Company Analysis
Founded in 1963 by Leslie H. Wexner in Columbus, Ohio, L Brands (NYSE: LB) has evolved from an apparel-based specialty retailer to a segment leader focused on women's intimate and other apparel, personal care and beauty categories that make customers feel sexy, sophisticated and forever young. L Brands sells its merchandise through specialty retail stores in the United States and Canada, which are primarily mall-based, and through websites, catalogue and international franchise, license and wholesale partners. L Brands is committed to building a family of the world's best fashion retail brands, offering captivating customer experiences that drive long-term loyalty. Under the continued leadership of founder Mr. Wexner, chairman and chief executive officer, L Brands employs nearly 100,000 associates.

Pricing Strategy
Victoria’s Secret implements a high-low or promotional pricing strategy. The brand sets a first price that is not outrageously high; however, it allows for plenty of room to allow for markdowns. Permanent markdowns are rare as there is generally only a small clearance area in each store. Instead, Victoria’s Secret utilizes many temporary markdowns through promotions like 5 for $25 panties and holiday sales.

Customer Analysis
Victoria’s Secret target customers are women between the ages of 18 and 49 who want to own fashionable undergarments and lingerie. 44 percent of Victoria’s Secret customers are between the ages of 18 and 34. The majority of Victoria’s Secret shoppers, 75 percent, are Caucasian, while only 5 percent are Asian and 8 percent are African American.
Victoria’s Secret target market includes people who live in cities with malls and have access to the Victoria’s Secret stores. Recently however with Victoria’s Secret website, they have increased their target market to customers who live in small towns without proximity to an actual store.
Another important target market for Victoria’s Secret is males. Especially around Valentine’s Day and Christmas, men shop for lingerie for their significant others. 39 percent of shoppers are males. That’s a high percentage for a company that primarily sells products for women.
With an average income of $50,000, Victoria’s Secret consumers have money to purchase trendy lingerie several times a year. 32 percent of shoppers earn between $60,000 and $100,000, which is higher than the average. Just below 32 percent at 31 percent are shoppers who earn more than $100,000 a year. With disposable incomes, shoppers have money to spend on trendy lingerie, beauty products, and clothing items on a seasonal basis.
Because the majority of Victoria’s Secret stores are located in malls, their shoppers are frequent mall shoppers who don’t necessarily go to the mall with Victoria’s Secret as their destination. Shoppers probably go to the mall with a group of friends and see it as a socializing opportunity as well as a chance to shop. Victoria’s Secret shoppers are typically women who enjoy shopping and go to the mall several times a month. Customers are interested in fashion and follow new trends each season. They also care about their appearance, which includes their lingerie and undergarments.
5. Market-Production Focus
This section describes the five-year marketing and product objectives for Victoria’s Secret and the target markets, points of difference, and positioning.
Marketing and Product Objectives
With our sights set on the global marketplace, the international business is a healthy addition to our U.S. business and a source for long-term growth. The operating principles that guide our international strategy: * Our store operations around the world are a mix of company-owned and franchised locations -- both upholding our highest brand standards with no visible difference to the customer. * We work with a small number of world-class partners that deliver brand-right experiences through their refined lenses of local practices and customs. * We embed L Brands leaders in-market to support the international operators through training, coaching, inspecting and coordination. * We take a methodical approach of test and learn. Then, we move purposefully and quickly when we're sure we've got it right.
L Brands’ number one priority is to keep our domestic businesses healthy. The customer excitement and engagement our brands have experienced on the global front have been inspiring, and we are committed to maintaining the highest standards of our brands as we showcase them outside of the U.S.

Target Markets
The target market consists of teenage to middle-aged men and women. The majority of the Limited Brands’ products are made for women, but some apparel and beauty product stores contain popular items for men. The products are sold at affordable prices and are known for their quality and consistence with trends.

Points of Difference
The “points of difference” –characteristics that make Victoria’s Secret unique relatives to competitors- fall into three important areas: * Many lingerie options. This allows customers to always find a style that they like. This also shortens the searching time for a product. * Extensive online store. This gives customers the ability to shop from home. * Custom fit advice services. This makes customers feel more secure with the product. They know it will be a good fit.

Positioning
The Limited, Inc. view Victoria’s Secret as a “360-degree” brand, using a comprehensive marketing strategy to connect its retail, catalogue, and web sales. When Leslie Wexner bought Victoria’s Secret, he sought to make it “stand [out] as an integrated world-class brand. Across all channels—catalogue, stores, Internet—the same products are launched at the same time, in exactly the same way, with the same quality, and same positioning. The positioning of the Victoria’s Secret brand is style. The customer doesn’t buy a bra but they buy their styles that make them to be sexy image. Actually, price isn’t main influence for the customer who is loyal in brand. On the other hand, the emotion is the main influence which persuades them wants to buy or wears it.

6. Marketing Program
Product Strategy
L Brands is a values-based company. Our mission is to make our customers feel sexy, sophisticated and forever young. And we are committed to deliver on this promise by providing high-quality, safe and effective products.
We apply a disciplined approach when it comes to quality and protecting our customers and the environment. As a retailer, L Brands contracts with manufacturers throughout the world to make our merchandise. The only countries from which we source five percent or more of our global order volume are the United States, China, Sri Lanka and India. Vendors are selected based on their ability and commitment to meet our safety and quality standards, as well as follow our strict ethical, labor and environmental standards. Once contracted, our internal experts work with vendors to certify compliance with our strict quality standards and sourcing policies in an ongoing basis.

Price Strategy
At Victoria’s Secret panties are priced in groups. They’ve had their “get 5 pairs for $xx” for decades, and this cost has risen only incrementally in the last ten years.
Victoria Secrets pricing strategy includes value added pricing by producing high quality clothing while offering additional features such as catalogues, brand recognition through its fashion shows, and aesthetically pleasing outlet stores to its customers. Prestige pricing is also integrated into Victoria Secrets pricing strategy as the business is extremely recognizable as an exclusive and up-scale clothing distributor. Victoria secret uses prestige pricing to increase its sales price and put the perception of exclusive quality into the minds of its customers. This exclusive and high quality nature is enforced by the value adding features discussed above such as fashion shows.
Promotion Strategy Key promotion programs feature freebies, limited time coupons, and clearance or bargain sales. Freebie. Victoria’s Secret sends these out every month to all of their customers, and there is no purchase necessary. Giving away a free item gives customers a reason to go into the store. There aren’t too many people who will just go in the store, get their free item, and then walk out. Customers will see something they like and buy that creating a sale that Victoria Secret wouldn’t have had otherwise.
Limited Time Coupons. In this situation, customers would receive $10 off any Pink brand item bought in the store or a $10 of a bra. They may provide $10 off, but they’re getting you to spend money there. Again, the incentive gets customers through the door and the sought-after merchandise urges them to stick around and do some more shopping
Clearance or Bargain Sales. Victoria’s Secret also holds their Semi Annual Sales to drum up business. These sales occur in the winter time (usually every January) and also every summer. These sales are huge and they get tons of people into their store. Bargain-hunting customers usually buy as much lingerie. as they can, which not only brings in cash but also clears out previous-season merchandise. This frees up space for new designs, which people catch previews of while they’re waiting in line to pay for their purchases Place (Distribution) Strategy
Limited Brands headquarters in Columbus, Ohio also house seven distribution centers, one of which is dedicated to Victoria’s Secret stores and one to Victoria’s Secret Direct (Kumar). The store warehouse prepares items to be shipped to the stores by tagging, steaming, and hanging (Kumar). They also coordinate matching sets for in-store displays. However, some items go straight to stores without being prepared in the warehouse. Victoria’s Secret Direct has its own warehouse where products are picked as single items based on orders, whereas in the store warehouse, products are shipped in cases to stores (Kumar). It takes, on average, two days for products to get to customers (Kumar).Victoria’s Secret uses 20 vendors who manufacture in 50 factories across the globe to produce lingerie (Kumar). Two factories in Sri Lanka and India produce about one-third of Victoria’s Secret bras (Kumar). Victoria’s Secret products are also produced in China, Thailand, and Indonesia.