New Strategic Initiative
Nadia Egipciaco / Shelby Moore / Maddy Mulvihill
Table of Contents MISSION STATEMENT
THE CREATIVE BRIEF
MARKET ANALYSIS
OMNI-CHANNEL AUDIT
THE NEW STRATEGIC INITIATIVE
- OVERVIEW OF RETAILER - CURRENT PLACEMENT - PERCEPTUAL MAP - CURRENT POSITIONING IN THE MARKET - CUSTOMER PROFILE - CURRENT COMMUNICATION & PROMOTIONAL ACTIVITIES
- MARKET OVERVIEW
- BUSINESS ISSUES & OBJECTIVES - LIST OF DELIVARABLES
- KEY OBJECTIVES & RATIONAL - TECHNOLOGY & IMPLEMENTATION - THREE INITIATIVES - TARGET CUSTOMERS - COMPETITIVE MARKET - ACTIVITY MAP - COMMUNICATION AND PROMOTIONAL PLAN
CONCLUSION APPENDIX PAGE
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A New Mission
“
A retail chain that is commited to empowerin classic product assortment, camptivating 36 focus on uplifting our customers through long-term loyalty and continue to pro
ng customer’s to look and feel their best through our 60 customer experience, and global presence.Our the shopping experience we provide will drive ovide a chain of stores customers can trust.
“
Creative Brief COMPANY OVERVIEW FOUNDER Ray Raymond
Victorias Secret was founded in 1977 by Roy Raymond. He created a place acceptable for men to buy lingerie for their partners. The company quickly took off from the first year grossing $500 K. This allowed the brand to expand more store spaces and their headquarters. In 1982 the business was sold to the Leslie Wexner Limited Stores In. By 1999 the brand launched its Body by Victoria line.
CFO
Pamel Edwards
CEO
Les Wexner
ANNUAL REVENUE $7,781 Billion
MISSION STATEMENT “To committed to building a family of the world’s best fashion brands offering captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders” PAGE
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OWNERSHIP L. Brands Inc.
# OF STORES 1,177
FUTURE GROWTH PLANS Luxury lingerie and high quality functional products are becoming increasingly popular among Chinese women, and a more frequent topic of discussion on social media. Victoria’s Secret just opened it’s first store in Shanghai (most cosmopolitan major city) after a year of selling branded accessories at their concept store in China. This will “satisfy Chinese women who desire to keep up with the pace at the forefront of international fashion”. Plans to launch new “constructed” bras (underwire, push-up padding, and clasps) in the second half of the year to appeal to shoppers at a higher price point - putting the category on a “growth trajectory”. The reason for this shift in product construction can be attributed to the rise in popularity of bralettes in recent years. VS is catering more to millennials and Z-Generation, who favor more sheer fashion and value comfort & function over looks. The focus has fallen away from ‘constructed bras’, thus creating a differentiator and a way to drive revenue in late 2017.
S.W.O.T. ANALYSIS - Strong brand identity and voice is well streamlined through all platforms. - VS Runway Show is the top streamed event. - Influencers. - Large variety of narrow & deep product assortment. - Trained and knowledgeable sales associates. - In store customer service (measurements).
- Too much inventory. - Messy floors. - Black & pink depreciates brand, tacky and disvalues the product’s worth. - Congruency throughout stores. - Prices and experience are off balanced.
STRENGTHS WEAKNESS OPPORTUNITIES THREATS - Introducing Plus size market. - Revilalived the ambiance of the store environment to bring in a higher end consumer. - Offer their clothing line in store & not just online only.
- Sales declining from slower mall based foot traffic. - Fast fashion brands expanding to lingerie.
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Industry
61.8%
Market Hold
$1.7Billion in sales
as of February 2017
CURRENT PLACEMENT
$13Billion
Segmenting the Market by Brand 1. Victoria Secret 2. Arie
3. Adore Me 4. Forever 21 According to IBIS World, Victoria’s Secret holds 61.8% of the lingerie market as of 2015. This amount accounts to about eight billion within the thirteen billion dollar industry. Vitoria’s Secret E-commerce business accounts for 21% of total sales, or aproximatly $1,634.01 billion. Their brick and mortar business accounts for 79% of sales, or aproximatly $6,146.99 billion.
$8,000,000,000 x 61.8% = $4,944,000,000
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L Brands’ net sales fell two percent, to $719.6 million, for the four weeks ended April 29 vs. net sales of $737.5 million for 2016. Total revenue globally as of Q2 in 2017 are estimated around $1.7 billion.Total revenue globally as of Q4 revenues in 2016 are estmated to be $2.6 billion. Side Note : Ditched a $500 mil category; Swimwear for Gymwear in 2015
HIGH PRICE LOW ACCESSIBILITY
LOW PRICE
HIGH ACCESSIBILITY
The perceptual map for Victoria’s Secret shows twelve different competitors: Hanes, Forever 21, Aerie, Jockey, Hanky Panky, True & Co., Calvin Klein, Thirdlove, Journelle, Adore Me, La Perla and Agent Provocateur. When comparing these brands to Victorias Secret, we analyzed product assortment, price point, acessibility & yearly company sales. This information helped calculate the average price for each category & determine (x) position on the chart. From there, (y) position was placed based on how many POS each company has, including online, and store-based retail space. Aerie, Jockey, Calvin Klein & Hanky Panky are more affordable but are not as readily available as Forever 21, Hanes & Victoria’s Secret, who score well in both afordability & accessibility. Thirdlove, Journelle, La Perla, Adore Me & Agent Provocateur are all far higher in price point & score lower in acessibility due to relying heavily on online sales. They could score higher like True & Co. if they were to expand their in-store assortment.
CURRENT POSITION IN THE MARKET
JENNIFER ALONSO AGE: 30 OCCUPATION: Professional Hair Stylist and part time Pilates Instructor LOCATION: San Jose, California INCOME: $65 K EDUCATION: UCLA
TARGET
HOBBIES: In her free time Jennifer loves to hit the beach with friends on the weekends, try new and trending restaurants with her boyfriend, and binge watch Law and Order episodes FAVORITE SHOPS: Victorias Secret, Anthropologie, Steve Madden, and Madewell
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The targeted Victorias Secret custom looks for Victoria Secret to purcha intimates. This customer is heavily influ that endorse the brand and watches every year. She trusts VS to give her the sizing is consistent and the produc This customer has an appreciation for advantage of any promtion run like t
CUSTOMER
mers is 18-40 yrs old, and ase all lounge sleepwear & uenced by various supermodels s the Angels Runway Show the look she desires, because ct are flattering and feminine. r quality goods, while taking the Angels Rewards Program.
AGE 18-40
$50-75K
Middle Class
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CURRENT PROMOTIONAL ACTIVITIES + Social Media + Rewards System + Promotional Campaign : VS Angel Show + Direct and Indirect Mailing
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- Monthly catalog draws a significant amount of sales which customers are still purchasing online. - 100 Million anticipated savings in discontinuing catalogs but failed, brought back.
U.S.A. MARKET OVERVIEW
Market
Analysis
WOMENSWEAR IND
THE INDUSTRY With the drastic acceptance of lingerie and sp as casual wear, the market has turned from necessity to an overwhelming trend that adopted by many different companies. As of overall women’s lingerie market reached a li 13 billion and is expected to increase in futu Anticipating the market’s worth for 2024, it’s e to reach close to 19 billion according to Statista. stores captured the largest market in 2015 du penetration of internet services and rapid advan in the field of technology”. Adore me is an of a company that took advantage of this opp
ATHLEISURE Women today are demanding more from the companies. Because of this, trends of the un market are migrating towards natural, susta comfortable fabrics. Victorias secret claims tha shoppers are males and 44% of their cuto between the ages of 18 and 34 (Quantcast customers are at their shopping peak during C and Valentine’s Day. Brands the VS customer a at are Nordstrom, Sephora, H&M, Urban O Juicy Couture. All of these companies are com for VS even though they are not limited to This is due to the fact that athleisure & lin made it’s way into daytime wear for a large of the population as clothing. Becuase of this, have a better advantage in the market if the their clothing line (currently online only) in stor
PLUS MARKET
We have seen a high demand for sports intim can be used everyday, not just for the gym. D & retail companies alike have had a rise blocking and print mixes that compleme modern retro styles in their lingerie sets. Sh that can fit any and every size is more in than ever, especially since the Plus-wear mark United States is the current demographics ave
DUSTRY
OmniChannel SCORECARD BRICK & MORTAR
ports bras m a basic is being 2017 the ittle over ure years. estimated . “Online ue to high ncements example portunity.
eir lingrie nderwear ainable & at 39% of omers are st). These Christmas also shop Outfitters, mpetitors o lingere. ngere has majority VS could ey offered re as well.
mates that Designers in color ent their hapewear demand ket in the erage size.
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OmniChannel SCORECARD ONLINE WEBSITE
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OmniChannel SCORECARD BMOBILE APP.
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BUSINESS DELIVERABLES
ISSUES
FIRST DELIVERABLE
Victorias Secret has a pretty smooth shopping transit between their brick & mortar stores, app., catalog & found that their company ‘voice’ is consistant across Campaigns like the “All That Glitters” & “Champagne banner promotions have the same aesthetic & discount all four marketing channels. Their product assortment is al all buying platforms, which helps the consumer have a experience. Some inconsistancies they can improve up of navigation between all four channels & a lack of custo To improve upon these issues, we have created solutions
Launch New Rewards Program
- does not require a credit card sign-up or a social security number.
Merging Apps
SECOND DELIVERABLE
- (Victoria’s Secret Angel App and Pink Nation) - Both Apps are drawn from two different rewards programs that require the customer to set up a credit card with the company. - Through this new initiative, we will introduce a incentivizing rewards program that does not require any form of credit card.
THIRD DELIVERABLE
Bimonthly Subscription Service
- Members can subscribe to have a bimonthly intimates box sent to them via mail service every two months. - A variety of 5 items will be in the box including Bras, Panties, Lingerie, Beauty, Sport, Sleep & Accessories.
tion & experience online sales. We all four platforms. Series� and their offers throughout lso the same across seamless shopping pon are the ease omer enguagement. to these oversights.
Added Technology
FOURTH DELIVERABLE
- Add tablets in dressing rooms above the doorbell for interactive service. - From RFID technology the tablet will list all items in the fitting room and allow the customer to ask for substituted sizes. - A message pops up to sales associate’s tablet to get new size and their fitting room light on the door lights up.
FIFTH DELIVERABLE
Remodeling Store Visual Merchandising
- Brighter look & lighting - Less inventory and less over saturated pink. - A big focus here will be to remake the fixturing
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New Strategic Initiative
BIMONTHLY SUBSCRIPTION BOX WHAT’S IN THE BOX? The box will include 5 ITEMS total. The contents withing consist of one bra, one panty, one lingerie item, one sportswear or sleepwear item and one beauty or accessories item. The service comes at an affordable $99 price point, subscribers are saving up to 40% on items.
- A redeemable points card for 50 free points will be put put into every box for extra rewards points on the customers Angel Card. If the subscriber does not have an Angels Card, a sign-up form will be provided in every box with the redeemable 50 free points inside of the application pamplet. Customer must redeem points in store, but can sign up for the Angel Card online or in store. - A coupon for $20 off a $40 purchase will also be included in the box. This coupon will be unique to the recipient & cannot be used by another user. - Subscribers must physically go into a Victorias Secret store in order to redeem points & use the coupon. This will merge consumer traffic from the online subscription service back into stores by bringing foot traffic through & pushing customers to make additional purchases in-store. Customers have two months to redeem points and the coupon before it expires. The coupon will vary every two months by promotion. - Free shipping & returns. Returns will be made in the same box items originally came in. Items must have tags and be unworn. - If you cancel your subscription you loose all of your built up Angels Card points.
TECHNOLOGY & IMPLEMENTATION VS LITTLE BLACK BOOK / VS.LBB Cloud based data holding system that stores all customer profiles, purchase history and online & mobile brousing history. Must have a VS.LBB account to sign up for subscription service, apply for Angels Rewards Card and have access to Mobile App. The Little Black Book is VS personalized database that has been purchased from Oracle. This platform is utilized by the subscription box service, to collect Consumers profiles, preferences, purchases as well as family & friends connections. Within this cloud, VS is able to not only register all their consumer data from the subscription boxes, but also optimize it to deploy resourceful, strategic in-store marketing and merchandising techniques.
$99
BIMONTHLY
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VS LITTLE BLACK BOOK VS.LBB is responsible for organizing individual customer data & forming a complete profile on every shopper. This profile will better help with the selection of items that go into each box every other month. Through time the system learns, grows & adapts to its customers habbits by constantly updating in real time through the individuals purchase and brousing history. VS.LBB absorbs this data from all channels of reatil including online, mobile & in store purchases. Along with individuals demographics, it also keeps track of users sizing and style prefrences to offer a better assortment selection in each box every time.
DIVERGENT BOX SELECTION PROCESS This navigation system will be implemented during the box selection process when customers and subscribers purchase a box for someone else other than themselves. During the box selection process, shoppers will be taken through a series of steps in order to better select the items that will be received by the giftee. Gifters can select all 5 items themselves with option one, or leave it up to VS Little Black Book technology & analytics to choose the items for them with option two.
SPECIAL OCCASION BOXES Customers and Subscribers can purchase a special event themed box for themselves or someone else during promotional holidays. These boxes have fixed themes & pre-selected items within each box. These boxes will be restricted to Valentine’s Day, Christmas, Birthdays & Victorias Secret SemiAnnual Sale. If a shopper is gifting a special occasion box, they can use the Two-Pronged box selection process to help better personalize their gift. SemiAnnual boxed are sold at a dicounted price of $50 due to discounted items.
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TECHNOLOGY & IMPLEMENTATION
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TECHNOLOGY & IMPLEMENTATION Purchased Technology System VS.LBB X ORACLE CLOUD
- Purchasing Oracle to provide our database - User and company friendly - Works with our already deployed VS database - Enough storage for constantly adapting and growing data - Private Network ; password driven - Ability to use from any device
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DIVERGENT BOX SELECTIO YOU PICK 5 ITEMS
BOX ASSEMBLY, PAYMENT PROCESS & SHIPMENT
Shopper can go in & shop 5 items to put inside their gift box. This option is for the customer who knows who they are shopping for. They know the giftee’s name, age, sizes, style prefrence, etc.
ORDER A BOX
VS PICKS 5 ITEMS FOR YOU
DOES THIS PERSON HAVE A VS.LBB ACCOUNT?
If the person is not in the VS.LBB database, then can fill out a quick profile of the person they ar This profile provides a size range, color prefrenc & style prefrence in a short quiz for the VS.LBB team to better select 5 items for the receiving perso PAGE
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ON PROCESS: FLOW CHART
After selected the system then looks up the persons information & applies it to the styling of the box. This helps the box assembler by providing the customers buying, browsing history, shopping history, sizing, style prefrence & ideal color selection.
YES
VS.LBB WILL CREATE A BOX BASED ON YOUR GIFTEE’S PROFILE
BOX ASSEMBLY, PAYMENT PROCESS & SHIPMENT
NO
TAKE A SHORT GIFTEE PROFILE QUIZ
the customer re buying for. ce, age range & VS styling on of the box. PAGE
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Subscription B
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Box Example
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TARGET
Why the VS Subscription Box?
HEATHER BROWN AGE: 41 OCCUPATION: Retail Director for a Resort in New Jersy LOCATION: Hoboken, New Jersey
Heather loves the quality of the product at Victoria’s Secret and purchases all of her intimates from the company. She does find the store to be overwhelming at times and even intimidating. The Secret Subscription Box is perfect for Heather because she is a frequent shopper, she trusts that the stylists & VS.LBB system can select the picks that best suit her style. This box is the best way to treat herself after a long day’s work.
INCOME: $85 K EDUCATION: NYU HOBBIES: During weekends Heather likes to drive her son to soccer practice, goes to wine tastings, and entertains her friends with home cooked dinners.
CUSTOMER
WESLEY ANDERSON AGE: 35 OCCUPATION: Dentist at West Edge Dental in Washington State LOCATION: Seattle, Washington INCOME: $125 K EDUCATION: UTSA HOBBIES: Wesley spends his free time hiking with his wife Jane and golden retriever. He enjoys fly fishing with his best friends, and goes out to try different breweries on the weekends. Why the VS Special Occasion Box? While Wesley is a hopeless romantic who wants to give his lady something special every holiday, he really has trouble picking out things she will like. The Gifted Secret Box is ideal for Wesley because it relies on the styling team, VS.SBB profiling system and Janes shopping history to create the perfect combination of items to gift her hassle free.
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Competitive Market Threats of New Entry: High Threats -
- -
Cost is accessible for company Black Book Cloud technology needs to be implemented by specific developers Subscription service not a new idea within retail industry Affordable option for online & in store shoppers Subscription service could potentially take business away from brick & mortar stores, internal threat to themselves Risk of high exchange rates for more desirable items in store, would impact gross margin (actual price vs. retail value reflected on subscription receipt)
Competitive Rivalry: Low to Moderate - - -
Small number of retailers within the same market applying similar service High customer loyalty due to age of company & brand following VS holds highest market share within lingerie market
Production Power: Low -
Service gives company a chance to move more static inventory by including unsellable items in boxes VS private label might handicap production if company cannot keep up with demand (if service does well) Gives V.S. a channel to test out new items & styles on a controlled customer channel through the service PAGE
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COMMUNICATION & PROMOTIONAL ACTIVITY MAP
12 Month
MARKETING ACTIVITY MAP
PRE-LAUNCH The first thing VS will do in order to prepare for the Secret Subscription Box is to purchase and compile informational data through Oracle Database. After doing this, the VS.LBB Database will be up and continually adding to customer data. Around this time, promotions will be broadcasted to the most loyal customers introducing the New Initiative. These customers have the option to be waitlisted for the first box and Black Book will start developing the selections.
DURING Promotions will be up and broadcasted on all platforms. The VS Secret Subscription Box will be available for membership through the Angels App and the Webpage. Customers will receive the box the 1st of February and may receive a gift box February 14th. The points and coupons will be sent out in personalized boxes to act as in store incentives.
POST-LAUNCH The Blackbook will adjust and adapt with more information as the customer uses it based on analytics and reviews on previous boxes. The customer will be using the coupons to push in store activity. Customers will gain loyalty and personalization through becoming Subscription and Angels Card members. PAGE
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INSTAGRAM The first post launching the Subscription Box will be in the middle of January as a sneak peak - a week before it will be accessible to subscribe. Instagram posts in February will be very focused around the Valentine’s Day collection as well as present the Gift Giving Subscription Box.
FACEBOOK This model will reflect the plan for Instagram. A post presenting the subscription as a sneak peak mid-January and again at the beginning of February. While the written content will remain the same as displayed on Instagram, the imagery will be different as it will display different combinations of possible boxes.
EMAIL Sent Pre-Launch of subscription to loyal customer at beginning of January. This is the first time customers will see any information on the Subscription Box. In February, another email blast will launch informing customers of the Valentine’s Day Gifting Box. From this point emails will be sent on a monthly basis to subscription members to remind them to use their $20 cards with examples of items they can use it on in store. Lastly, emails will be blasted in May for Promo 50% off box if you recommend 5 friends, and July for Semi Annual Sale 50% off box including discounted merchandise.
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6 MONTH COMMUNICATION & PROMOTIONAL PLAN CATALOG The February Catalog will launch the Subscription Box within it, and this catalog will be presented in stores and directly mailed. The Subscription members will also receive the monthly catalog within their personalized box.
MOBILE APP. Our Mobile App will feature our new Victoria’s Secret “ Little Black Book “ database system with just one click of a button. Along with this new easy to use feature, we will promote our new Subscription Box service and new Subscription navigational system with mimicked campaigns from our catalog and web page.
WEB PAGE The Webpage will have a banner promoting the Subscription Box at the end of January. There will be another banner displayed for the promotion in May. The subscription navigation system will constantly be presented on the Webpage.
LAUNCH PAGE
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In Conclusion,
Victoria secret is known for providing intimate items for their consumer audiences, now that they have an option to provide a bi monthly subscription box, they have a chance to open a new door for VS personalized goods, that provide a catered experience to all individuals. Within each box there are added benefits like a chance to receive and redeem points, so not only do we offer incentives to shop VS but an opportunity for VS to push in-store traffic and relationship building. With the purchase of Oracle Data Systems, the analytics behind each box and client, can be stored within a personalized “Little Black Book� cloud. An accessible database that shoppers can access & retrieve shopping history information and provides profiles of other customers so they can send specialized subscription boxes to friends, family and lovers. Many of our competitors have jumped onto this specialty service train, but what sets us apart from them is that not only are we using this acquired data to make personalized gift boxes, but we will implement it in a constructive and beneficial way where the data can used to merchandise and adapt store environments towards constantly updating information of consumers profiles, preferences and purchases, as well as family & friends connections. This could be the beginning of giving Victoria’s Secret the chance to reclaim their spot in the market as the best serviced lingerie brand.
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WORK CITED https://www.ibisworld.com/industry-trends/specialized-market-research-reports/consumer-goods-services/apparel-accessories-stores/lingerie-stores.html https://retail-index.emarketer.com/company/data/5374f24b4d4afd2bb4446596/5374f2e64d4afd2bb4448248/lfy/false/l-brands-victorias-secret http://0-www.portal.euromonitor.com.library.scad.edu/portal/analysis/tab http://fortune.com/2017/02/22/victorias-secret/ https://www.inc.com/jill-krasny/inside-the-world-of-e-commerce-lingerie-startups.html https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4175421 https://www.entrepreneur.com/article/275419 https://www.amazon.com/All-New-Amazon-Fire-7-Tablet/dp/B01GEW27DA/ref=sr_1_1?ie=UTF8&qid=1510425660&sr=8-1&keywords=amazon%2Btablet&dpID=51zfRJ3JqeL&preST=_ SY300_QL70_&dpSrc=srch&th=1 https://cloud.oracle.com/tryit?intcmp=ocom-hp
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