Marketing Strategy Victoria Secret
Victoria’s Secret was started in San Francisco, California, in 1977 by Roy Raymond who was Business alumnus of Tufts University and Stanford Graduate School. He felt embarrassed trying to purchase lingerie for his wife in a department store environment. He opened the first store at Stanford Shopping Center in Palo Alto, and quickly followed it with a mail-order catalog and three other stores. With this store he hoped that it could create a comfortable environment for men, with wood-paneled walls, Victorian details and helpful sales staff.
Instead of racks of bras and panties in every size, there were single styles, paired together and mounted on the wall in frames. Men could browse for styles for women and sales staff would help estimate the appropriate size, pulling from inventory in the back rooms. In 1982, after five years of operation, Roy Raymond sold the Victoria’s Secret Company, with its six stores and 42-page catalogue, grossing $6 million per year, to Leslie Wexner, creator of The Limited, for $4 million. The Limited kept the personalized image of Victoria’s Secret intact.
Victoria’s Secret was rapidly expanded into the U. S. malls throughout the 1980s. The company was able to vend a widened range of products, such as shoes, evening wear, and perfumes, with its mail catalog issued eight times annually. By the early 1990s, Victoria’s Secret had become the largest American lingerie retailer, topping one billion dollars. However, The Company gained notoriety in the early 1990s after it began to use supermodels in its advertising and fashion shows. Throughout the past decade, it has turned down celebrity models and endorsements.
Current business At present, Victoria’s Secret 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 $6000 million in 2010. Victoria’s Secret is known for its annual fashion show, the Victoria’s Secret Fashion Show, and for its catalogs, both of which feature top fashion models. II – Executive summary (NG? C)
In 2012, Victoria Secret’s goals are to increase 10% in revenue and 13% in market share. To achieve those, the marketing plan will be divided into 4 quarters with a clear division of labor for each department. Every people in company from management to employees will perform each mission separately in order to helps achieve the best returns.