2. Part One: Market Environment Study and Target
Market
Product Category
The brand will fall into the category of women intimate apparel. Being this
a wide category, having bra, panties, pajamas, and other types of intimates. At
this time, I’m going to focus in only one product to develop.
Product
I would like to develop a lingerie set of a white organic cotton lace bra
and panty with a message inside of the bra cup, which will embrace women to
love themselves more and take care of their health. A percentage of the
monetary sales, will go to a non-profit breast cancer organization.
MARKETING ENVIRONMENT STUDY
Socio-Cultural Environmental Forces
Nowadays the lingerie industry has grown on a large scale. The attitudes,
ideas and even the status of the women has changed over the years. Today’s
woman is independent, working and have education and high standards in life.
Having said that, the woman also needs to be and feel healthy and confident in
her own skin (Sorin, 2015). Society and media has imposed a stereotype of the
“perfect woman”, that doesn’t fit with the average woman, making them feel
insecure about their own image.
3. Fashion Trends
Lingerie trends goes from transparences and lace to pieces with a lot of
details and embellishments. Designers are using a neutral palette of colours, with
black, white, nude and pastels.
Figure 1: For Love & Lemons Bodysuit
Figure 2: Out from Under Lace Bra
Figure 3: La Perla Petit
Macrame Figure 4: La Perla SS2015
Figure 5: Victoria Secret
Lace Waist Cincher
4. Competitive Environmental Forces
Competitor #1: Victoria’s Secret
Product: Victoria's Secret company is a North American lingerie retailer
characterized not only by having intimates but also swimwear, activewear and
cosmetics. The style of their products varies widely, and they target a large
market of women with different tastes. Of course, among the best-sellers are
their bras, which go from simple to double push up. Price: Their price range
varies from collection. According to Business Insider (2013), “Women were willing
to pay $50 for bras because the luxury experience made their lingerie purchases
feel like investments” (para. 9). Place: Their products are merchandised in their
own stores in U.S., Canada and UK. Also, the brand offer worldwide online
shopping at www.victoriassecret.com. Promotion: As promotions, the brand use
a lot of advertising campaigns, one of them is the annual Victoria’s Secret
Fashion Show where popular super models, commonly called their “angels”
walk the runway with big wings, along with popular singers of the time. Also, they
have Victoria’s Secret Catalogs, Victoria’s Secret credit card, sale deals such as
5 panties for $27.50, 2 bras for $40, and so on. Advantage: Their advantage is
that they are the #1 leading company of intimates in the U.S. and has
recognition and status all over the world (Bloomberg, n.d.).
Competitor #2: La Senza
Product: La Senza is a Canadian lingerie retailer. It offers bras, panties,
lingerie product, beauty products and accessories, including lotions and body
washes, lip glosses, and naughty accessories (Bloomberg, n.d.). Price: Their
prices are affordable for their high quality product. Depending on the style of
the bra, the prices will go from $20 to $60 (Alshaya, n.d.), and offers deals such
as Mix and Match 7 panties for $28.95 (La Senza, n.d.). Place: La Senza has 346
stores in 30 countries around the world (Shaw, 2013), and they also offer online
shopping at their website www.lasenza.com. Promotion: The company use a lot
of techniques to promote their products. They offer customers to join their
exclusively “Club La Senza”, where they will receive 10% off + free shipping in all
orders by paying only $10 a year. (La Senza, n.d.). Advantage: One of the
strengths of this company in the market place, is that their products are
affordable and attractive in terms of colours and styles to an adult
contemporary target market.
5. Competitor #3: La Perla
Product: La Perla is an Italian atelier, which specializes in high end lingerie,
beachwear, clothing and accessories for women and men. Price: La Perla's
pieces can cost over $300 but many women agree that this glamorous and chic
lingerie is well worth it (Life in Italy, 2012). Place: The brand has a total of 150
stores globally, mostly in Europe. Costumers can also buy their pieces online at
www. laperla.borderfree.com where they offer shipping for more than 220
countries and territories (Border Free, n.d.). Promotion: For promotion, the brand
use celebrities and supermodels such as Cara Delavigne and Naomi Campbell
as their faces for their catalogs and advertising. Advantage: Being a high end
and recognized brand, makes them a very high competitor in the market place,
because of their successful trajectory and recognition. Although, this brand is
targeted to consumers who have a high income and are willing to pay their
prices.
TARGET MARKET PROFILE
Isabella Betancourt is a 24 years old young single woman. She was born
and currently live in Toronto, Canada. Isabella lives in Downtown Toronto where
she works for an advertising company as a marketing associate, she is really
creative. Her income is above $50,000 per year, what makes her financially
independent. She likes to read, listen to music, do hot yoga, go and eat healthy,
although sometimes indulge herself with wine and pizza. Her style depends on
her mood, although she prefers having versatile yet fashionable pieces in her
wardrobe. Isabella loves shoes, and her hobby is collecting them, having a
whole closet of shoes, depending on year, colour, and style. On her free time,
Isabella likes to go out to catch up with her friends, watch Keeping up with the
Kardashians, and travel to nurture her spirit with new cultures and experiences,
she is really spiritual. Her personality is like a chameleon, is really shy and calm
when she knows a person at the beginning, but then is really outgoing and
extroverted. She is really caring about her family and friends, is responsible with
her work and likes to have everything in order. In her family, she has a history of
breast cancer, so she tries to keep herself healthy and active to prevent it.
Recently, she ran the “Run for the Cure” race of the Canadian Breast Cancer
Foundation CIBC, in support to all their families and people who have been
diagnosed and impacted by breast cancer.
6. Target Market Profile: AGVORE Lingerie
Categories Variables Typical Breakdowns
Geographics Region Across Canada and Online
City or CMA size Under 5,000- 1,000,000+
Density Urban
Demographics Age and family
composition
20-30
Gender Female
Marital Status Single or equivalent; married or
equivalent
Income 50,000-150,000+
Occupation Business; sales; managerial;
designer; student
Education Post-secondary graduate
Ethnic background Country of origin
Home ownership Own home; rent home
Psychographics Personality traits Impressionable; private;
conservative; extroverted;
fashionable
Lifestyle values and
approaches
Beauty; success; independence;
family
Leisure activities,
hobbies, and interests
Family time; social gatherings;
friends; shopping; fashion
Media habits Facebook; Newspaper; magazine;
blogging
Technology usage Laptop; smartphone; e-reader; T.V
Bahaviouristics Main occasion for
product use
Everyday wear
Main product benefit
sought
High quality; long lasting; stylish;
fashion
Primary and
secondary product
usage
Primary use is to cover the intimate
parts below the outfit. Secondary
use would be that the set is a
neutral colour so can be used with
every type of clothing.
Frequency of use Weekly; monthly; occasionally
Frequency of
purchase
Monthly; every few months
Product usage rate Light user; medium user; heavy
user
Product usage status Non-user; first time user; semi
frequent user
Product loyalty status None; low; medium user
7. Part Two: Product, Brand and Positioning
POSITIONING MAP
For the positioning map, I chose an axis of age and style. Because my
target market goes to woman between 20 to , I have positioned my brand at
the middle of the young horizontal axis and at the same level of the vertical axis
competing with La Senza. I think this is a good place to compete, because my
product is targeted to a niche market, and the style I’m going to use are trendy
to them, in comparison with the other brands that can offer a variety of
products to different targets.
8. Product: Set of bra and panty
Figure 6: Lucy Lace White Figure 7: Kaufman Organic Poplin PFD Bleached White
Figure 8: Lucy Lace Pink Figure 9: Inside and Outside Bra
Figure 10: AGVORE panty
9. TOTAL PRODUCT CONCEPT
Core Product Layer
The product consists on a simple but elegant white bra and panty
comfortable set that woman can whenever they want because of their nude
color. The philosophy of the brand is to encourage woman to love their body
with the set messages.
Actual Product Layer
The two pieces are white, with solid and lace patterns of organic cotton.
For this specific product, the brand use pink for the stripes of the bra and panty
in relationship with breast awareness, and motivational messages inside the cup
of it.
Augmented Product Layer
Because the product it is going to be merchandise on social media
platforms, people can buy them online or at the atelier making an
appointment. The product is sold with a beautiful package with a ribbon and a
letter where the brand explains what is their philosophy and appreciating the
purchase which 10% of it, is going to a non-profit organization, in this case to a
breast cancer one. People can order custom made sets also.
BRAND PERSONALITY
Comfort, classy, and confident. AGVORE wants to give their customer a
product where the woman who is using this set feels beautiful and confident in
their own body, giving at the same time comfort with their soft pieces and a
classy and stylish design of lingerie.
BRAND NAME
For my brand, I chose AGVORE Lingerie as the name. Because it is an
unusual name, may attract the target market for being distinctive and new.
Having a Hispanic and Armenian background, gives me the opportunity to
have a variety of new words to choose that some people may not know. The
word “AGVORE” means beautiful in Armenian, which is one of the messages the
brand and product wants to give the customer.
11. Brand Mark or Logo
Brand Colours
The colours of the brand will be white and black, because those colours
are classic and elegant. White will represent the perfection of woman, as this
colour means purity, innocence, wholeness and completion. is color at its most
complete and pure, the color of perfection. The color meaning of white is purity,
innocence, wholeness and completion (Colour Wheel Pro, n.d.). On the other
hand, black is associated with power and elegance, which represent the role
women’s have these days in society.
12. Product Category Lifecycle
For being a new brand introducing a new product to the market, the
product category would be introduction. My plan is to advertise as much as
possible the product on several social media platforms, with the help of
influencers such as bloggers, to give the product popularity among the
community.
13. Part Three: Primary Research
QUESTIONNAIRE SURVEY
http://goo.gl/forms/YEd8QVvjDe
Do you consider yourself as an introverted or extroverted person?
o Introverted
o Extroverted
Do you think social media impact society?
o Yes
o No
Have you ever been to a Victoria's Secret store?
o Yes
o No
If yes, have you shopped there?
o Yes
o No
What is the element that you will consider when buying bra?
o Fabric
o Color
o Price
o Conformability
o Other: ____________________
Do you ever match your panties to your bra?
o Yes
o No
Do you support the trend of eco-friendly for underwear?
o Yes
o No
How much are you willing to spend in a pair of underwear? (bra and
panty set)
o $20 - $40
o $50 - $70
o Less than $20
o More than $70
14. How often do you buy underwear in a calendar year?
o Every week
o Every month
o Every six months
o Other: ____________________
Do you feel AGVORE attractive for a lingerie brand? (The word "agvore"
means beautiful in Armenian)
o Yes
o Not at all
If a percentage of your purchase went to a non-profit organization,
would that encourage you to buy the product?
o Yes
o No
Which one of these options do you prefer the most?
o Online shopping
o In-store shopping
o Both
Do you want to improve your body shape?
o Yes
o No
If yes, which part(s)?
o Breast
o Waist
o Legs
o Whole body
Which of the next social media platform do you think is the best to
advertise a new product?
o Facebook
o Twitter
o Instagram
o Snapchat
o Other: ____________________
15. THREE STATISTICS
In my survey, I asked 20 women aged between 18-25 about their
preferences when it comes to style of underwear, name of the brand, which
platform they think is better to promote a product and how they feel about their
body and society.
For a brand, is important to have an attractive name that will catch the
customer. I asked my target if they think AGVORE was appealing to them. 72.2%
answered that they feel that name attractive for the brand, leaving a 27.8%
saying that they don’t think that name work for a lingerie brand.
As price goes, I wanted to know how much my target market are willing
to spend in a set of underwear. The majority (50%) said that they were willing to
spend between $20 to $40.
16. In this question, I wanted to know which platform will be more effective to
promote my product. The majority (66.7%) chose Instagram as the best social
media platform to advertise a new product.
SUMMARY OF FINDINGS
With the results of my survey, I now know what are the probabilities of my
product to succeed. All the questions were meant to know what the customer
prefer when it comes to buy underwear, how often they buy it, and if they feel
that social media influence them. The results will help me to know how to set the
price according to what are they willing to pay, also in how will I promote the
product, and last but not less important, if they feel the name of the brand and
the logo are attractive for the product. I don’t feel that I have to change
something about the product, because the majority of target costumer answers
were positive.
17. Part Four: Fashion Distribution
DISTRIBUTION ANALYSIS
Competitive Distribution Analysis
Competitor #1: Victoria’s Secret
For distribution, Victoria’s Secret uses multiple channels to distribute their
products. The brand has it own stores where they merchandise their products,
they also offer catalogs and have its online store www.victoriassecret.com. At
the same time, the brand stay in touch with their clients by Twitter, Facebook,
and Instagram, creating a relationship with them. The brand is using a selective
target market coverage, having their stores at distributed mostly in the USA, and
some worldwide (Vault, n.d.).
Victoria’s Secret
Stores Online Catalog
Target Segment CTarget Segment BTarget Segment A
18. Competitor #2: La Senza
La Senza sells merchandise through retail stores in Canada and licensed
stores in 46 other countries. These products may also be purchased through its
website www.LaSenza.com (Wikinvest, n.d.). This brand, as well as Victoria’s
Secret, uses a selective target market coverage, although, the majority of their
stores are based in Canada.
La Senza
Stores Online
Target Segment BTarget Segment A
19. Competitor #3: La Perla
This competitor uses multiple channel distribution to sell their lingerie
products. Although La Perla started as an exclusive brand store, they are
expanding their stores worldwide and also selling their products at owned-
company stores (Fashionbi, 2015). Also, customers can buy the lingerie pieces
on their website. They target market coverage will be selective, because they
carry their products at selected geographical places to maintain the exclusivity
of the brand.
La Perla
Stores Online Retailer
Target Segment CTarget Segment BTarget Segment A
20. AGVORE Distribution Strategy
For my brand, I’m going to use a direct and electronic marketing
channel. Because I planned to promote my product on social media platforms,
the distribution of the brand is going to be mostly via an electronic channel such
as Facebook or Instagram. I’m also applying a selective target market
coverage, because I want my product to be exclusive but accessible at the
same time.
Strengths and Weaknesses of Distribution Strategy
One of the strengths for the brand will be that it is the first brand of lingerie
implementing the philosophy of giving motivating woman and having a
corporate social responsibility with non-profit organizations. On the other hand,
the weakness is that there are a lot of lingerie brands such as my three main
competitors, that are the leaders on the industry of intimates.
AGVORE Lingerie
Stores Online
Target Segment BTarget Segment A
21. Part Five: Pricing Strategy
PRICING STRATEGY ANALYSIS
The pricing strategy I will use for demand-oriented approaches would be
penetration pricing and for competition-oriented approaches my product will
be using at market pricing. Because the brand and the product are new in the
market, customers are may willing to pay a high price for it. Although, the price
I’m using for the product is affordable for a set in comparison to my competitors.
One of the strengths of the brand is the strategy of giving a 10% of the purchase
to an organization, will attract the target market to buy the product. According
to the survey I conducted, for question #11 “If a percentage of your purchase
went to a non-profit organization, would that encourage you to buy the
product?” 90% of the customers that answered “Yes”, giving me the advantage
of using that as a corporate social responsibility mission for my brand.
COMPETITIVE PRICING ANALYSIS CHART
Victoria’s Secret La Senza La Perla AGVORE Lingerie
Bras
$54.50
$56.50
$59.50
Panties
4/$29.50
Bras
$39.95
$44.95
$49.95
Panties
$16.50
Buy 2 Get 1 Free
Bras
$154
$238
$324
$498
Panties
$118
$124
$194
Set
White bra and
panty
with pink
$52
22. STRATEGIES USED BY COMPETITORS
Competitor #1: Victoria’s Secret
Demand-Oriented Approaches
Victoria’s Secret is using three types of demand approaches; bundle
pricing and odd-even. The majority of their prices for bras and panties have .50
cents, as a characteristic of odd-even prices, also the brand uses a lot of bundle
pricing strategy for their products. For example, their 4 panties for $29.50, this will
be bundle and odd-even at the same time (Victoria's Secret, n.d.)
Competition-Oriented Approaches
The brand uses an At Market Pricing as a competition approach because
their prices are stable and similar to the competitors in the market.
Competitor #2: La Senza
Demand-Oriented Approaches
For this approach, La Senza use odd-even and bundle pricing as well.
Their prices for bras end with .95 cents and have promotions of buy 2 get 1 free
for panties and buy 1 bra get 50% off on the second one (La Senza, n.d.)
Competition-Oriented Approaches
For competition oriented approach, La Senza use At Market Pricing too.
This brand has similarities with Victoria’s Secret in how they price their products
because they belong to L Brands Inc. (L Brands, n.d.)
Competitor #3: La Perla
Demand-Oriented Approaches
This brand is known by their trajectory and luxury lingerie pieces, and also
by their high prices. For demand-oriented approach, La Perla is using the
prestige approach, because they know that their target market is willing to pay
those high prices (Jing Daily, 2012). Also, they use a price lining approach.
Looking through their bra and panties prices, all of them ends with 4 or 8 ($154,
$238, $324, $498).
Competition-Oriented Approaches
The competition approach for this brand will be Above Market Pricing,
because of their high prices in comparison with other lingerie competitors in the
market
23. Part Six: Marketing Communications and
Promotions
MARKETING COMMUNICATIONS STRATEGY
For my brand, I will sell and advertise my product via social media
network, specifically via Instagram. One of the question I conducted in my
survey, was that which kind of platform my target market think would be
effective to promote my brand and the majority answered that this platform will
be helpful to introduce this new product. This tool will be effective because my
target market use this platform quite often.
24. MARKETING COMMUNICATIONS AND PROMOTIONS
USED BY THE COMPETITION
Competitor #1: Victoria’s Secret
Victoria’s Secret company is well known by their advertising campaigns.
One of the marketing communications tools they use for promote their brand is
fashion shows. This will be in the fashion extras categories. Victoria’s Secret
Fashion Show is one of the most popular and important shows in the industry of
lingerie, where the brand has their “angels” modeling their new line (Zielinski,
2014).
25. Competitor #2: La Senza
One of La Senza’s tool for marketing their products, is stay in touch
and connected with their followers by social media, in this case, by Instagram
(Instagram, n.d.). Nowadays, Instagram is a very powerful platform to advertise
brand products because of the high traffic of user using this application.
26. Competitor #3: La Perla
La Perla uses a direct response tool to promote and sell their products via
their website http://laperla.borderfree.com where customers can find and buy
all their products, as well see its lookbooks and enjoy their online sales (La Perla,
n.d.).
27. Table of Figures
FIGURE 1: FOR LOVE & LEMONS BODYSUIT.......................................... 2
FIGURE 2: OUT FROM UNDER LACE BRA.............................................. 2
FIGURE 3: LA PERLA PETIT MACRAME ................................................. 2
FIGURE 4: LA PERLA SS2015.............................................................. 2
FIGURE 5: VICTORIA SECRET LACE WAIST CINCHER.............................. 2
FIGURE 6: LUCY LACE WHITE ... FIGURE 7: KAUFMAN ORGANIC POPLIN
PFD BLEACHED WHITE ................................................................. 4
FIGURE 8: LUCY LACE PINK FIGURE 9: INSIDE AND OUTSIDE BRA ....... 4
FIGURE 10: AGVORE PANTY ............................................................ 4
28. Bibliography
Alshaya. (n.d.). Retrieved from La Senza: http://www.alshaya.com/brands/fashion-
footwear/la-senza
Bloomberg. (n.d.). Bloomberg. Retrieved from La Senza Corporation: Private Company
Information:
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapid=69812
2
Border Free. (n.d.). Which countries does borderfree ship to? Retrieved from Border Free:
http://shop.borderfree.com/help/answer/Which-countries-does-Borderfree-ship-to
Colour Wheel Pro. (n.d.). Color wheel pro: Color meaning. Retrieved from Colour wheel pro:
http://www.color-wheel-pro.com/color-meaning.html
Fashionbi. (2015, February 27). Undressing the lingerie market - Evolution and Global
Perspectives. Retrieved from http://www.slideshare.net/fashionbi/undressing-the-
lingerie-market
Instagram. (n.d.). LaSenza (@lasenza) > Instagram photos and videos. Retrieved from
Instagram: https://www.instagram.com/lasenza/
Jing Daily. (2012, November 15). Q&A: LA PERLA CEO TIM BRASHER ON SELLING LUXURY
LINGERIE TO CHINA. Retrieved from Jing Daily: https://jingdaily.com/qa-tim-brasher-
ceo-of-italian-luxury-lingerie-brand-la-perla/#.VljRhbz93wx
L Brands. (n.d.). L Brands > Brands. Retrieved from L Brands:
http://www.lb.com/our_company/about_us/Brands.aspx
La Perla. (n.d.). La Perla Official Store - Lingerie Made in Italy. Retrieved from La Perla:
http://laperla.borderfree.com/us/
La Senza. (n.d.). 7 for $28.95 panties: Womens cotton underwear for less. Retrieved from La
Senza: http://www.lasenza.ca/specials/trendy-panty-deals-1.html
La Senza. (n.d.). Club La Senza Card. Retrieved from La Senza Lingerie:
http://www.lasenza.ca/club-lasenza-card-1105452-cl.html
Life in Italy. (2012, January 6). The Italian Lingerie Brand. Retrieved from Life in Italy:
http://www.lifeinitaly.com/fashion/la_perla.asp
Lutz, A. (2013, September 2). Victoria's Secret will beat the competition. Retrieved from
Business Insider: http://www.businessinsider.com/victorias-secret-will-beat-
competition-2013-9
29. Shaw, H. (2013, February 23). Will Canada's La Senza Survive Next to Victoria's Secret?
Retrieved from Financial Post: http://business.financialpost.com/investing/canada-
la-senza-victorias-secret
Sorin, K. (2015, March 9). Luxury brands lead lingerie market in growth: report. Retrieved from
Luxuary Daily: http://www.luxurydaily.com/luxury-brands-lead-lingerie-market-in-
growth-report/
Vault. (n.d.). VICTORIA'S SECRET STORES, LLC . Retrieved from Vault:
http://www.vault.com/company-profiles/retail/victorias-secret-stores,-llc/company-
overview.aspx
Victoria's Secret. (n.d.). Sexy Women's Panties. Retrieved from Victoria's Secret:
https://www.victoriassecret.com/panties
Wikinvest. (n.d.). 11. Segment information for L Brands, Inc. (LTD). Retrieved from Wikinvest:
http://www.wikinvest.com/stock/Limited_Brands_(LTD)/Segment_Information
Zielinski, C. (2014, April 27). Victoria's Secret: Multi-Channel Retailing. Retrieved from Prezi:
https://prezi.com/eu4ih_qcl2vj/victorias-secret-multi-channel-retailing/
