A brief analysis presenting Victoria's Secret history as brand and the use of its sub-brand PINK to keep the company HIP and help it expand in a bigger market share.
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Victoria's secret PINK: Keeping the Brand Hip
1. STUDENTS:
ODYSSEAS CHLORIDIS
SOTIRIS SAVVAS
JOANNA NOWAK
SILAGHI DANIELA
EUTHIMIS VLAXOS
University of Macedonia
Course: Advanced topics in marketing
Instructor: Andreas Andronikidis
Case: Victoria’s Secret
Pink: Keeping the Brand
Hip
2. Agenda of Contents
Brief history of Limited Brands, Victoria’s Secret and Pink
Identity of VS
From VS to PINK
Problem Statement
Conclusion
3. Limited Brands-Brief History
First store in Ohio in 1963 by Leslie H. Wexner
First year: 160.000 $. Now, leaders of lingerie, clothing and
personal care products with 10 billion revenue.
Brand vision: Customers feeling sexy, powerful and bold
Owns: VS, PINK, Bath&Body Works, La Senza, Henri Bendel
5. VS Secret-Brief History
Established by Roy Raymond in San Francisco in 1977.
In 1982 VS was sold to LB who saw the potential.
Huge strategy change after the takeover
Spectacular increase in sales after that continuing until this day.
Victoria's Secret reaches more than 390 million customers each year
Net sales (in millions): 1,075 $
6. PINK-Brief History
Started as a test at 2003 – 50 test markets
Officially introduced July 2004
Faction of VS and solely PINK stores
Still a new and emerging line
7. Goal
Commitment to building one of the world’s best
fashion brand offering captivating customer
experiences that drive long-term loyalty and
deliver sustained growth for our shareholders.
8. Positioning
Segment leader focused on women’s intimate
and other apparel categories that make
customers feel sexy, sophisticated, and forever
young.
11. SWOT Analysis
Strengths
Weakness
es
Threats
Opportunit
ies
Strong brand
recognition
In-store Experience
Customer Care
E-commerce
Product range
Mainly premium prices
High Inventory
Unrealistic Image of
women
PINK line not offered in
every store
Open stores in key
locations
Focus on other markets
like Asia
Create online digital
dressing rooms
Several lingerie
competitors
Fake products with the
same name
Marketing negative
image for women
Eastern cultures
against of being sexy
12. Marketing mix on the 4 P’S
Balance between sexy and approachable Product
It makes customers don’t really care about the full price Price
Close connection to stores and website Place
VS fashion show Promotion
VS Angels Promotion
$220 million spent on catalogues-direct marketing Promotion
Freebies Promotion
Different date of clearance sales Promotion
Exclusive , Limited-Time coupons Promotion
Fabric Product
14. From VS to PINK
Started as store-in-store for VS. It became successful and now it’s by its
own
VS wanted to expand its market to younger customers
Line of clothing: playful fun and fresh
Mainly for college girls
Includes decoration products like bed sheets teddies
$1.5 billion in sales last year and accounting for 25% of Victoria’s Secret’s
$6.6 billion overall annual revenue
Changes to the fashion show
15. PINK marketing strategy
In lingerie industry customers have a high tendency to stay
loyal with brand that they are familiar with.
PINK is a perfect starting point to become VS loyal customers.
Customers of Victoria’s Secret are already “taken” before they
even reach the age to use VS products.
16. Future strategy
Victoria’s Secret is opening in China but initially the stores
would sell only beauty products and accessories
That’s the first step towards entering that market which is the
world’s low-cost garment manufacturer
Selling lingerie to China’s growing middle class today is likely
Victoria’s Secret end goal
17. Broadening the customer base…
Too far?
Content agenda
Which target groups did Pink attracted
Why did Pink attracted those target groups
Was that an intentional move or not?
How did Pink affected the market with the rival companies
What kind of aspiration does Pink engenders
18. Age group expansion
Rapid expansion of Pink products led
to other age groups as well
Older females 30+
Younger females 9-12
19. Age compression
Age compression or KGOY –kids getting older
younger
Kids reaching 10yo start to get interested in more
mature things
The group between 9-12yo is called “tweens” or
preteens
20. Financial facts
Tweens grow in size and
purchase power
25 million tweens spend
51billion $ annually
Most of whom are girls (majority
>80%)
21. Intentional or not?
Executives have officially denied targeting girls
under 18
It would be considered as exploitative
Specialists in advertising, marketing and fashion
seriously dispute that
Pink is counting in co-shopping
22. Other companies in same direction
VS is not alone in its efforts to capitalize on lingerie
VS is the first who expanded in lower age groups and holds
the biggest share in the market
Lingerie is the second fastest growing category in apparel
Other companies try to take advantage on this
GAP
Kohl’s
Macy’s
JC Penney etc.
23. Aspirations on clients
Pink practices gateway marketing
Gateway marketing in sexy lingerie raises concerns to
parents and society
According to society VS objectifies preteens in sexual
way
Aspires them to be sexy so they can be popular and
successful
24. Critics on pink
Parents do not want a brand telling their
children what to do, how sexy they should be
and how they should look like.
This lingerie has caused a lot of critics and
many parents were really annoyed about it
25. Conclusion
VS has not only succeeded in expanding its target group ,but
through gateway marketing has achieved loyalty and long-term
commitment in the brand from young ages
Although Pink never admitted that targets the age of 9-12 ,the fact
is that it enjoys the benefits of that situation
There are intense critics about the ethical point of view of VS
strategy with Pink which is justified
Actual subject: the role parents must play and the guidance they
must show to their kids ,so they can eliminate the problem from its
root and not oppose to VS “evil strategies”
26. A small taste from yesterday’s show
Victoria's Secret Fashion Show December
2nd 2014
