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.