Victoria’s Secret

Brooke MalamaOcean TrailYifu Ma

“Limited Brands is committed to building a family of the worlds best fashion brands offering captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders”

Background

• Founded in 1977 by Roy Raymond, who wanted to create a retail concept that was comfortable for the male consumer

• Held by L Brands Inc. (NYSE: $56.61) 59% of revenue is generated by VS

• Specializes in lingerie, womenswear, and beauty products

• Around 1019 stores (US)

VS Target Market

● Sexy and confident women

● Middle class woman, age 20 to 40.

● Shifted target from men buying lingerie for a spouse to a focus on women

PINK Target Market● Gateway to Victoria’s Secret line

— Good Strategy to foster brand loyalty

● Young and confident college girls

— Bright product color

● Trend: High school girls and teens

Store Layout

Consistent with brand image

• Pink lighting fixtures and magenta armoires

• Separate rooms for each brand

• Displays of mannequins dressed in lingerie

• Portraits of VS Angels

• Dressing rooms with large mirrors and couches

• Sales associates assist customers by finding appropriate sizes

Marketing Strategy

Multi-channel retailing

- Social media

- Email marketing

- Mobile marketing

- Victorias Secret Fashion Show

- Promotional Offers

- Semi annual sale

- VS all access

- Coupons

- Online deals

- Reward cards

SWOT Analysis

Strengths

- Strong company brand presence with over 1000 company stores across the globe.

- Utilizing all their social media platforms (Facebook, Twitter, YouTube, Pinterest, Instagram)

- The company’s sub-brand Pink targeting late teen and college age teens has been a great success.

- The company’s active online marketing wherein they have active blogs, catalogues to create awareness about their product lines.

- The brand uses organic and fair trade raw materials for it’s clothing lines.

Weaknesses

- Several competitors means customers have a lot of choices and brand switching is high

- Fake products with the same name affect sales as well as brand image

SWOT Analysis

Opportunities

- The brand can extend its portfolio by foraying into different lines to expand its offering.

- The brand can focus on markets like Asia where it has limited reach.

- The brand could create online digital dressing rooms to create a greater appeal for their products.

Threats

- Due to limited resources the company can face serious issues in lieu of an economic downturn

- The highly fragmented fashion industry would mean less brand loyalty .

- Competition among other brands

References

● http://finance.yahoo.com/news/l-brands-present-icr-xchange-160000014.html

● http://editd.com/blog/2013/04/the-booming-lingerie-market/

● http://www.pamperedpassions.com/victorias-secret-brief-history

● http://investing.businessweek.com/research/stocks/private/snapshot.asp?privcapId=4175421