NAME : NUR IMAN BIN MOHD ZAHARI

ID NO. : 77171752
COURSE : BACHELOR (HONS) BUSINESS MANAGEMENT
MODULE : FOUNDATION FOR MARKETING (MKH16)
TUTOR : VANAJA
COURSE LEADER : DOCTOR NEIL RICHARDSON
Content

Preface ................................................................
...................................................................... 2
Executive
Summary.................................................................
................................................ 3
Introduction............................................................
.................................................................. 7
Problem
definition..............................................................
................................................... 7 Research
methods.................................................................
................................................. 8 Structure of the
report .................................................................
.......................................... 9 1. Theoretical
Framework...............................................................
...................................... 11 2. Company
Description.............................................................
........................................... 14 2.1 L
Brands..................................................................
.................................................... 14 2.2 History of
L
Brands..................................................................
................................... 14 2.3 Victorias
Secret..................................................................
........................................ 14 2.4 History of Victorias
Secret..................................................................
....................... 15 2.5 Mission &
Vision..................................................................
....................................... 15 2.6 Organizational structure
........................................................................
..................... 16 2.7 Value
proposition ............................................................
............................................ 16 2.8
Products................................................................
....................................................... 17 2.9 Product
assortment..............................................................
........................................ 18 2.10
Channels................................................................
.................................................... 19 2.11 Supply
Chain ..................................................................
........................................... 19 3. Market
Description.............................................................
............................................... 20 3.1 Brand &
positioning.............................................................
....................................... 20 3.2 Abell
model...................................................................
............................................... 22 4. Internal
Analysis................................................................
................................................ 25 4.1 Strengths of
Victorias
Secret..................................................................
.................... 25 4.2 Weaknesses of Victorias
Secret..................................................................
................ 26 5. External
Analysis................................................................
............................................... 28 5.1 DESTEP
analysis ...............................................................
......................................... 28 5.2 Industry
analysis................................................................
.......................................... 30 5.3 Competitors
analysis................................................................
................................... 31 5.4 Distribution
analysis ...............................................................
.................................... 34 5.5 External
elements................................................................
........................................ 35 6. Confrontation
Analysis ...............................................................
...................................... 36 6.1 SWOT
analysis ...............................................................
............................................. 36 6.2 Confrontation
Matrix .................................................................
................................. 37 6.3 Strategic
Options.................................................................
........................................ 38 7. Marketing
Mix ....................................................................
............................................... 41 7.1
Product ................................................................
........................................................ 41 7.2
Price ..................................................................
.......................................................... 42 7.3
Place...................................................................
......................................................... 42 7.4
Promotion...............................................................
..................................................... 44 7.5 Physical
distribution............................................................
........................................ 45 7.6
People..................................................................
........................................................ 45 Marketing
Business Plan Victorias Secret Aesa Brans Academy of European Studies
& Communication Management 6
Conclusion .............................................................
................................................................. 46
Recommendation .........................................................
.......................................................... 48
References..............................................................
................................................................. 49
Appendices..............................................................
................................................................ 53
Appendix 1: Questions of the semi-structured
interview..................................................... 54
Appendix 2: Summary of the semi-structured
interviews....................................................

Company background

Victoria secret is an American based company which is the denominator of the lingerie
world market . Founded by Roy daymond who wants to buy his wife a lingerie in the
1977 .He was too shy to go to the store at that time to shop for his wife, so he came out of
an idea to create a lingerie based company which the customer will feel comfortable to
shop .Roy Daymond was a graduate MBA from Stanford who is very good in analyzing a
type of business that will succeed . He then decided to borrow from banks for his first
ventures and borrow more from his family . He knew that this business will be huge and
he started to print out catalogs and worked hard for this high end business . The company
made $500,00 in the very first year of business.Considered a huge success for the lingerie
market which is not very big at that time . Roy Daymond was a man who responsible
transforming the world women lingerie market which his company worth more than 4
million after 5 years of operating . He then sold the company for 4 million dollar .
 Brand identity

When we talked about Victoria secret , there will always be the sexiest model in the world
wearing bikinis.The Victorias secret fashion show, which is the best fashion show in the
planet is the best idea for the brand to make people aware of their product .According to
Forbes, the Victorias secret fashion show is viewed by 500 million people in 158
countries .The symbol attracted people and made the brand famous day to day . Next ,the
design of the store which enhance the exclusive lingerie for the middle class woman will
made the brand look elegant in the customer eye . According to HubPages,The decor of the
stores was Victorian designed with wood panel walls and friendly staff . Instead of bras and
panties being hung on steel rack, they were paired together in all sizes and mounted on
frames. The stores were very detailed and were quiet, inviting when a gentleman came to
purchase lingerie . Moreover, the Victorias secret came out of an idea to get a teenager to
buy their product in the Victorias pink stores for teens . The teenagers love the concept of
pink in the Victoras secret girl and so they will try to be the girl in the fashion show by
purchasing the same lingerie .

Marketing mix

Product

The symbol of sexy women of course , when they appeared with their undergarment
clothing . Victorias secret tend to make the bras to look brighter , attractive and stylish
that will unleash the sexiness of women . Body by Victorias secret featuring the perfect
bra with the memory fit technology for a customized fit and natural look. This product
focused on the comfortability of the customer . Come with lace and the tiny bow , this
product is so well designed which the cups of the bras tend to fit the customer body
perfectly(Victorias secret,2015) . Add to the high quality fabric which is so soft and
smooth , the bras become the best seller item of Victorias secret .

Price

The targeted customer of the product is the higher class women in Europe and America.
According to BUSINESS INSIDER , women were willing to pay $50 for bras because
the luxury experience made their lingerie purchases feel like investments.The price of the
product is consider expensive but the customer will satisfy with the services and the
quality of Victorias secret can give to them . In the competition to dominate the world of
lingerie and beauty product , Victorias secret tend to have no problem to compete with
other company because they rely on their exclusives price for their high quality and best
services as it will create customer loyalty towards the brand .
Promotion

Victorias secret offered varieties of promotion in order to win the lingerie market race .
They focused on attracting women by featuring the perfect models which is Alessandra
Ambrassios image as wife.The models made the brand sell more of their product because
it seems that the image of the angel was striking the balance between sexy and
approachable (Business insider international,2015).Next, the Victorias secret fashion
show have made the brand famous which the models come from all the continent in the
world except Antartica . According to Los Angeles Times , there are 9.1 million viewers
this year. The huge number off viewers made the customer more aware of Victorias
secret product.

Place

The store located is crucial in maintaining the brand identity of the business . In order to
satisfied the international customer needs , the place of the store is located in the most
famous place in the country. Currently, the store in the Netherland is located in the
Amsterdam Schiphol Airport . Its a brilliant ideas to gather as much international
customer when they located the store in one of the busiest place in Netherland . People
will look at the magnificent store and start to fall in love with the product .

Market segmentation

Demographic segmentation

The demographic segmentation of Victorias secret company is based on the viewers of

the fashion show , cost of the fashion show and the income . According to the
BUZZFeedNEWs , the latest annual sales of Victorias secret is 6.6 billion and 1.6 billion
from them come from the website and catalogs . The huge amount of revenue is because
the Victorias secret fashion which is the best and the most expensive show on the planet
has attracted the women to buy the product. It is estimated that the Victoria secret fashion
show is worth 20 million .

Geographic

The geographic segmentation of Victorias secret company is focused on the region where
the store in located and the region where the model in the Victorias secret fashion show
come from . The store is focused on the

Psychographic

Competitor

Its hard to
believe that
there is no
competitor
really come
across Victorias secret as the company became the dominator of the world lingerie
market . According to Forbes , the brand controls 40% of the intimate apparel
market.However, the brands is having difficulties to sustain the loyalty of the customer
since the emerging new brand of lingerie market is so crowded. In general, the
rivalry among existing competitors in the lingerie industry is high.
Victorias Secret beats its competitors by offering very high quality
when many other companies try to beat or match this existing competition
on prices (Business Strategy: Michael P. Three Generic Strategies and
The Five Forces Model, 2010).The biggest competitor of Victorias
secret is H&M which stand for Hennes&Mauritz.This rivalries is the
leading brand in clothing company that offers lower price range of the
trending product .The pricing strategy of H&M surely made the brand
acceptable by various type of customer unlike Victorias secret which
targeting the higher class women .Moreover ,with the larger commodity
they gained by the perfect pricing strategy them made the sales even
better than Victorias secret .

Fiqure 1 showed the sale growth of H&M

BUSINESS INSIDER MALAYSIA . Digital image . 2015 REV Asia.Web. 14
December 2015.

H&M which is famous in featuring the most sexiest man in the planet
which is David Beckham cannot compete with fame of the annual fashion
shows from Victorias secret and the catalogues they produce .

Corporate social responsibility

Recommendation

Conclusion