...Synopsis This case illustrates the general strategy employed by Victoria’s Secret to acquire a new segment of customers through the introduction of its brand Pink. Pink is a line of “loungewear” (sweatpants, T-shirts, pajamas, bras and panties, pillows and bedding) targeted toward 18-30 year old females. The garments feature comfortable cuts and mostly cotton fabrics in bright colors. New garments are introduced every three or four weeks. The image is one of “cute and playful” versus the more overtly sexy image of the core brand. The case highlights the different promotional approaches that Pink managers are taking in contrast to those of the core brand. This is a lifestyle brand. The Victoria’s Secret chain has been a big driver of financial success for Limited Brands (parent company), and Pink is expected to be a big part of Victoria’s Secret’s sustained growth. Not only does it give the chain a new set of customers, but it brings in customers at a younger age who will then “graduate” up to the Victoria’s Secret core brands. The ethics of the Pink strategy are considered in detail. Discussion Questions 1. Analyze the buyer decision process of a typical Pink customer. Need recognition: This can come from internal stimuli (basic needs such as hunger, thirst, protection) or external stimuli. Considering that people do not purchase fashion brands based on such needs as, “I am cold/naked and need protective covering,” this first step is likely to be based...
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...Victoria’s Secret Annual Marketing Plan Table of Content 1. Executive Summary 3 2. Situational Analysis and SWOT 4 2.1 Situational Analysis 4 2.2 SWOT 5 2.3 ANSORFF Product Market Matrix 8 3. Key Issues and New Opportunities 9 3.1 Key Issues 9 3.2 New Opportunities 9 4. Marketing Objectives 9 5. Basic Marketing Strategy 10 5.1 Research 10 5.2 Target Market Identification 10 5.3 Positioning Strategy 11 5.4 Marketing Mix 11 5.4.1 Products 11 5.4.2 Price 12 5.4.3 Place / Dsitribution 12 5.4.4 Promotion 12 6. Co-branding 13 7. Competitive Advantage 13 8. Action Plan 15 9. Controls 17 1. Executive Summary Victoria’s Secret is one of, if not the most popular women’s lingerie and clothing store in the United States. They are known for their higher priced, sexy, and sometimes promiscuous clothing. Victoria’s Secret has come up with many different innovations after first opening their door, such as a make-up line, body care line, and PINK teenage line. Victoria's Secret is a globally recognized brand with its stunning models known as Runway Angels, and signature pink colour of choice for everything from logo to store décor. Founded in 1977 in San Francisco, Victoria's Secret has become a leader in the intimate apparel industry where a dazzling assortment of lingerie, beauty products, and loungewear can be purchased. The fashion shows, models, stores, and products are the favourites of men and women alike. Nonetheless...
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...Group Consumer Analysis: Victoria’s Secret | MKTG 425-101 | Michelle Fox, Tyler Gullivan, Shannon Johnston, Sara Seeger, Colin Watts | Executive Summary Victoria’s Secret is one of, if not the most popular women’s lingerie and clothing store in the United States. They are known for their higher priced, sexy, and sometimes promiscuous clothing. Victoria’s Secret has come up with many different innovations after first opening their door, such as a make-up line, body care line, and PINK teenage line. The next logical step is for Victoria’s Secret to create a baby clothing line. The baby clothing line, entitled Baby Secret, would have various types of infant and toddler clothing, and would be classic and simple, yet fashion-forward. A focus group was interviewed to find out their feelings on the Victoria’s Secret brand as a whole, and the new baby line. From these findings, a rationale was built which helped form a new target segment, examples of possibly baby products, and recommendations of company changes in strategy and tactics. All of these elements confirmed the original proposition that the Victoria’s Secret new baby clothing line is the next logical step in the Victoria’s Secret expansion plan in order to generate more revenue, and capture a different target market. By capturing a different target segment with the baby clothing line, the hope is that these customers will become loyal Victoria’s Secret customers in future years. Table of Contents Executive...
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...Market: Victoria’s Secret is a retail brand product of lingerie, clothes and beauty products, which is owned by the Limited Brands Company. It has thousands of retail stores opened in the United States and few in Canada. The Products are available through the retail stores, catalogue and online business. Such fast growing market was established by Roy Raymond in San Francisco during the 1970s. Raymond went beyond from just providing the traditional white cotton piece for underwear that sold in department stores, because he offered different colours, patterns and style that created sexiness. Such sexiness is created by combining European elegance and luxury. A market is defined as the set of actual and potential buyers of a product or service (reference). The current market of Victoria’s Secret consists of woman ranging from different ages, especially the younger women age early 20s to mid-30s will buy and prefer to wear luxuries lingerie in order to feel sexy and impress their partners. Other potential buyers are teenage girls going through puberty (age 13+), because they are becoming more aware of their changing body and feeling more mature. Also, some women would buy other type of products beside the lingerie, such as the Pink product line of clothing or the beauty products. In countries such as Canada and United States, the culture is so diverse that the market consists of different ethnic groups. Other buyers are men who would give gifts to their girlfriend or wife. Such...
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...VICTORIA’S SECRET MKT 2300 December 2, 2008 Intimate Brands, Inc. is the parent company of Victoria’s Secret which is headquartered in Columbus, Ohio (Glamorous, Intimate, Powerful, On-line posting). Victoria’s Secret is described as one of the hottest, sexiest, most glamorous stores in the world (Glamorous, Intimate, Powerful, On-line posting). They sell a variety of items that they refer to as “dazzling” and these products range from apparel, beauty products, sleepwear, hosiery, and what they are known for most, their intimate apparel (Glamorous, Intimate, Powerful, On-line posting). Victoria’s Secret’s net sales are 3.7 billion dollars, and they have over 1,000 stores throughout the United States (Glamorous, Intimate, Powerful, On-line posting). This company was established in San Francisco in the 1970’s, and acquired by Limited Brands, Inc. in 1982. It was not until the 1990’s when Victoria’s Secret began using hot super models to show off their sexy line of lingerie did they hit their stride (Victoria’s Secret, Par. 3). They have fashion shows periodically to showcase new and already existing items which get a large amount of publicity (Glamorous, Intimate, Powerful, On-line posting). The concept of Victoria’s Secret is to basically “establish a cozy, inviting atmosphere similar to that of a Victorian boudoir” (Glamorous, Intimate, Powerful, On-line posting). They showed an impressive comp-store sales growth...
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...Company Orientation Towards the Marketplace Victoria’s Secret. It’s probably not the company name you were expecting to read about when you picked up this paper. While it may not come right out and scream “something for everyone” it really does appeal to almost all. Women love the lingerie, beauty products and other apparel. Teenage girls are drawn to the trendy PINK line. While men will begrudgingly walk into a store with their significant other or make an extremely quick trip in for a gift card at Christmas, they’ll be the first to check out the wife’s catalog when it arrives in the mail. When I first started thinking about using Victoria’s Secret as an example, I was sure I was going to be writing about how they fall into the marketing concept. The television ads with beauty queens, catalogs, online store and annual runway show all screamed write about how they market to attract customers. As I re-read the chapter though, one line grabbed my attention. “The job is to not find the right customers for your products, but the right products for your customers”. In Victoria’s Secret, products they have aplenty. I’ve had a long-term relationship with Victoria’s Secret. I remember as a little girl going into the English boudoir style stores with my mom on shopping trips. I flipped through the catalog when it arrived in the mail thinking supermodels like Helena Christensen were the most beautiful women on the planet and who I wanted to be like when I grew up...
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...VII – Action programs and Budgets: 15 VIII – Control: 19 I. General View 1. History: Victoria's Secret is an American retailer of women's wear, lingerie and beauty products that is owned and run by the Limited Brands Company. This company was founded in 1963 in Columbus, Ohio. Victoria's Secret was started in San Francisco, California, in 1977 by Roy Raymond who was Business alumnus of Tufts University and Stanford Graduate School. He felt embarrassed trying to purchase lingerie for his wife in a department store environment. He opened the first store at Stanford Shopping Center in Palo Alto, and quickly followed it with a mail-order catalog and three other stores. With this store he hoped that it could create a comfortable environment for men, with wood-paneled walls, Victorian details and helpful sales staff. Instead of racks of bras and panties in every size, there were single styles, paired together and mounted on the wall in frames. Men could browse for styles for women and sales staff would help estimate the appropriate size, pulling from inventory in the back rooms. In 1982, after five years of operation, Roy Raymond sold the Victoria's Secret Company, with its six stores and 42-page catalogue, grossing $6 million per year, to Leslie Wexner, creator of The Limited, for $4 million. The Limited kept the personalized image of Victoria's Secret intact. Victoria's Secret was rapidly expanded into the U.S. malls throughout the 1980s. The company was able to vend a widened...
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...well such as sports businesses. This may be because NFL fans consist of 44% women (Time Magazine, n.d.), and 50% of products typically marketing to men are purchased by women (Billings, n.d.). I believe that companies that target towards mostly women may obtain a successful business. Victoria’s Secret is an excellent example of a business that focuses on women. Victoria’s Secret is a store owned by a company named The Limited. Victoria’s Secret is the number one specialty retailer of women intimate apparel (Quantcast Corporation, 2012). There focus is on women and I believe this is one of the reasons why there are so successful. Victoria’s Secret targets women from the ages of 15-34 years old. I have the age so young because of their addition to the company called “PINK”. College students are initially the main target for the brand “PINK”, but it also attracted high school students. A lot of younger high school students buy these products because of their comfort. I include that the women this business targets have kids and is in college or obtains a college degree. The prices for this business can be quite high, so the income targeted is from 100,000 to 150,000. The products that Victoria’s Secret provides are essential to women. They provide from lingerie to clothes. They have...
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...unique quality, packaging…..page 8 - 11 9. Price strategy………………..page 12 10. Promotion Strategy………………..page 12 11. Distribution Strategy………………..page 13 12. Financial Data and projection………………..page 13 13. Past sales revenue………………..page 13 14. Five year projection…………………page 13 & 14 15. Organization………………..page 14 16. Recommendations………………..page 15 17. Implementation Plan………………..page 15 & 16 18. Evaluation and control………………..page 16 19. Conclusion………………..page 16 & 17 Company Description Victoria’s Secret began in 1977 in San Francisco. It was started by a graduate student named Roy Raymond. He came up with the idea to create a specialty store because he wanted to buy lingerie for his wife but felt embarrassed to do this in a large department store that sold all kinds of products. Today the store generates about 390 million customers each year. The newest brand in the store called “Pink” is currently one of the highest selling brands and was started in 2007. Strategic Plan The company has many strategies for staying ahead of the competitors and for staying successful. They spend over $66 million a year in advertising alone. They advertise in newspapers, catalogues, online, and on television. They also have fashion shows that many of the world’s top models appear in and the numbersof people that attend these shows are over...
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...The Silky Strategy of Victoria’s Secret Chelsea Chi Chang Alice Lin Charlene Mak BEM 106: Strategy Professor McAfee 28 May 2004 1 Victoria's Secret is a retail brand of lingerie and beauty products, owned and run by the Limited Brands company. Victoria’s Secret generates more than $4 billion in sales a year. It is the fastest growing subsidiary of Limited Brands and contributes 42% of corporate profits. More than 1000 Victoria's Secret retail stores are open in the United States. Products are also available through the catalogue and online business, Victoria's Secret Direct, with sales of approximately $870 million. Victoria’s Secret was established by Roy Raymond in the San Francisco area during the 1970s. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. Even the name Victoria’s Secret was meant to conjure up images of 19th-century England. The store went so far as to list a fake London address for the company headquarters. Like Starbucks, Victoria’s Secret markets self-indulgence at an affordable price. By 1982, Raymond had opened six stores and launched a modest catalog operation. He then sold Victoria’s Secret to Limited Brands, which took Victoria’s and sprinted away. Today, Victoria’s Secret enjoys nearly a monopoly...
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...A Review Of Victoria Secrets Marketing Essay Content starts here! Victoria secrets prominence in the fashion world, has been deemed as a womans dream brand, serving as the yardstick of what is palatable for most of the women nowadays. Victorias Secrets collections consist of barely-there pieces that push up our assets and enhance our beauty. From lacy, racy little numbers that will have the men drooling to cute, feminine combinations that are comfortable and flirty, Victoria's Secret has something for every type of person and personal preference. The Victoria's Secret label encourages women to show off their bodies. They do this by designing amazing pieces that show off what we like about our bodies and hide what we don't. What would we do without a label like this? This is my contribution to introduce a women's dream brand in India where individuals are increasingly considering good dressing, Victoria makes a difference. BRAND HERITAGE Ronald Raymond had an idea to make lingerie shopping a more “personalized” experience. He came up with this concept after having a bad lingerie shopping experience in a dept. store Raymond's store in Stanford Shopping Mall had wood-paneled walls, Victorian details and helpful sales staff. He stressed personalization above all else. The original “Victoria” was imagined to be a sophisticated, elegant, and well-traveled English woman who preferred luxurious items. VS still uses Raymond's concept of personalization and describes the brand...
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...“Study: Victoria's Secret Bags Have Sexy Side Effect” by Paul Kix is about an interesting experiment. Deborah Roedder John, a professor of marketing at the University of Minnesota's Carlson School of Management. Deborah Roedder John and her colleagues performed 85 experiments with women in a mall. They asked them to participate in a survey with special questions about their self-perception. The participants were asked to walk around walk throughout the mall with one of two types of shopping bags for one hour. One group of women “reported to the researchers that they felt more sensual and glamorous simply for carrying the bag.” This bag was from Victoria’s Secret. (KIx,2010). I have same “side effect” from a Victoria’s Secret carrying their bags. Everything from Victoria’s Secret makes me happy. One may ask where the secret of Victoria’s Secret is? Maybe one power of Victoria’s Secret is in the effectiveness of their advertisement. This talk deserves consideration. Victoria’s Secret advertisements are impressive, successful, and useful for me as a buyer for several reasons. The company was created by a man for women, so there is no doubt that men will appreciate the clothes of this brand. One can select a convenient way of shopping: the catalog, online store or European-style boutiques. In addition to lingerie, Victoria's Secret sells a wide range of products designed to make women look beautiful and well groomed. Each advertisement from Victoria’s Secret is a small...
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...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...
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...had nine children and was believed to have worn sexy lingerie Raymond sold the company to L Brands in 1982 for $1 million and filed for bankruptcy after several failed start-ups. He jumped to his death from the Golden Gate Bridge in 1993 $2 billion in sales, thanks in large part to its catalogue, models and focus on women, making lingerie not only functional but desirable 5 Organization: A Culture of Pink HQ in Columbus, OH Employees: 90,000 Wexner CEO for 50 years O L Brands CEO: Mr. Leslie Wexner E S MAST Global Logistics LLS Logistics Bath & Body Works CEO: Ms. Sharon Jester CEO: Mr. Nicholas Coe VS Pink CEO:Ms. Denise Landmn La Senza CEO: n/a Henri Bendel CEO: n/a VS. Stores CEO: Ms. Lori Greeley Brands with high emotional content Corp values: care for the customer, passion and diversity In transition due to recent spin-offs. Seeking permanent name/brand identity 6 VS. ecommerce CEO: Ms. Denise Landmn O Sales by Brand E S In $ billion 2009 5.3 2010 5.9 2011 6.1 2012 6.6 2013F 6.5 Brand Victoria's Secret/Pink Bath & Body Works Other Total 2.4 0.9 8.6 2.5 1.2 9.6 2.7 1.6 10.4 2.9 1.0 10.5 2.7 1.4 10.6 % of portfolio 70% 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 2012...
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...PEST ANALYSIS OF VICTORIA’s SECRET Victoria's Secret is a retail brand of lingerie and beauty products, owned and run by the Limited Brands company. Victoria’s Secret generates more than $4 billion in sales a year. It is the fastest growing subsidiary of Limited Brands and contributes 42% of corporate profits. More than 1000 Victoria's Secret retail stores are open in the United States. Products are also available through the catalogue and online business, Victoria's Secret Direct, with sales of approximately $870 million. Victoria’s Secret was established by Roy Raymond in the San Francisco area during the 1970s. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. Even the name Victoria’s Secret was meant to conjure up images of 19th-century England. The store went so far as to list a fake London address for the company headquarters. Like Starbucks, Victoria’s Secret markets self-indulgence at an affordable price. By 1982, Raymond had opened six stores and launched a modest catalog operation. He then sold Victoria’s Secret to Limited Brands, which took Victoria’s and sprinted away. Today, Victoria’s Secret enjoys nearly a monopoly position on the retail of intimate apparel in the US. The typical bra that once sold...
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