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
- Large customer base
- Strong brand image
- High fashion. And good quality product
- Fashion shows
- Good publicity.
- Too expensive.
- Exclusive focus on certain segments
- Start a men's brand
- Expand branches
- Possible economic downturn
- Competitors offering lingerie product lines
- Competitors offering discounts and promos