Victoria's Secret

In: Business and Management

Submitted By idol
Words 2254
Pages 10
This case was prepared by Theodore Durbin (T’02 – MBA Fellow, Center for Digital Strategies) of the Tuck
School of Business at Dartmouth under the supervision of Adjunct Professor Kathleen L. Biro. The case was written as a basis for class discussion and not to illustrate effective or ineffective management practices. Some of the data presented have been disguised and are intended for case use only. The authors gratefully acknowledge the support of the Glassmeyer/McNamee Center for Digital Strategies, which funded the research and development of this case.
© 2002 Trustees of Dartmouth College. All rights reserved. For permission to reprint, contact the Center for
Digital Strategies at 603-646-0899. Rev. 11/04.
Case #6-0014
Victoria’s Secret
Amid some of the toughest retail conditions in years, Victoria’s Secret announced a 9% gain in first half-year 2002 sales and a 30% gain in operating income. With huge brand recognition, Victoria’s Secret had well established itself as the leading retailer in women’s lingerie. However, market growth was slowing down and profit margins for the company’s
Direct division, which focused on catalogues and Internet sales, had been declining over the past several years. Catalogue production and other mailing costs jumped significantly, and while Internet sales had experienced tremendous growth since the company’s web site launch in 1998, the web also added costs to the business.
Company History
Leslie Wexner founded the Limited, Inc. in 1963 in Columbus, Ohio with two women’s apparel stores. The Limited grew organically and through acquisition to include 4,600 specialty stores by the end of 2001, with brands such as Bath & Body Works, Express,
Lerner New York, Limited Stores, White Barn Candle Co., and Henri Bendel.
In 1982, Wexner purchased a small San Francisco-based women’s lingerie chain, named
Victoria’s…...

Similar Documents

Victoria's Secret Swot

...Market: Victoria’s Secret is a retail brand product of lingerie, clothes and beauty products, which is owned by the Limited Brands Company. It has thousands of retail stores opened in the United States and few in Canada. The Products are available through the retail stores, catalogue and online business. Such fast growing market was established by Roy Raymond in San Francisco during the 1970s. Raymond went beyond from just providing the traditional white cotton piece for underwear that sold in department stores, because he offered different colours, patterns and style that created sexiness. Such sexiness is created by combining European elegance and luxury. A market is defined as the set of actual and potential buyers of a product or service (reference). The current market of Victoria’s Secret consists of woman ranging from different ages, especially the younger women age early 20s to mid-30s will buy and prefer to wear luxuries lingerie in order to feel sexy and impress their partners. Other potential buyers are teenage girls going through puberty (age 13+), because they are becoming more aware of their changing body and feeling more mature. Also, some women would buy other type of products beside the lingerie, such as the Pink product line of clothing or the beauty products. In countries such as Canada and United States, the culture is so diverse that the market consists of different ethnic groups. Other buyers are men who would give gifts to their girlfriend or......

Words: 3936 - Pages: 16

Victoria Secret

...Introducing Victoria’s Secret in France By: Kaitlin McDonald Rachel Pelkey Milena Peneva Prepared for the partial fulfillments for the requirements for: IBMK-421-AE International Marketing Spring 2010 Table of Contents: Executive Summary Company Overview Assessment of Domestic Business Climate Purchasing Power Related Macro Level: GDP Related Sector & Industry Distribution Unit Level: GDP Related (per capita) Consumption Expenditure Budget Allocation French Buying Decisions Industry Specific Outlook: Lingerie and France Overview Buying Preferences Market Size Related: Population Growth Rate Age Distribution Birth Rate Sex Ratio Urbanization Migration Rates and Patterns Management of Economy Fiscal Policy: Government Budget and Debt Taxation Monetary Policy: Inflation Assessment of International Business Climate Exported Related Imported Related Government Policies toward Imports Foreign Direct Investment (FDI) Volume – Inflows and Outflows Trends Sectorial Distribution Government Policy toward FDI Balance of Payment Current Account Capital Account Official Reserve Position External Debt/ Debt Service Ratios Membership in International Organizations Demand Forecasting Entry Strategy Marketing Mix Strategies Product Channels Promotion Pricing Financial Outcome Executive Summary With......

Words: 6579 - Pages: 27

Victoria’s Secret Pink: Keeping the Brand Hot

...Synopsis This case illustrates the general strategy employed by Victoria’s Secret to acquire a new segment of customers through the introduction of its brand Pink. Pink is a line of “loungewear” (sweatpants, T-shirts, pajamas, bras and panties, pillows and bedding) targeted toward 18-30 year old females. The garments feature comfortable cuts and mostly cotton fabrics in bright colors. New garments are introduced every three or four weeks. The image is one of “cute and playful” versus the more overtly sexy image of the core brand. The case highlights the different promotional approaches that Pink managers are taking in contrast to those of the core brand. This is a lifestyle brand. The Victoria’s Secret chain has been a big driver of financial success for Limited Brands (parent company), and Pink is expected to be a big part of Victoria’s Secret’s sustained growth. Not only does it give the chain a new set of customers, but it brings in customers at a younger age who will then “graduate” up to the Victoria’s Secret core brands. The ethics of the Pink strategy are considered in detail. Discussion Questions 1. Analyze the buyer decision process of a typical Pink customer. Need recognition: This can come from internal stimuli (basic needs such as hunger, thirst, protection) or external stimuli. Considering that people do not purchase fashion brands based on such needs as, “I am cold/naked and need protective covering,” this first step is likely to be......

Words: 1286 - Pages: 6

Victoria Secret

...Victoria’s Secret Unit 1 Assignment 1 “Victoria's Secret, currently a household name is a retail brand of lingerie and beauty products which is owned and run by the Limited Brands Company. On average Victoria's Secret accumulates more than $4 Billion in sales a year. With over 1000 retail stores around the United States it contributes 42% of corporate profits of Limited Brand (Victoria Secret)”. Victoria’s Secret is a unique brand. With sensual supermodels, world renowned photographers, and daring advertising, it combines mass-market access with prestige products. Based on the large market size of its home country, Victoria’s Secret has been so far tied up almost solely in the domestic business. “The United States is the birth place of Victoria Secret where the brand as well as the company has thrived to hold a sort of like monopoly status in the industry. They state that advertising and promotion is one of the main reasons as to why they are where they are. In an industry where the physical exterior is about everything, the business that sells an image and lifestyle advertising is critical. Victoria's Secret spends $66 million each year on advertising, essentially defining beauty and packaging it for consumers (McAfee, 2004)”. Victoria’s Secret’s customer satisfaction in receiving merchandise from its catalogs and Web site is critical to customer loyalty. “Being one of the United States leading sellers of lingerie, it is important for the Victoria’s Secret brand......

Words: 558 - Pages: 3

Victoria's Secret Strategy

...The Silky Strategy of Victoria’s Secret Chelsea Chi Chang Alice Lin Charlene Mak BEM 106: Strategy Professor McAfee 28 May 2004 1 Victoria's Secret is a retail brand of lingerie and beauty products, owned and run by the Limited Brands company. Victoria’s Secret generates more than $4 billion in sales a year. It is the fastest growing subsidiary of Limited Brands and contributes 42% of corporate profits. More than 1000 Victoria's Secret retail stores are open in the United States. Products are also available through the catalogue and online business, Victoria's Secret Direct, with sales of approximately $870 million. Victoria’s Secret was established by Roy Raymond in the San Francisco area during the 1970s. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. Even the name Victoria’s Secret was meant to conjure up images of 19th-century England. The store went so far as to list a fake London address for the company headquarters. Like Starbucks, Victoria’s Secret markets self-indulgence at an affordable price. By 1982, Raymond had opened six stores and launched a modest catalog operation. He then sold Victoria’s Secret to Limited Brands, which took Victoria’s and sprinted away. Today, Victoria’s Secret enjoys nearly a......

Words: 7044 - Pages: 29

Victorias Secret

...research is based upon the study of “Victoria’s Secret” Brand, it describes the brand’s evolution and its product line. The research covers semiotic analysis of Victoria’s Secret in terms of the Brand Ambassador, Visual Promotion material like Print Media, Brand Logo and other Graphics used in its promotion. However, the research does not cover in depth study of: marketing strategies, history and its several Product lines. “Buy the product, get the girl; or buy the product to get to be like the girl so you can get your man” CONTENT TOPIC PAGE NUMBER OBJECTIVE………………………………………………………………………… SIGNIFICANCE………………………………………………………………….. LIMITATIONS…………………………………………………………………… 1. INTRODUCTION…………………………………………………………. 2. …………………………………………………………………………………. 2.1 The history of Victoria secret……………………………………. 2.2.1 The origin…………………………………………………………………………………. 2.2.2 A brief timeline…………………………………………………………………………. 2.2 VICTORIA SECRET PRODUCTS……………………………………. 2.3 SEMIOTIC ANALYSIS 2.3.1 Ad campaign 1 2.3.2 Ad campaign 2 2.3.3 Ad campaign 3 2.3.4 Ad campaign 4 3. CONCLUSION AND SUMMARY……………………………………. OBJECTIVES: * Introduction to Victoria’s Secret * Evolution Of the Brand *......

Words: 2223 - Pages: 9

Victoria's Secret Stp

...Segmentation based on products Victoria’s Secret Full Assortment (VSFA): Segment: It includes intimate apparel, clothing, swimwear, accessories, shoes. Their potential buyer for this product are middle income women in the age group of 22 to 50. This product focuses also on men who want to buy lingerie, clothing for their wife or girlfriend. Geographically there are developed and developing countries where awareness about brand attracts the various segment of customers. Out of USA, they started VSFA stores in Canada, after that they started in London and some in Middle-East countries. Most of the countries where they already have VSBA stores are potential segments which are mentioned in 2014 Global Retail Development Index. Target group: This product targets the women who want to look sexy, confident, fashion sensual and love shopping in the mall. They specifically targeted a particular age group from 22 to 50 who are from middle class family. Women who like fashion show and keep updated with new trends, care about appearance are main target of VSFA. They focused on men too who want to gift their wife or girlfriends especially on valentine day. They introduced various new products in stores very frequently to attract those customers. Providing discount on special occasions or in seasons attracts women from lower middle income family too. Positioning: Victoria’s Secrets maintained good quality of their products as they focus on a particular age group. By 2006, company could...

Words: 1216 - Pages: 5

Victoria Secret

...The Silky Strategy of Victoria’s Secret Chelsea Chi Chang Alice Lin Charlene Mak BEM 106: Strategy Professor McAfee 28 May 2004 1 Victoria's Secret is a retail brand of lingerie and beauty products, owned and run by the Limited Brands company. Victoria’s Secret generates more than $4 billion in sales a year. It is the fastest growing subsidiary of Limited Brands and contributes 42% of corporate profits. More than 1000 Victoria's Secret retail stores are open in the United States. Products are also available through the catalogue and online business, Victoria's Secret Direct, with sales of approximately $870 million. Victoria’s Secret was established by Roy Raymond in the San Francisco area during the 1970s. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. Even the name Victoria’s Secret was meant to conjure up images of 19th-century England. The store went so far as to list a fake London address for the company headquarters. Like Starbucks, Victoria’s Secret markets self-indulgence at an affordable price. By 1982, Raymond had opened six stores and launched a modest catalog operation. He then sold Victoria’s Secret to Limited Brands, which took Victoria’s and sprinted away. Today, Victoria’s Secret enjoys nearly a......

Words: 7044 - Pages: 29

Victoria's Secret Branch

...most-talked-about brands today? The story of Victoria’s Secret starts in the 1970s, when 30-year-old business graduate Roy Raymond wanted to buy some lingerie for his wife. Walking into a department store, he found the experience an embarrassing one and decided there was a gap in the market for a high end store that would cater for men, as well as women. In 1977, Mr Raymond took out a $40,000 bank loan and $40,000 borrowed from relatives to open his first Victoria’s Secret shop in a shopping mall in California. Inspired by 19th century England, his store was decorated with dark wood, red velvet sofas and silk drapes, a contrast to the garish department store offerings at the time. [pic]Lucas Jackson/ReutersModels dance during the finale of the annual Victoria's Secret Fashion Show in New York, November 13, 2013. The company earned $500,000 its first year. And by the time Mr Raymond sold the business in 1982 for about $1m, Victoria’s Secret had five stores and a mail-order catalogue that made $6m a year. By the early 1990s, Victoria’s Secret had become the largest American lingerie retailer, with 350 stores and sales topping in excess of $1bn. However, it was struggling to compete with lower-priced brands and owner Leslie Wexner, creator of The Limited clothing business, needed something radical to take the brand to the next level. The breakthrough came in 1995, when the brand launched the first of its notorious Victoria’s Secret fashion shows. A......

Words: 348 - Pages: 2

Victoria's Secret Brand Analysis

...Brand Audit Part I Victoria’s Secret A. Company: Victoria’s Secret Inc. is the largest American retailer of women’s lingerie and the largest subsidiary of Limited Brands. The company sells lingerie, as well as other apparel, footwear, fragrances, and cosmetics. Founded in 1977 by Roy and Gaye Raymond, their first store opened in San Francisco, California and are currently headquartered in Columbus, Ohio, U.S, with current parent company as L Brands. The company has 1,149 stores including 1,098 stores in the US, 10 in the UK and 41 in Canada. Victoria’s Secret also has 304 franchised stores including 290 Victoria's Secret Beauty & Accessories stores, 13 Victoria's Secret International stores and one PINK International store. In 1983, for $1 million, Victoria’s Secret Inc. was sold to Leslie Wexner, who revamped the look of the company. Transforming a three store boutique into a 346 store retailer. In 1989, Victoria’s Secret Inc. executed an advertising campaign featuring for the first time in the company a ten-page insert that appeared in November issues of Elle, Vogue, Vanity Fair, Victoria, House Beautiful, Bon Appetit, New Woman, and People magazines. Later in the early 90s, Victoria’s Secret Inc. was under it’s current parent company, L Brands. They introduced the Miracle Bra, which was competing with Sara Lee’s Wonder Bra. In 2002 they introduced not only swimwear but a lingerie line, PINK, to target younger women. The Victoria's Secret Designer Collection......

Words: 856 - Pages: 4

Branding: Victoria's Secret

...Introducción: Limited Brands y VS Contexto La ya reconocida mundialmente, marca de Victoria's Secret es una compañía estadounidense que se dedica a diseñar lencería y otros productos de belleza para la mujer. Leslie Wexner fundó “Limited, Inc.” en 1963 en Columbus, Ohio, iniciando con dos tiendas de ropa para mujer. Es hasta finales de 2001 “Limited Inc.” que la empresa comenzó a crecer mediante la adquisición de 4600 tiendas especializadas, con marcas como: Bath & Body Works, Express, Lerner Nueva York, tiendas Limited, White Barn Candle Co., y Henri Bendel. Dentro de la adquisición de las tiendas, en 1982, Wexner compró una cadena de ropa interior situada en San Francisco, llamada Victoria´s Secret, la cual, hasta el momento solio constaba de cuatro tiendas y un catálogo. No obstante, la compañía fue fundada en San Francisco, California, en 1977 por Roy Raymond quien la vendió, (como se mencionó anteriormente) en 1982 al corporativo The Limited Inc, siendo actualmente propiedad de la compañía Limited Brands. Desde que se traspasó la propiedad de la marca, la compañía tiene su sede en Columbus, Ohio. Su primer dueño, el Señor Raymond se suicidó en 1993, al saltar del puente Golden Gate. Diseño del concepto e imagen Roy estudiaba en la Escuela de Negocios de Stanford. Su historia cuenta que como muchos otros hombres, le generaba mucha vergüenza al momento de comprar lencería para su mujer. Es aquí donde surge la idea para Roy de aplicar sus......

Words: 5193 - Pages: 21

Victoria Secret

...-- TIỂU LUẬN Môn: Marketing Lý Thuyết CHIẾN LƯỢC MARKETING-MIX NHÃN HÀNG VICTORIA’S SECRET   TRƯỜNG ĐẠI HỌC NGOẠI THƯƠNG CƠ SỞ II Chuyên ngành: Tài chính quốc tế -- TIỂU LUẬN Môn: Marketing Lý thuyết CHIẾN LƯỢC MARKETING-MIX NHÃN HÀNG VICTORIA’S SECRET   MỤC LỤC LỜI MỞ ĐẦU NỘI DUNG A. TỔNG HỢP NGHIÊN CỨU MÔI TRƯỜNG - THỊ TRƯỜNG: I. NGHIÊN CỨU MÔI TRƯỜNG: 1 II. NGHIÊN CỨU THỊ TRƯỜNG 3 1. NGHIÊN CỨU KHÁCH HÀNG: 3 2. PHÂN KHÚC THỊ TRƯỜNG: 3 3. LỰA CHỌN THỊ TRƯỜNG MỤC TIÊU: 4 B. CHIẾN LƯỢC MARKETING-MIX: I. CHIẾN LƯỢC SẢN PHẨM: 1. SẢN PHẨM: x4 2. CHIẾN LƯỢC LIÊN KẾT SẢN PHẨM – THỊ TRƯỜNG: 6 3. BAO BÌ SẢN PHẨM: 6 II. CHIẾN LƯỢC GIÁ: 1. CÁC YẾU TỐ ẢNH HƯỞNG: a. Mục tiêu: 7 b. Phí tổn: 8 2. CHIẾN LƯỢC ĐỊNH GIÁ: a. Định giá chiết khấu: 9 b. Định giá phân biệt: 10 III. CHIẾN LƯỢC PHÂN PHỐI: 1. CHIẾN LƯỢC PHÂN PHỐI: 10 2. PHƯƠNG THỨC PHÂN PHỐI VÀ KÊNH PHÂN PHỐI: 11 IV. CHIẾN LƯỢC XÚC TIẾN HỖ TRỢ KINH DOANH 1. CHIẾN LƯỢC XÚC TIẾN HỖ TRỢ KINH DOANH: 12 2. CÁC CÔNG CỤ THỰC HIỆN: 2.1. Quảng cáo: 12 a. Nhóm các phương tiện nghe nhìn: 13 b. Nhóm các phương tiện in ấn: 13 2.2. Quan hệ với công chúng (PR) 15 KẾT LUẬN PHỤ LỤC   LỜI MỞ ĐẦU 1. Lí do chọn đề tài Marketing là một khâu thiết yếu và tiêu tốn nhiều ngân sách trong một công ty, tuy nhiên, nó cũng mang lại rất nhiều hiệu quả cho công ty nếu như được thực hiện đúng đắn. Việt Nam là 1 quốc gia đang có nhiều phát triển vượt bậc, đời......

Words: 8793 - Pages: 36

Victoria's Secret

...Victoria’s Secret Public Criticism of its Business Victoria’s Secret is one of the America’s biggest designer, manufacturer and marketer of women’s premium lingerie. Founded in 1977 by Roy Raymond and his wife, it has long been the leader in its market, with $1.1 billion revenues in 2015. Today Victoria's Secret is wholly owned by L Brands, a publicly traded company. However, notwithstanding the company’s remarkable success, Victoria’s Secret, since several years, suffers from the public criticism of its business. There are both Internal and External factors that led to this public criticism of the brand. Some of these factors include a series of scandals that damaged their image and identity, and a new wave of competitors and new entrants that starts to challenge the brand, which create a high bargaining power for customers. The primary internal issue, and also the most important one that led to Victoria’s Secret public criticism, is the series of scandals that damaged their brand image and identity. The company suffered from a wide range of critics from 2009 to 2016, among which : In 2009 Victoria’s Secret was sued several times for producing underwear that contained formaldehyde. In 2012 they were accused of the use of child labour in harvesting cotton and of selling knockoffs of the company’s stockings. Moreover the new lingerie collection « Go East » has been criticised for being racist. However, today we are investigating the two biggest scandals that......

Words: 1427 - Pages: 6

Leadership Philosophy: Victoria’s Secret

...Leadership Philosophy: Victoria’s Secret Victoria’s Secret (VS) is an American retailer of women’s wear from lingerie to beauty products. I chose this company for many reasons, one being that I purchase items from this company on a frequent occasion, and the others because they are just a brilliant corporation. Victoria’s Secret was started out in San Fransisco, 1977 by a man named Roy Raymond, who felt embarrassed trying to purchase lingerie for his wife in a department store environment. The store was meant to create a comfortable setting for men. In 1982, after five years of operation, Roy Raymond sold the Victoria’s Secret company , with its six stores grossing six million per year to , Leslie Wexner, creator of The Limited, for four million. Victoria’s Secret started to rapidly expand into malls throughout the U.S. By 1990, it became the largest American lingerie retailer topping one billion dollars. By 1995, Victoria’s Secret began to market their company by holding a lavish event called the Victoria’s Secret Fashion Show, which broadcasted on pimetime television for America to watch. On July 2007, Limited Brands sold 75% of their chain to Sun Capital Partners to boost up VS stores and Bath and Body Works units, which provided 72% of revenue in 2006 and almost all the firm’s profit. With such a widespread operation, there is an obvious need for employees to help the company achieve goals. Victoria’s Secret careers not only focus on helping the company earn......

Words: 530 - Pages: 3

Victoria's Secret Pink

...Victoria’s Secret Pink: Keeping the Brand Hot Synopsis This case illustrates the general strategy employed by Victoria’s Secret to acquire a new segment of customers through the introduction of its brand Pink. Pink is a line of “loungewear” (sweatpants, T-shirts, pajamas, bras and panties, pillows and bedding) targeted toward 18-30 year old females. The garments feature comfortable cuts and mostly cotton fabrics in bright colors. New garments are introduced every three or four weeks. The image is one of “cute and playful” versus the more overtly sexy image of the core brand. The case highlights the different promotional approaches that Pink managers are taking in contrast to those of the core brand. This is a lifestyle brand. The Victoria’s Secret chain has been a big driver of financial success for Limited Brands (parent company), and Pink is expected to be a big part of Victoria’s Secret’s sustained growth. Not only does it give the chain a new set of customers, but it brings in customers at a younger age who will then “graduate” up to the Victoria’s Secret core brands. The ethics of the Pink strategy are considered in detail. Discussion Questions 1. Analyze the buyer decision process of a typical Pink customer. Need recognition: This can come from internal stimuli (basic needs such as hunger, thirst, protection) or external stimuli. Considering that people do not purchase fashion brands based on such needs as, “I am cold/naked and need......

Words: 1751 - Pages: 8

Trapped - Gefangen in Island (3) | Exactly How Recently Was Porsha Williams' New Man Dating Other Women? | Terminada Battlestar Galctica (2003) 2004 - 2009