Victoria Secret Pink

Victoria's Secret Pink

I. Executive Summary

Pink is a sub-brand of universally known Victoria's Secret that sells sweatpants, T-shirts, pajamas, bras and panties, pillows and bedding. The introduction of Pink in the market illustrates the general strategy of the core brand, VS, to acquire a new segment of customers basically those young, hip, and fashionable ('young' means 18-30 year old females). As consumers, advertising plays a large role in the fashion decisions made - The promotion of Pink brand comes from standard broadcast and print advertising to the prime-time television fashion shows that the company holds each year, and social media such as Facebook, MySpace, and other social media that is of interest to young adults. All of these are way through which potential buyers can recognize or gain knowledge of the products. In an effort to generate profits, the company has tapped customers outside their target market that are young for their sexually charged merchandise. It became popular even among teens and "tweens" who will then "graduate" up to the Victoria's Secret core brands. The success of Pink line has been a big driver of financial success for Limited Brands (parent company), and it is expected to be a big part of Victoria's Secret's sustained growth.

II. Problem Statements

Short Term: What measures must Victoria's Secret: Pink take to meet the needs, wants and aspirations of its intended target market - women of 18 to 30 years of age?

Long Term: Having been able to cope with the changing trends of its target market, what strategies must VS: Pink employ to sustain its market leadership and increase profitability?

III. Assumptions, Areas of Considerations, Key Success Factors

Strengths

- Large customer base

- Strong brand image

- High fashion. And good quality product

- Fashion shows

- Good publicity.

Weaknesses

- Too expensive.

- Exclusive focus on certain segments

- Elitist.

Opportunities

- Start a men's brand

- Expand branches

Threats

- Possible economic downturn

- Competitors offering lingerie product lines

- Competitors offering discounts and promos

- Ethical issues

With the SWOT analysis above, it can be seen that Pink has a strong brand image which appeals to a large customer base. It's known to everyone for its high fashion and good quality products. It has good publicity since it has its own web site and it also conducts regular fashion shows with top models and photographers to showcase their products. But then, their products are too expensive for the commoners. This may be because of the exclusive focus on certain segments of the social strata which, in return, restricted Pink's market. Given Pink's target market, which focuses mainly on women, they still have a large number of untapped markets. With this, starting a men's brand would be a good opportunity for growth. They may also expand the number of their branches. Though Pink has a good position in its current market, it still has competitors offering product lines and/or discounts and promos which aren't under their control. Moreover, the possibility of an economic downturn is always there, posing a threat to the brand. There are also some ethical issues involving Pink.

There are a number of factors then that must be taken into account in analyzing the case. First, the buyer decision process of a typical Pink customer should be considered since it includes the decision-making processes undertaken by a customer before, during and after the purchase of a product. The initial stage of the said process, the need recognition phase, is likely to be based on external stimuli that may also affect the other phases of the buyer decision process. Consumers are likely to filter some bit of information from plenty of sources in recognizing that they need a clothing item that is fashionable, trendy, and hip. Next is the information search wherein potential Pink customers can draw from either internal sources like their own personal experience or external sources including friends and acquaintances and company advertising. The customer then evaluates his/her alternatives through comparing the different option(s) in question to a set of criteria. Potential Pink customers might compare the Pink brand to one or more other brands on a particular set of criteria, or they might consider the Pink brand in isolation relative to the criteria. This will depend on factors already discussed in the first two phases of the buyer decision process. If the consideration meets the criteria better than any other option, the customer will choose Pink; that is included in the purchase decision phase. However, there are additional considerations that may pop up at this phase, including the opinion of friends and unexpected changes to any of the factors considered during evaluation of alternatives. In the final stage, the post purchase behavior, consumers form impressions that will have an effect on future purchase and word-of-mouth. It depends on the positivity or negativity of these impressions