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Victoria's Secret Product Development

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Victoria's Secret Product Development

  1. 1.   Michaela Polk February 23, 2012 Period E MRS. SCHEFFER
  2. 2.  Apple – wireless head phone line  Victoria’s Secret accessory line
  3. 3.  Apple – too expensive, technology not developed yet  Victoria’s Secret – fits the brand, cost efficient
  4. 4.  Size of the market: 15.9 Million  Handbags - $30-95  Clutches - $15-25  Watches - $50 - 120  Potential Sales: approximately 4 million  Potential Profit (Retail Price – Cost = Profit per unit. Total Sales – Total Cost = Total Profit)  Low risk level due to the brand name Victoria’s Secret
  5. 5.  Potential Sales: 35% of customers are projected to buy a handbag from the Diamond line. Since products are not too expensive they will be popular.  Potential Profit: o 65-25= $40 o 357,500,000-137,500,000= $220,000,000
  6. 6.  Potential sales: 42% of customers are projected to buy a clutch from the Diamond line. Since products are not too expensive they will be popular.  Potential profit: o $20-$9=$11 o 133,560,000-60,102,000= $73,458,000
  7. 7.  Potential sales: 24% of customers are projected to buy a clutch from the Diamond line. Since products are elegant they will be popular.  Potential profit: o 85-35= $50 o 305,280,000-133,560,000= $171,720,000
  8. 8.  Handbag, Clutch, Watch  Brand name: Diamond Line  Brand slogan: Brilliant cut beauty  Brand logo:
  9. 9.  Demographics Psychographics o 18-28 -Values: health, fitness, clothing o female -Attitudes: have to look good, that brand matters o $45,000-$55,000 -Lifestyle: works out, spends time with friends, likes to shop o College education -Opinions: Price doesn’t matter for that brand o Caucasian -Beliefs: If you look good you feel good o White collar o single Geographic: Urban cities. New York, LA, Boston, etc.
  10. 10.   Product Pink Undergarments - Bombshell Sleepwear Women’s clothing Lingerie Swimwear Fragrances Beauty products Hair Products Price $3 - $90 Place VS boutiques VS outlets in malls VS website Approximately 1,200 stores nation wide Promotion Flyers - mailed TV commercials – Style, Lifetime, E!, Bravo Shopping bags Billboards Magazine adds – entertainment weekly, people, cosmopolitan,
  11. 11. Demographics • 16 – mid 40’s • Female • High school – college graduates • Caucasian • White collar – managers, sale executives • Single or married • Also males buying for their girlfriends/wives Psychographic • All clothing matters, make-up and perfume is a must, being fit • You look good, you feel good • Looking good at the gym, eating healthy, shopping • Cant buy clothing from just anywhere • Fashion, looking like a celebrity Geographic urban environments New York, Seattle, DC, LA, Miami, Boston, San Francisco, Houston, Las Vegas, Chicago Population: 20,379,228 • 1,200 stores in the US – more internationally Customer Profile
  12. 12. Strengths • Brand recognition world wide • Powerful advertising – super models, famous photographers • New collections presented in annual runway shows • Reliable brand – around over 34 years • Wide range of products – from undergarments to beauty products and also fragrances Weaknesses • Only target market is women • Market limited to mainly US and European countries • Doesn’t offer wide range of sizes for different body types • Clothes aren't made for casual everyday wear: more elegant and extravagant • Wide known brand image – may be hard to start new lines Opportunities • Can start to target men - new brand • Can create a business formal work line for women • Can go global – introduce more stores world wide • Also expand on the stores in America to offer all lines • Can offer more clothing to larger sized women – create new brand Threats • Is largely affected by the economy • Competition targets men and larger women sizes • A lot of other companies offer the same products – large number of competition, lower prices
  13. 13. Product Underwear Sleepwear Men’s clothing Swim shorts Colognes Hair Products Price $10 - $90 Place XY boutiques XY outlets in malls XY website Approximately 1,200 stores nation wide Promotion Flyers – mailed TV commercials – Style, Lifetime, E!, Bravo Shopping bags Billboards Magazine adds – Golf, Sports Illustrated, Muscle Mag
  14. 14. Demographics • 18 – mid 40’s • Male • High school – college graduates • Caucasian • Higher than entry level • Single or married • Also females buying for their boyfriends/husbands Psychographic • All clothing matters, being fit, always trying to get females attention • You look good, you feel good • Looking good at the gym, eating healthy, impressing females • Cant buy clothing from just anywhere • Fashion, looking like a celebrity Geographic urban environments New York, Seattle, DC, LA, Miami, Boston, San Francisco, Houston, Las Vegas, Chicago Population: 20,379,228 • 1,200 stores in the US – more internationally Customer Profile
  15. 15. We will test the Victoria’s Secret Diamond line by making a limited number of prototypes and let our models test the products in everyday life.
  16. 16.  We will have a televised fashion show specifically for the launch of our Diamond line.  Commercials will be launched that show the elegance, and affordability of our new products. Also on Facebook and Twitter.  We will mail out 10% off to customers signed up for an Angel Card.  Billboards and other public advertisements .
  17. 17.  We will attach a survey on the back of the receipt for people who buy something from the Diamond line. You will then be able to go online, take a survey, and get 10% off your next purchase at Victoria’s Secret.

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