Analysis of Marketing Campaign: Victorias Secret

Analysis of Marketing Campaign: Victorias Secret Currently, Victorias Secret offers a large assortment of products that are not only lingerie based. In the store part of the organization, there are also beauty and fragrance products that include cosmetics and skin care. In the Victorias Secret catalogue and Web, the assortment varies even further with lingerie, swimwear, apparel and shoes. Within the Victorias Secret brand, there are sub-brands or collections. These sub-brands have also built recognition. The sub-brands are Pink, Very Sexy, Body by Victoria and Angels. These sub-brands have their own identity but offer and deliver quality, Victorias Secret is one of the most successful businesses in the US today. Their Marketing strategy is hinged upon a well thought of advertising campaign and other special features. History Victorias 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 colours, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. Even the name Victorias 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. Today, Victorias Secret enjoys nearly a monopoly position on the retail of intimate apparel in the US. The typical bra that once sold for $15 at Victorias Secret, when the company first opened and was worried about competition, now sells for over $40. Victorias Secrets Success Starting from Raymonds six stores, Victorias Secret has grown into a giant in the lingerie business. As my colleague just explained VS has virtually no competitors in the womens elegant lingerie market. In the more general category of all underwear, Victorias Secrets sales also tower over the sales of all other underwear brands. Victorias Secrets success is evident in the numbers. Not only does Victorias Secret dominate in its own market, it has also become the fastest growing branch in the Limited family. To understand the success of Victorias Secret, it is necessary to look at the forces in the lingerie industry. First, a range of complements contribute to increasing demand. Complements range from Britney Spears and MTV to perfume, basically anything that is sexually suggestive. The acceptable boundary for sexuality has with these complements been raised higher and higher. Along with this, the media has elevated the position of intimate apparel in our society. Magazines like Cosmo and Glamour advise women to pamper themselves with nice underwear as one of lifes secret survival tips. Bras and panties are commodities that need to be replaced at a modestly frequent level. Therefore, there is no concern for the intimate apparel industry of a decline in demand. The industry is not rivalrous either. Bras are priced over a fairly broad range with high markups. Firms in this industry have very high profit margins. Furthermore, neither the buyers who are women shoppers nor their husbands who are buying gifts have much bargaining power. Suppliers for the intimate apparel industry similarly have very little bargaining power because of the large number of manufacturers and few big buyers. Supermodels who can be considered suppliers in the highly-advertised lingerie business certainly do not have bargaining power, especially when it comes to Victorias Secret. Most models consider it a prestigious honor to be a Victorias Secret model. There is more supply (models) than demand in this case. For such a lucrative industry, there are surprisingly few competitors in the US market. Besides Fredericks of Hollywood, there are no other lingerie retail chain stores. Victorias Successful Marketing Campaign Advertising One of Victorias Secrets strengths is its very successful advertising strategy. In a business that sells an image and a lifestyle, advertising is crucial. Victorias Secret spends $66 million each year on advertising, essentially defining beauty and packaging it for consumers. Thousands of newspaper ads, catalogues, and televised fashion shows convince women that buying Victorias Secret products will boost their confidence and enhance their appeal. A Victorias Secret product represents fun, romance, fantasy, desire and love all in one. As long as they do Victorias Secret lingerie, women can be transformed like Cinderella from the ties of domestic life to one of the angels seen on the walkway. Annual Fashion Show Televised annually, the Victorias Secret Fashion Show Extravaganza has an exclusive contract with nationwide broadcasting station CBS. A symbiotic relationship exists between the two firms. Victorias Secret obtains one hour of nationwide advertising, while CBS holds the exclusive right to one of the most popular programs on TV. For one full hour, beautiful supermodels parade about in Victorias new-line of beautiful lingerie with chic special effects and music that heightens the fashion show to the level of a Broadway production. Women are persuaded that Victorias Secret lingerie will win the enthusiasm they see plainly in their male colleagues. The Supermodels Victorias Secret holds one of the most important input supplies in the lingerie industry: supermodels. Victorias Secret models are synonymous with beauty. Advertisements capitalize on this association and cement in consumer minds that Victorias Secret represents beauty and class. The fact that Victorias Secret has most of the top supermodels working for them is no surprise. Nobody boasts of Banana Republic models or GAP models, but mention Victorias Secret models and everybody gushes about how gorgeous they are. Being a Victorias Secret supermodel is a sign of prestige. Like the top animators who are honored to work for Disney, talented models are enthusiastic about signing up with Victorias Secret because it guarantees them a successful name and chance to be named in an elite group of supermodels, including the likes of Adrianna Lima, Heidi Klum, and Tyra Banks. In order to keep good business flowing, stores need strong marketing strategies. If they do not have people coming into their stores, they obviously will not have much business. Victorias Secret is well aware of this, and they constantly give customers reasons to visit by sending them coupons, special offers, and best of all free stuff! 1. Freebies:ÂÂ  The Free Panty coupon is one of the customers favourite methods. Victorias Secret sends these coupons out every month to all of their customers, and the best thing about this coupon is that there is no purchase necessary. Many times when stores give out coupons to receive free items, it is required that you buy something first. However, people love this particular offer because they can receive a free panty just by walking into the store and handing over the coupon. How does this help Victorias Secret?ÂÂ  Giving away a free item gives customers a reason to go into the store. There arent too many people who will just go in the store, get their free item, and then walk out. Every time one goes in to claim their prize, they always end up stopping to look around at everything else (and usually end up falling in love with something that they really did not need). One ends up spending money every time, and thats a nice profit for Victorias Secret. Theyve gained more business just by handing out a small panty that most likely costs them very little! 2. Exclusive, Limited-Time Coupons:ÂÂ  Another one of their great techniques is when they send coupons for 10 dollars off any Pink purchase. In this situation, customers would receive $10 off any Pink brand item bought in the store. Pink is extremely popular for Victorias Secret, and theres a wide selection in this line. Theres something for everyone. Why not see if you can save on a higher-priced item you may have had your eye on? How does this help Victorias Secret?ÂÂ  They may provide $10 off, but theyre getting you to spend money there. Again, the incentive gets customers through the door and the sought-after merchandise urges them to stick around and do some more shopping. 3. Clearance or Bargain Sales:ÂÂ  Victorias Secret also holds their Semi Annual Sales to drum up business. These sales occur in the winter time (usually every January) and also every summer. These sales are huge (some ladies ransack the displays to find the best deals) and they get tons of people into their store. Many of the items that go on sale during this time are usually discounted between 40 and 70%. People who love Victorias Secret go crazy over these prices, because on a regular day, their prices arent usually that cheap. How does this help Victorias Secret?ÂÂ  Bargain-hunting customers usually buy as many pairs of unmentionables as they can which not only brings in cash but also clears out previous-season merchandise. This frees up space for new designs, which people catch previews of while theyre waiting in line to pay for their purchases. 4. Incremental Incentives:ÂÂ  Not every patron sees the appeal of waiting in lines for the best prices, and VS understands that. Thats why they incorporate online-only deals. For example, they may give a $15 discount for every $100 spent, $30 off for every $150 spent, or maybe even $75 off for $250 spent. This incremental technique is another way for the store to gain new business. How does this help Victorias Secret?ÂÂ  Incremental incentivesÂÂ  encourage people to buy more for a price break or discount. This is especially beneficial for customers who may be near a price break lets say you have $90 worth of merchandise in your cart. Wouldnt you be likely to add one more item if you knew you could then use the coupon for $15 off? I would.