INTRODUCING
PINK
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VICTORIA‘S SECRET | LINE EXTENSION SUSTAINABLE SPORTSWEAR
CONTENT Executive Summary 5 Vision 6 Objectives 7 Company Profile
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Current Revenue & Growth Plan
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SWOT Analysis
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Change Opportunities
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Line Extension
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Position
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Customer Profiles | Persona
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Psychographics Segmentation
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US Market
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Competitive Landscape
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Adapted Brand Identity Prism
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References 33
PINK
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EXECUTIVE SUMMARY Victoria’s Secret is a long established brand within global fashion industry. Consequently their target consumers have already acquired a clear and distinct brand image and are aware of the brand’s core values. The presently anticipated sustainable approach however requires the brand to integrate an additional set of values to their already existing brand. Yet commonly sustainable approaches are only linked to design and production of fashion garments amongst consumers and not yet related to brand values. As Victoria’s Secret’s story does not cover production procedures or material sourcing the average target consumer is not aware of VS’s practices. Therefore the success of integrating a sustainably produced collection in the course of a line extension is mostly dependent on the consumer’s acceptance through the extension of their brand knowledge that shall be deputized by all departments throughout the company.
VICTORIA‘S SECRET | LINE EXTENSION SUSTAINABLE SPORTSWEAR
Vision
Captivating customer experiences that drive long-term loyalty and deliver sustained growth for our shareholders
through sustainable business practices. 6
change OBJECTIVES Our objective is to provide a sustainably developed extension for Victoria‘s Secret‘s sportswear line by integrating new technology into the manufacturing processes and strengthening our sustainable practices throughout the value chain. The ‚PINK changes‘ collection will cater to our core target group of females between 16 to 30 with an interest in a sustainable lifestyle and shall raise awareness for exemplary sustainable approaches. Having committed to eliminate hazardous chemicals used in the production by 2020 we strive to turn our promise into action by setting the mindset for a thoughtful commerce with our environment. Thus we will apply 10 precent of sustainable practices to our business within the next 5 year in order to meet the present demand without compromising the needs of future generations. Cooperation with certified suppliers as well as product labelling and communication of educational content will make the aim of a sustainable business approachable.
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Strive for progress, not perfection!
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COMPANY PROFILE 1977 Victoria‘s Secret was founded by Roy Raymond to facilitate comfortable lingery shopping for men, who held the most purchase power at the time
1982
1983
LimitedBrands (now Lbrands) bought the Victoria‘s Secret stores and catalogue shifted the focus on women, who started buying lingery for themselves
2004 launched Victoria‘s Secret PINK - a lifestyle brand targeting college girls and celebrating campus lifestyle
1999
Reviving of the brand launch of e-commerce image to shifted the focus on women, who started buying lingery for themselves as they became financially more independent Branding & Marketing was based on sexual appeal
2009 Debuted first six Victoria‘s Secret Beauty and Accessory stores in airports and tourist destinations around the world
Lbrands 10
2012 flagship store in London
Victoria's Secret is the leading specialty retailer of women's intimate apparel and other apparel with fashion-inspired collections, prestige fragrances and cosmetics, celebrated supermodels and a world-famous runway show. VS is committed to be a global trend setter in a premium women lingerie providing superior shopping experience with aspirational valueto both men and women. Tradition and employee expertise helps to attain loyal customers and therefore to create a sustainable value for shareholders.
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CURRENT REVENUE
Victoria‘s Secret enjoys over 40% share of America’s $13.2 billion lingerie market. In fiscal 2014 sales increased by 4% and recorded sales of $11.5 billion. Victoria‘s Secret employs nearly 100,000 associates. Its parent company LBrands recently reported record sales for 3 years straight and a 5% growth overall. Sales increased across most merchandise categories.
GROWTH PLAN
Victoria‘s Secret has set the tone for growth as LBrands has scaled up its expansion. With Victoria‘s Secrets new brand PINK targeting college girls has been extremely successful as the brand‘s store count has increased by more than 40 locations over the past two years and sales per average selling square foot grown by 9%. With LBrands holding 40% of the current market shre compared to the next competitor with 1% it has experience about 30% in stock growth and is likely to keep Victoria’s Secret’s growth running. With the London flagship store continuing to deliver very strong results the brands plans to further expand internationally.
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SWOT ANALYSIS Strength
Weakness
• Strong brand recognition • Global leader in lingerie – same range across the globe • Adaptation to emerging trends • In-store experience • customer care – excellent customer service • e-commerce – global shipping
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Limited locations globally Product quality – sued for consumer fraud • social acceptance – skinny-centric marketing • lack of CSR efforts
INTERNAL FACTORS
Opportunities Threads • Increasing female independence – financial stable working women as their main target group • expanding e-commerce – willingness & busy lifestyle (25% increase) • CSR • new technologies (fabric & colouring) • differentiate brand voice – increased brand conscious people • Economic recovery • international expansion
POSITIVE
• External competition • Cultural differences in perception of lingerie • public pressure on business transparency • economic instability
NEGATIVE
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EXTERNAL FACTORS
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OPPORTUNITIES The Victoria‘s Secret‘s sportswear department offers a great opportunity to introduce sustainable approaches to our business and to pave the way for integrating an overall sustainable mindset to the brand. Pairing sustainably produced products with the conscious mindset of the yoga sport we hope to raise awareness of a sustainable lifestyle. We want go the path together with our customers and introduce anyone interested in the versatility of our brand to join us. Prospectively we strive to expand onto other departments and implement the sustainable approach to lingerie, sleepwear and cosmetic collection.
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LINE EXTENSION
vertical
SLOWLY INTRODUCTING NEW VALUE TO THE BRAND BRING SUSTAINABILITY TO PUBLIC AWARENESS REINVIGORATES THE PRODUCT LINE EASY TAP INTO NEW MARKET INCREASE PROFIT DRAW NEW CUSTOMERS ALLOWS TO PROMOTE NEW PRODUCTS COST REDUCTION MAKE USE OF BRAND LOYALTY
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sense the nature sense your environment
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POSITION ON THE MARKET
Competitors Triumph The Gap Inc – Body AdoreMe Hanesbrands Inc. Intimint True & Co. Aerie by American Eagle Fredericks of Holywood Department Stores e.g. Macy’s
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CUSTOMER
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R PROFILE
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Age Education
18-25 High School Undergrad. Income student job Lifestyle uban cosmo politan Occupancy student Hobbies friends fashion fitness Shops Lulu Lemon Reads Glamour OK! blogs Experience Yoga beginner high user Interests social media shopping Style feminine casual young
Hailey
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Ava
Age 22-28 Education Higher Education Income $ 150.000 (household) Lifestyle urban, metropolitan Occupancy Marketing Hobbies travel, fashion, fitness, friends Shops Adidas, Athleta Reads InStyle, Vogue, New York Times Experience advanced Yoga experience, medium user Interests health, family & friends, art, meditation social media Style classy, feminine, casual 24
Jacob
Age 25-32 Education Higher Education, PhD Income $ 200.000 (household) Lifestyle urban, metropolitan Occupancy Finance Hobbies travel, outdoor sports, economics, news Shops Nike, Patagonia Reads Financial Times, New York Times, GQ Experience active Sports Interests family & friends, nature, health Style classy, casual, authentic
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Psychographic Segmentation According to our research on Victoria‘s Secret‘s target customer the ‚PINK‘ change collection‘ appeals to a female section with a responsible attitude towards their environment and interest in alternative and new technology. This customer is most likely in her mid-20s and lives in a urban area and metropolitan environment. She is aware of the environmental impacts of products she purchases and is looking for more sustainable alternatives as she has no interest in renouncing her normal purchase behavior and lifestyle. She enjoys fashion as much as traveling and meeting new people. She is also interesting in educating herself and is excited to search for new options. The ‚PINK change‘ customer wants to start and incorporate a sustainable attitude into her lifestyle.
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US MARKET
SUSTAINABLE PERFORMANCE APPAREL The United States performance apperal retail industry grew by 4% in 2014 to reach a value of $60.5 billion and is expected to increase to $73.5 billion by 2019. The sportswear industry has often been left out concerning the damages its production proceedures cause to the environment as well as working conditions applied in factories. As a growing number of companies are trying new materials, processes and technologies to minimize the impact of their business operations. In the United States the overall market for sportwear is continually growing with a saturation of traditional merchandise.With the increasing demand for sustainable approaches throughout the apparel industry sustainable sportwear opens up a new part of the performance apparel market that is expected to expand rapidly within the next few year. Claims of pressure groups and NGO in countries affected by inhumane production procedures urge the development of alternative solutions. 28
COMPETITIVE LANDSCAPE
Key Players Stella McCartney Nike Adidas Sweaty Betty Lulu Lemon Alternative Apparel Athleta Patagonia
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BRAND IDENTITY black, pink signature stripes glitter polished bold muted
responsible outgoing self aware relatable shallow
PHYSIQUE PERSONALITY
RELATIONSHIP CULTURE
experience personal following conversation interactive educational supportive
american young cosmopolitan exclusive lifestyle conscious
REFLECTION SELF IMAGE
elegant aware confident passionate energetic seeking to be attractive
sexy confident independent outgoing loyal attitude responsible
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REFERENCES Limited Brands „Company Profile“ http://www.lb.com/newsroom/media_tools/fact_sheet.aspx vault.com „Victoria‘s Secret Stores, LLC“ http://www.vault.com/company-profiles/retail/victorias-secret-stores,-llc/company-overview.aspx Brand Index „Brand Ranking“ http://www.brandindex.com/ranking/us/2012-annual/category/retail-clothing Forbes „Victoria‘s Secret Competitors“ http://www.forbes.com/sites/greatspeculations/2014/03/24/american-eagles-aerie-can-adopt-competitor-victorias-secrets-ways/#44e73a876c81 Review „Victoria‘s Secret Customer & USP“ http://uclanlingeriereview.tumblr.com/post/37501264811/victorias-secret-target-customer-usp Vogue „Victoria‘s Secret Pledge“ http://www.vogue.co.uk/blogs/the-green-style-blog/2013/victorias-secret-sustainable-pledge Greenpeace „The Detox Catwalk“ http://www.greenpeace.org/international/en/campaigns/detox/fashion/detox-catwalk/ Blog „Victoria‘s Secret CSR“ https://insidevictorias.wordpress.com/corporate-social-responsibility/ Business Insider „Victoria‘s Secret core customers have completely changed“ http://uk.businessinsider.com/victorias-secrets-crazy-history-2015-7?r=US&IR=T Limited Brands „Media“ http://www.lb.com/newsroom/media_tools/timeline.aspx „Limited Brands Success Story“ http://www.trefis.com/stock/lb/articles/311878/l-brands-success-story-part-1-lets-peep-into-the-growthsecrets-of-victorias-secret/2015-09-14 Forbes „Limited Brands & Victoria‘s Secret‘s Bright Future“ http://www.forbes.com/sites/greatspeculations/2015/01/14/l-brands-december-surge-confirms-a-bright-future/#4f6754f26271 ELUXE Magazine „Sustainable Lingerie Brands“ http://eluxemagazine.com/fashion/sustainable-lingerie-brands/ PWC „Outlook North American sportswear market“ http://www.pwc.com/us/en/industry/entertainment-media/publications/sports-outlook-north-america.html Tripple Pundit „Could sportswear be the tipping point for sustainable apparel?“ http://www.triplepundit.com/2014/11/sportswear-tipping-point-sustainable-apparel/ KELLER, K.L. et al., 2012. Strategic Brand Management. Harlow, England: Financial Times/Prentice Hall. CHOI, T. M. & CHENG, T. C. E., 2015. Sustainable Fashion Supply Chain Management. Heidelberg, Germany: Springer.
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SUSTAINABILITY PROJECT
VIA Design & Business
Branding & Marketing Management | Sina Marleen Petersen 34