CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
MARKET RESEARCH
L BRANDS: PINK
BACKGROUND L Brands, formerly Limited Brands, is an international retail company that sells women’s apparel, personal care and beauty products, and accessories. The company owns PINK, Victoria’s Secret, Bath & Body Works, La Senza, and Henri Bendel. L Brands operates over 2,900 stores in the United States, Canada, and the United Kingdom. The companies operate additionally in around 600 franchised locations worldwide. In 2014, L Brands’ recorded sales were $10.8 billion, and the company employs more than 94,000 associates throughout North America alone. Leslie H. Wexner is the founder, chairman, and CEO of L Brands. In 1963, Wexner founded the company with only one store, located in the Kingsdale Shopping Center in Columbus, Ohio. This store was called, “The Limited,” with sales totaling at $160,000 in the first year. Later, in 1969, The Limited’s first public stock offering was issued over-the-counter; 47,600 shares were offered at $7.25 per share. In 2002, the company changed its name from The Limited, Inc. to Limited Brands. From this point on, the company grew in value, and later launched PINK, led by brand cheif executive officer Denise Landman, in 2004. PINK is a lifestlye brand that targets college girls and celebrates campus lifestyle. The first four PINK free-standing stores opened in Canada in 2009, with sales reaching $1 billion in 2010. Later in 2013, the company changed its name again to L Brands.
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
BACKGROUND CONT.
MARKET SEGMENT
PINK: IN DEPTH
PINK is supported by these market segments: -L Brands & Victoria’s Secret -Female students, primarily college level -Young women -Female athletes -Fashion foward ladies
PINK utilizes a dog, and the number 1986 in much of its marketing, and often places these in their various logos. The dog serves as the “mascot;” because PINK is a company that targets college life, and young women transitioning into campus lifestyles, the company felt that they themselves should have a mascot, just as any college or university would. The number 1986 is used, because when the company was launched in 2004, the young women they were targeting at the time would have been the age of 18 -- the age most students are when going to college for the first time. In 2008, PINK launched its exclusive collegiate co-branded collection of merchandise with numerous universities across the United States. Since 2008, PINK has added a total of 67 universities, and 32 professional football and baseball teams to their collection. PINK also has a co-branded United States Army collection that is sold online only. Since PINK joined the L Brands team, the customer base has expanded far beyond what it was initally. With the addition of PINK, young women have the opportunity to grow along with the company; expanding their boundaries into the big-sister brand of PINK, which is Victoria’s Secret, becoming loyal customers throughout their life.
L Brands total annual revenue as of 2013: $10.5 billion Listed as #258 in the 2013 fortune 500 list of top companies PINK total annual revenue as of 2014: $1.5 billion -25% of Victoria’s Secret’s $6.6 billion in annual revenue TARGET AUDIENCE PINK aspires to capture what campus life is all about for young females. The brand celebrates college and aims to inspire ladies mostly around the ages of 15-22 to wear, love, and live PINK. PINK is a lifestyle brand, offering sleepwear, loungewear, and intimate apparel that is designed to give young women self-confidence and appeal to their own distinct style. PINK launched PINK Nation in 2009, which is an exclusive club where members get free products and exclusive inside looks on upcoming PINK products and news. There is no cost to join, and this is a strategy that allows the compeny to keep customers wanting more. In 2014, PINK launched their own credit card, through Comenity Bank. When approved, the “PINK girl” will receieve a booklet of coupons good for an entire year, one to use each month. The new cardholder will also receive $15 off her first purchase. This successful strategy turns the occasional shopper into a customer for life. “Live comfy. Live chic. Live PINK.”
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
BRAND ARCHITECTURE
COMPETITION
L Brands is structured into five parts that make it a whole:
L Brands’ growth rates are shown below:
PINK Victoria’s Secret Bath & Body Works Henri Bendel La Senza
Each place caters to a different audience, and sells different products. However, all five of these companies operate under L Brands, and they all target primarily a female customer base. L Brands’ values are prominent in each company they own, and they consistently showcase their brand identity, making it easy to maintain a large customer base. STAKEHOLDERS Along with its customers, PINK must maintain awareness of, and have respect for the following:
-all employees (down to the sales associate level), families of those employees, customer base, the public, the environment, competitors, shareholders, investors, designers, manufacturers, delivery operators, leadership teams, high and low end company operators, franchise owners, store managers, and charitees
L Brands makes it a priority to do anything in their power for various charitees. In 2014, Team L Brands was declared the world’s largest business team in Susan G. Komen Race for the Cure history for the fourth year in a row, totaling over 10,686 members.
L Brands 2012 2013 EBITBA 20.1% 25.8% Revenue 3.2% 5% Gross Profit 4.5% 6% *L Brands revenue for 2014: $10.8 billion
EXPRESS: -$2.2 billion in revenue for 2014 -formerly owned by Limited Brands, Inc. -founded in 1980 -preferred destination for the latest trends -targets 20 to 30 year old customers, male and female AERIE:
-11% of AEO’s $711 million in revenue for 2014 -owned by American Eagle Outfitters -launched in 2006 -targets young women -sells sleepwear and young women’s intimate apparel
NEW YORK & COMPANY: -$939.2 million in revenue for 2014 -founded in 1918 -national network of over 500 retail stores -leading specialty manufacturer for women’s apparel -caters to the working woman
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
COMPETITION CONT.
DIFFERENTIATION
PINK, as a company of L Brands, remains competitive because of the following:
PINK appeals to its customers by the various styles it offers, allowing each young woman to explore her own taste. Whether she’s chic, sporty, fashionable, or laid-back, PINK offers clothing, accessories, and intimate apparel that will allow her to express her individuality.
-It is the most popular apparel company among young women -It is the most popular intimates company among young women -PINK caters to the spirit and individuality of young women -Since its launch in 2004, PINK makes up 25% of Victoria’s Secret’s annual revenue -PINK promotes and sells collegiate apparel from various college throughout the United States
PINK fails to surpass its competition because of the following:
-It has not expanded enough into stores -”Bright Young Things” controversy in 2013 -Apparel is at a higher price range than other retailers
As of now, PINK has a strong customer base, and is growing rapidly through both product variety and expansion. PINK is quickly becoming the leading retailer for young women transitioning into college life and developing into adults. With such a large customer base, and a positive message to deliver, the logo and brand identity should be extremely strong. Currently, PINK’s logo is a dog. While this logo plays along with the story of the PINK girl and how the company came to be, it does not fully display what PINK is. The logo should fully convey what PINK stands for. Customers should not have to choose where they will go for apparel, they should automatically think PINK. Therefore, if a strong, recognizable logo and brand identity is established, there will be no question as to where their first choice will be from then on. WINDOW OF OPPORTUNITY An updated visual identity will create a new experience for customers that frequently shop PINK, and it will also allow the company to gain new customers and expand their brand loyalty base. PINK should take advantage of the variety of ages that purchase their apparel; ages 1522. If the company could maintain their target on the younger girls, but also allow for more focus on the women in their twenties, their brand would grow in all aspects. By creating a more recognizable identity, young women with all sorts of tastes, interests, and personalities would be drawn to PINK to express themselves through the products that PINK offers.
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
TOUCHPOINTS (subject to change) BRAND IDENTITY PACKAGE -letterhead -business cards -envelopes -stationary -business forms PRODUCT PACKAGING & PRINT MATERIALS -shopping bags -price tags -gift boxes/bags -gift cards -catalogs -coupons -shipment packaging SINAGE -internal -external -marketing WEBSITE -desktop -mobile -tablet EMPLOYEE NECESSITIES -pens -tape measures
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
CARLY O’BARR | GRAPHIC DESIGN 2 | SPRING 2015 | PROFESSOR DORN
RESOURCES http://www.lb.com http://www.lb.com/our_company/about_us/timeline.aspx http://www.forbes.com/sites/zacks/2013/01/08/limited-brands-zacks-growth-income-play/ http://uoinvestmentgroup.org/wp-content/uploads/2011/04/LTD.pdf https://materials.proxyvote.com/Approved/501797/20140324/CMBO_202427/#/56/ http://www.huffingtonpost.com/2013/03/25/victorias-secret-bright-young-things_n_2950691.html https://www.victoriassecret.com/pink/college-and-pro-apparel
IMAGE SOURCES http://archinect.com/people/project/13822907/victoria-s-secret-pink/30691578 http://www.polyvore.com/cgi/img-thing?.out=jpg&size=l&tid=97715443 https://s-media-cache-ak0.pinimg.com/originals/1a/25/73/1a25734a7a60f430bd7fcc900a64ceef.jpg http://loftuk.co.uk/wp-content/uploads/2014/10/Pink6.jpg http://s3-media3.fl.yelpcdn.com/bphoto/fc_N76l12YGk-ieJmPE-0A/180s.jpg