victoria's secret

Victoria’s Secret

Teddy Lord, Cameron Martin, Colby Hough, and Liz Leinbach

How it all started

• Roy Raymond established Victoria’s Secret in 1977

• Started as a store for men• Limited Brands acquired Victoria’s Secret in

1982 – Completely overhauled the company

Limited Brands

• Formerly known as “The Limited Inc.”• Slowly made Victoria’s Secret into one of the

top 10 most recognized brands in the world– Now a store for Women, not men

• Expanded to 1,019 stores in the United States

Target Market

• Customers are sexy, confident, and have a desire for “sensual fashion”

• Targets middle class women – Ages 20-40; does NOT

specifically target young women

• Targets men shopping for girlfriend, wife, etc.– Victoria’s Secret was created

by Roy Raymond, as a place for men to buy their wives lingerie

Target Market (PINK)

• Victoria’s Secret PINK Collection

• Targets a younger, college aged woman (19+)

• Inevitably attracts teens and high school girls– Brighter colors, trendy prints,

less sensual attire– “Designed to be more cute than

racy”

• Meant as a gateway in the main Victoria’s Secret Line

Victoria’s Secret Stores

• Average size: 6,000 sq ft• Very unique layout– Most have black or cream colored interiors– Very nice interiors– Sub-brands separated in the store

Flagship store NYC

• Located in Herald Square• 25,000 sq ft • Three floors– Each floor intricately pieced together by Victoria’s

Secret designers

Retailing

• Retail stores located all throughout the United States

• Started off as 3 boutiques • First national lingerie store (multiple

collections) • Sold at Victoria’s Secret:

- PINK: life style brand for younger women, colorful stores, some separate stores

- Swimwear: now available in stores - VSX Sport: women’s athletic apparel- Beauty: makeup, fragrances (also men’s),

skin/hair care- Clothing: handbags, accessories, jackets,

denim, tops, dresses

Product Sourcing

• Limited Brands takes much pride in sourcing from places that meet their strict standards– No tolerance policy

• Deem their products “fair trade” and “good for women, good for the children who depend on them.”

Scandal in Burkina Faso• In late 2011 people discovered source

of some of Limited Brand’s imported cotton

• Cotton specifically used in Victoria’s Secret

• Came from impoverished cotton farms– Child labor– Abuse– Unpaid workers

Digital Strategies • Omni Integrated Digital Strategy = same experience everywhere • Social Media

- Facebook (2nd most popular retail store on the site, 18th most popular brand)

- Separate pages for Victoria’s Secret, PINK, and VSX - Twitter, Pinterest, Instagram, YouTube - Respond to customer comments and questions

Digital Strategies• VictoriasSecret.com

- offers, deals, organized- VS ALL Access

• Email Marketing- new product= email blast

customers • Mobile Marketing

- apps for iPhone, iPad, Android phones

• TV/ Radio Ads- popular super bowl ads- Thefuture.fm - Victoria’s Secret Fashion Show

Victoria’s Secret Catalogue

– Direct marketing approach– $220 million a year is spent on the

catalogs sent to customers' homes• includes postage, creative, printing,

paper and circulation

– VS uses print to drive more "emotional content”

– The Victoria’s Secret brand is in the mature stage of the product life cycle• Emphasis is focused on the product

rather then creating a buzz around their brand

Current Marketing Strategies: Freebies

– Coupons are sent out in the mail every month with free gifts

– No purchases are necessary– Creates traffic in the store – Causes impulse purchases

• Costs for freebies are low in comparison to the profits

Semi Annual Clearance Sales

– Items only go on sales during specified time frames

– Items are discounted between 25 to 70%

– Creates space in retail stores and warehouses for new products

– Targets different types of consumers

VS Secret Rewards– Gift card with an unknown

amount of money– Redeemable within a specified

time frame on the card – Values range from $10-$500– Can be utilized online or in the

retail store

- Drives traffic- Acts as an incentive to make

purchases with the help of the reward card

Expansion of PINK

– 20% of stores carry the full Pink assortment

– In 2012, 34 U.S. stores totaling 109,000 square feet

– In 2013, an expansion to 83 stores will occur with 282,000 square feet

“Growth in lingerie and Pink were the primary catalysts for a 3 percent increase in VS’ fourth-quarter same-store sales, while beauty business was flat and holiday performance.”- Stuart Burgdoerfer (WWD)

The VS Designer Collection

- High-end lingerie collection- In-house designers- Sold online at VictoriasSecret.com

and at 13 VS locations

“Bras retail from $98 to $158; undies and garter belts are $38 to $68; baby dolls and teddies are $158 to $218, and the kimono and merry widow are $120 and $298, respectively.”-WWD

Victoria Secret Fashion Show

– Incorporates their under garments into outrageous themed costumes

– 11.5 million viewers in 2012– Mostly women– They have created a tradition

• “Angel wings” implemented in 1998

– Cater to their target audience integrating popular entertainers

• Justin Bieber and Rihanna

“The 2012 themes: Circus, Dangerous Liaisons, Pink Is Us, Silver Screen Angels, Angels in Bloom and Calendar Girls.”

CompetitorsAerie- American Eagle

• Launched in 2006• Targets 15-25 year old women• Intimates Collection

– Bras, thongs, sleepwear, sweatpants, “adorable wear”

• Competes with PINK– “Dorm-Wear” fad– Price?– Appeal?– Preference?

Bare Necessities• Launched in 1998

– Second largest online specialty retailer for intimate apparel

• Known for assortment of bras and lingerie

• 3700 styles from 170 brands– Bras, panties, swimwear, etc.– Competes with Victoria Secret’s main

lingerie selection• Targets middle aged women

– Ages 20-50

Major Strengths

• Market Leader • Extremely good at advertising

– E-mails, TV commercials, Fashion Shows, Facebook, Twitter, etc. ($66 million per year)

– Traditional and Digital Marketing

• Vast number of stores• Very few competitors, all of

which are less successful• Multiple Sales Channels

Major Weaknesses

• Parental view of Victoria’s Secret– Many people think Victoria’s

Secret is wrongfully exposing preteens to “adult items”

– “Bright Young Things”?• Unable to expand their target

market; very specific market

VS Fashion Show

Work Cited

• http://www.wwd.com/markets-news/financial/limited-brands-speeding-pink-expansion-6812441

• http://articles.chicagotribune.com/2012-11-20/business/ct-biz-1120-bf-secret-marketing-20121120_1_victoria-s-secret-victoria-s-secret-s-fashion-show

• http://www.qualitylogoproducts.com/blog/4-victorias-secret-marketing-tricks/

• http://www.wwd.com/fashion-news/fashion-scoops/victorias-secret-launches-first-high-end-lingerie-collection-5564144?src=search_links

• http://raventools.com/blog/6-content-marketing-lessons-from-victorias-secret-fashion-show/

• http://www.wwd.com/markets-news/intimates-activewear/victorias-secret-under-fire-6872180?src=search_links