“To deliver a best in class, captivating, branded customer experience that builds loyalty and enables consistent sales, and profit growth.”Victoria’s Secret “Limited brands is committed to building a family of the world’s best fashion brands offering captivating customer experiences that give long term loyalty and deliver sustained growth for our shareholders.”- Limited brands.
▪Grace Nichols- CEO ▪Sharon Jester Turney- CEO of Direct (catalog and web) ▪Robin Burns- CEO of Intimate Beauty Corp. ▪Ken Weil- Vice President New Media (web) ▪Leslie H. Waxner-Chief Executive Officer of Limited Brands Inc. ▪Dene Stratton-CFO ▪Olivier Spiner -Executive Vice President of International Affairs ▪Oliver Fryer- General Counsel of Limited Brands
Geographic ▪Region: North, east, west ▪Urban/rural: Urban and suburban ▪Climate: Temperate Consumer Behavior ▪Payment: All payment methods ▪Media Usage: Magazines, TV, websites
Psychographics ▪Social class: Middle to upper class ▪Personality: fun, outgoing, independent and confident ▪Life-style: Positive achievers who have professional careers and like to spend time with their family and spouses.
Demographics ▪Ages: (PINK)13-19, 20-39 ▪Gender: Females/men make purchases ▪ Income: $25,000 and above income
▪ Occupation: Professional ▪Education: High school /college graduate
▪Religion: Open ▪ Ethnic Background: Open
Competition: Victoria’s Secret is quoted for being the “Best at bras.” Customers have given this name to the company based on how well they are able to be fitted by an associate and are able to get assisted in finding the perfect bra.
▪Other stores may carry more variety of merchandise other than just intimate apparel and lounge wear. Having a bra section may just be one part of the stores selection.
Threats
Opportunities
Technology: Victoria’s Secret uses Ipads in stores to order online for customers. If the store is out of stock of something the store will order it then and the customer will not be charged any shipping fees.
Victoria’s Secret stores and catalogs are actually considered two different branches of the company. Victoria’s Secret does not allow returns from catalog or online in the stores. Customers are often unaware of this policy which causes for very negative reactions and feedback.
Threats
Opportunities
Society: Victoria’s Secret does an excellent job in reaching out to all age’s. The company came out with products that can appeal to a younger demographic by making younger bras and panties for the teenage youth, and by also providing a lounge wear line which is now known as PINK.
For being such a big corporation, Victoria’s Secret tends to not give back. The company does not do much to give back to communities or charities. If the company did work with an organization or communities around surrounding stores, it could bring in more positive business for them.
Threats
Opportunities
Demographics: Victoria’s Secret comes out with new products very often. These satisfy targeted demographics. Example= latest bras introduced was the “Incredible” bra; this bra features self adjusting straps and a wider side band, which was targeted more for VS older demographic.
Victoria’s Secret does not offer a plus size section of the PINK clothing collection. The company also does not offer bras bigger than 38DD within the stores.
Weaknesses
Strengths
Behavioral Buying Traits: Once a customer finds the perfect bra for them, they usually end up buying two of the same bra because they are excited they found the perfect fit.
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Average customers who make a large purchase tend to only come in and shop a few times a year rather than monthly visits.
Weaknesses
Strengths
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Promotion: Victoria’s Secret has one of the only televised live fashion shows every year that shows off the upcoming new merchandise. This is one of the most highly anticipated TV program events that is watched throughout the world.
Each new product might not be aimed at an overall demographic so the new launch product may not be for everyone, which can lose customer attention and loyalty.
Threats
Strengths
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Product/Service Objective: The new product that will be introduced to the Victoria’s Secret Company is a jewelry line. The overall objective of the new jewelry line is to promote cancer awareness, fundraising for cancer research since a portion of sales will be donated, and to bring a new product into the stores for customer convenience.
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Sales Objective: The sales objective of the jewelry line will be to boost sales of the company by at least 10% off catalog, and 15% within the stores and website. A particular piece will be the piece that all profits will go directly to proceeds for breast cancer.
Marketing Objective: ▪Commercials: New commercials for the month of October for Breast Cancer Awareness
▪Catalog: An informational spread in the VS catalog ▪Window Displays: Displays will be changed to showcase the pieces
▪Online Marketing: The homepage will feature the new line
▪Fashion Show Event: Great way to launch and promote the new product
▪There will be 7 pieces of the jewelry collection ▪One of the pieces will be a “limited edition” piece ▪That piece will be a donation piece and all profits will go to Susan G Komen foundation ▪The collection will be a mixture of sterling silver and 14 carat gold
▪Each piece will have a charm of some sort
▪The charms will vary from, a “VS” symbol, a breast cancer ribbon, a star, a heart, and pink diamonds ▪Customers will be able to choose which charm they want to purchase, as well as if they want a necklace or a bracelet
▪ There will be an option for every individual customer
Sterling Silver Necklace ………………………………………………$100.00 Sterling Silver Chain Necklace……………………………………....$80.00 Sterling Silver Bracelet ……………………………………………......$55.00 14 Carat Gold Necklace …………………………………………….$150.00 14 Carat Gold Chain Necklace……………………………………..$100.00 14 Carat Gold Bracelet ……………………………………………….$75.00 Limited Edition piece…………………………………………………..$150.00 VS symbol charm ……………………………………………………....$20.00 Star and heart shaped charm………………………………………..$15.00 Pink diamonds charm ………………………………………………….$25.00 Breast Cancer Ribbon charm ………………………………………..$30.00
▪Commercials ▪The commercials will run more than ever in the month of October to support the Breast Cancer Awareness month. ▪ The commercials will continue to run the full month of November as well, then end after the month. ▪The commercials will be shown on basic cable stations, as well as popular sitcom airtimes. ▪Fashion show event ▪The show is in the month of November or December so to promote the jewelry; all the models will be wearing a piece from the line, as a way of advertising. ▪Each guest at the fashion show will receive a guest bag for attending and a piece and a charm will be included in the bag for a sneak peek of the new product line.
New ads ▪New ads will be released online and the jewelry will be featured on the homepage of the VS website. Catalog ▪The catalog will feature a new four page spread for the jewelry in the first few pages of the catalog and will have an order and shipping form attached inside. Coupons on receipts ▪Receipts will be made for after a customer checks out and on the bottom it will say “Come back to see our new Jewelry line in October and get 5 dollars off your first charm!” ▪Customers will be able to receive 15% off their first jewelry purchase when they bring in that particular receipt.
Merchandising ▪All the windows at the store locations will be changed ▪Inside displays and mannequins will be changed as well, and will be wearing a piece from the collection. Emails ▪They will be sent to all the customers who request to get store emails and an in store coupon for the new line will be sent to them, telling them they get 10% off their first jewelry purchase Postcards ▪Will be mailed to each customer on the mailing list to receive at home and will be able to receive 10% off their first jewelry purchase as well.
Store: ▪This will be where most of the selling of the new product will take place. ▪ The store floor sets will need to be changed and adjusted to showcase the new line. ▪The new product will have its own display in the back room of the store, such as how all individual types of bras, and the PINK section and the fragrance and makeup sections do. ▪ It will all be showcased by having each piece on a shelf in a glass case. ▪Customers always tend to head to the back room.
Online Website:
▪The website will be re-done to feature the new jewelry line on the homepage. ▪There will also be a jewelry tab, where the customers can click on to explore all the pieces and options. ▪There will be a link where customers can go and play around with virtually customizing their pieces so they can see the outcome of each piece they design so they will know which combination they want to purchase. Catalog: ▪The catalog is released monthly, so starting the October month there will be a four page spread of the new line and it will go through the month of November. ▪Models will be wearing the jewelry throughout the rest of the catalog.
Victoria’s Secret will be introducing a new jewelry collection using the budget provided from the net income from the previous year, of $95 million. This will include the cost for new promotions for the collection, and the production of the line, as well as place.
Commercial: $5,000,000 Fashion Show: $100,000 Catalog: $2,500,000 New ad on website: $200,000 New receipts: $30,000 Emails/Direct mail: $1,000,000
PROMOTION:
PRODUCT/PLACE:
▪ How many orders were made from the catalog for the new line within the first month
▪Check which particular piece is selling the most by looking at inventory for each store
▪ How many people came in for $5 off a charm from the receipts each week
▪Inventory for the new product line will be checked every two weeks
▪How many people used the 10% coupon from the email each week in stores, online, and catalog
▪Check for which store was most successful in selling of the new product, and reward that store ▪Check for the least successful store and decrease production
PROMOTION:
The marketing managers of Victoria’s Secret will join together and have meetings to discuss the progress of the promotions for the new product. They will touch on each particular promotion and see if it is working to its best ability. They will discuss pros and cons of each promotion to ensure that the new product line is getting the best possible results when it comes to selling. Together they will form what needs to be said to the corporate offices.
PRODUCT:
As soon as the new pieces of the collection are delivered at each Victoria’s Secret store, the processing team of employees will go through and inspect each piece. The team will ensure that all pieces are intact and in good shape so that they can be sold on the floor. The processing team is in charge of the stock room so they will make sure the displays are always filled after each purchase.
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PLACE: Exterior window displays and interior displays will be designed and sent to each store from corporate offices. Each store’s own visual team will have to work on the floor sets and window displays based on what corporate sent and they will have to tweak the displays to fit each particular store. Corporate always sends in display expectations for each floor set.