Mkx9550 Marketing and the International Consumer-Victoria's Secret

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Marketing Plan

Executive Summary
Australia has become an attractive market for clothing retailing instead of a gradual decrease in consumer spending due to global financial crisis, which driven the total revenue from this industry down by 0.7% per annum. Nonetheless, it is expected that in the next five years, the industry revenue will grow by 1.2% per annum. Current economic situation in Australia has encouraged major overseas retailers to enter into the Australian market for the first time and these opportunities can bring some advantages to Victoria’s Secret to opens its stores in Australia. With a superb record in the US and strong brand name throughout the world, Victoria’s Secret has more than 1,000 stores worldwide and can open its retail stores, under the license agreement with Specialty Fashion Group Limited, in Australia. Middle-class women aged between 18 and 35 years are the major target segment for Victoria’s Secret. The Victoria’s Secret brand image, which is a lingerie brand that is sexy, sophisticated and unique, has positioned itself as an exclusive brand and this can strengthen Victoria’s Secret’s position as leading lingerie brand that is different from its competitors. Victoria’s Secret is also targeting a market share of 1.3% in the next 3 years. To enhance its dominant position and attain the market share in Australia, four marketing objectives have been developed to help Victoria’s Secret achieving its short-term and long-term goals. In the first 2 years, Victoria’s Secret will open 8 stores in major capital cities and shopping centres, achieve its market share and estimate a sales record of $60 million. In the long run, Victoria’s Secret will maintain its stable growth and expand its operation by opening more stores and become the major player in the lingerie market. These marketing objectives can be achieved through marketing strategies, such as creating sustainable product strategy that is similar to the Victoria’s Secret in the US, setting the price that is higher than the competitors while maintaining good relationship with the distributors and customers through its distribution strategy, as well as promoting and creating brand awareness to the customers in Australia via various events, advertising, public relation and promotion which are unique to Victoria’s Secret.

Table of Contents
Executive Summary………………………………………………………………………………..2 Table of Contents…………………………………………………………………………………..3
1 Industry Background4
1.1 Industry performance4
1.2 Industry market segments4
2 Company Background5
3 Market Segmentation6
3.1 Target Segment6
3.2 Target Position6
3.3 Market share7
4 Marketing Objectives7
5 Marketing Mix Strategies8
5.1 Product Strategy8
5.1.1 Core Benefit8
5.1.2 Basic Product8
5.1.3 Expected Product8
5.1.4 Augmented Product8
5.1.5 Potential Product8
5.2 Pricing strategy8
5.3 Distribution Strategy9
5.3.1 Retail Stores9
5.3.2 Internet10
5.3.3 Mail Catalogue10
5.4 IMC Mix Strategy11
5.4.1 Events, Advertising and Public Relations11
5.4.2 Promotion and Advertising12
6 Implementation Plan and Measurement Tools12
6.1 Implementation plan12
6.2 Measurement tools14
7 Conclusion and Strategic Recommendations15
Bibliography16
APPENDICES……………………………………………………………………………………17

1 Industry Background
1.1 Industry performance
Clothing retailing industry in Australia has faced several tough years due to decrease in consumer spending, decline in retail prices, higher rents and global financial crisis. Over the past five years, clothing retail industry in Australia recorded sales of $12 billion. However, due to global financial crisis, lower consumer spending and increase competition in the economy, the revenue was driven down by 0.7% per annum [see Exhibit 1] (IBISWorld, 2012). With the decline in the average retail price due to the appreciation in Australian...
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