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PINK PUPPY LOVE LINE

A New Product Line for Victoria’s Secret/Pink

Year - Long Promotion with Five Special EventsJan-Feb, Mar-May, Jun-Jul, Aug-Sep, Oct-Dec

Apparel Marketing Final ProjectJenny Sashi Josefsson

May 12, 2010

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PINK PUPPY LOVE LINE_______________________________________________________________________________

A Line of Fashionable and Trendy Dog Accessories!!!

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PPLL - PRODUCTS_____________________________________________________________

Product IntroductionCollars & Leashes

Jan - Feb

Beds & Carry Bags

Mar – May

Doggie Brushes

Jun – Jul

Jackets & Jerseys

Aug – Sep

Booties & Pajamas

Oct - Dec

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PPLL – BENEFITS_____________________________________________________________________

For Victoria’s Secret:• Attract a new brand of customers into stores• Help expand the Pink brand• Increase loyalty to the Pink brand• Grow sales and profits• Support charities

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PPLL – BENEFITS____________________________________________________________________

• Convenient (Existing Victoria’s Secret customers)

• Better quality (than existing/competing products)

• Better and wider selection• More fashionable – accessorize & match• The first to be in on a fun, cool new product

Fashion-minded dog owners and dog lovers can enjoy fun and fashion for themselves, their dogs or mascot dogs by shopping the Pink Puppy Love line

at Victoria’s Secret.

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PPLL – CHARITIES & CAUSES___________________________________________________________________________________________________________________________

During special events promo, a % of sales will be donated to charities. At other times, customers can choose to contribute to a dog-related charity/cause.• Humane Society and American Society for the Prevention

of Cruelty to Animals (ASPCA)

• PAWWS (Passionate Animals Working With Survivors). Dogs for children who are abused or disabled.www.pawwstoheal.org)

• Nat’l Service Animal Resource Center/Delta Society. Training and support of service and therapy dogs.www.deltasociety.org

• Patriot PAWS. Raising and training dogs for disabled veterans). www.patriotpaws.org

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PPLL = Unique Products _______________________________________________________________________________

• Dog owners can match the dog’s outfit with their own dress style and color preference

• Dog owners can match their dog’s outfit with its personality and style

• Dog lovers can match their dog mascot’s outfit with their own style and color choice

Beautiful, brand name dog accessories are hard to find.

Pink Puppy Love Line offers a great selection.

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PPLL - Organization___________________________________________________________________________

CORPORATE TREE

The LimitedOther Limited

Intimate Brands Companies

Victoria's Body and Bath White BarnSecret Works Candle Co.

Pink

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PPLL - BUSINESS INFORMATION_____________________________________________________________________________________________________________________________

_

Data for Victoria’s Secret (2008)

Annual Total Sales: $5.1 billion

Annual Total Profits: $412 million

Annual Sales - Retail Stores: $3.1 billion

Estimated Sales - Pink: $775 million

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PPLL - Company Mission____________________________________________________________________________________________________________________

Victoria’s Secret - part of Limited Brands:• Committed to growth (of business) and

creation of shareholder valueThis is achieved by:• Increasing the presence of Victoria’s Secret

brands via stores, catalogs, e-commerce, distribution channels, social networking, magazines and media marketing

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PPLL - Company Mission____________________________________________________________________________________________________________________

Victoria’s Secret – Personal Mission:

Deliver a best-in-class, captivating, branded, customer experience that builds loyalty and enables consistent sales and profit growth.

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PPLL - Market Situation____________________________________________________________ _______________

• Victoria Secret’s PINK brand targets younger females (primarily teens and early 20’s)

• We plan to introduce the new dog accessories under the PINK brand as the Pink Puppy Love Line (PPLL)

• A selection of trendy and fashionable brand name dog accessories are currently not available in retail stores.

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PPLL – MARKET OPPORTUNITIES______________________________________________________________________________________

• There are currently about 34 million people aged 12-19 in the US. Roughly half are females.

• Teens age 12-19 spent approximately $250 billion in 2007. About 1/3 of this was spent on fashion.

• E-commerce and promotion by social networking is increasing rapidly. This can help increase sales to males and other dog lovers who don’t wish to shop in a Victoria’s Secret store.

• The Pink Puppy Love Line offers mascot-sized versions of the products. Dog lovers who are not able to own dogs can buy Pink’s dog mascots and PPLL products.

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PPLL – MARKET THREATS______________________________________________________________________________________

The weak US economy – declining sales: • Female baby boomers spend less money on fashion for

themselves and their young daughters.

• Sales in malls have decreased nationwide.

• Victoria’s Secret is in a highly competitive market. Department stores, mail-order companies and online businesses are able to offer lower prices and attract customers when money is tight.

• Hard to know how the Pink Puppy Love line will attract established Victoria Secret customers and non-customers. Minimize risk with excellent promotion and early test marketing in a few stores.

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PPLL – COMPETITIVE STRENGTH_______________________________________________________________________________________

• Victoria Secret/PINK is a leading, prestigious brand.

• PPLL can build on the world famous runway shows for lingerie and swimwear with dog-related runway shows.

•

• PPLL means selling high quality, higher priced products. There will be limited competition from competitors selling lower quality products.

• Victoria’s Secret has stayed competitive through extensive product innovation and marketing. The Pink Puppy Love line follows this recipe for success.

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PPLL – COMPETITIVE WEAKNESS_________________________________________________________________________________________________________

• Victoria’s Secret is experiencing somewhat increased debt, lower profits and less cash flow

• Introducing PPLL may reduce sales from apparel (less square feet in stores)

• Large number of suppliers, difficult to ensure consistent quality and time of delivery

• The young work force at V.S. may reduce productivity (absenteeism, tardiness)

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PPLL – OVERALL GOALS______________________________________________________________________________________________

1. Create a new line of attractive dog products and accessories for the Pink brand – the Pink Puppy Love Line

2. Open the Pink brand up for future innovation and expansion into other products

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PPLL - MARKETING OBJECTIVES ____________________________________________________________________________________________________________________________

TOTAL SALES

GROSS PROFITS

YEAR 1 $9.8 million $5.0 million

YEAR 2 $17.7 million $9.8 million

YEAR 3 $21.3 million $11.9 million

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PPLL – SALES PLAN________________________________________________________________________________________________________

• Prospect identification– Build on existing V.S./Pink customers– Girl customers love dogs, want cute accessories

for their family’s dog or their Pink mascot– Many adult females love dogs or are moms to

daughters who love dogs– Reach non-V.S./Pink customers via web based,

targeted ads (GoogleWord and Facebook)

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PPLL – SALES PLAN, ctd____________________________________________________________________________________________________________________

Creating awareness• Use variety of media: in-store displays, social

media, ads in magazines

Creating conviction• Based on V.S./Pink established brand• Strong influence from female teens, pre-teens on

mom to buy cute, fashionable dog products at V.S./Pink

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PPLL – SALES PLAN, ctd____________________________________________________________________________________________________________________

Creating orders and reorders• First orders when introducing 1-2 new PPLL

products at special sales events and fundraising drives for charities

• Repeat orders – customer wants:– More products to have complete, matching set for dog

or mascot dog– More dog products to be able to match dog’s outfit with

her own

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PPLL – SALES PLAN, ctd____________________________________________________________________________________________________________________

Five in-store sales drives during Year 1• 1-2 new PPLL products introduced and

promoted during each 2-3 month period• In-store displays combined with media

promotion campaign• PPLL products also sold with other Pink

products online and via catalog

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PPLL – UNIQUE SELLING PROPOSITION

___________________________________________________________________________________________________________

Problem: Beautiful, stylish dog products are:• Hard to find, few styles to choose from• Often low quality, not durable, high price

Solution: PPLL Products at V.S./Pink• Convenient one-stop shopping• Great selection of fashionable and high

quality dog products

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PPLL – CREATIVE STRATEGY______________________________________________________________________________________________________________________________

Copy/Tone Theme:• Color tone is pink:

– PPLL products to be marketed in the PINK division within V.S.

– Color of Love• Visual/Image Theme:

– Business logo of V.S./Pink already has a dog image• Incentive:

– Discount to existing customers during product introduction– New PPLL products available at sales price all year

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PPLL – MEDIA MIX__________________________________________________________________________________________

Main emphasis on advertising in main fashion magazines:– Seventeen– Elle– Marie Claire

Web based promotion important for young females:– GoogleWord ads (per click)– Facebook sidebar ads (per click)– Emails to existing V.S. customers– New PPLL products featured on V.S./Pink website,

coordinated with promo/sales drives

• What will be your media mix?• What is your rationale for using media?

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PPLL – MEDIA MIX, ctd_________________________________________________________________________________________________________________

Use of Direct Mail• Add-ons to existing V.S./Pink mailings:

– Postcards to Angel members w/ special offers– Insert sheet with PPLL products in Spring and Fall

mass mailed catalogs

Use of Broadcast Media• One time use of National TV commercial for Pink

Puppy Love Line Runway Show

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PPLL – OTHER MARKETING_____________________________________________________________________________________________________________________

Trade Shows: • Participate in trade shows together with V.S./Pink• Attract new visitors to the V.S./Pink booth• Get attention from established V.S./Pink visitors

Public Relations• Press releases sent out to create publicity for

special events and cause-related promotion activities

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PPLL – OTHER MARKETING, ctd____________________________________________________________________________________________________________________________

Cause-Related Marketing Promotions• Fundraising special event – Feb, to benefit:

– PAWWS to Heal (dogs for abused & disabled children)– ASPCA (prevent cruelty to animals)

• Service and therapy dogs for people with disabilities. Special event – April, raising awareness and funds for:– National Service Animal Resource Center and – Local Humane Society Chapters.

• Service dogs for veterans. Special event - June– Fundraising for Patriot PAWS and local non-profit

organizations.

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PPLL – PROMO BUDGET, Year 1________________________________________________________________________________________________________________________________

Ads – fashion magazines $976,000Emails – Angel members $2,500Web based ads $17,500Direct mail – catalog inserts $40,000TV commercials $550,000Special events & cause related $245,000Reserve, follow-up promo 486500Puppy Love Runway Show $550,000TOTAL $2,867,500

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PPLL – PROMO BUDGET, ctd___________________________________________________________________________________________________________________

Marketing, sales and profits for Year 2• Marketing budget (same as Year 1) $2.9 million• Sales $17.7

million• Gross profits $9.8 million

• Marketing budget is 16% of annual sales

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PPLL - CALENDAR – Year 1________________________________________________________________________________________________________________________

Month New Products Special Event Media PromoJan Collars, Leashes Fundraiser ASPCA

(Animal Cruelty)17, Marie Claire Spring Catalog

Feb Collars, Leashes Valentines’ Day Puppy Love

Elle, Marie Claire

Mar Puppy beds, Carry Bags

17, Marie Claire

Apr Puppy beds, Carry Bags

Fundraiser, Dogs for Handicapped

Elle, Marie Claire

May Puppy beds May Day Event 17, Marie Claire

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PPLL - CALENDAR – Year 1, ctd.______________________________________________________________________________________________________________________________

Jun Puppy brushes Fundraiser, Dog Helpers for Vets

Elle, Marie Claire

Jul Puppy brushes 17, Marie Claire

Aug Puppy jackets & jerseys

Elle, Marie Claire Back to School Catalog

Sep Puppy jackets & jerseys

Design your own jersey day

17, Marie Claire

Oct Puppy jackets & jerseys

Elle, Marie Claire

Nov Puppy booties & pajamas

17, Marie Claire

Dec Puppy booties & pajamas

Puppy Love Runway Show

Elle, Marie Claire TV commercial