Principles of Marketing, 13th Edition
1. Explain how each of the four sets of factors affecting consumer behavior affects the consumer purchase process as it relates to toys from Wild Planet. 2. What demographic segment of consumers is Wild Planet targeting? 3. Visit the Wild Planet Web site at www.wildplanet.com to learn more about the company. How does the Web site help consumers through the buyer decision process?
COMPANY Case Victoria’s Secret Pink: Keeping the Brand Hip When most people think of Victoria’s Secret, they think of lingerie. Indeed, the Limited Brands division has done a very good job of developing this association by placing images of supermodels donning its signature bras, panties, and “sleepwear” in everything from standard broadcast and print advertising to the controversial prime-time television fashion shows that the company airs each year. Such promotional tactics have paid off for Victoria’s Secret, a subsidiary of Limited Brands, which continues to achieve healthy sales and profit growth. How does a successful company ensure that its hot sales don’t cool off? One approach is to sell more to existing customers. Another is to find new customers. Victoria’s Secret is doing plenty of both. One key component in its quest to find new customers is the launch and growth of its sub-brand, Pink.
EXPANDING THE TARGET MARKET
Victoria’s Secret launched its line of Pink products in 50 test markets in 2003. Based on very positive initial results, the company expanded the sub-brand quickly to a national level. With the Pink introduction, Victoria’s Secret hoped to add a new segment to its base: young, hip, and fashionable customers. “Young” in this case means 18 to 30 years of age. More specifically, Pink is geared toward college coeds. According to company spokesman Anthony Hebron, “It’s what you see around the dorm. It’s the fun, playful stuff she needs, but is still fashionable.” The company classifies the Pink line as “loungewear,” a very broad term that includes sweatpants, T-shirts, pajamas, bras and panties, pillows and bedding, and even dog accessories. In keeping with the “young and fun” image, the product line includes bright colors (Pink is not a misnomer) and often incorporates stripes and polka-dots. The garments feature comfortable cuts and mostly soft cotton fabrics. To keep things fresh for the younger segment, stores introduce new Pink products every three or four weeks. According to those at Victoria’s Secret, in sharp contrast to the sexy nature of the core brand, Pink is positioned as cute and playful. “It’s spirited and collegiate. It’s not necessarily sexy—it’s not sexy at all— but young, hip, and casual. It’s fashion-forward and accessible,” said Mary Beth Wood, a spokes-woman for Victoria’s Secret. The Pink line does include underwear that some might consider to be on par with standard Victoria’s Secret items. But management is quick to point out that the designs, such as heart-covered thongs, are more cute than racy. Displays of Pink merchandise often incorporate stuffed animals, and many articles display Pink’s trademark mascot, a pink dog.
Chapter 5 Consumer Markets and Consumer Buyer Behavior
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Principles of Marketing, 13th Edition
Originally, Pink was considered to be a store-within-a-store concept. But Pink sales have surpassed expectations. To date, Victoria’s Secret has opened six stand-alone Pink stores. In 2007, Pink revenues hit $900 million, almost one-sixth of the company’s $5.6 billion take for the year. Because of this, the company is giving far more serious consideration to expanding the presence of Pink lifestyle shops in several markets.
A KEY DRIVER OF VICTORIA’S SECRET’S FUTURE GROWTH
Limited Brands has been experiencing good times, and executives have been quick to recognize that Victoria’s Secret is a huge part of that success. In fact, the Victoria’s Secret and Bath & Body Works divisions have accounted for roughly 70 percent of...
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