victorias secret lingerie marketing plan analysis report

A focus group was surveyed to find out how they felt about the Victoria''''s Secret brand in general, as well as the upcoming baby line.. Both of these considerations backed the original th

VICTORIA’S SECRET LINGERIE MARKETING PLAN ANALYSIS REPORT

Prepared by group 5: Vu Thi Hoai Nhi, Nguyen Duc

Thien, Nguyen Hong Anh, Nguyen Tuyet Anh, Gia Thang Class: MKT1601

I INTRODUCTION 4

1.1 Executive summary 4

1.2 Company description 5

1.3 Company vision/mission/value 5

1.4 Company focus & Structure 6

II LITERATURE REVIEW & CRITICAL

ANALSYS 6

2.1 Situation Analysis 7

2.1.1 Company SWOT analysis8

2.1.2 Product/service SWOT analysis 10

2.2.4 Marketing objectives 29

2.2.5 Overall marketing strategy (the sales plan) 30

i Product strategy and description 30

ii Pricing strategy 30

iii Promotion strategy 31

iv Place/distribution strategy 31

I Introduction:

I.1 Executive summary:

Figure 0Victoria's Secret is one of the most popular lingerie and dress shops for women in the United States, if not the most popular They're known for their high-end, sultry, and sometimes promiscuous clothes Since first opening their doors, Victoria's Secret introduced a make-up

line, a body care line, and a PINK teenage line, among other

developments.Victoria's Secret's next sensible step is to launch a baby clothes line The Baby Secret baby clothing line will contain a range of child and toddler clothes that would be traditional and basic yet trendy A focus group was surveyed to find out how they felt about the Victoria's Secret brand in general, as well as the upcoming baby line A justification was developed based on these results, which helped shape

a potential market group, samples of possible baby goods, and suggestions for company strategies and tactics improvements Both of these considerations backed the original theory that the Victoria's Secret new baby apparel brand is the obvious next step in the

company's growth strategy to raise sales, to hold a new target market The hope is that by capturing a new target audience for the baby apparel collection, these consumers can become faithful Victoria's Secret customers in the future

I.2 Company description:

Victoria's Secret is the largest lingerie retailer in America and was founded by Roy Raymond in 1977 Its revenue in 2012 was 6.12 billion USD with a charter capital of 1 billion USD The company specializes in selling lingerie, women's clothing and cosmetics through catalogs (producing more than 375 million copies per year), website and US stores Victoria's Secret is a wholly owned L Brands trading company.

I.3 Victoria’s Secret misson, vision and value :

a Vision Statement:

Captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders

b Mission Statement:

The mission statement for Victoria's secret retail chain is

committed to building a family of the world's best fashion brands offering captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders

c.The core values of the company:

Functional benefits : Victoria's Secret's product is one of its value propositions Customers may purchase a daily necessity from the company: underwear Furthermore, the company provides a diverse range of products In comparison to the market, their merchandise selection stands out Pink, Victoria's Secret Sport, Dream Angels, Body

by Victoria, Bombshell, and the Incredible are some of the categories they deliver to ensure that there is something for everyone.Emotional benefits : Victoria’s Secret aims to make their customers feel sexy, sophisticated and forever young To accomplish this goal, the company offers customers high-quality, healthy, and effective goods through all of their brands

sub-Self expressive benefits : The customer can portray themselves in the manner of a supermodel To give customers these feelings, Victoria's Secret not only produces high-quality products that are crafted in an elegant, outstanding and exclusive style, but they also employ top designers to decorate the shop in a sweet and elegant, sparkling style

I.4 Victoria’s Secret structure :

The Victoria Secret brand comprised of three divisions: Victoria's Secret Stores (physical location), Victoria's Secret Direct (available online and in store), and Victoria's Secret Beauty (swimwear and cosmetics)

VS Stores: In the USA, 1,000 Secret Lingerie Stores and 100 independent Victoria Secret Beauty Stores were opened in 2010 The stores included mostly shopping facilities, bras, panties, cosmetics, sleepwear, etc

VS Direct:

Catalogs (From 2007 to 2016): Victoria’s Secret included images that are both romantic, sexy and elegant in catalogs This has brought success to the company They received countless calls to order for hours, attracting a large fan base Later, because Victoria's Secret found this outdated and ineffective, in 2016, the company decided not to use catalogs anymore

The Victoria's Secret e-commerce site was launched on December

4, 1998 and received a hit after massively promoting the 1999 fashion show

II Literature Review &

Critical Analysis:

II.1 Situation Analysis:

Victoria's Secret managers will use a SWOT analysis to conduct a situational analysis of the enterprise, which is a significant economic strategy method It's an useful technique for knowing Victoria's Secret's existing Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T) in its current market setting

The Victoria's Secret is one of the leading companies in its industry.Victoria's Secret maintains its prominent position in the market by carefully analyzing and reviewing the SWOT analysis SWOT analyzes

a highly interactive process and requires effective coordination among various departments within the firm such as – marketing, finance, operations, management information systems and strategic planning.The SWOT Analysis framework enables an organization to identify the internal strategic factors such as -strengths and weaknesses, & external strategic factors such as - opportunities and threats It leads

to a 2X2 matrix – also known as SWOT Matrix

The Strengths-Weaknesses-Opportunities-Threats (SWOT) Analysis/Matrix helps the managers of the Victoria's Secret to develop four types of strategies:

VICTORIA’S SECRET 8

VICTORIA’S SECRET 9

II.1.2 Product/ Service SWOT Analysis:

Demographics Female;

“Pink” target teens aged 13-29;

Middle class women aged 30-50;

Men shopping for their wives;

Lifestyle: Works out, like shopping, spend time with friends,

Opinions: Price doesn’t matter for that brandBeliefs: If you look you feel good

Geographic Urban cities such as New York, LA, Boston,

Victoria's Secret is a brand which creates a brand name as a luxury brand that offers women's attractive, empowered goods Victoria's Secret mostly targets girls aged 13 to 29 and women aged 30

to 50 The bulk of Victoria's Secret's target market consists of young women who have the same desire to improve their self-image and self-confidence; to feel inspired and attracted Furthermore, young women are more likely to pay a premium for their undergarments in order to fulfill their desire to feel empowered Moreover, young women are on likely than men to use social media and the internet Victoria's Secret is well-known for maintaining a strong social media presence

Young women also enjoy freedom The results of Victoria's Secret still create an aura that resonates with independence and freedom It is also clear that the Secret line of Victoria coincides with personal

attitudes, ideals and believes in Young Women, Victoria's Secret's targetdemographic.

In comparison, tradition could also play a significant role as someone tries to purchase Victoria’s Secret Democracy and

empowerment are two of the ideals often expressed by the company in its goods and commercials Nearly all western countries, especially the USA, have socio-political regimes that favor liberal ideals like the ones championed by the Secret brand in Victoria Therefore, Western society has also supported spreading the Secret of Victoria as a brand

2.2.2 Differential advantage:

Victoria’s Secret uses product differentiation as their level strategy They focus on adding brand loyalty to their products by developing new and unique products that cannot be easily duplicated bytheir competitors

business-The $12 million annual fashion show that pays for itself

The brand owes its success to its annually over-the-top Victoria’s Secret Fashion Show The televised event not only draws worldwide attention but also pays off the $12 million setup costs The show reflectsthe opulence and the brand’s values and is one of the best marketing strategies Victoria’s Secret has On its first air in NY Times Square, it literally stopped the traffic

A brand that creates celebrities

The Victoria’s Secret Angels are a major part of the brand’s image.Unlike other lingerie companies that use celebrities to market their lines of clothing, Victoria’s Secret launched modeling careers Rather than picking known models and use them as spokespersons, the brand considered choosing specific models with which women customers would feel comfortable around and could relate to

A close attention to the customer experience

Women don’t line up at Victoria’s Secret because of the low prices;they line up because of the luxurious experience the brand offers The pink wallpapers, the inviting fitting rooms, the friendly and well-trained

staff, and its constant re-inventing strategy are what get the customer tothink that paying $50 more for their lingerie purchases is an

investment

In conclusion, Victoria’s Secret calculated strategies for

captivating American women and for expanding worldwide is what made this brand a top lingerie leader on the market The luxurious customer experience, the amazing Fashion Show, held annually, and thebrand’s Angels made it impossible for competitors even to come close toVictoria’s Secret dominance

2.2.3 Competitive Advantage:

Competitive advantages are one of the reasons that lead to a company's ability to effectively sell its goods A company's competitive advantage is what separates it from its rivals It is described as "what a company does better than its rivals." That is, when a company can do something that its competitors cannot, or when a company has

something that its competitors want This is an essential component for the company's long-term success and survival

Victoria's Secret has a high market reputation, which gives the firm

a strategic edge Victoria's Secret is the world's most famous lingerie brand today People instantly think of Victoria's Secret with sexy lingerie and popular fashion shows with stunning angels when they think of lingerie This is a positive benefit for Victoria's Secret because customers are much more likely to choose a brand, even though they don't know much about it right now, that they remember over someone else Furthermore, a good and well-known brand name enhances Victoria's Secret's popularity with its customers and in the underwear industry

Another competitive advantage of VS is that they offer better designs Since the organization recruits top talent, their offerings are distinct and superior to those of their rivals In addition, this also helps the brand have the ability to increase prices without too much

objections because firstly, this is a famous brand, secondly, the product they provide to customers has much better quality than that of

competitors

Figure 8 :

Victoria's Secret also trains its staff so that they can give

recommendations and fit for customers The staff are friendly and helpful Not only dedicated service, they can also provide useful advice

to help customers choose the lingering that best suits them This gives customers a great shopping experience, they will feel comfortable and satisfied In addition, customers will often come back to shop at Victoria's Secret because the shop gives them a feeling of satisfaction This assists the company in establishing customer loyalty, retaining current customers, and attracting new customers

Victoria's Secret stores are elegantly designed, with pink as the main theme and soft lighting The dressing room is seductively built, providing the ultimate girly shopping experience that lets a girl feel good about herself In reality, 65 percent of women purchase

underwear after trying it on in a Victoria's Secret fitting room This is one of the things that not all brands can do to provide consumers with

a better shopping experience

VS Fashion Show:

Another competitive advantage is the brand's fashion shows with famous angels like Karlie Kloss or Tyra Banks In 1995, the Victoria's Secret Fashion Show made its debut at New York City's Plaza Hotel It started off as just a lingerie fashion show However, it was a bigger hit than predicted, and became an annual spectacular show watched by millions of viewers It was considered “the most extravagant marketing trick in the lingerie line's arsenal.” by Forbes This is always one of the fashion shows most awaited by the audience In 2010, Victoria's Secret fashion show attracted more than 10 million views However, in 2018, the show achieved a record low number of views, just over 3 million views, and the fashion show came to an end in 2019

Holding fashion shows with angels is an effective way to market products, as well as helping the brand to become more widely known This fashion show helped Victoria's Secret sales increase significantly

In 2015, despite attracting fewer viewers than in previous years, the fashion show is still profitable for Victoria's Secret and sales are still growing, estimated at $ 7.6 billion

2.2.4 Marketing objectives:

According to its parent company L Labels, gross sales of

Victoria's Secret dropped 46 percent to $ 821.5 million in the first quarter of 2020 As a result, one of Victoria's Secret's marketing objectives for this year is to raise earnings To achieve this aim, the company recently increased the prices of certain goods and restricted the availability of additional promotions

In addition, the decline in sales also caused the company to set the goal of retaining customers and attracting new customers Since keeping existing customers is always cheaper than getting new customers, this goal should be valued by the company However, a few scandals in recent years have affected the image of Victoria's Secret and caused many customers to turn their backs on the company Therefore,

attracting new customers to the brand or product is also important to ensure the longevity of the company.

2.2.5 Overall marketing strategy

i Product strategy and description

Victoria’s Secret, the largest American retailer of women wear, is headquartered in Ohio, US Their product lines include inner wear line, active wear, swimwear, women’s wear,

inner-accessories and beauty products Its product range includes internal clothing, athletic wear, swimwear, wear for women, beauty products and accessories PINK is their collection for the younger lot, i.e for teenage buyers with bright colors Sportswear and sleepwear are also included in Victoria's Secret The Victoria Collection of Secret Designers is the first high-end luxury line of the brand They do not include all sizes of the body and their merchandise range does not contain products for women of plus height Their whole line of items is all about "Loving My Body," which contains supermodels in their ad campaigns They only represent a particular sort of body They continue their mission of introducing new goods regularly, each released at various times

ii Pricing strategy:

Victoria’s Secret is a high-end luxurious brand and their pricesreflect the same As innerwear is a product line not affected, even though they are divided into the higher price range, consumers purchase it Their stance on premium rates attracts people from society It does not address the peoples' desires Their standard is premium, while supermodels make the price much higher with their brand faces The Pink series is devoted to young people, university students and younger mothers The costs of the brand's products are also considerably lower They are available from £20

to £500 They are available Their exclusive goods cost about £150

iii Promotion & Advertising strategy: