CHAP. 7 BUSINESS MARKETING

Victoria's secret mostly retails consumer products such as lingerie, underwear, sportswear, clothing, swimwear, beauty products and other. Those products are purchased for personal consumption and can't be use in business.
Victoria's secret was founded in 1977 and was bought 10 years later by Limited Brands which transformed it as the 1st retailer of lingerie in US. VS most important manufacturer is based in South Asia. The factory is in Sri Lanka and is called MAS, it is specialized in lingerie and produces a sixth of bras sold by VS.
In order to better promote its products, VS uses internet. On internet, VS created its own website which provides every collections and allows customers to easily make purchases. Advertising and public relations are done through social media such as Facebook, Twitter, Pinterest, Instagram and others in order to stay in touch with customers. 26 millions on average of fans are connected with VS through Facebook, 3,5 millions through Twitter. Also, the company has a Youtube channel which is updated regularly with new commercials and is watched by 96 millions of fans. In the other hand, the company stays in touch through emails as well. Customers' emails are monthly  updated with new collections, coupons, discounts, and events.
Besides Limited Brands and its manufacturers, VS is not really affiliated to any other firms because its products are more for personal consumption or gift.

CHAP. 11 DEVELOPING AND MANAGING PRODUCT

Victoria's secret, besides being the first retailer of lingerie in US, is also producing fragrances, make up, clothing, sportswear, swimwear and many other accessories. Every month, a new product is launched at VS, whether it is lingerie or beauty products. For example, most recently it launched FABULOUS Eau de Parfum a floral fragrance

that already accumulated 5 stars in reviews and VERY SEXY NOW Eau de Parfum a fruity fragrance. It also created a bombshell day every first Saturday of May in which a couple of new products are released in stores. This year, it was the second edition of the bombshell day, the company chose to produce more items in its VERY SEXY collection. The VERY SEXY collection provides push up bras, laces, balconets and babydolls. At the bombshell day, VS also make promotions such as buy one bra and the second is 50% discount. 

 

Every time a new product is launched, Victoria's secret goal is to educate its 25-30000 employees in sales associates and stores to communicate that newest to the costumers, while still meeting their needs in terms of what they are coming in for. The company focuses on conversion and how to convert customers, using that as the metric to success - The number of customers that walk through the door are converted to purchases. 

In terms of strategy VS is reaped huge benefits from its lingerie products while expanding into new products. This has allowed VS to gain a stronger name in the lingerie industry by also selling clothes. At the present time without any real competitors, there is no doubt VS has established itself as the standard in the lingerie business. Being the standard has allowed them to enter new industries developing new products with much success. VS is definitely at its maturity stage due to its leader place on the market.

CHAP. 8 SEGMENTING AND TARGETING MARKETS

Victoria's secret has been on the market over almost 40 years. Eight years prior to founding Victoria's secret, Raymond was embarrassed when purchasing lingerie for his wife at a department store. Realizing that other men felt the same way, the man saw an opportunity to create a lingerie store designed to make men feel comfortable shopping. Unfortunately, selling lingerie to male customers was increasingly unprofitable and Victoria's secret headed the bankruptcy.

Limited Brands decided to buy the company and made Victoria's secret a multi-billion business. The major modification Limited Brands did was changing the target market. It was no longer men buying for their wives but for women themselves. Middle class women from 18 to 45 is the new target market. As time goes by, the company became wide and segmented into beauty products, underwear, swimwear, sportswear, clothing for teenage girls.

Victoria's secret target market is middle class women who particularly value their image and feel confident in their skin. It is segmenting markets on the basis of personality, motives, lifestyle, and geodemographics: psychographic segmentation. Its targeting strategy is multisegment because products are designed toward many different types of women according to their age, style and taste. For example, PINK is a sub division of Victoria's secret for teenager girls.
Victoria's secret products are created to make women feel glamorous, confident, sexy and beautiful in their skins. The company sell to those women no matter where they come from ( UK, America, Canada, United Arab Emirates etc. )

 

CHAP. 15 MARKETING COMMUNICATION

To communicate with customers, companies need to build a good promotional strategy. A promotional plan includes elements such as advertising, pubic relations, sales promotion, personal selling and social media. Victoria's secret is considered as the number one retailer of lingerie and beauty products around the world. It considerably dominates women products market. Its closest competitor are Adore Me, American Eagle Outfitters, Gap and Women's wear Daily.

Victoria's secret competitive advantage is its advertising strategy that consist to hired famous supermodels ( Victoria's secret Angles ) to promote products on TV and on Fashion shows. Every year, the company invests in fashion shows to exhibit new collections on Angels, Also, it invites artists singers to perform during the show ( Rihanna, Taylor Swift, Ed Sheeran ).  Besides the popular annual fashion shows, VS also is part of huge american events like The Super Bowl. This year, the company created a special commercial with Angels playing football.

Furthermore, Victoria's secret always stays connected to its costumers through emails and social medias. The company also has its own catalog, website and smartphone application in which customers can order any products anytime. It promotes discounts up to 50% to customers. Gift cards and reward cards are also available.

Victoria's secret impact is worldwide because it is easily accessible in airports and tourist cities like New York and London.

CHAP. 10 PRODUCT CONCEPTS

Victoria's secret is a strategic business unit of Limited Brands. The company includes a diverse product mix which including: underwear, sleepwear, seasonal wear, accessories, swimwear and beauty cosmetics. The main strategy of Victoria's secret focuses on marketing efforts ensuring brand recognition through several tactics such as: fashion shows, celebrity endorsements, catalogs and advertising. Currently, the company sells to customers in over 80 countries though their direct website. VS always provide good quality and variety on their products, for it makes them a brand loyalty which the majority prefers Victoria's secret over the competitors. It dominates its world with modern-style, fashion-inspired collections, prestige fragrances, cosmetics, celebrated supermodels and world famous runway shows. Victoria's secret products range from intimate apparel and hosiery to loungewear, body care products, fragrances, cosmetics and fitness wear. 

Furthermore, Victoria's secret expanded its product line by creating PINK which is targeted only toward teen girls. PINK provides underwear but also clothing ( shoes, sportswear, swimwear ).

At Victoria's secret there are two ways to shop, you can shop by collection or by style. For example, to shop lingerie items, customers have the opportunity to chose among many product lines which is divided by styles and collections. Currently, VS lingerie collections are Very Sexy, Dream Angels and Designer collection. Also, VS lingerie style are Bras & panties, Bustiers & Corsets, Teddies, Babydolls & slips, Garters & garter slips, Gowns & Kimonos and Fragrance.

Victoria's secret is trying to be the dominant young, sexy and sophisticated lingerie and beauty brand in the world. The company is also known for setting trends and creating demand through innovative designs. With presence in almost all major mall in USA and tourist destinations such as shopping centers, airports and major cities, VS aspires to become a destination brand, meaning a customer would be tempted to visit malls just too see the VS store.   

CHAP. 17 PERSONAL SELLING AND SALES MANAGEMENT

After meeting face-to-face, businesses use people ( the "sales force" ) to sell the product, This technique is called PERSONAL SELLING. The sellers promote the product through their attitude, appearance and specialist product knowledge. In other words, it is a promotional method in which one party (e.g: salesperson) uses skills and techniques for building personal relationship with another party (e.g: those involved in a purchased decision) that results in both parties obtaining value. In order to apply this technique effectively it is necessary for a company to focus on the practical application of sales techniques and the management of a firm's sales operations (sales management).

Victoria's secret personal selling is perfectly trained to offer helpful information, maintain a friendly environment and acknowledge customers. The sales personal always make sure to keep them aware of any sales promotion available in the store or online. Also, the company provide many reward and gift cards so that customers can get up to 75% discounts on any product (women wear, fragrances or any beauty product).Victoria's secret practices are not mainly relationship selling but traditional personal selling because it only sell goods and services and not really advice, assistance and counsel. For instance, in order to sell more, the company is having a couple of sales promotion going on for Spring 2015. There are $15 off $100, $25 off $150, $50 off $250 purchase, with any bra purchase online it is free shipping and returns, also there is a free secret reward card worth $10,$50, $100 or $500 with any $10 purchase plus weekly surprise and finally a free necklace by Ashiana with any $50 clothing purchase.

Because VS product is standardized, is easy to understand and it has a lot of customers geographically dispersed, it doesn't need to have a strong personal selling, otherwise Advertising and sales promotion are more important. 

Victoria's secret is known to invest a lot in advertising. Thanks to the success of their glitzy fashion show and its fashionable underwear lines, the company has been the most popular lingerie retailer on the industry. VS has raked in $4.8 billion in sales through the third quarter of last year, up nearly 5% from the same period in 2013, shares of its parent company, L.Brands have climbed over 70% over the past two years.

CHAP. 16 ADVERTISING, PUBLIC RELATIONS AND SALES PROMOTION

Victoria's secret is the most popular retailer of lingerie throughout the most powerful countries of the world America, UK and Canada. The reason is they mainly invest in advertising and they know how to keep good relationship marketing with their customers. Advertising is one of the most important factors in marketing in order to sell; a company should establish objectives and strategies on how to make the market aware of its products. Mostly, Victoria’s secret promotes the benefits of its products by using product advertising (pioneering advertisement).

Nowadays, Victoria's secret has become the only name that matters in lingerie. The company controls a whopping 35% of the lingerie market - a remarkable feat for a specialty retail brand. Several brands have tried to compete with the brand but no one has come close to the dominance of Victoria's secret. 

The company’s slogan is “A body for everybody”. It doesn't take genius to understand the appeal of beautiful girls parading in their underwear. But Limited Brands, the company behind Victoria's secret, has turned lingerie marketing into a fine art, or at the very least into high fashion. 

The company has a calculated strategy to for captivating the girls and women in America. The brand's formula for success against competitors is :

1.     Captivating female customers: The brand's advertising team carefully selects models they believe female customers will relate to. For example, longtime Angel Alessandra Ambrosio's image as a wife and mother helps the brand. 

2.     Uniting stores with online: The Company has been streamlining its store and online assortments to give customers what they want. For instance, bras that are promoted in stores are also displayed prominently on the website. The company has been using online data to make smart merchandising decisions in stores.  

3.     Paying attention to international market: Besides targeting in America, Canada and UK, the company entered mainland China this year, which could potentially lead to a much larger expansion. In recent years, VS has incorporated more Asian models into its catalog and annual fashion shows. 

One of their most popular ways to advertise is through the organization of Fashion shows every year with the most popular models and artists thorough the world. Victoria’s secret fashion shows is one of the most watched show in America, Canada and UK and the main factor of its leader rank over the market. Furthermore, VS is also involved in famous event like the Super Bowl. The company created super bowl ads which are released before the games, to promote its Valentine’s Day collection.

Beyond the TV, Victoria’s secret campaign includes social media outreach to millennial consumers via Snapchat, Facebook, Twitter and Instagram. "Social for us—particularly for our customer base—is one of the most significant pieces of our advertising strategy," Razek said. "We've got a very loyal fan base, but the models [also] have a very loyal fan base."

CHAP. 14 MARKETING CHANNELS AND RETAILING

               Victoria's secret sells lingerie, womenswear and beauty products through its catalogs, website and its 1600 stores around the world. Mostly, Victoria's secret can be find in every biggest cities ( New York, Montreal, Paris etc. ) and airports around the world. Victoria's secret has on average 12 retailer channels in New York City. I choose to visit the biggest store located on 1328 Broadway between 35 st and 34 st in Midtown West this morning.
Most of the stores are open during the week from 9 am till 9:30 pm and on Sunday from 11 am till 8:30 pm. 

          It was very easy to find the place because as soon as i went out of the subway station ( D, B, F, M, N, Q, R to 34 st Herald Square), my first view was a big poster with two Victoria's secret Angels right in front of me. Once into the store, my first impressions were "HUGE" and "CROWDED". I had 3 floors ( Basement, 1st and 2nd ) to look at. I noticed that the first floor ( entrance ) is mostly Victoria's secret beauty products ( fragrances, bags, lotions, creams etc. ) and new lingerie collections. The second floor is for underwear, pajamas and particularly PROMOTIONS. It is also the most crowded floor. This month, the most interesting promotion is 5 panties ( value of $11 each ) at $27. The basement is for sportswear, swimwear and teenagers underwear. To give customers an idea of every collections and make it easier to shop, there are mannequins and pictures of VS angels wearing every items all over the store. Also, at each floor, there are at least 10 VS employees ready to help and advice customers. 

            This store is very enjoyable because of decorations, pink lights, parades on huge screens, wings and pictures of every VS angels all over the walls, good music and good customer services.VS pays attention to every details, even fitting rooms transport customers in its very feminine pink world. I could also notice that most of customers in this store were couples, and tourists ( from 16 to 50 years old ). Some of them were only in the store to take a look and take snaps but mostly, they stepped out with at least one little pink VS bag. Prices are not affordable to everybody but thank to regular promotions and discounts, a person with a normal annually income can get good items.

              Besides selling through stores, VS has an official website where it is easy and quick to shop every items ( https://www.victoriassecret.com/ ). Also, a VS application is available on Apple and Android.  The advantage of shopping on line is that it allows you to create an account with you email, to receive codes or coupons and to accumulate points in order to get discounts. 

CHAP. 6 CONSUMER DECISION MAKING

                  Victoria's secret target market is females from 15 to 45 years old. Especially, women comfortable in their body and who accord an importance to their femininity. Generally, the first thing that makes a woman feel more feminine is her underwear. Through the underwear, it is easy to get an idea of what personality she has. So Victoria's secret, according to each type of femininity, creates different collections that fit to every particular situation ( from the simplest daily underwear to the sexiest fancy for Valentine's day ). The need to buy at Victoria's secret is mostly a need for change because whatever the underwear and lingerie pattern, it is intimate. It is also a functional need because every human beings should wear underwear. 


                      Why women want to change? To feel more beautiful, comfortable, sexy, attractive to her partner. In order to attract them, Victoria's secret invests an important amount of money in advertising ( at least $474 million in its most recent fiscal year ). The company got one of the most popular annually show promoting by famous supermodels and artists ( Rihanna, Justin Bieber, Taylor Swift etc. ). Besides that, the good looking ( unusual ) of VS stores keeps women coming back for more. They really created a hype that we are all aware of. Also, it is very impressive how according to every season, VS  keeps designing new collections, patterns and looks all nicer than each other. 
Furthermore, the company does great deals and promotions, the more you shop, the more coupons you get. It is a major driving factor for customers. In addition to being beautiful, VS items are quality. Women are shopping for something that will last and perform, if well taken care. Obviously, quality includes comfort, products are designed with women mind and there is something for every shape and size. 

                  Generally, there are two different motives for customers who shop at Victoria's secret. Either they are looking for something in particular and are on mission to get it ( they are familiar to the store and are looking for a particular style, design or look and know that VS is the place to go ), or they are just browsing and end up buying something because they love it ( they are just looking for what the store has to offer, usually it is a captivating marketing, a beautiful product or a good price point that sway the costumer into a purchasing decision ).

CHAP. 5 DEVELOPING A GLOBAL VISION

           Developing a global vision, allows a company to recognize and react to international marketing opportunities, use effective global marketing strategies, and be aware of threats from foreign competitors in all markets. Global marketing means marketing that targets markets throughout the world.

    Victoria's secret was founded in San Francisco, California, on June 12, 1977. The company's first store was located in Stanford Shopping Center in Palo Alto, California. By 1980, they grossed enough money to finance the expansion from a headquarter and warehouse to four new store locations and mail-order operation ( still in the San Francisco area ). In 1982, VS had grown to six stores, a 42 pages catalog and was grossing $6 million annually. Unfortunately, it headed for bankruptcy, and the founder, Raymond sold it for $1 million to Leslie Wexner, the creator of Limited Stores Inc.

             In 1983, Leslie Wexner decided to change VS target market and started focusing more on women. The store were redesigned to evoke 19th century England. To further their "European luxury" image, the company continued the practice that Raymond began: listing the company's headquarter on catalogs at a fake London address, with the real headquarter at Columbus, Ohio.

            In the five years after the purchase, Limited Brand had transformed a three store boutique into a

346 stores retailer. In 1986, VS was the only national chain of lingerie stores. The New York Times described it as a "highly visible leader".

              The company gained notoriety in the early 1990s, after it began to use supermodels ( Victoria's Secret Angels) in its advertising and fashion shows. VS Angels are top models coming from all over the world: Brazil, Germany, USA, Netherlands, Argentina, France, Denmark, Serbia, Czech Republic, Caiman Islands, Namibia, South Africa.

By 2006, VS already settled 1000 stores accross the USA.

           The brand turned to social networking in 2009, opening an official Facebook page, and later an official Twitter and Pinterest accounts. It also expanded its website to feature behind the scenes content about its catalog and commercial shoots, as well as its fashion shows.

             Up until the early 2000 management at VS actively decided not to expand outside the US. It is only in 2010 that the company announced its plan to expand into Canada. Twenty three stores (similar to those in the United States ) was opened by this period.Then, in November 2005, VS opened its first boutique in the UK at Heathrow Airport. This was followed in 2009, by several VS Travel and Tourism residing within airports outside of the US ( Schiphol International Airport, The Netherlands is included ). On July 24, 2012, VS opened its first store located at the Westfield Shopping Center, Stanford in London, then on New Bond street, on August 29, 2012. And through 2013 and 2014 stores continued to open across UK.

            In 2010, VS expanded with franchises internationally. The first franchise store opened in Venezuela, followed by other stores in the country, in Colombia and the first store in the Middle East in Kuwait. And one year later, the brand's first Carribean store opened.

Finally, the first Serbian Victoria's store opened its doors in January 2014, at the Nikola Tesla Airport in Belgrade. This is the first store opened in ex-Yugoslavia.

     According to L Brands Inc, it will put more pins in its map of the world this year, including taking VS to China. Martin Waters, the company's international president, told stock analyst recently the company's total stores outside the US reached 306 and he plans to add more this year. L Brand CEO Leslie Wexner once said he wanted Victoria's secret Beauty and accessories stores to be as "ubiquitous as Starbucks." 

"What sells here, sells there. What sells there, sells here," Waters said. "That's very good news in terms of simplicity of expanding the organization and the operation there.". 

          Furthermore, the international business is a healthy addition to L. Brands U.S business and a source for long-term growth. 

The operating principles that guide their international strategy are:

• Their store operations around the world are a mix of company-owned and franchised locations -- both upholding their highest brand standards with no visible difference to the customer.
• They work with a small number of world-class partners that deliver brand-right experiences through their refined lenses of local practices and customs.
• They embed L Brands leaders in-market to support the international operators through training, coaching, inspecting and coordination. 
• They take a methodical approach of test and learn. Then, they move purposefully and quickly when they're sure they've got it right. 

      
No matter its location, Victoria's secret provides the same goods and services to women and college girls. 

Stores outside of the U.S.

• Victoria's Secret
  (Franchised)
  8 
 
• Victoria's Secret Beauty & Accessories
  245 
 
• Victoria's Secret (inc PINK)
  (Company Owned)
  49
•  

302 stores as of Nov. 1, 2014

CHAP. 4 THE MARKETING ENVIRONMENT

                         Victoria's secret is the most popular American retailer of lingerie. Its products are known to provide beauty and fancy. The company owns on average 1100 stores in America, Canada and Europe. 

                         In 1977, Raymond the founder established VS, a store in which men could feel comfortable buying lingerie for their wives. Unfortunately, his philosophy of focusing on selling lingerie to male customers became increasingly unprofitable and the company headed for bankruptcy. In 1982, Raymond sold VS Inc. to Leslie Wesner, creator of Limited Stores. One year later, L. Wesner replaced VS target market and decided to focus on women. VS automatically transformed from "more burlesque than Main Street" to a mainstay that sold broadly accepted underwear. Today, its targets market are still women from 15 to 50 years old and men willing to offer lingerie to their girlfriend and wife. The company produces for every features and sizes. 

                      As a target, reasons why i am a regular customer, are the comfort and fancy they serve, not only in products but also stores. It is always a pleasure to enter in Victoria's secret stores. The glamorous decor, floral fragrance and welcoming employees make that place very attracting. VS is definitely the only store where I enjoy spending time in airports waiting for my flight.

The difference between VS and its competitors is most brands in intimate apparel business focus on just comfort while VS also emphasizes on glamor. This has helped the brand in developing a unique image for its products. VS utilizes annual fashion shows and its supermodels to associate its brand image with beauty and class.

                  Nevertheless, VS product is not just about wearing the same lingerie that beautiful models have been promoting on Fashion shows or in advertising. Even though the cost is not affordable for everybody, i think their products are worth, especially if costumers privilege quality and comfort. 

VS is also known for its aptitude to always innovate and provide new colors, patterns and styles that promised sexiness packaged in a tasteful, glamorous way and with the snob appeal of European luxury. For example, during the holiday season, it introduced new products such as Angel Fantasies bras, The Flirt Bra and vintage fleece and in the spring season, launch of products such as Bandeau Bikinis, Fabulous Push-up Bikinis ( reflecting popular trends such as seductive prints, neon, embellishments and novelty fabrics ). These products received good customers response. The objective is to make each female buyer feels on trend, beautiful, sensual and confident in her body. 

In the other hand, VS also promotes a college girl collections ( PINK ), the company produces beautiful colorful underwear and clothes, feminine enough to prepare them becoming women. About 25% of the U.S. female population between 15-34 years falls under the college going age group. 

Additionally, VS is concerned about its customer's health and comfort, reason why they don't use chemicals but only natural materials (cotton, silk etc.). 

Besides its core lingerie products, VS also offers shoes, evening wear, swimwear, sportswear, loungewear, accessories, handbags, luggage and fragrances. With this increased products offering, the brand's revenue should improve going forward. 

VS is always connected with costumers through social networks Facebook, Twitter, Instagram, Youtube and its catalogs in which many discounts and gift cards are available.  

 Future potential shifters of Victoria's secret economy:
Although the U.S. economic growth has been slow since the recession, a gradual improvement in consumer confidence and lower unemployment should help Victoria's Secret comparable store sales. Inflation is another factor that drives revenue growth for same sales volumes and will aid growth in the brand's revenue per square feet. (Revenue per square feet is a measure of a retailer’s store productivity, and the growth in this metric is a good indicator of comparable store sales growth.)
Going forward, the apparel sales will continue to shift online due to growing usage of Internet and proliferation of mobile devices. 

CHAP. 3 ETHICS AND SOCIAL RESPONSIBILITY

Victoria's Secret CODE OF ETHICS :

                Like all companies, VS has a code of ethics which is the same as L Brands. MKTG 8 defines "code of ethics" as a guideline to help marketing managers and other employees make better decisions.

                The guideline for Limited Brands basic Code is "do what’s right" — regardless of the circumstances. Adherence to the code is important to each of them and to the business as a whole.
              Managers and employees have responsibilities to their customers and to each other ( all customers and associates are to be treated with respect and courtesy, be honest, equal opportunity, no harassment, accommodating disabilities ). Everybody must be concern of the safety at work by avoiding drug and alcohol and by respecting fellow associates privacy and complying with applicable privacy laws as well. Additionally, stakeholders must obey all applicable local, state and federal laws and regulations here and in any country in which they transact business. Finally, each member of the associate has to perform his or her duties efficiently and is expected to protect company's interest.

CORPORATE SOCIAL RESPONSIBILITY

                 According to MKTG 8, every business managers should consider both the long-range best interest of the company and the company's relationship to the society within which it operates. CSR is a business's concern for society's welfare, it is developing policies that integrate responsible practices into daily business operations.

• ENVIRONMENT 

                As a member of Limited Brands, Victoria's secret signed few years ago, onto Greenpeace international's Detox campaign that seeks to eliminate the use of hazardous chemicals from fashion products. The company agreed to stop using phthalates and perfluorinated chemicals in its apparel before 2020. 
“Limited Brands considers clean water as a critical global issue, and is proud to join Greenpeace in its campaign to eliminate hazardous chemical use,” said Sam Fried, executive vice president for Law, Policy & Governance at Limited Brands.
L Brands is now the 14th international retailer to commit to Detox since the campaign launch in July 2011.
              Additionally, since 2007, Victoria's secret stopped using catalog paper made with pulp from a Canadian forest that is an important wildlife habitat.The company shifted its catalog paper to that is either 10% post consumer waste -- that is, recycled -- or that has at least 10% of its content certified by the Forest Stewardship Council.

• CHARITY 

             In May 2000, Victoria's secret and Limited Brands Inc. joined Miramax Films fundraiser for amfAR's annual cinema against AIDS event at the Cannes Film Festival. The annual Victoria's secret Fashion show helped raise nearly $3 million. Cindy Fields, the chief executive officer of the lingerie retailer's Internet and catalogue divisions, told CNNfn that the Webcast, part of an AIDS research benefit, achieved its main objectives. "We raised money for AIDS research," she said.

            Additionally, L Brands founded the THINK PINK program supporting the Susan G Komen Race For The Cure ( RFTC) and American Cancer society making strides against breast cancer. The PINK THINK team has been the world's largest corporate RFTC team for the past four years and the company has donated more that $1.1 million to the Susan G.Komen Breast Cancer Foundation and the American Cancer Society to fund breast cancer research, education, screening and treatment. Over the past 12 years, more than 36 000 associates of their home office communities have participated in this program.


            "Limited Brands is a company led by women for women so we feel it's vital that one of the major thrusts of our philanthropic efforts is focused on women's health. We recognize the significance of breast cancer awareness and education in the communities where we live and work. Through our Think Pink program -- with financial contributions and our associate volunteerism -- we've proudly supported these efforts every year," said Carol Dreska, manager of investor relations.

            Furthermore, in 2014 the Victoria's Secret Fashion Show made $2.5 million to support PELOTONIA, a grassroots bike tour and Gabrielle's Angels foundation with the objective to fund life saving cancer research. 

              

           

       

CHAP. 2 STRATEGIC PLANNING FOR COMPETITIVE ADVANTAGE

            According to the book MKTG 8, a strategic planning is the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities.It is important to write a marketing plan which is a study of marketing objectives, strategies and the changing of the marketing environment.Also, it allows the marketing manager to enter the marketplace with an awareness of possibilities and problems.

           Writing a marketing plan includes many elements following : the Business Mission Statement, Situation or SWOT Analysis, Objectives, Marketing Strategy ( Target Market and Marketing Mix ) and the Implementation Evaluation Control. 

Victoria's secret business unit contains three channels :

• Victoria's secret stores ( VSS )
• Victoria's secret Beauty ( VSB )
• Victoria's secret Direct  ( VSD )

1. Business Mission Statement 

         The business mission statement of Victoria's secret is committed to being the world's best fashion brand _in premium lingerie women, beauty accessories and products_ offering captivating customers experience that drive long-term loyalty and create sustainable value for its shareholders.

    2.  Situation or SWOT Analysis

          A Situation Analysis means identifying internal strengths and weaknesses; and also examining external opportunities and threats. 

• Victoria's secret STRENGTHS:

          The main strength of Victoria's secret is its products quality that leads them to the top. The lingerie brand ranked number one in the annual YouGov BrandIndex perception study of apparel brands. VS has reported record sales for three years straight. 
          Additionally, VS is investing a lot in advertising (at least $474 million in its most recent fiscal year). One of the most popular annual show is the Victoria's Secret Fashion Show with more than 11,5 millions viewers. During the show, popular artists are invited to perform ( Justin Bieber, Rihanna, Taylor Swift, Arianna Grande ... ). 
            Victoria's Secret's models, known as "Angels",Victoria's Secret's models, some of the world's leading fashion models are a major part of the brand's image, appearing in the fashion show, catalogs, stores and advertisements ( Adriana Lima, Alessandra Ambrosio, Doutzen Kroes etc. ).
             VS has its own official YouTube channel, Pinterest, Twitter and Facebook pages. VS won the Facebook popularity contest with more than 27 millions followers. 
            VS has its own TV commercial and its Spotify playlist "Train like an Angel". Also, there is a special section on the CBS website, featuring videos, photos, previews and clips.
            The company is dominating the e-commerce with its subsidiary VSD, the online and catalog arm of the lingerie retailer. 

            Customers are always informed about the upcoming products via emails, VS official website or VS smartphone application.

            VS stores operate about 1,060 locations in the U.S, about 55 in Canada, and five shops in London. 

           

• Victoria's secret WEAKNESSES:

             VS target market is very specific that is why the company is unable to expand the market. 
             VS number of stores is very limited because there are only located in US, Canada and UK. 
             The high prices and limited number of discounts and offers don't make the products affordable. 
              Many parents think VS is exposing the teenagers to "adult items" ( "Bright Young Thing" scandal ).
              Scandal of Child Labor for Victoria's secret cotton in Burkina Faso (2001).
              

• Victoria's secret OPPORTUNITIES:

          According to their limited market, VS can expand their stores by lunching their products to the global market ( Asia, Africa ).

         They can improve their profit and expand their name by creating a men's brand.

          During particular occasions ( Valentine's day, customer's Birthday ), they can provide discounts and offers.

         

• Victoria's secret THREATS:

           VS has several competitors, such as Aerie-American Eagle since 2006 and Abercrombie & Fitch competing with PINK VS branch, Bare Necessities second largest online specialty retailer for intimate apparel, Gap, JC Penney, Frederick's of Hollywood etc.

           These competitors offer discounts on their products more than VS.

            Regarding the limited number of stores, in case of an economic crisis, VS profit will certainly be affected. 

            The marketing negative image of women. 

            The bad interpretation of "sexy" in Eastern cultures.  

               3. Objectives

                   In order to keep its market leader rank, Victoria's secret future goals are : 

                 

                 -Optimize Customer Relationship Management

                 -Open  200 stores in Europe the next 10 years,

                 -Establish successful pricing,

                 -Increase revenue,

                 -Provide excellent customer care, 

                 -Establish cost-effective logistics, 

                 -Improve e-commerce.

                 

              4. Marketing Strategy ( Target Market and Marketing Mix ) 

               Victoria's secret main targets are middle class women, ages 20-45 and men shopping for their girlfriend or wife. 

                Victoria's secret PINK collection targets teens and high school girls.

                 

                 Victoria's secret is an example of product/service differentiation competitive advantage because they are captivating their customers with their ability to mix sexy, colorful and fantasy with lingerie and their popular and unique concepts ( Annual Fashion Show, Angels, Fantasy Bra ).

             FOUR Ps:

              Product strategies: Victoria's secret provides to the customer fancy, colorful, comfortable and very sexy feminine products. Customers can mix, match and shop hundreds of sexy lingerie and clothes in satin, cotton, silk, lace and sheer styles.  

               Place strategies: Victoria's secret owns more than 1060 stores in US, Canada and UK. Shops are easily accessible every day ( malls, airports, touristic sites ... ).

              Promotion strategies: Victoria's secret angels promote VS products on catalogs, fashion magazines, TV channels, Fashion shows, catalogs, Social networks ( Twitter, Facebook, Pinterest, Instagram, YouTube ), Spotify etc. VS constantly give customers reason to visit by sending them special offers and coupons.

               Price strategies: Equivalent to USD: range between $15-$70. During summer and winter, VS provides discounts from 40% to 70%. 

CHAP. 1 VICTORIA'S SECRET HISTORY AND MISSION STATEMENT

                                                    

           

Victoria's secret history 

  Victoria's Secret is the leading specialty retailer of lingerie around the world. It is also the largest subsidiary of Limited Brands. The company's stores operate about 1100 locations in the US, Canada and UK. The first store was established in San Francisco during the early 1970's by Roy Raymond. 

               Eight years prior to founding Victoria's Secret, Roy Raymond went to a department store to buy his wife lingerie, only to find ugly floral-print nightgowns and saleswomen who made him feel uncomfortable. Realizing that other male friends felt the same way, the man saw an opportunity to create a lingerie store designed to make men feel comfortable shopping. He chose the name "Victoria" to evoke the propriety and respectability associated with the Victorian era.Raymond studied the lingerie market for eight years before establishing Victoria's Secret.

              By 1982, Roy's Victoria's secret consisting of three stores and a catalog business had annual sales of $4m. Selling lingerie to male customers was increasingly unprofitable and Victoria's Secret headed for bankruptcy. Raymond decided to sell Victoria's Secret and the catalog to the British Leslie Wexner, creator of Limited Brands, for $1 million.

             Victoria's Secret, under Limited Brands, became a multi-billion business. Nowadays, the company has a history of being sexy, youthful and romantic. Men and women have come to recognize Victoria's Secret as the place to buy a lingerie or perfume gift. 

  Victoria's secret mission statement 

The mission statement for Victoria's secret retail chain is 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.