...Victoria’s Secret Public Criticism of its Business Victoria’s Secret is one of the America’s biggest designer, manufacturer and marketer of women’s premium lingerie. Founded in 1977 by Roy Raymond and his wife, it has long been the leader in its market, with $1.1 billion revenues in 2015. Today Victoria's Secret is wholly owned by L Brands, a publicly traded company. However, notwithstanding the company’s remarkable success, Victoria’s Secret, since several years, suffers from the public criticism of its business. There are both Internal and External factors that led to this public criticism of the brand. Some of these factors include a series of scandals that damaged their image and identity, and a new wave of competitors and new entrants that starts to challenge the brand, which create a high bargaining power for customers. The primary internal issue, and also the most important one that led to Victoria’s Secret public criticism, is the series of scandals that damaged their brand image and identity. The company suffered from a wide range of critics from 2009 to 2016, among which : In 2009 Victoria’s Secret was sued several times for producing underwear that contained formaldehyde. In 2012 they were accused of the use of child labour in harvesting cotton and of selling knockoffs of the company’s stockings. Moreover the new lingerie collection « Go East » has been criticised for being racist. However, today we are investigating the two biggest scandals that happened...
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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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...most-talked-about brands today? The story of Victoria’s Secret starts in the 1970s, when 30-year-old business graduate Roy Raymond wanted to buy some lingerie for his wife. Walking into a department store, he found the experience an embarrassing one and decided there was a gap in the market for a high end store that would cater for men, as well as women. In 1977, Mr Raymond took out a $40,000 bank loan and $40,000 borrowed from relatives to open his first Victoria’s Secret shop in a shopping mall in California. Inspired by 19th century England, his store was decorated with dark wood, red velvet sofas and silk drapes, a contrast to the garish department store offerings at the time. [pic]Lucas Jackson/ReutersModels dance during the finale of the annual Victoria's Secret Fashion Show in New York, November 13, 2013. The company earned $500,000 its first year. And by the time Mr Raymond sold the business in 1982 for about $1m, Victoria’s Secret had five stores and a mail-order catalogue that made $6m a year. By the early 1990s, Victoria’s Secret had become the largest American lingerie retailer, with 350 stores and sales topping in excess of $1bn. However, it was struggling to compete with lower-priced brands and owner Leslie Wexner, creator of The Limited clothing business, needed something radical to take the brand to the next level. The breakthrough came in 1995, when the brand launched the first of its notorious Victoria’s Secret fashion shows. A relatively traditional...
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...Victoria’s Secret Pink: Keeping the Brand Hot 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...
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...What’s the secret behind Victoria’s Secret, it’s a company that people shouldn’t buy from because how all the bad behind it. Victoria’s Secret was found by Roy Raymond, after just wanting to buy a pair of 3lingerie for his wife and being uncomfortable because of the situation. Raymond thought of making a friendly and comfortable climate for men to buy their loved ones what they need,so he started Victoria’s Secret in Palo Alto, California in 1977. Furthermore, seeing how good business was he sold the company after six years. selling it for only four million dollars to Leslie Wexner and the Limited, who improve the company and after two years they establish a net worth of five hundred million dollars. After hearing the news of his own established...
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...Brand Audit Part I Victoria’s Secret A. Company: Victoria’s Secret Inc. is the largest American retailer of women’s lingerie and the largest subsidiary of Limited Brands. The company sells lingerie, as well as other apparel, footwear, fragrances, and cosmetics. Founded in 1977 by Roy and Gaye Raymond, their first store opened in San Francisco, California and are currently headquartered in Columbus, Ohio, U.S, with current parent company as L Brands. The company has 1,149 stores including 1,098 stores in the US, 10 in the UK and 41 in Canada. Victoria’s Secret also has 304 franchised stores including 290 Victoria's Secret Beauty & Accessories stores, 13 Victoria's Secret International stores and one PINK International store. In 1983, for $1 million, Victoria’s Secret Inc. was sold to Leslie Wexner, who revamped the look of the company. Transforming a three store boutique into a 346 store retailer. In 1989, Victoria’s Secret Inc. executed an advertising campaign featuring for the first time in the company a ten-page insert that appeared in November issues of Elle, Vogue, Vanity Fair, Victoria, House Beautiful, Bon Appetit, New Woman, and People magazines. Later in the early 90s, Victoria’s Secret Inc. was under it’s current parent company, L Brands. They introduced the Miracle Bra, which was competing with Sara Lee’s Wonder Bra. In 2002 they introduced not only swimwear but a lingerie line, PINK, to target younger women. The Victoria's Secret Designer Collection was...
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...Leadership Philosophy: Victoria’s Secret Victoria’s Secret (VS) is an American retailer of women’s wear from lingerie to beauty products. I chose this company for many reasons, one being that I purchase items from this company on a frequent occasion, and the others because they are just a brilliant corporation. Victoria’s Secret was started out in San Fransisco, 1977 by a man named Roy Raymond, who felt embarrassed trying to purchase lingerie for his wife in a department store environment. The store was meant to create a comfortable setting for men. In 1982, after five years of operation, Roy Raymond sold the Victoria’s Secret company , with its six stores grossing six million per year to , Leslie Wexner, creator of The Limited, for four million. Victoria’s Secret started to rapidly expand into malls throughout the U.S. By 1990, it became the largest American lingerie retailer topping one billion dollars. By 1995, Victoria’s Secret began to market their company by holding a lavish event called the Victoria’s Secret Fashion Show, which broadcasted on pimetime television for America to watch. On July 2007, Limited Brands sold 75% of their chain to Sun Capital Partners to boost up VS stores and Bath and Body Works units, which provided 72% of revenue in 2006 and almost all the firm’s profit. With such a widespread operation, there is an obvious need for employees to help the company achieve goals. Victoria’s Secret careers not only focus on helping the company earn profits...
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...Victoria’s Secret Unit 1 Assignment 1 “Victoria's Secret, currently a household name is a retail brand of lingerie and beauty products which is owned and run by the Limited Brands Company. On average Victoria's Secret accumulates more than $4 Billion in sales a year. With over 1000 retail stores around the United States it contributes 42% of corporate profits of Limited Brand (Victoria Secret)”. Victoria’s Secret is a unique brand. With sensual supermodels, world renowned photographers, and daring advertising, it combines mass-market access with prestige products. Based on the large market size of its home country, Victoria’s Secret has been so far tied up almost solely in the domestic business. “The United States is the birth place of Victoria Secret where the brand as well as the company has thrived to hold a sort of like monopoly status in the industry. They state that advertising and promotion is one of the main reasons as to why they are where they are. In an industry where the physical exterior is about everything, the business that sells an image and lifestyle advertising is critical. Victoria's Secret spends $66 million each year on advertising, essentially defining beauty and packaging it for consumers (McAfee, 2004)”. Victoria’s Secret’s customer satisfaction in receiving merchandise from its catalogs and Web site is critical to customer loyalty. “Being one of the United States leading sellers of lingerie, it is important for the Victoria’s Secret brand name...
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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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...Introducción: Limited Brands y VS Contexto La ya reconocida mundialmente, marca de Victoria's Secret es una compañía estadounidense que se dedica a diseñar lencería y otros productos de belleza para la mujer. Leslie Wexner fundó “Limited, Inc.” en 1963 en Columbus, Ohio, iniciando con dos tiendas de ropa para mujer. Es hasta finales de 2001 “Limited Inc.” que la empresa comenzó a crecer mediante la adquisición de 4600 tiendas especializadas, con marcas como: Bath & Body Works, Express, Lerner Nueva York, tiendas Limited, White Barn Candle Co., y Henri Bendel. Dentro de la adquisición de las tiendas, en 1982, Wexner compró una cadena de ropa interior situada en San Francisco, llamada Victoria´s Secret, la cual, hasta el momento solio constaba de cuatro tiendas y un catálogo. No obstante, la compañía fue fundada en San Francisco, California, en 1977 por Roy Raymond quien la vendió, (como se mencionó anteriormente) en 1982 al corporativo The Limited Inc, siendo actualmente propiedad de la compañía Limited Brands. Desde que se traspasó la propiedad de la marca, la compañía tiene su sede en Columbus, Ohio. Su primer dueño, el Señor Raymond se suicidó en 1993, al saltar del puente Golden Gate. Diseño del concepto e imagen Roy estudiaba en la Escuela de Negocios de Stanford. Su historia cuenta que como muchos otros hombres, le generaba mucha vergüenza al momento de comprar lencería para su mujer. Es aquí donde surge la idea para Roy de aplicar sus conocimientos...
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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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...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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...Victoria secret 1977: Founding[edit] Victoria's Secret was founded by Tufts University and Stanford Graduate School of Business alumnus Roy Raymond, and his wife Gaye,[8] in San Francisco, California on June 12, 1977.[9] Eight years prior to founding Victoria's Secret, Raymond had been embarrassed when purchasing lingerie for his wife at a department store. Newsweek reported him looking back on the incident from the vantage of 1981: "When I tried to buy lingerie for my wife," he recalls, "I was faced with racks of terry-cloth robes and ugly floral-print nylon nightgowns, and I always had the feeling the department-store saleswomen thought I was an unwelcome intruder."[10] During the 1970s and 1980s most women in America purchased "dowdy", "pragmatic" "foundation garments" by Fruit of the Loom, Hanes, and Jockey in packs of three from department stores and saved "fancier items" for "special occasions" like honeymoons.[11] "Lacy thongs and padded push-up bras" were niche products during this period found "alongside feathered boas and provocative pirate costumes at Frederick's of Hollywood" outside of the main stream product offerings available at department stores.[11] Raymond studied the lingerie market for eight years[12] before borrowing $40,000 from his parents and $40,000 from a bank to establish Victoria's Secret: a store men could feel comfortable buying lingerie.[9][13] The company's first store was located in Stanford Shopping Center in Palo Alto, California.[14][15] ...
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...Case 12: Victoria’s Secret - Seeking for new business opportunities in the European lingerie market The Victoria’s Secret (owned by US Limited Brands, Inc.) sells women’s intimate and other apparel, personal care and beauty products and accessories under the Victoria’s Secret and La Senza brand names. Victoria’s Secret merchandise is sold through retail stores, its website, www.VictoriasSecret.com, and through its catalogue. Through its website and catalogue, certain of Victoria’s Secret’s merchandise may be purchased worldwide. La Senza products may also be purchased through its website, www.LaSenza.com. In January 2007, Victoria’s Secret completed their acquisition of La Senza Corporation. La Senza is a Canadian specialty retailer offering lingerie and sleepwear as well as apparel for girls in the 7-14 year age group. In addition, La Senza licensees operate independently owned stores in 45 other countries. The results of La Senza are included in the Victoria’s Secret segment The Victoria’s Secret segment had net sales of USD5.604 billion in 2008 and operated 1,043 stores in the United States and 322 stores in Canada, in total 1365 stores. At the moment it is not possible to buy Victoria’s Secret in European stores, except in a London store and on-line .The top-management has now decided that Victoria Secret’s should expand to the European market and if yes: Which markets should be penetrated and how? First some information about the international underwear...
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...emotion was the one, which motivated Raymond to create a new store where men didn’t felt this way. That was when in 1977 his wife and him opened the first store at Palo Alto, California, United States with $80,000 of saving and loans from his family. The style of this store would be like Victorian era, that’s why the store was named “Victoria. The second part of the business name was “secret” because it would have a secret that no one would ever know. Victoria’s secret’s was starting to grow because of the revealing underwear they had because before women’s underwear aim was of practically and durability but not at 1970 women wanted more sensual underwear and Victoria’s Secret’s gave that. In 1982 Raymond had opened more stores in San Francisco and the annual sales had grow to 4 million, but although this Victoria’s Secret was near of bankrupt. That was when Leslie Wexner appears. That in 1963 opened a sportswear store called “limited” and within 1977 has 188 stores. In 1980’s she mas looking for new brands and that was when in San Francisco she found that small Victorian store called “Victoria’s Secret’s” that was a different lingerie store of what she normally saw “more sexier”. And she knew the reason why this business had fail, because women felt uncomfortable when they went to this shop. But finally she bought the catalogue and the stores for $1 million. What they first did was study the European lingerie boutiques because European use at daily basis all the sexy lingerie...
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