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Victoria Secret Swot

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Strengths: * Brand Value/ Customer Loyalty – Victoria’s (VS) Secret has been described in one Business Insider article as, “the most popular apparel brand in the world”(Lutz, 2013). This may not be the case, but there certainly seems to be buzz surrounding the brand. Victoria’s Secrect, La Senza (Canada), and Pink are the three leading brands in the global lingerie market (Limited Brands Inc., 2013). VS managed to retain its customers and turn out an increased gross profit in spite of higher costs of production they faced last year, specifically for cotton, which may be a testament to the value of their brand (Euromonitor International, 2013). * Marketing through Social Media– While VS spends a lot on marketing, they increase their return on investment (ROI) by using such platforms as Facebook, Twitter, and Pinterest, to redirect traffic to their main website – one strategy to encourage online consumer behavior (Euromonitor International, 2013; Jane, 2012). Currently, VS ranks as the second most popular retail brand on Facebook, having over 24 million fans to date (Facebook Inc., 2014). As well, customers with the VS credit card can gain “social points” by connecting their Angel Cards with their social media accounts and sharing Victoria’s Secret news (Victoria’s Secret Inc., 2014). * Sales - Last fiscal year, VS generated US $1.5 billion through its online channel of distribution alone, amassing US $4.0 billion total from all of its distribution channels (Euromonitor International, 2013). VS accounted for the majority of net sales and operating income for its parent company, Limited brands last year (Euromonitor International, 2013). Moreover, Victoria’s Secret is estimated to account for 41.7% of the stock price for Limited Brands, which makes them their most valuable division (Trefis Inc, 2014). They have also reported consistent record sales for every

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