Miu aims is to target active young women who loves to experiment in their daily lives. The
women who is sophisticated and value trendy fashion with an edge. The target audience of the miu
miu lives in the urban area. The women are International and lives in the cities. They want to be seen
different from the usual. So, the age of the target audience is between 18-30year old. They in the
high societies with different taste and preferences.

Target
Miu Miu targets fashion-conscious women driven by a modern spirit of exploration and
experimentation in their fashion choices.

Positioning
Positioning is a marketing strategy that aims to make a brand occupy a distinct position, relative to
competing brands, in the mind of the customer. Companies apply this strategy by emphasizing the
distinguishing features of their brand.

29 | P a g e
 Brand Positioning

Classic

Modern Trends
Traditional

Casual

Source: www.wallsjournals.com
Merchandising
The miu miu merchandising strategy is to build around the brand values and integrity. Its focus is on
building offers on all price ranges. The brand also believes in to create awareness of the enhanced
product offering through sustained investment in promotional activities like advertisements on
social media, print media etc. The brand strategy is to increase the investment in product
development and manufacturing to safeguard quality and to elevate know how.

Pre-Production Process

TECH PACK Proto Sample/Counter Buyer closes Samples Cost Negotiation

Sample

Order Confirmation FIT Sample Buy Plan Sheet Buyer Closes Order

(First of Bulk) Buyer Approves PP

sample

30 | P a g e
 Production process
Design - the first step in production process is designing the sketch for the meant to be made. the sketches are

analysed by the designers of the brand miu miu. And then they finally select few out of them.

Pattern design; The pattern maker develops the design in standard size. The purpose of making this pattern is

to create the sample garment for test fit.

Production pattern; the production pattern is created on Computer aided machine. CAD is a computer

software that controls the production of garment manufacturing.

CAD Machine

Spreading: The fabric is place on one another with the help of the spreading machine. Spreading machine

helps to make the procedure faster and also help to stack the fabric neatly on one another. If it would be done

manually then there will be less neatness.

Spreading Machine

Cutting: The fabric is cut with the help of computerized machine or automatic machine uses laser beams to cut the

fabric in desired design. the fabrics then assorted in bundles according to the size and design.

31 | P a g e
 Automatic Cutting Machine

Sewing: the sorted bundles are you ready to be stitched. operator stitch and assemble the garment

components one by one and make the complete style. At every stage of Sewing process the quality of the

garment is check by the quality checkers. Then the stitched garment is dispatch to finishing department.

Over lock Sewing Machine Flat Lock Machine Lock Stitch Machine

Finishing: If the garment required wash then the garment goes through the washing process after washing and

drying the garment, the stickers and loose thread are removed manually or through machines such as thread

sucking machine etc. Inspection of the press garment is the goes through

the final inspection. In this stage, the garment is rechecked for the garment

measurements or size. The content label, shade variation, labelling of size is

check in this process. If there is any defective garment then it is discarded

on this stage. After finishing the merchandise goes through packaging

process.

Thread sucking Machine

32 | P a g e
Packaging: The finished garments are then folded manually. Then the folded garment is packed into the poly

bags to avoid the garment to get dirty till it reaches to the retail shop. Before packing the garment, the

merchandise is pass through the needle detecting machines.

Needle Detecting Machine

Source: www.merchandising.com
Tech Pack: A Tech pack (short for Technical Packet or also known as specification sheets) is a
set of documents which is created by a designer, tech-designer, pattern maker or sometimes
product developer to explain design to buyer so they can turn the design information into a
product. With outside(outsource) production, many contractors and factories won’t take
work unless the designer provides a clear guideline in Tech Pack. The Tech of Miu Miu:

Source: Self

33 | P a g e
Time and Action Calendar:
Time and Action (TNA) calendar is one of the most important tools for managing a project.
In garment process each order is not less than a project to a merchant because from order
receiving to completing of an order required a number of tasks of various timelines and
utilization of various resources. Like number of processes, lot of people are also involved to
accomplish an order. Similarly, each order is unique in terms of process and time utilization.
So, a detailed plan with complete responsibility is must in order to complete each order to
get completed on time. A time and action calendar define the ideal date/time period within
which the major activities of an order should occur against a scheduled delivery window.

Time and Action Calendar

Sampling Process

Production Process

34 | P a g e
 Shipping Details

Inspection

Business Environment
Human Resource Planning
Human resource planning Human resource planning is a systematic and a never-ending process to
achieve the optimum use of most organization’s asset. The main objective of the human resource
planning is to - t the best employees and job when there are shortages of surpluses. The main key
step of human resource planning is as follow:

1: Analysing the present labour supply

2: Forecasting labour demand

3: balancing projected labour demand with supply and supporting organizational goals.
(anonynomous,2018)

Hr policies of Miu Miu. So according to the glass door reviews the Hr polices that provided by Miu
Miu to their employees are as follow.

• In Miu Miu the job security, pays and benefits, work life balance, salaries of employees are
very good because the parent company itself provide the good benefits to the employees.
• They take care of their employees and help them whenever they needed. The benefits that
the company provide to their employees are medical facility, vacations, insurance, maternity
leave, employee discount etc. (indeed,2018)
• In the Miu Miu, the work life balance of employees is very good.
• In the company the harder the employees work higher they get the commission
compensation”.
• When the old customer comes back this make feel good to the employees as they value
them and make good relation with them.
• The management of Miu Miu is very helpful with the employees as they expect more from
employees and have high expectation to increase sales good.
• The job of the employees is on a very high pay scale, basically the manager of the company
got a salary on minimum basis is 50000/pm and the employees may got the salary of 35000-
40000/per month. (indeed,2018)

35 | P a g e
 • The boss and other managers of the company are very friendly with the employees. The
internal environment of the company is very good and the employees of the company work
like friends.
• The top and the middle level managers are very supportive and ready to help in every
manner they want. they give their full time with the employees whenever they are in any
problem. (indeed,2018).
The Information on HR Policies and Procedures has been procured through secondary data
i.e. reviews published online by employees who are currently working or have worked with
All Saints in the past. According to this data, the information can be divided among three
categories, which are:
• Work-Life Balance
• Pay & Benefits
• Job Security and Advancement

1: Work life balance: The employees at Miu Miu have a great time with the work.
They are very happy to do work with the company. The boss and other people of the
company are very supportive, and ready to help each other in any manner. There may be
long hours from time to time but it’s manageable. Everyone is helpful!

2: Pay & Benefits: Pay at Miu Miu is given at hourly rate, which $11 for a part time worker
and $15 for a full-time worker. There were mixed reviews about the employee satisfaction
as far as their pay was concerned. The part time workers were content while the full time
felt that they were underpaid despite the hard work and extra ships. Despite the
dissatisfaction in their base salary, the employees feel compensated through various
benefits provided by the company which include

• Leaves- Pregnant employees can claim up to 60% for a leave of 6 weeks, Vacation,
personal and sick days as paid leaves. (Glassdoor,2018) Accrual of vacation time.
• Healthcare (full-time)- Medical, Dental, Life and Vision Insurance. 24 Hour
Healthcare Concierge.
• Wellness- Employee Assistance Program, Free Nutrition Counseling, Gym Discounts,
Home Office Gym with access to Personal Trainers. (URBN, Work with Us)
(Glassdoor,2018)
3: Job Security and Advancement- Full time employees - And it extremely hard to get
promoted. Relationships in the organizations are built through friendship and therefore
networking is considered as a major during promotions. The turnover rate is high due to
constant hiring of employee

CSR POLICIES

Corporate social responsibility (CSR) means it is a corporation initiative to the responsibility towards
the effects on the environment and social wellbeing. It helps the organisation to make their
reputation and image better in the society. Practising CSR policies helps the organisation in many
ways such as:

• To access the capital easily

• To increase brand loyalty and sales
• Better organization
• Better financial position

36 | P a g e
The CSR policies prevailing in India

According to Section 135 of the Companies Act provides the threshold limit for applicability of the
CSR to a Company i.e.

(a) net worth of the company to be Rs 500 crore or more;

(b) turnover of the company to be Rs 1000 crore or more;

(c) net profit of the company to be Rs 5 crore or more.

Further as per the CSR Rules, the provisions of CSR are not only applicable to Indian companies, but
also applicable to branch and project offices of a foreign company in India.

CSR Committee and Policy: Every qualifying company requires spending of at least 2% of its average
net profit for the immediately preceding 3 financial years on CSR activities. Further, the qualifying
company will be required to constitute a committee (CSR Committee) of the Board of Directors
(Board) consisting of 3 or more directors. The CSR Committee shall formulate and recommend to the
Board, a policy which shall indicate the activities to be undertaken (CSR Policy); recommend the
amount of expenditure to be incurred on the activities referred and monitor the CSR Policy of the
company. The Board shall take into account the recommendations made by the CSR Committee and
approve the CSR Policy of the company.

Practices done by the brand Miu Miu

The brand Miu Miu practices the corporate social responsibility as follows:

Changing the air conditioners and cooling machines with the new technology.

• Low consumption LED bulbs are used to reduce the consumption of the high voltage bulbs.

• Changing of all heat engines and pumps with high energy efficiency technology.

• gradual installation of inverters on the electric motors that lack them;

• installation of digital mustimeters to measure electricity;

• Gradually to get 100% renewable energy in the organisation.

• More use of recycled and certified papers.

In 2016 the Prada Group used 3,460 tons of material to package products worldwide, which was
down by 27% from 2015 mainly as a result of the reduction of the volumes and optimizing of the
packaging used for certain types of products.

Retail Merchandising

The retail marketing strategy of brand Miu Miu is to unlock the value from the retail network. The
role of retail merchandiser is to ensure that the products are nicely placed on the shelf. Retail
Merchandiser is also involved with the buying teams to accurately forecast trends, plan stocks and
monitor performance.

37 | P a g e
Merchandising Budget is the indication of how much to spend on merchandise or product. The most
important element for merchandiser is budget. Budget help the brand to analyse its performance at
the end of quarters or fiscal year.

Merchandising Budget

In the above figure, there is assumed budget of 10 lakhs. The role of the retail merchandiser will be
to order the merchandise according to the budget for the year.

Range Plan

Range Plan

Range plan is a piece of the general combination arranging process and includes settling on choices
about the measure of stock decision - the assortment (or broadness) and the profundity – that will
be accessible to clients. The broadness of stock is the quantity of various kinds of stock and the
profundity of stock is characterized as the quantity of SKU's per write. Deciding the correct stock

38 | P a g e
range is basic to meeting budgetary targets and fulfilling clients. On the off chance that the
assortment or measure of item aren't what the client needs or what the client anticipates from the
retail mark, the retailer will probably lose the deal and perhaps the client.

Product Extension
Rationale
As we decided to bring “miu miu” brand in India market. So, we thought to bring new range inspire
by “Indian Textile.”

In today scenario “Indian Textile” is booming. Textile Industry is the largest industry of modern India.
It accounts for 14% of the total industrial productions and contributes 30% of the total exports and is
the second largest employment generator after agriculture. The Indian fabric industry is currently
estimated at a whopping figure $108bn and is likely to reach around $223bn by 2021. The Indian
textile industry has the capacity to produce a wide variety of products suitable to different market
segments, both within India and across the world. The study also forecast a humongous rise in
domestic sales to $315bn from currently $68bn and a rapid increase in the export to $185bn from
currently $41bn in the upcoming few years. As Indian textile is more in demand many designers
including international as well as the brands are using “Indian Textile” in their collections. Some
designers like: Alexander Mc queen, Dior, Channel, Hermes and many more are fond of Indian
textile. These designers inculcate Indian textile, patterns and prints in their collections. After seeing
the demand of Indian textile, we as a group decided to bring new range inspire by Indian textile and
it will be like “Indo-Western” where silhouettes and aesthetics of the brand will remain same. But
the new collection will be played with minimal drapes, prints and embroidery from Indian textiles for
the Indian market

Future Growth of Textile Industry:

The domestic market for apparel and lifestyle products, currently estimated $85bn., is expected to
reach $160bn by 2025, whereas, high economic growth has resulted in higher disposable income.
This has led to rise in demand for products creating a huge domestic market. And growth will be
driven by the rising middle class. As we know the textile industry has a pivotal position in the Indian

39 | P a g e
economy and it contributes around 14 per cent to industrial production and 4 per cent to GDP. The
size of India’s textile market in 2016 was around US$ 137 billion, which is expected to touch US$ 226
billion market by 2023, growing at a CAGR (compound annual growth rate) of 8.7 per cent between
2009-23E. With over 45 million people, the industry is one of the largest sources of employment
generation in the country. The policy aims to achieve US$ 300 billion worth of textile exports by
2024-25 and create an additional 35 million jobs.

Behind the product line:

Miu Miu is all about feminism. That aims to bring Contemporary Indian semi- drape silhouettes. At
the heart of the design house lies nostalgia that translates into retracing the art of Indian crafts
through motifs, embroidery patterns and drapes that have hidden tales with light, free and breezy
silhouettes.

40 | P a g e
In India, many designers are doing it and people love them a lot. Many designers now have started
using Indian- textile in the garment and with little innovations by draping and etc. Designers like,
Tarun Tahini, Rohit Bal, Dhruv Kapoor, Gaurav gupta and many more.

41 | P a g e
SWOT Analysis
SWOT analysis (strengths, weaknesses, opportunities and threats analysis) is a framework for
identifying and analysing the internal and external factors that can have an impact on the viability of
a project, product, place or person. (Margaret Rouse)

Strength:

1. In India, skilled labors are available at very low cost. As, the jobs are less that is why
unemployment is high and pay scale is low.
2. In India, abundance of raw material is available. As, here the people don’t know the value
and don’t know how to use the raw materials in proper form.
3. It will be satisfying the customers’ needs in terms of social and psychological.

Weakness:

1. Due to frequent change in Indian government policies and implement of GST can be tough
to open new brand.
2. There is poor social media communication. As, people are less aware of the brand, they
don’t advertise much.

Opportunities:

1. It will generate employment. As, the availability of labor are their at very low cost.
2. Co-branding opportunities is there. As brand can merge with existing designers or fashion
houses. As they already themselves with top-shop.

Threats:

1. Strong competitions is there in terms of innovation, style and designs.

42 | P a g e
 2. Similar, products are
available in the market with
strong brand name. so it
will be difficult to create
the brand identity.

STP

Segmentation involves splitting

the market into diverse segment
based on some criteria that
reflects different purchasing needs.
Every consumer can have a
segment, since it is impossible to
cater for individual needs
or wants, thus the need to classify
buyers who have slight diff event in
product requirement together in a segment. Segmentation of Sicily brand will be analysed based on
following categories:
1. Demographic Segmentation.
2. Psychological Segmentation.

43 | P a g e
 • Dhruv Kapoor
• Raw mango
• Anita Dondre
• Rohit Bal
• David Abraham and Rakesh Thakur

VALS Model

According to VALS research, there are two concepts that are critical for understanding the
target consumers: primary motivation (horizontal dimension in the framework) and
resources (vertical dimension). These two aspects decide what can be expected of a
consumer in a marketplace. Using VALS provides an immense amount of information about
the consumers.

Meeu Meeu falls in the category of Thinker

• Consumer tries to be successful in their career.

• Luxury product purchase show prestige.
• Self-image in the market being important for consumers.

44 | P a g e
 Brand prism

The prism contains six unique elements that are going to make up the overall perception and image
of your brand. Those six elements are as follows –

• Physique

• Personality

• Culture

• Relationship

• Reflection

• Self-image

Meeu Meeu

45 | P a g e
CBBE Model
It stands for customer- based brand equity modal.

Keller’s brand equity model is about building a strong brand, what the customers think and feel
about the products of the brand. Th e right type of experience leads to customers having positive
thoughts and feelings and opinions of the brand.

Th e model is divided into four steps:

CBBE Modal of Meeu Meeu

Conceptual framework-: “consumer acceptance of Indian textile in consumer frame work.”

The important contribution of the reasoned action model is the realization that consumers utilize
the model in all purchase experiences to a lesser or greater extent of equal importance is the

46 | P a g e
realization that the components used to make a preference decision are also the ones employed by
a consumer to evaluate the performance success of the product or service purchased and the
company responsible for them. Therefore, as the components of preference change, the elements
influencing satisfaction change accordingly.

The evaluation experience is not simply focused on the performance and reliability issues of the
brand but also, on how the customer is treated and that the emotive elements of customer
treatment can be as clearly defined and measured as the functional components of the product.
However, just as different individuals want different types of brands with different functional
capabilities, different people have different emotive demands as well.

Business Communication
MEEU MEEU Logo:

Tagline:
“Shop the world’s best brand”
MEEU MEEU Visiting card:

Visiting Card Details:

• Bleed area: 0.125 inch

• MEEU MEEU Font: Bal keno

• Rest of the text Font: Century gothic.

47 | P a g e
MEEU MEEU LETTER HEAD:

Details:
• Size: A4
• MEEU MEEU Font: Bal keno
Size: 42.5 pt.
• Rest of the text Font: Arial
Size: 16 pt.
Online Presence:
Homepage:

48 | P a g e
Facebook Site:

Facebook Post:

49 | P a g e
Financial Report:

Initial Investment in a project is Rs. 50cr.The following is the break-up of the initial investment:

Land: 20cr

Furniture &Fixtures: 10cr

Building: 10cr

Inventories: 8cr

Salary and wages: 2cr.

Years 1 2 3 4 5 6
Profit 5cr 7cr 10cr 14cr 15cr 12cr
The assuming depreciation is 20% on Original cost, and taxation at 50%of Net Income.

1.Statement of Cash Flow

Year PBT Depreciati Depreciat Cash Cumulativ Discoun Disc. Cash Cum. Discounted
on=50% of ion=20% Profit= e t Factor Flow Cash Flow
PBT of 50cr. CFAT Cash flow @10%

1 5cr 2.5cr 10cr 12.5cr 12.5cr 0.909 11,36,25,000 11,36,25,000

2 7cr 3.5cr 10cr 13.5cr 26cr 0.826 11,15,10,000 22,51,35,000
3 10cr 5cr 10cr 15cr 41cr 0.751 11,26,50,000 33,77,85,000
4 14cr 7cr 10cr 17cr 58cr 0.683 11,61,10,000 45,38,95,000
5 15cr 7.5cr 10cr 17.5cr 75.5cr 0.621 10,86,75,000 56,25,70,000
6 12cr 6cr 10cr 16cr 91.5cr 0.564 9,02,40,000 65,28,10,000
0 Total Cash 91.5cr 65,28,10,00
Inflow 50cr 0
Less: Cash 50,00,00,00
Outflow 0
Net 15,28,10,00
Present 0
Value

2.Evaluation of Project

2.1 Pay-Back Period

Initial Investment of Rs.50cr is exceed between 3 and 4 year. Hence the payback Period on time
proportion period is under-

58cr-41cr= 17cr for 12 months

Year 3 Year 4

41cr 50cr 58cr

(Initial Investment)

50 | P a g e
Proportionate time Period for earning (50cr -41cr) = 9cr = 9cr 12 = 6 months

17cr

So, Payback Period = 3years, 6months.

Conclusion: Since the Project cost is recovered within the project period itself, the project may be
accepted.

2.2 Rate of Return on Original Investment Method

It is assumed that the Return obtained is re invested in the business, and not withdraw. Hence, the
return for the period of 6 years is equal to sum of Return for the period.

Particulars Value
(1) Average Inflows/ Returns p.a = Total Inflow during the project = 15,25,00,000
91.5cr
Project life 6years

34%
(2) Rate of Return = Average Inflow/ Returns p.a = 17cr
Original Investment 50cr

Conclusion: If the Rate of Return is higher than Comparable return rate, then project may be
accepted.

2.3 Rate of Return on Average Investment Method

Particulars Value
(1) Average Investment= Initial Investment+ Average cash 67cr
Inflows/Returns p.a
=
50cr+ 17cr
(2) Rate of Return = Average Inflows = 17cr 25.4%
Average Investments 67cr
Conclusion: If the Rate of Return is higher than Comparable return rate, then project may be
accepted.

2.4 Discounted Cash Flow Method (NPV Method)

Conclusion: The Project has yields a positive NPV of 15,28,10,000 on an Investment of 50,00,00,000.
Therefore, the project may be undertaken. Refer to (WN 1)

2.5 Net Present Value Index (Profitability Index) Method

Conclusion PI = 65,28,10,000 = 1.30, Since PI>1, it may be undertaken.

50,00,00,00

51 | P a g e
Profit and loss statement:

Financial Statement 2017

Ratios Analysis:

Solvency Ratio

It is calculated to know the financial position of the company. It helps us to know if the company will
be able to cover its long-term debts. Moreover, the solvency ratio qualifies the size of a company’s
after-tax income.

Debt equity ratio is used as standard for judging the financial position of the company. This ratio is
also known as Financial Leverage.

• Debt Equity Ratio: Debt 3313 = 0.123 2280 = 0.087

Equity 26905 26084

The brand Miu Miu Financial Leverage is at poor but it is able to cover the debt by the equity. But
ideal ratio of debt equity is 2:1 i.e. for every two share there is one.

52 | P a g e
Interest Coverage ratio is to know if the company can pay their interest expenses over the
outstanding debt. More the ICR more it is better for the company. Since the company has higher
rate of interest.

• Interest coverage Ratio: EBIT 3134 = 23.74 4384 = 34.79

Interest 132 126

So, the company ICR is good. But as compare to last year it drops by 11.05%.

Liquidity Ratio measures the ability to pay debt obligations and its margin of safety through the
calculation of metrics including the quick ratio, current ratio and Operating cash flow.

• Quick Ratio Quick Assets 13076 = 1.54 10059 = 1.51

Current Liabilities 8488 6668

The ideal ratio for quick ratio is 1:1, as the current assets are more than the current liabilities which
is fine. But if the current liabilities are more than current assets then it would be dangerous for the
company.

• Current Ratio Current Assets 18442 = 2.17 15903 =2.38

Current Liabilities 8488 6668

The current ratio of the Miu Miu is good as the ideal ratio for this ratio is 2:1. It means assets are
double of the liability.

Profitability ratio helps to know the ability of generating earnings compared to its expense and
other relevant costs during a period of time. Higher the ratio higher is the chances for the firm to
generate profits.

• ROCE Net profit + Interest 2088+132 =7.35% 2830+126= 10.4%

Equity + Debt 26905+3313 26084+2280

• Net Profit Sales Net Profit 2088 = 7.94% 2830 = 9.3%

Sales 26284 30345

• Operating Profit Ratio: Operating Profit 3931 =15% 3163 =10.4%

Sales 26284 30345
• Return on Equity Net Profit 2088 = 7.7% 2830=10.5%
Equity 26905 26804
Higher the profitability ratio, highly it is preferable by the firm. As higher ratio indicates growth of
the organisation.

53 | P a g e
Questionnaire Analysis:
The questionnaire was distributed through online medium. 200 respondents have filled this
questionnaire. The analysis of the questionnaire is done below:

• Out of 201 respondents, there are 90 males and 111 females.

• The age group is divided into two groups that is Millennials and Generation X. In the
questionnaire, 138 respondents belong to Millennials and the rest 63 respondents are from
Generation X. Millennials age group is from 18-34 years old and Generation X age group is
from 35-50 years old.

• This question was asked to know which brand is more familiar among the respondents. Most

of respondents choose Burberry (78). The awareness of the brand Miu Miu among the

54 | P a g e
 respondents is very less. So, the brand Miu Miu has to increase the awareness about the
brand.

• In this question, we ask respondents from where they get information about the
International brands. So that, we would get to know where the Brand Miu Miu
should do the promotions before coming to India. Social media is the best option for
the brand to do promotions. After that the brand can go for the Print Media.

• For the brand Extension, we asked which brand/designer they preferred. So,
maximum respondent responds for Manish Arora.

Hypothesis Analysis

H1: Generation X will accept Indo western style more than Generation Y (Millennials)

To prove this Hypothesis, we are doing ANOVA test.

55 | P a g e
 • For Hypothesis 1, the P value (significance) is .007 which is less than 0.05. So, we
reject null hypothesis it means that Gen X will accept Indo-western style than Gen Y.

• For Hypothesis 2, the P value (Significance) is 0.000 which is less than 0.05. So, we
reject null Hypothesis it means Female will prefer more Indo- western style than
Male. Thus, this Hypothesis is correct.

Factor Analysis

• The percentage variation explain by factor 1 Price and Factor 2 Innovation is 41.14%
and 12.78% respectively is more than 0.5. So these two factors contribute more to

56 | P a g e
 the customer buying decision. Also the cumulative % variation from both these
factors is 53.93% of the variation in the entire data set.
• From Scree Plot we can see that the curve begins to flatten between 2&4 also from
factor three onwards eigen value is less than one. So only factor one and two has
been retained.

57 | P a g e
 Recommendation

• The luxury market of India is booming at a fast pace. There is ample scope of more
luxury brands in the Indian market
• . • The consumers of luxury brand are between the ages of 20-35 who really wants to
stand out in public with luxury attire as a status symbol.

• The brand’s bright and bold colours of rebellious theme are well renowned which
separates the brand from its competitors.
• The elegant, modern, unique and innovative design of Miu Miu products enriches the
fashion consciousness teenagers.
• Miu Miu wide source of social media dominance through high end celebrity
endorsements maximize the customer’s communication towards the brand.
• The brand’s root lies in its Mediterranean heritage and Sicily tradition providing an air
of elegance mixed with unique Italian elements

58 | P a g e
 Conclusion
As per the research and secondary sources, it is concluded that Miu Miu has a target market of high
luxury and elite class who are high income earners. Designs that they are offering is unmatchable,
unique and bold. Fitting is really good. The brand is famous for its designs and colours that is
inspired from Sicilian culture of Italy. Coming of Miu Miu to India would be a success since its target
market is already set that is the target market of its competitors. Miu Miu has to create enough
awareness in India. According to some customers of Miu Miu, it has an image of more bold and
innovative luxury brand and it provides trendy designs. This is a brand which can’t make changes in
its pricing strategy for India because this is a high-end luxury brand that attracts customers with its
exclusive design. Today, the luxury market in India garners huge attention as most of the global
luxury brands have already arrived or are expected to enter. Luxury retailers have realized that India
is one of the world’s most vibrant, diverse and challenging markets for brands that want to capture
this market. As per the latest economic parameters- India is ranked as the fourth largest nation as
per GDP, which means Indians have the audacity to buy more. As far as the brand Miu Miu is
concerned, it has been proved that people will accept the brand in India. Introduction of Miu Miu to
the Indian market would be a great success for brand and luxury market too. It would be an absolute
treat to the designer clothes lover s who intend to buy luxury and unique collection of Miu Miu.
Hence, there lies no doubt in bringing Dolce and Gabbana to India.

59 | P a g e
 Referencing

1. Media Ant. Prices for advertising in Vogue[Online]. Available at:

https://www.themediaant.com/magazine/vogue-magazine- advertising. Accessed
on: 23 April, 2018.
2. Media Ant. Prices for advertising in Cosmopolitan[Online]. Available at:
https://www.themediaant.com/magazine/cosmopolitan-magazine- advertising.
Accessed on: 23 April, 2018.
3. WIEDMANNO, K P. & HENNIGS, N., 2013. Luxury marketing: A Challenge For
theory and practice. Springer Gabler[Online]. [Viewed 27nd January 2017]. Available
from: http://www.springer.com/in/ book/9783834943989.
4. WOLNY, J. & HANSEN, R., NOT DATED. Responsible Luxury: Refashioning Luxury
goods through co-creation [Online]. [Viewed 30th January 2017]. Available from:
http://openarchive.cbs.dk/bitstream/handle/10398/8525/Rina_Hansen_2011_6.pdf
?sequence=1 SHAMIM, A. & GHAZALI, Z., 2014.A conceptual model developing
customer value co-creation behavior in retailing .Global Business and Management
Research: An International Journal [Online]. [Viewed 4th April 2018]. Available from:
http://gbmr.ioksp.com/pdf/vol.%206%20no.%203/v6n3-1.pdf.
5.

60 | P a g e
 Annexure

61 | P a g e
62 | P a g e
63 | P a g e
64 | P a g e
65 | P a g e
66 | P a g e