by Taylor Hardaker word count: 3028 blog: https://fmctaylorhardaker.blogspot.com
By Taylor Hardaker
6 Introduction to the brand
4 Executive summary
10 Macro economic analysis
11 Brand market position
17 Competitors
18 Consumer demographic
20 Product selection
22 Social media / influencer market
24 Marketing mix
27 Proposed strategy
30 Bibliography
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executive summary
The purpose of this work is to explore the contemporary fashion brand Victoria’s Secret, we will be looking at their products, consumers and the way the brand operates within the wider market place. We will be undergoing market frameworks such as SWOT, PESTEL and Market Mix, so we are able to see the current position of Victoria’s Secret in the fashion world. By using the research we undertook, we will be able to advise Victoria Secret on what they could improve on or what changes they could make in order to re-establish the brand. This research ranges from secondary and primary, including online and physical surveys & questionnaires, interviews, in store photos, digital platforms and looking through articles.
The main piece of research we found was that although Victoria Secret are doing finically well, they have recently had a decline in sales. This was found to be because there are a lot more competitors around, meaning more competition when it comes to consumers wanting to buy lingerie. One of the most obvious findings was that these other competitors were branded a lot different to Victoria secret. When VS was made its aim was to be sexy underwear, whereas current competitors have focused on areas like the environment, body size, empowerment while still being sexy. The key recommendation links into these findings, is that the brand need to adapt to the current generation and how society has changed over time. VS target audience although are still the same aged target, their perspective on life has changed since the 70s when they first opened.
Through online research on Mintel and comparison on company websites it was easy to spot why less people were starting to not shop at Victoria secret. Many products that they advertise, you can often buy very similar products else were on the high street for cheaper prices but the same quality. It was shown that most consumers would rather shop else where for a product that was cheaper then have the same product at a higher price from Victoria secret. Through out this report we will be looking at other findings that have been found in research, and then making any recommendations towards the brand.
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Introduction Victoria Secrets was founded by Roy Ramond in 1977 in response to ugly nylon underwear and to stop men feeling awkward when buying lingerie for their partners or wife’s. now partnered with L Brands Victoria Secret is worth 38 Billion US dollars , generating around 7.4 billion each year (Statista, March 2018, Net Sales).
Victoria Secret since day one have always been known to be sexy and powerful, with supermodels and their world famous annual runway show that is aired every year. With over 10 different type of fit bras and underwear, its easy to see why they are one of the leading lingerie brands. Alongside their main brand they run a collegiate line; PINK. For women at college or university, with a campus life vibe to the products.
to the brand Besides this they do swim wear, sports wear and multiple beauty products from makeup to sprays. Deciding to study this brand was fairly easy, it helped that I had an overall interest in the brand and that iv always watched the fashion shows, as well as follow a lot of the Victoria Secret Angels on social media. On the other hand I am also passionate about brands that are being more accepting of body types and different people, and believe that Victoria Secret should join the trend.
This is one of the main problems that I would like to solve, not only cause I’m passionate about the subject, but it is a way for the brand to connect to the current generation of women and girls. Enabling them to feel powerful, beautiful and confident. This would include adding a more diverse range of bodies to the angels and the models that they use to promote. This alone would benefit the store by being more relatable to its target audience.
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level of political stability that the country in which the store is in laws which the country holds could effect if victoria secret is allowed to put business their or not. Whether or not a company’s intellectual property (IP) is protected. A country that has no policies for IP protection would mean that it could be too risky to invest in Victoria s Secret as a business. The trade barriers of the country would need to protect Victoria s Secret; however, trade barriers in countries with other trade partners could harm companies by preventing potential exports. A high level of taxation in countries would push away Victoria s Secret from maximizing their profits so are less likely to get involved. risk of a military invasion by countries may cause VS to de-invest from their. A low minimum wage would mean higher profits, giving higher chances of the store surviving in that area.
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The rate of GDP growth in the country will affect how fast Victoria s Secret is expected to grow in the near future. The interest rates in the country would affect how much individuals are willing to borrow and invest. Higher rates would result in greater investments that would mean more growth for Victoria s Secret However efficiently the financial markets operate also impact how well Victoria s Secret can raise capital at a fair price, keeping in mind the demand and supply. The exchange rate of the country Victoria s Secret operates in would impact the profitability of Victoria s Secret, particularly if Victoria s Secret engages in international trade. The stability of the currency is also important- an unstable currency discourages international investors. A high level of unemployment in the country would mean there is a greater supply of jobs than demand, meaning people would be willing to work for a lower wage, which would lower the costs of Victoria s Secret
S The demographics of the population, so their ages and genders, will impact whether or not a certain product may be of use to them ad could determine if it sells well or not. The class distribution among the population is importance as Victoria s Secret would be unable to sell a premium product to the general public if the majority of the population was a lower class because it wouldn’t sell. they would also need to know of the religious distribution in the country, as some peoples faith could determine if they are willing to buy sexy underwear.
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other firms copying the technological processes/ features of Victoria s Secret the improvement of technology would transform what the product offers, If this improvement is big, then other competitors in the industry could suffer heavily. technology impacts the cost of items in the business , and can have the potential to increase or reduce the profits. however if the profits are great in number they can then use them for the research and development department. where future technological suggestion could raise a further level of profit, in which this repeats to have a sustainable profit over a long period of time. Technology can rapidly dismantle the price structure and competitive landscape of victoria secret in a very short amount of time. becoming really important to constantly and consistently innovate, not only for the sake of maximizing possible profits and becoming a market leader, but also to prevent obsolescence in the near future.
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The weather conditions may impact the ability of Victoria s Secret to transport both the resources and the product. This would affect the delivery dates of the product. Climate change would also make some products useless meaning no one would buy it. For example in countries where the winter has become mild due to Global Warming, warm winter clothes would have a much less of a market place. vs may produce large amounts of waste may be required by law to manage their environmental habits. This may include pollution fines and quotas, which may place a financial strain on Victoria s Secret victoria secret could gain more of a eco customer base if they started to reply on renewable energy. it is expensive to use but from support from the government, the customer base may be willing to pay a premium price for a product knowing it has less of an impact on the environment.
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Discrimination laws are placed by the government to protect the employees and ensure that everyone in Victoria s Secret is treated fairly and given the same opportunities, regardless of gender, age, disability, ethnicity, religion or sexual orientation. Health and safety laws were created after witnessing the horrible conditions that employees were forced to work in during and directly after the industrial revolution. Implementing the proper regulations may be expensive, but Victoria s Secret has to engage in it, not only due to the law but also out of Victoria s Secret’s personal feeling of ethical and social responsibility to other human beings. Laws are also placed to ensure a certain level of quality or reasonable price for certain products to keep the customer safe and prevent them for being provided. The industries this applies to find often their costs elevated
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macro economic analysis
Overall Victoria Secret are still one of the major lingerie brands in the world with “83% of women” (MINTEL Academic (2018) June , Brand research) knowing what the brand is. However most recently they have seen their first dip within sales “Victoria’s Secret’s parent company L Brands reported a 3% decline in comparable sales in its 2017 fiscal year “( MINTEL Academic (2018) June , Leading Players). This may suggest the change of generation, in which people need to believe in brands and what they say and do will determine if they buy it or not. Victoria Secret are seen to be “out of touch with what modern women” and what they “want from a lingerie brand” (MINTEL Academic (2018) June , executive summary) and with their being more newer and fresher competition that are giving the consumer a new perspective and idea compared to VS. Weather this is a more eco range or a brand that supports body image as well as slogans like all sizes matter. On the other hand within the UK Victoria Secret have had “sales increase 24.3% to £132 million” (MINTEL Academic (2018) June , Leading Players), showing that clearly the issues is mainly across the rest of the world and America where they are primarily placed and advertised. Another main finding was that people were more likely to buy if they was a sale or a deal on. Bras can range from £30-£50 which could be seen as pricy to their target market of “16-24” (MINTEL Academic (2018) June , brand research). And with their being cheaper online brands like ASOS or Boohoo who make more fast fashion items, this younger market might be more inclined to shop their, knowing they can get more value for money.
Victoria Secret is one of the major lingerie brands in the world, founded in 1977 and has been massive ever since. Being one of the first store to sell sexy and flirty underwear for women, A market which was needed at the time. However now it is a brand of many, across the globe. Victoria Secret has a lot of competition, not only high street stores but online stores. “It is strongly associated with being fun, stylish and trend setting. Furthermore, some 28% of consumers that have heard of Victoria’s Secret say that it is a brand that makes them feel more confident” (MINTEL Academic (2018) June , executive summary).
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The brand is associated with young and healthy people, and often is linked to a much younger generation, who shop there more regularly. However they have recently had negative publicity; building up criticism. They aren’t giving women what they want. Women of today want to see more of diverse body ranges in lines and models, rather then supermodels who work out everyday on very restrictive diets; giving of a unrealistic image. Compared to a working women on a day to day basis, the women who are actually buying the products.
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However Victoria Secret still seem to be successful, they have a balance between people wanting to be part of the Angel fantasy in which they are willing to buy items so they are one step further to that that lifestyle, despite the body image issue. Victoria Secret are very active on social media platforms, especially Instagram. With many accounts for different countries and then one for VS sport and PINK, while having one major profile which has everything on
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VS are very connected with their online audience, always posting and advertising which is a huge way of getting people to shop in store and online. This allows them to connect with their target audience on a personal level, as well as see what they are attracted to more. By using insights on instagram they are able to see popular items and wither or not people are interacted with the product. not only this but the build up for the annual fashion show is major, with the constant footage and updates it gets people interested and intrigued . This build up allows them to get thousands of viewings each year.
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swo t
Victoria secret mainly sell Victoria secret have a strong The past few years VS have col- they are competitors out there brand recognition with over premium items at high prices but laborated with luxury brands that offer more realistic body 1000 stores across the world other companies sell similar on the fashion show, like baltypes and ranges for every items for less money. They have a good inshore expemain and Mary katrantzou, they women, whereas VS have rerience for everyone who shop- They have a high inventory and is more opportunity for them stricted sizes. struggles to turn over sales ping. to collabe with more luxury They are cheaper brands that they have great customer care The models they use are a unre- brands. e.g. Versace would be a make similar products with a alistic image of women and due great brand, with is bold prints smaller price tag compared to such as bra fittings and for to this they have been given advice, giving a more pleasant and colours. VS, so people may be pulled tonegative attention over the experience when shopping. To reach a wider audience of wards another brand for the past few years VS have a strong advertising women they could bring out a same product. platform across social media They don’t do a range of sizes, plus size range or even a line VS market on a unrealistic and reality, with some big super- so they do not cater for everywhich is special for plus size. image for women to maintain in one or every women. models advertising for them and Having the option of a eco line a normal life, they sell a fantabeing ambassadors the brand. VS is one of the leading undercould bring in a different type sy. attracting a lot of people into wear brands and with this they of customer, knowing they are They advertise sex rather then store with their recommenda- have many competitors, so con- benefiting the planet when they empowerment. sumers have a lot of choice tions. buy the item. Victoria secret are more likely They are successful with PINK ,by With vs being such a big brand By opening more stores around to be threated with fakes and accessing a wider target audience, they become very venerable the world they will gain a replicas , which could bring of late teens and collage students to fakes, where other compagreater profit each year while down their name and the qualwith a campus style and theme. nies can make fake copies of adding culture to design, for ity will not be good and will They have a very strong online products under the same name example they have not expanded cause disappointment. platform, with active social media for less money. diverting custo asia yet. and blog. creating wider awareness tomers who want the name but They could have a better online on the internet. they also utilise tv shopping experience, for examcommercials in the use for those aren’t willing to pay the price for them away from the offiple show a catwalk of the prodwho don’t use social media to imcial store. uct or virtual showing to you pact a larger audience. see how it looks when it moves.
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Mood board: Current Brand Market Position
Brand brand positioning map Positioning Map
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Mood board : Competitors
Although you can shop online, people genuinely like to try bras on to make sure they fit well before buying. So with there only being stores in populated areas, it can restrict people from buying, by opening more stores they could get a higher profit. One major issue I found was the image that other brands gave out compared to Victoria Secret making them their biggest competition, for example Savage x Fenty and Ann Summers both have advertising with plus size models and show a range of diversity. This has helped their brands massively as people are more likely to buy from them if they are promoting positive body image. This has given a big back lash on victoria secret as they are one of the least diverse brands for body size, as most people associate VS with sexy skinny models. Victoria secret are in a weird position as they are a high-street brand but they also compete with online retail, making their competition a lot higher then most stores. Their prices however are a lot higher then most stores, while having similar product to other stores.
competitors
Victoria Secret is one of many lingerie brands, such as Savage x Fenty, M&S, Calvin Klein, Ann Summers, Boux Avenue aswell as many online stores, all of which sell similar products to Victoria Secret, “Victoria’s Secret and Calvin Klein also scored highly across a number of key attributes, with these brands most likely to be seen as trend-setting, stylish and worth paying more for” (Mintel , Underwear, UK June 2018) this making it a massive market and giving Victoria Secret alot of competition. “Victoria’s Secret has around 20 stores in the UK, while Boux Avenue has 29, as does Bravissimo. Ann Summers has more with 119 UK stores” (MINTEL Academic (2018) June , how and where they shop) Victoria Secret doesn’t have as many stores in the UK compared to its competitors, however this does makes the brand more special as consumers are more likely to go in a store when they see it due to their not being a lot around, however it could cause issues as it is more difficult to shop in store and with free delivery over £75 they are more likely to see if they offered cheap delivery
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consumer demographic Victoria Secret customers are often young “ with 77% and 70% of consumers between the ages of 16 and 24” (MINTEL Academic (2018) June , brand research) . I believe Victoria Secret targets people with disposable money, such as student and young adult, as their price range can get very high. However they don’t really cater to an older generation due to vivid colours and over decoration of bras, they do however offer a bridal line which is more expensive but better quality starting at £40-£60 for a bra.
There is a “lack of brand awareness amongst older generations” (Mintel , Underwear, UK June 2018) which is clearly shown by the range of product they have, as they cater more for the younger generation. Victoria Secret target the younger consumer with offers and deals with the beauty section, which makes them come in store and buy. According to the staff member I interviewed the “ Best sellers tend to be the body mists because there is a huge range of them and all aged people buy them. Their are everyday deals which include 2 for £20 or 3 for £27 and people never just buy one.” (Blogger , (2019) January , interview with staff member).
Moodboard: Current Consumer Demographic
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Although Victoria Secret is a lingerie brand, with 10 types of bras and 11 types of knickers they have built up a huge selection to pick from, however they have become popular for other products that they have sold over the years. Most popular are their 3 for £27 body mists and perfume, they also sell smaller products like lipgloss, lipstick and face masks. However as pointed out by staff, the most popular things that are purchased are the items that are in deals. For example the 5 for £25 knickers or the 3 for £27 body mists. There is a clear reason why these are selling more then the rest of their products which is linked to their target audience and their pricing of products. Their target audience is young from 16-25, meaning they are attracted to deals and cheaper items, so products which are priced at £30-£50 each are not going to sell well. Therefore if they are wanting to connect with their current audience more they need to cut their prices and then have a luxury line for those who are willing to pay more. In the market place for pricing they are quite high, when you can buy something for the same price but of a much more luxury brand.
Moodboard: Social Media
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Social media and influencer marketing
Victoria Secret are very up to date with their social media, where they are posting at least once a day. They are mainly active across Instagram, with multiple accounts for each section of their brand such as sport, beauty and PINK, they also have accounts for different countries. Instagram is the main social platform when it comes to branding and often shows alot about the brand. VS have 64.8million followers on Instagram, giving them a huge branding opportunity which is also free.
Not only are VS very interactive with their audience by displaying offers and new lines that are coming out, they also have a huge influencer market. The VS Angels. The angels are a major thing that VS is well known for, a group of stunning super models promoting the brand on a day to day basis. Not only are they the face of VS but they are the ones that sell the image for VS and the lifestyle that comes along with it. One issue that does come across with their influencers is their lack of diverse bodies, compared to some brands that also accept plus size models.
Whereas VS has always used skinny models since the late 70s, showing they have a lack of knowledge of day to day women in todays society. However this has not stopped VS from selling, as the angels are very popular and do bring in a lot of business along side all the crit. Their main use of social media is definitely to get across a ‘lifestyle�, selling the idea that if you buy this product this is the life you will get. Although the image is unrealistic people buy into the idea, showing they have a good brand marketing strategy across social media.
proposed moodboard: social media
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marketing mix
Victoria Secret have a strong market strategy and present themselves well and often. They not only showcase themselves well online but in store too. Their window displays are often vivid and link well to what they have in store, they also present photos of the models outside and inside the shop. The pictures often have offers on or show pricing of certain items making it easy for customers to be interested in it. Unlike the UK, the store also release TV adverts in the US where thousands of dollars are spend on making them. I don’t believe these are needed in the UK, as we are aware of what the brand is and are willing to buy from it anyway. Their placement of stores is also important with there only being 24 in the UK, however these are spread out in major cities and shopping centres. Its usually not easy to miss the store, with the vivid pink strips which light up the whole store, this marketing alone gets people interested and makes them aware of the store. Victoria Secret have tried to stand out from other lingerie stores by also bring out a beauty range, from makeup to perfumes. “a 2017 survey found that 24.15 million Americans use victoria secret perfumes, cologne� (statista, Simmons Research LLC; Statista; US Census Bureau, september 2018). They also make perfect gifts, making it a simple idea for a customer to just buy as an add on to their purchase. These items are also placed near the tills at all shops, and as explained by staff they are put there so people browse while in line and are most likely to grab something while they wait. Again showing how placement is used, at the front of all VS shops they put a big display on with items from the fashion show and some of their best and most unique sets in order to get people into the store.
ProductVS have a range of underwear, with 10 different type fit of bras and 11 different type fits of knickers. Not only do they sell lingerie, they have a exclusive range of silky PJs, Aswell of a massive selection of body mists and perfume. VS have also recently put foot into the beauty industry, by releasing lipsticks, glosses and face mask.
PromotionVictoria Secret often have offers throughout the year. 5 for £25 or 3 for £30 on knickers and 2 for £22 or 3 for £27 on body mists. These offers are often what attract people into the store as they are cheaper then the rest of the stuff stocked in store. They do have sales through the years, like boxing day where old stock is put on sale from prices stating at £5.
priceFor a high street lingerie shop, Victoria Secret is on the higher side point. With prices ranging from £30-£50 for a bra and £20£30 for a pair of knickers depending on the line. their beauty range s from £12, often making it cheaper to buy them when in offers.
4 P’s placewith 1,000+ stores in the us and only 24 stores in the uk, it shows that the us is the leading country for vs. however with these being alot less in the UK, its easy to loacte they are put in major cities or shopping centres. areas which will automatically attract a huge amount of people.
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PROPOSED MOODBOARD: CONSUMER DEMOGRAPHIC
Currently VS are in a unstable position between luxury and tacky, items are costing the same price as luxury brands like “Lounge” yet are still preforming as a high street brand and competing with cheap brands like Primark. VS should bring out a line, which is meant for luxury, therefore not losing their customers who go to them for exclusive and good quality items. While still producing good but affordable underwear for their younger consumers, which is where 70% of sales come from between the age of 16-24. (Statista , February 2018, WGSN, Preference for womenswear retailers among consumers aged 16-24 in the United States in 2017. ) This way they wont eliminate or alienate their main consumer but instead make products more buyable for their main buyers. However consumers want to know they can’t get that product anywhere else for cheaper, which you currently can at stores like Ann Summers and Boux Avenue. So by separating lines they have a clearer definition of what the brand is and making it easier for customers to know what they want. The brand also needs to get away from the sexy appeal viewed by “66% of America” (Statista Survey Intimate Wear 2017, April 2017), but rather empowered women. By empowering women through the way they look could bring a wider audience or make loyal consumers. Sex has always been the appeal for VS, but to stay in touch with the current generation they need to link sex to women empowerment. By showing that any body can be sexy and therefor powerful.
Proposed strategy
Victoria Secret aim for young consumers, however they “lack brand awareness” (Mintel , Underwear, UK June 2018) in older generations. I think it would be interesting if they bought out a new line for an older generation, something simple but elegant while being comfy. So they are not alienated but rather showing all women are sexy and strong. Any advertisement or modelling would have to be done on older models too, so that the message would come across clearer. The brand would try to reach a 40+ age group, and see if they can entice them in store. Although VS target a younger audience, in 2017 they had a decrease in sales which is still occurring. This has been said to be because the brand is not in touch with the current generation of young people and has an out-dated strategy. For VS to link back to the modern generation they need to market on empowerment, body positivity, and confidence, this way they are being more accepting of a woman’s body, making them feel more comfortable to buy from VS. By VS doing this they will be targeting a wider part of the woman community, still 16-24 but a wider population of this age group. while also connecting to older women who want something elegant but sexy, while making them feel powerful.
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Proposed strategy
Victoria Secret has a very strong presence on social media with 29 million followers on Facebook and 65 million followers on Instagram, making it the second most popular fashion brands online (Fan page list, Facebook , June 2018). Although VS is involved with their social media platforms, they do struggle to fit in with the current society. And because of this they have had a huge build up of criticism over the past few years. The main issue has been their lack of diversity within the Angels, and how their image has not changed since they started in 1995. I believe this would be a huge improvement if they added a greater diversity of bodies into their angels. In 2018 they let Winnie Harlow walk the annual fashion show, this was a big step up for VS as she has Vitiligo. This gave a different perspective towards the brand and shows they are starting to acknowledge that any body can and should be accepted. There way of using the angels for branding has empowered their brand, however I think it would be useful to use smaller influencers. These influencers may have a different follower base, having followers that VS don’t. Giving even greater exposer to the brand. Smaller influencers also have loyal followers who will often believe their recommendations, rather then a supermodel being paid to advertise. They do online sales mainly over summer and Christmas, however I believe they would benefit if they did more for example to get rid of old lines over valentines or new year. VS often make more money over offers and sales, therefor if they were to do more they could gain a larger profit at the end of every year.
PROPOSED MOODBOARD: BRAND MARKET POSITION
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MINTEL Academic (2018) June , Brand research http://academic.mintel.com/display/903788/?highlight#hit1
BIBLIOGRAPHY
MINTEL Academic (2018) June , Leading Players http://academic.mintel.com/display/903778/?highlight#hit1 MINTEL Academic (2018) June , executive summary http://academic.mintel.com/display/903762/?highlight#hit1 MINTEL Academic (2018) June , brand research http://academic.mintel.com/display/903788/?highlight#hit1 MINTEL Academic (2018) June , executive summary http://academic.mintel.com/display/903762/?highlight#hit1 MINTEL Academic (2018) June , how and where they shop http://academic.mintel.com/display/903802/?highlight#hit1 Blogger ,(2019) January , interview with staff member. by Taylor Hardaker https://www.blogger.com/u/1/ blogger.g?blogID=7049787274205008713#editor/target=post;postID=9218233114430945482;onPublishedMenu=allposts;onClosedMenu=allposts;postNum=2;src=postname statista , February 2018, WGSN, Preference for womenswear retailers among consumers aged 16-24 in the United States in 2017. https://www.statista.com/statistics/816281/us-16-to-24-year-olds-attitudes-towardswomenswear-retailers-us/ statista, Simmons Research LLC; Statista; US Census Bureau, september 2018, https://www.statista.com/statistics/277709/us-households-brands-of-perfume-cologne-and-toilet-water-used/ Statista Survey Intimate Wear 2017, april 2017, https://www.statista.com/statistics/703383/opinion-of-shoppers-on-sexy-underwear-brands-us/ fan page list, facebook , june 2018 https://www.statista.com/statistics/183499/the-most-popular-retailers-on-facebook/
Mintel , Underwear, UK June 2018. http://academic.mintel.com/display/903776/?highlight Mintel , Underwear, UK June 2018http://academic.mintel.com/display/903802/?highlight#hit1
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