Hong Kong Baptist University
Bachelor of Commerce in Marketing
Victoria’s Secret in China
Lai Tin Long, Stanley
Lau Wan Fung, Jason
Lam Ka Kit, Ian
Cham Im Fan, Otila
Yeung Ka Man, Destiny
Kwok Hoi Kin
Law Ka Ho, Jackson
Liu Ho Lok, Andy
Date: 18 April, 2011
Table of Contents
iii iii iii iii 1 1 1 2 2 3 3 4 5 6 7 7 8 9 9 9 10 10 10
About Victoria’s Secret
Aims and Objective
Market Environment in China
Strengths and Opportunities
Weakness & Threats
Targeting and Positioning
Customer Relationship Program
11 11 12 12 13 14 15 16 17 18 18 18 19 20 21
Implementation & Control
Corruption Perceptions index 2011
Exchange Rate(US to RMB and Hong Kong Dollar)
VS estimate Trading and Proﬁt and loss Account 2011
VS estimate Balance Sheet 2011
The hugh population, urbanization, and shapely growth of economy compose favorable market to all industry. Victoria’s Secret need to directly invest to Chinese market in order to share the pie. The Objective of this report is to provide the marketing environment factors and inﬂuences. Analysis and Marketing Strategies are recommend to Victoria’s Secret for entering the China market.
The goal of this report is to (1) achieve full-year retail sales of at least 4 million RMB per outlet in the retail channel, (2) reach the break-even point for China operations within 15 months and (3) achieve 40 per cent gross proﬁt margin in our second year of operation.
Beneﬁt by the Open-door policy and taking part in the World Trade Organization, foreign companies are now more easy to enter the China market; nevertheless, there are challenges which make them stop. In dramatics growth of economy stimulate the urban development, the political and legal system and citizen education are far behind. The legal loophole, over control of government, corruption and bribery, and poor protection of property right are the major challenges. The traditional culture would effect the consumer purchasing behavior. The universal of Internet would be the good news because companies are now able to interact with consumer by cheap, diversify, real-time channel. The market size - group of educated, young, and independent female, is growing. Standardization strategy build consist image. Product design with Chinese element can be favor to customers. Some tactic to be done. Fashion show creates brand awareness. Social network service intercommunicate and receive feedback from customer. Membership program establish to intense loyalty. Regular analysis and research helps Victoria’s Secret on implement and control. Financially, entering to the China Market is proﬁtable. Thus, it is favorable for Victoria’s Secret to enter China Marketing.
About Victoria’s Secret
Victoria's Secret is an American retail brand of women’s wear, lingerie and beauty products, owned and run by the Limited Brands. Victoria’s Secret generates over US$5 billion of sales and $1 billion of operating income in recent years. Victoria’s Secret was established in San Francisco in 1977 by Roy Raymond. Raymond saw an opportunity in taking “underwear” of the time and turning it into fashion. Products were different from the traditional white cotton pieces, which offered by most department stores, with various colors, patterns and style that...
Please join StudyMode to read the full document