Brand Marketing Report
Contents
1. Executive Summary 2. Introduction to the Brand 3. Macro Economic Analysis 4. Brand Market Position 5. Competitors 6. Consumer Demographic 7. Product Selection 8. Social Media and Influencer Marketing 9. Marketing Mix 10. Proposed Strategy 11. Conclusion 12. Bibliography 13. Appendices
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Image sourced from: Glamour
Executive Summary The following report will be focussed on Victoria’s Secret, discussing the brand’s current market position, analysing their competitors, looking at factors affecting their success and eventually proposing a number of recommendations based on the market research conducted. The research was conducted using a variation of primary research such as online questionnaires and interviews with focus groups and with a wider range of consumer and secondary research where data collected about Victoria’s Secret and other underwear retailers was analysed from sources such as Mintel. The combination of the two types of research allowed for a complete understanding and analysis of where the brand is currently in the market and showing their weaknesses and strengths, therefore assisting in the suggested recommendation for Victoria’s Secret. The main finding taken from the research was the focus on the brand using only one body type to model their underwear online, in store and during the famous fashion shows. In recent years, this issue has become increasingly prevalent and in order to allow Victoria’s Secret to become more inclusive and more successful, a change needs to happen to the way in which they are displaying their products as many customers and possible customers cannot relate. The research into Victoria’s Secret enabled for recommendations to be suggested involving their use of social media and becoming more of an inclusive brand without alienating their current loyal consumers. These recommendations will be discussed towards the end of the report and include changes social media usage, influencers and general attitude towards inclusivity.
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Image sourced from: HerCampus
Introduction to the Brand The first Victoria’s Secret store was opened in 1977 with the concept of allowing men to feel comfortable whilst purchasing underwear and lingerie for their partners. The brand was sold to L Brands in 1982 for around $1 million. As the brand grew, it was clear to see that the original concept of the store needed to be changed as more and more women were buying underwear for themselves rather than receiving it from their partners, transforming Victoria’s Secret into what it is today. The objective of this report is to thoroughly explore Victoria’s Secret as a brand, their products, their consumers and how they function in the wider marketplace. Following this research including looking into key competitors and consumer analysis , a number of recommendations will be highlighted regarding what the brand could do to improve their sales and brand image. Victoria’s Secret is still the number one go-to brand in the US, however, with newer, more relatable and inclusive brands such as Aerie on the rise, could they overtake Victoria’s Secret and be the next big thing?
With the rise of these more inclusive lingerie brands, it is clear to see from research that Victoria’s Secret is stuck in its ways leading the brand to possibly fall behind its key competitors. Whilst their models are considered to be racially diverse, it cannot be said about the body type in which they choose to show their products. Despite the fact that there have been hundreds of calls for them to be more inclusive, the casting directors seem to ignore the idea that the brand should speak for the women who actually buy their products, following the “one-size-fits-no-one strategy” (Perry, 2018). Controversy in the media like this can be very damaging to a company, giving consumers a negative image of the brand. This issue along with others such as their social media usage will be discussed in the report and fitting recommendations will be proposed. Market research into the UK’s underwear industry has already been carried out in some detail and this report will take aspects from that research along with primary research conducted specifically for this report in order to compile the series of recommendations.
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PESTEL Analysis
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The issue surrounding the size of models Victoria’s Secret uses has caused a lot of controversy. Supermodel Robyn Lawley took to social media and launched the #WeAreAllAngels campaign through Change.org in 2018, calling on women to boycott the brand. In her petition Lawley wrote “…Victoria’s Secret have dominated the space for almost 30 years by telling women there is only one kind of body beautiful”. (Danziger, 2018. Forbes).
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The UK underwear market is expected to grow by 11.4% between 2016 and 2021 but the growth in sales may be impacted as consumers are spending more on leisure wear. This increase in the market should work well for Victoria’s Secret and they may even choose to bring out more leisure inspired products or underwear to make use of this trend. (Mintel, 2016)
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In 2017, the over 55 age category accounted for 30% of the UK’s population which is a large amount of possible consumers. The majority of brands often treat the over 55s as one single age group assuming they have the same wants and needs however there are many differences between someone who is in their late 50s and someone who is in their 70s. (Mintel, 2017) Victoria’s Secret cater for mainly younger women, with always young women pictured advertising their products. This alienates the older consumers who may feel they are too old to wear the brand. A campaign targeting the older woman could be an avenue to look down for Victoria’s Secret.
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In this social media obsessed age, the use of social media platforms is vital to a brands success as it can reach such a large amount of people. The advance in technology over the past decade has enabled brands to become more connected than ever. Victoria’s Secret have brought out an app that allows users to view videos of the shows, behind the scenes and also an insight into products coming out in the future. This forges a connection between the brand and user of the app (EVENTMB, 2018).
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Coming a close second to the agriculture industry, the dyeing process of clothes is the next biggest polluter of fresh water in the world. Many hazardous chemicals are not allowed in a number of countries due to the fact they are toxic and extremely harmful to the environment. (Petter, 2018. The Independent). In 2011, Victoria’s Secret signed onto Greenpeace’s campaign to eliminate these chemicals from production of their products but it was found they did extremely little to adhere to the goals.
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In recent years, body image has become such an issue that laws have been created to limit the unhealthy body ideals they are exposed to so often. In France they are tackling this problem by where any image that has been digitally retouched has to state that is has been done so otherwise a fine is given (Chazan, 2018) This is something Victoria’s Secret needs to be cautious about especially when they use models whom they call “angels” which gives the connotation of being perfect. This law could potentially come into practise in other countries in the near future.
Macro Economic Analysis Whilst Victoria’s Secret in the UK seems to be booming, it is a completely different picture over in the US. In July of 2018, they were already 40% down and whilst they are still the leading lingerie brand in the US, their share of the market is falling as brands such as Aerie and Savage X Fenty are rising (Helmore, 2018). Along with this decrease in sales, L Brands, Victoria’s Secret’s parent company announced that it was planning to close 20 stores in North America. Pink, a sub-brand of Victoria’s Secret has also been struggling with its sales too (Hanbury, 2018). One reason as to why this could be happening is due to the fact that emerging underwear brands such as Rihanna’s Savage X Fenty and American Eagle’s Aerie have seen a gap in the market to produce bigger sizes and offer styles such as no-wire bras and this along with lower prices put Victoria’s Secret in danger of falling behind in the market. However, it is reported that the amount of lingerie stores in the US is going to grow by 4% throughout the next 5 years which is more than 3 times the pace of women’s clothing (Sherman, 2018). This will be a good thing for Victoria’s Secret and will work in their favour if they go the right way about things.
Source: Mintel
This graph shows the possible market value of the UK underwear market in the coming years. The forecasted rise would boost Victoria’s Secret’s sales but they would need to keep an eye on competitors who could steal some of their share of the market.
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SWOT Analysis S W O T 8
Go-to for underwear - has a lot of brand loyalty. Range in products - Sells a wide range of styles of underwear as well as beauty products and accessories such as the body mists. In store experience - Bra fitting in stores and aesthetically pleasing stores. Fashion shows – much of the brand’s success is down to the annual VS fashion shows which is broadcast on US television One body type - uses only one body type when displaying their products, isn’t inclusive. Expensive - Many people only buy from them when sales are on as products may be too expensive full price. Social media usage - Social media use isn’t brilliant – little engagement with consumers Limited sizing - Only goes up to a certain sizing, so doesn’t cater for all women A new line – a line which is more inclusive of all body types, doesn’t need to be the whole brand but can start small with little changes to ensure they don’t alienate customers. Different influencers – Use different influencers. Think about their social media platforms such as Instagram – relatable posts? E.g. models of different sizes advertising their clothes. Use body confidence advocates such as @darth_badorr etc Bigger range in sizing - Increase the range in their sizing to include women of all sizes Cheaper retailers - other underwear and lingerie brands selling cheaper products for same quality. More inclusive brands - Other brands who are more inclusive.
Brand Market Position Victoria’s Secret has a range of strengths, from their instore experience where bra fitting is offered, products are displayed creatively and luxurious dressing rooms are available, to their range in products including all types of underwear, beauty products and everyday clothing. These strengths ensure that customers have a positive image of the brand and keep customers buying from them. However, the brand also has weaknesses which could make consumers refrain from buying products. These include only displaying their underwear on models of one body type, this means that many of their consumers cannot relate to images and advertisements of products as the majority will not feel represented by the models and for some this may mean they would prefer to buy their underwear elsewhere. Another weakness is their pricing, many people cannot afford or justify spending up to £70 on a single bra and although the bras are good quality, the same products can be bought somewhere else for cheaper.
In terms of opportunities, there are a number which could lead to an increase in sales and a better public image of the brand, one of these being creating a new line of underwear where the models are of a range of body types or bringing out a range that is more affordable to bring a new consumer base into the store. Threats are important for every brand to understand and in Victoria’s Secret’s case these include key competitors who are selling the same designs and quality for a lower price and also those who use a wide range of body types. This is definitely an issue Victoria’s Secret need to be aware of as their consumers may choose to buy from these other brands.
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Competitors There are a number of both online and high street stores that are considered to be competitors of Victoria’s Secret. To name a few, the UK competitors include Boux Avenue, Ann Summers, Marks and Spencer, Primark and online retailers such as Pretty Little Thing. It is reported that Marks and Spencer are the leading retailer for underwear with an impressive 46% of women in 2016 buying underwear from there, however, their customer base tends to be consumers over the age of 45 which is much different to Victoria’s Secret (Mintel, 2016). Although Victoria’s Secret is the most popular underwear specialist where people shop, in 2018 UK supermarkets Asda, Tesco and Sainsburys had a combined share of 41% of where people shopped for underwear in the last 12 months.
High Price
Practical
Stylish
Low Price
These supermarkets are so popular as they are the most convenient place to buy underwear from with the lowest price (Mintel, 2018). The other main underwear specialists Boux Avenue and Ann Summers continue to do well in the UK market and provide a slightly lower price point than Victoria’s Secret for customers who maybe aren’t willing to pay up to around £60 for one bra. Ann Summers use a wide variety of body types on their website meaning that customers may feel more inclined to shop there if they are of a similar shape. Over in the US, competitors include Aerie and Savage X Fenty who cater for plus-size customers with lower prices.
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Consumer Demographic Victoria’s Secret is one of the most, if not the most well-known underwear retailers globally. Although there is a limited number of physical stores around the country, 83% of UK women are aware of the brand. The brand is most popular amongst the 16-24 age group where 37% of them have said they are brand loyal (Mintel, 2018). However, Victoria’s Secret loses out on the majority of other consumer groups. This could be due to the fact that Victoria’s Secret only advertises their underwear on young models and do not tailor their advertisements towards the older generation. When visiting the stores, it was found that despite the main audience of Victoria’s Secret is the 16-24 age group, there was a wide variety of customers in the store such as men shopping for their partners and mothers and daughters. A questionnaire was conducted where 82% of answers came from a 16-25 age range – over half of people who answered either shopped at Victoria’s Secret or online retailers such as Pretty Little Thing who sell cheap underwear. The majority of answers came also from those who were students with a part time job and those that worked full time. This suggests that there could be an amount of disposable income they are able to spend on more luxurious underwear coming from Victoria’s Secret. (see appendix A).
The typical Victoria’s Secret customer is between the ages of 16 and 24, they usually are students with a part time job or a full time job. It’s important for them to stay on trend they enjoy the physical experience of shopping. They like the luxury feel of the interior of the stores as they feel it reflects the life they have or aspire to have. They buy into the brand and often choose products that are branded with Victoria’s Secret’s name.
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Dream Angels Push-Up Bra £49
Very Sexy Bow Brazilian Panty £20 Lace-back Hiphugger Panty £14
Scoopneck Sleepshirt £25
Very Sexy Logo Chantilly Lace Cutout Teddy £59
Flower Trip Body Mist £15
V-Quilt Convertible City Crossbody £39
The Lacie Floral Lace String Bikini Panty £9
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All images sourced from: Victoria’s Secret
Product Selection Victoria’s Secret sells products in 8 categories which are bras, panties, lingerie, sleep, sport, clothing, beauty and accessories along with their sub-brand Pink, showing that they are so much more than just a shop that sells underwear meaning that they Satin & Lace Slip appeal to consumers with different types of needs. £45 This range in products is both a good and a bad thing. Whilst having such a big range of products for sale gives the buyer a lot of freedom of choice, sometimes they are overwhelmed by choice and decide not to purchase whereas if there are fewer options, they are more likely to make the purchase (Cutrone, 2013). Prices are variable, the majority of products are priced
Perfect Comfort Bralette £15
reasonably high however there are a few lower priced items and a few higher priced, for example, you can pay anywhere between £9 and £49 for a single pair of pants and between £15 and £129 for a bra. From interviews conducted (see appendix B), the majority of people really like the products but feel that they are mostly overpriced and only purchase items from Victoria’s Secret when there is a sale on. One way in which this problem could be overcome would be to create a lower priced range to suit all customers’ budgets whilst at the same time ensuring that the idea of luxury isn’t lost.
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Georgie Glossop - Victoria’s Secret - Current Social Media/Influencer Marketing/Marketing Mix
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Social Media & Influencer Marketing Over the last year, there has been an increase in usage of social media in the UK with only 13% of people not using any social media networks (Mintel, 2018). This is an extremely high number of people who have the potential to interact with brands such as Victoria’s Secret via social media. They have accounts on Facebook, Instagram and Twitter which in total have a following of over 105 million people as of February 2019. There are regular posts on all of their accounts with often 3 posts a day on Instagram. However, whilst they have this large number of followers, the amount of likes they receive on posts isn’t nearly enough as it could be. This could be because the posts are very similar in content and followers may be getting bored of seeing the same type of posts. This will be discussed later in the recommendations section.
Influencers used to promote the brand are the famous ‘angels’ who are a group of models selected to be the face of the brand and often do interviews and appear on TV talk shows representing the brand. These models also all have a big following on social media, for example, Adriana Lima who recently walked her last show for Victoria’s Secret, has over 12.3 million followers on Instagram showing how much of a reach she had as a Victoria’s Secret ‘angel’. Although these women may seem a strong image for the brand, research has shown that many do not believe that it is so and from a survey conducted, 69% of people said they were not good role models (see appendix C). This is a good starting point to look at when discussing the brands future influencer marketing techniques.
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Product
Price
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Victoria’s Secret sell a wide range of products in 8 categories, with a few of these being bras, panties and lingerie. Within these categories a number of items are available to purchase like different styles of bra and lingerie for different occasions. Along with these underwear categories, beauty products are also sold such as body mists and lotions too as well as everyday clothing and accessories. A lot of women are often willing to spend that little bit more on a special piece of underwear and so Victoria’s Secret follow a premium pricing strategy which encourages a good view of the brand from customers and high prices mean increased profits (Bhasin, 2018). This ensures the brand has a luxury feel to it.
Place
Victoria’s Secret sell products both online and physically in store. They are in around 1,100 spots in the US, 45 in Canada and 14 in the UK. In addition to this they also have almost 370 stores in tourist destinations and airports which just sell their beauty and accessories products (“Victoria’s Secret Stores, LLC” n.d.). Shopping online on their website is an easy experience and a useful place to sell products as some people will not be able to get to a physical store but can still spend their money at Victoria’s Secret.
Promotion
Like many companies, Victoria’s Secret uses various ways to promote their products be it from email to their semi-annual sales. Their annual fashion shows are shown on US television which generates much interest around the brand and more notably in 1999, a 30 second advert was shown during the Superbowl which resulted in 1 million website clicks in an hour, showing how powerful just a short clip can be (Bhasin, 2018).
Marketing Mix Along with the store interior, every store has large front exterior with bright lights and colours, the impressive shop fronts definitely do a great job at bringing people in as they are so eye catching. The ease of using the online website to purchase items is also an important issue, if people are unable to physically get to one of their stores then then can just as easily purchase online using their well set out and easy to use online shop.
Victoria’s Secret market themselves in many ways to increase purchases both in store and online. In store they have aesthetically pleasing displays to entice shoppers in and to browse the store. Their colour scheme of pink and black is shown continuously through the stores with shiny surfaces and perfume is sprayed throughout the store, ensuring a pleasant visit for customers. Victoria’s Secret also show TV adverts in the US such as the ones pictured below however these are not shown in the UK, it would be a good idea to start showing these in the UK to advertise new products and gain new customers.
All images sourced from: Sophie Rogac, Emily Holt, Victoria’s Secret
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Proposed Strategy
Brand Market Position and Competitors Throughout this report, primary and secondary research has been analysed in order for a series of recommendations to be made for Victoria’s Secret on what they could improve on and what they could change in order to make their brand more successful. Over the next few pages these recommendations are discussed in more detail and a conclusion is reached where there is an overview of the recommendations. Currently, Victoria’s Secret are doing well in the UK underwear and lingerie market and many people are aware of the brand. People felt that even though the items sold are quite expensive, the products are of good quality and many would like to be able to own them. Whilst sales in the UK are going well, in the US other brands are starting to emerge and catch up with Victoria’s Secret. Reports show that people are maybe starting to forget about the brand and feels as though the brand is “forced” and “fake” whereas these new brands feel fresh and new and accepting of everyone and anyone (Helmore, 2018). Victoria’s Secret should aim to become a brand that empowers every woman and makes everyone feel welcome and represented. To ensure this happens, they should focus on becoming a more inclusive brand through their choice of models and the way they present their brand through advertisements.
This issue is becoming increasingly important in society so they really need to keep up to date with this and look at their values as a company. In terms of competitors, Victoria’s Secret are one of, if not the most well-known underwear brand in the world and so they should keep the same competitors. This is because their current competitors such as Boux Avenue and in the US Aerie are very close behind and constantly gaining a bigger share of the underwear market. Victoria’s Secret need to become very aware of who they are and what they represent as a company as they face the threat of brands who are fully inclusive of all women.
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@darth_bador 158k followers
@aerie underwear brand
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@sonnyturner__ 284k followers @neonmoonco underwear brand
Proposed Strategy
Social Media/Influencer/Marketing Mix Victoria’s Secret covers all bases when it comes to social media, they have active accounts on Twitter, Facebook, Instagram and Snapchat meaning that anyone who could want to interact with them online can do so easily. However, as before mentioned, the number of likes and comments they get on each post doesn’t reflect the amount of followers they have. Their Instagram account posts 3 or more times a day meaning that followers may just scroll past quickly as they are so used to seeing their posts and not take time to look at the content. In order to change this and increase the engagement of followers, their social media team could maybe put out one or two posts a day on Instagram where as well as images of models, posts which draw people in with a competition or a flash sale code which can be used on their website. This would be sure way to gain more followers and likes.
In terms of influencers used, there should be others apart from the ‘angels’ such as body confidence advocates who are “Instagram famous”. People such as Emily Bador (@darth_bador) and Sonny Turner (@sonnyturner__) would be ideal social media influencers as they both have a big following and often post body confidence posts of them in underwear, encouraging people to be comfortable in their own skin. There is nothing wrong with the current ‘angels’ but there definitely needs to be a change in Victoria’s Secret’s attitude towards other body types, they sell sizes for larger sizes but don’t display it so how can they expect people to know? Finally, the annual fashion shows to promote the brand are becoming old news, it feels like the same thing every year with the same models, displaying the same underwear. This was shown in 2018’s ratings where just 3.27 million people watched, the lowest in the history of the show (Lawler, 2018). In order to improve this, the show could be held every 2 years to increase hype and ratings and therefore buzz around the brand.
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Proposed Strategy
Consumer Demographics & Conclusion As of this moment, Victoria’s Secret main age demographic is 16-24-year-old females and loses out on most of the other age groups. It is not a problem that they are tailored to one main age group but to increase sales and brand awareness, they could amend their marketing techniques in a way which encourages older women to buy from them. This could include using older models to advertise their underwear because as of right now, the models they use are young with many being in their early twenties which may make older women feel they shouldn’t buy the products. Another way to include older women would be to bring out a range of underwear designed for an older age group with a slightly more mature feel for the underwear and also the advertisement for it as the current adverts and underwear are quite playful and fun, it would be good if they were more relatable for older women. The range of underwear should still have the same youthful feel but with an added maturity and class to it.
In conclusion, the recommendations are mainly based around Victoria’s Secret becoming overall a more inclusive brand in terms of the range in body types used. This can be implemented by using the different social media influencers suggested and others similar to promote the products to their followers. Also mentioned was perhaps creating a range that celebrates women of all sizes which while is what the brand should do anyway but will help following the recent controversy around plus size and transgender women. If the brand wishes to alter its age demographic, Victoria’s Secret could try and target older women through advertising or once again creating a range specifically for this purpose. Turning the brand into something one that encourages women to love their bodies and shows women that they don’t need to be a certain size to wear pretty underwear is the direction Victoria’s Secret needs to go in. It is important that they make these changes but they must do so in way that doesn’t alienate their current customers but also encourages new customers to choose them over other brands. Slow and subtle changes would be the best way forward for Victoria’s Secret.
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Bibliography Bhasin, H. (2018, June 18). Marketing 91. Marketing Mix of Victoria’s Secret. [Blog post]. Retrieved from https://www.marketing91.com/marketing-mix-of-victorias-secret/ Chazan, D. (2017, October 1). The Telegraph. Photoshopped Images to Come With a Warning Under New French Law. Retrieved from https://www.telegraph.co.uk/ news/2017/09/30/photoshopped-images-come-warning-new-french-law/ Cutrone, C. (2013, January 10). Business Insider. Cutting Down On Choice Is The Best Way To Make Better Decisions. Retrieved from https://www.businessinsider.com/ too-many-choices-are-bad-for-business-2012-12?r=US&IR=T Danziger, P. (2018, November 7). Forbes. Supermodel Slams Victoria’s Secret For Body Shaming And Calls For A Boycott. Retrieved from https://www.forbes.com/sites/ pamdanziger/2018/11/07/supermodel-slams-victorias-secret-for-body-shaming-and-calls-for-a-boycott/#1c27b0cd1f50 EVENTMB. (2018, September 18). How Victoria’s Secret Reinvented the Fashion Show. Retrieved from https://www.eventmanagerblog.com/victorias-secret-reinvented-fashion-show Hanbury, M. (2018, August 23). Business Insider. Victoria’s Secret says it’s closing 20 stores this year. Retrieved from https://www.businessinsider.com/victorias-secret-closing-20-stores-2018-8?r=US&IR=T Helmore, E. (2018, July 22). The Guardian. Clipped wings: Victoria’s Secret sales slip as shoppers become less daring. Retrieved from https://www.theguardian.com/business/2018/jul/22/victorias-secret-pink-sales-stock-down Lawler, O. (2018, December 4). The Cut. The Victoria’s Secret Fashion Show Is Dead. Retrieved from https://www.thecut.com/2018/12/2018-victorias-secret-fashion-show-had-lowest-ratings-ever.html Mintel. (2016, June). Underwear. Retrieved from: http://academic.mintel.com/display/774522/?highlight#hit1 Mintel. (2018, June). Underwear (incl. Loungewear/Nightwear). Retrieved from http://academic.mintel.com/display/903788/?highlight Mintel. (2018, May). Social and Media Networks – UK. Retrieved from http://academic.mintel.com/display/894465/ Perry, P. (2018, January 8). The Independent. The Environmental Costs of Fast Fashion. Retrieved from https://www.independent.co.uk/life-style/fashion/environment-costs-fast-fashion-pollution-waste-sustainability-a8139386.html Petter, O. (2018, November 7). The Independent. Why the Victoria’s Secret Fashion Show doesn’t make sense in 2018. Retrieved from https://www.independent.co.uk/ voices/victorias-secret-fashion-show-2018-models-new-york-bella-hadid-adriana-lima-a8621491.html Sherman, N. (2018, November 20). BBC News. What’s gone wrong at Victoria’s Secret? Retrieved from https://www.bbc.co.uk/news/business-46268408 Victoria’s Secret Stores, LLC. (n.d.). Retrieved from http://www.vault.com/company-profiles/retail/victorias-secret-stores,-llc/company-overview.aspx
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Appendices
Appendix A
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Appendices Appendix B
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Appendices
Appendix C
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