Victoria Secret Marketing
Victoria’s Secret
Situation Analysis
Victoria’s Secret is one of the biggest brands in the U.S. lingerie market. There primary business is to sell intimate apparel business focus on comfort and fit with an emphasis on glamor. As of now, Victoria’s Secret specializes in lingerie, swimwear, beauty products, sleepwear, hosiery, etc. This has helped the brand in developing a unique image for its product.
Victoria’s Secret parent company is the Limited Brands Company. It is based out of Reynoldsburg, Ohio. Currently operating 1,017 stores in 49 states, Puerto Rico, and Canada, the company annually generates around $4,564,000,000 of revenue in their stores. With the combination of catalogue and VictoriasSecret.com, generates annual revenue of $1,557,000,000 (Brands, L).
The U.S. economic growth has been slow since the recession and is not likely to reach the pre-recession rates any time soon. But there has been some slight improvement in consumer confidence and lower unemployment which should help Victoria’s Secret comparable store sales. Inflation has been another factor that drives revenue growth for same sales volumes and will aid growth in the brand’s revenue per square feet. Going forward, the U.S. annual GDP growth rate and inflation rate are expected to be around 1.4% and 2% respectively. This gives a nominal GDP growth rate of about 3.4% for the long term and the apparel sales will continue to shift online due to growing usage of Internet and proliferation of mobile devices. As a result, we make a conservative assumption that Victoria’s Secret’s revenue per square feet will increase by 2%-2.5% annually, on the account of these macroeconomic factors.
Over the past few years, Victoria’s Secret has expanded its product offerings outside the lingerie realm. They also offer shoes, evening wear, swimwear, sportswear, loungewear, accessories, makeup, handbags, luggage and fragrances. We can expect Victoria’s Secret to continue to add different categories in the
Situation Analysis
Victoria’s Secret is one of the biggest brands in the U.S. lingerie market. There primary business is to sell intimate apparel business focus on comfort and fit with an emphasis on glamor. As of now, Victoria’s Secret specializes in lingerie, swimwear, beauty products, sleepwear, hosiery, etc. This has helped the brand in developing a unique image for its product.
Victoria’s Secret parent company is the Limited Brands Company. It is based out of Reynoldsburg, Ohio. Currently operating 1,017 stores in 49 states, Puerto Rico, and Canada, the company annually generates around $4,564,000,000 of revenue in their stores. With the combination of catalogue and VictoriasSecret.com, generates annual revenue of $1,557,000,000 (Brands, L).
The U.S. economic growth has been slow since the recession and is not likely to reach the pre-recession rates any time soon. But there has been some slight improvement in consumer confidence and lower unemployment which should help Victoria’s Secret comparable store sales. Inflation has been another factor that drives revenue growth for same sales volumes and will aid growth in the brand’s revenue per square feet. Going forward, the U.S. annual GDP growth rate and inflation rate are expected to be around 1.4% and 2% respectively. This gives a nominal GDP growth rate of about 3.4% for the long term and the apparel sales will continue to shift online due to growing usage of Internet and proliferation of mobile devices. As a result, we make a conservative assumption that Victoria’s Secret’s revenue per square feet will increase by 2%-2.5% annually, on the account of these macroeconomic factors.
Over the past few years, Victoria’s Secret has expanded its product offerings outside the lingerie realm. They also offer shoes, evening wear, swimwear, sportswear, loungewear, accessories, makeup, handbags, luggage and fragrances. We can expect Victoria’s Secret to continue to add different categories in the
References: All Access, V. (n.d.). Connect. Retrieved from http://vsallaccess.victoriassecret.com/connect/ Brands, L. (n.d.). About:victoria’s secret. Retrieved from http://www.limitedbrands.com/our_brands/victorias_secret/about.aspx Howard, T. (n.d.). Victoria’s secret back to flirt with super bowl. Retrieved from http://abcnewsry?id=4135012&page=1 Johnson, L. (2010, May 15). American eagle outfitter’s aerie rewards facebook fans via time sensitive sms message . Mobile Commerce Daily. Retrieved from http://www.mobilecommercedaily.com/2012/05/15/aerie-rewards-facebook-fans-via-time-sensitive-sms-messageKerr, T. (2010, September 07). Gilly hicks, the lingerie from down under.Examiner. Retrieved from http://www.examiner.com/article/gilly-hicks-the-lingerie-from-down-under Mau, D. (2011, November 08). The evolution of the victoria’s secret fashion show from 1995 to now. Retrieved from http://fashionista.com/2011/11/the-evolution-of-the-victorias-secret-fashion-show-from-1995-to-now/ Smith, J. [Web log message]. Retrieved fromhttp://www.qualitylogoproducts.com/blog/4-victorias-secret-marketing-tricks/ Wakefield, K. (2012, May 21). Victoria’s secret gets it right on facebook. Retrieved from http://contently.com/blog/victorias-secret/