First Draft of Marketing Report with Feedback
Executive Summary
What is the purpose of the work?
What methods did you use for your research?
What were the main findings and conclusions reached?
Did your work lead you to make any recommendations for future actions?
The following report will be focussed on Victoria’s Secret, discussing the brand’s current market position, analysing their competitors, looking at factors affecting their success and eventually proposing a number of recommendations based on the market research conducted.
The research was conducted using a variation of primary research such as online questionnaires and interviews with focus groups and with a wider range of consumer and secondary research where data collected about Victoria’s Secret and other underwear retailers was analysed from sources such as Mintel and online articles from newspapers such as The Independent. The combination of the two types of research allowed for a complete understanding of where the brand is currently in the market and showing their weaknesses and strengths, therefore assisting in the suggested recommendation for Victoria’s Secret.
The main finding taken from the research was the focus on the brand using only one body type to model their underwear online, in store and during the famous fashion shows. In recent years, this issue has become increasingly prevalent and in order to allow Victoria’s Secret to become more inclusive and more successful, a change needs to happen to the way in which they are displaying their products as many customers and possible customers cannot relate.
The research into Victoria’s Secret enabled for recommendations to be suggested involving their use of social media and becoming more of an inclusive brand without alienating their current loyal consumers. These recommendations will be discussed towards the end of the report following an extensive analysis of the brands current market position.
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Refine to reflect more succinctly the findings and conclusions reached. Provide details of recommendations when finished.
Introduction to the Brand
300 words?
Explain the rationale behind the work, what you have been asked to do and the reasons for doing it and the background.
State what the report is about.
What question are you trying to answer?/What problem are you wanting to overcome?
Describe your starting point and the background to the subject, explaining the research that has already been done.
The first Victoria’s Secret store was opened in 1977 with the concept of allowing men to feel comfortable whilst purchasing underwear and lingerie for their partners. The brand was sold to L Brands in 1982 for around $1 million. As the brand grew, it was clear to see that the original concept of the store needed to be changed as more and more women were buying underwear for themselves rather than receiving it from their partners, transforming Victoria’s Secret into what it is today.
The objective of this report is to thoroughly explore Victoria’s Secret as a brand, their products, their consumers and how they function in the wider marketplace. Following this research including looking into key competitors and consumer analysis , a number of recommendations will be highlighted regarding what the brand could do to improve their sales or brand image.
Victoria’s Secret is still the number one go-to brand in the US, however, with newer, more relatable brands such as Aerie on the rise, could they overtake Victoria’s Secret and be the next big thing?
With the rise of these more inclusive lingerie brands, it is clear to see from research that Victoria’s Secret is stuck in its ways leading the brand to fall behind its key competitors. Whilst their models are considered to be racially diverse, it cannot be said about the body type in which they choose to show their products. Despite the fact that there have been hundreds of calls for them to be more inclusive, the casting directors seem to ignore the idea that the brand should speak for the women who actually buy their products, following the “one-size-fits-no-one strategy” (The Independent, 2018). Controversy in the media like this can be very damaging to a company, giving consumers a negative image of the brand. This issue along with others such as their social media usage will be discussed in the report and fitting recommendations will be proposed.
Market research into the UK’s underwear industry has already been carried out in some detail and this report will take aspects from that research along with primary research conducted specifically for this report in order to compile the series of recommendations.
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Macro Economic Analysis (to include at least PESTEL)
200 words?
Discuss the brands finances and economic performance. Should at least include PESTEL analysis, along with supporting research/findings.
Whilst Victoria’s Secret in the UK seems to be booming, it is a completely different picture over in the US. In July of 2018, they were already 40% down and whilst they are still the leading lingerie brand in the US, their share of the market is falling as brands such as Aerie and Savage X Fenty are rising (Helmore, 2018). Along with this decrease in sales, L Brands, Victoria’s Secret’s parent company announced that it was planning to close 20 stores in North America. Pink, a sub-brand of Victoria’s Secret has also been struggling with its sales too (Hanbury, 2018). One reason as to why this could be happening is due to the fact that emerging underwear brands such as Rihanna’s Savage X Fenty and American Eagle’s Aerie have seen a gap in the market to produce bigger sizes and offer styles such as no-wire bras and this along with lower prices put Victoria’s Secret in danger of falling behind in the market. It is reported that the amount of lingerie stores in the US is going to grow by 4% throughout the next 5 years which is more than 3 times the pace of women’s clothing (Sherman, 2018).
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PESTEL analysis (to be put in table and extra info below the table as all this won’t fit in table)
Political – The issue surrounding the size of models Victoria’s Secret uses has caused a lot of controversy. Supermodel Robyn Lawley took to social media and launched the #WeAreAllAngels campaign through Change.org in 2018, calling on women to boycott the brand. In her petition Lawley wrote “…Victoria’s Secret have dominated the space for almost 30 years by telling women there is only one kind of body beautiful”. (Danziger, 2018. Forbes).
Economic – The UK underwear market is expected to grow by 11.4% between 2016 and 2021 but the growth in sales may be impacted as consumers are spending more on leisure wear. This increase in the market should work well for Victoria’s Secret and they may even choose to bring out more leisure inspired products or underwear to make use of this trend. (Mintel, 2016)
Social – In 2017, the over 55 age category accounted for 30% of the UK’s population which is a large amount of possible consumers. The majority of brands often treat the over 55s as one single age group assuming they have the same wants and needs however there are many differences between someone who is in their late 50s and someone who is in there 70s. (Mintel, 2017) Victoria’s Secret cater for mainly younger women, with always young women pictured advertising their products. This alienates the older consumers who may feel they are too old to wear the brand. A campaign targeting the older woman could be an avenue to look down for Victoria’s Secret.
Technological – In this social media obsessed age, the use of social media platforms is vital to a brands success as it can reach such a large amount of people. The advance in technology over the past decade has enabled brands to become more connected than ever. Victoria’s Secret have brought out an app that allows users to view videos of the shows, behind the scenes and also an insight into products coming out in the future. This forges a connection between the brand and user of the app (EVENTMB, 2018).
Environmental – Coming a close second to the agriculture industry, the dyeing process of clothes is the next biggest polluter of fresh water in the world. Many hazardous chemicals are not allowed in a number of countries due to the fact they are toxic and extremely harmful to the environment. (Petter, 2018. The Independent). In 2011, Victoria’s Secret signed onto Greenpeace’s campaign to eliminate these chemicals from production of their products but it was found they did extremely little to adhere to the goals.
Legal – In recent years, body image has become such an issue that laws have been created to limit the unhealthy body ideals they are exposed to so often. In France they are tackling this problem by where any image that has been digitally retouched has to state that is has been done so otherwise a fine is given (Chazan, 2018. The Telegraph) This is something Victoria’s Secret needs to be cautious about especially when they use models whom they call “angels” which gives the connotation of being perfect. This law could potentially come into practise in other countries in the near future.
Brand Market Position (to include at least SWOT)
200 words?
Discuss the brand market position, including at least SWOT analysis, along with supporting research/findings. This section refers to how the brand is perceived by the consumer.
Regardless of the countless negative press in recent times, Victoria’s Secret continues to be popular among women and is known for keeping up to date with trends, keeping the brand exciting. They sell a range of products from lingerie to beauty items such as body mists and lip glosses, meaning that the company is able to appeal to a range of customers and their needs. From an online survey conducted, it was found that out of 100 people, 33% shop at Victoria’s Secret for their underwear which is a large proportion considering the amount of cheaper alternatives there is available (see appendices for screenshot). However, as people find out they can get the same style and quality at a quarter of the price in somewhere like Boux Avenue then Victoria’s Secret could find their sales falling. There are definitely opportunities in the market for Victoria’s Secret to improve sales such as appealing to plus size women through an advertising their products on a range of body types and also using different influencers other than the classic ‘angels’ to show that anyone’s body can look good in their underwear.
Victoria’s Secret has a range of strengths, from their instore experience where bra fitting is offered, products are displayed creatively and luxurious dressing rooms are available, to their range in products including all types of underwear, beauty products and everyday clothing. These strengths ensure that customers have a positive image of the brand and keep customers buying from them. However, the brand also has weaknesses which could make consumers refrain from buying products. These include only displaying their underwear on models of one body type, this means that many of their consumers cannot relate to images and advertisements of products as the majority will not feel represented by the models and for some this may mean they would prefer to buy elsewhere. Another weakness is their pricing, many people cannot afford or justify spending up to £70 on a single bra and although the bras are good quality, the same products can be bought somewhere else for cheaper. In terms of opportunities, there are a number which could lead to an increase in sales and a better public image of the brand, one of these being creating a new line of underwear where the models are of a range of body types or bringing out a range that is more affordable to bring a new consumer base into the store. Threats are important for every brand to understand and in Victoria’s Secret’s case these include key competitors who are selling the same designs and quality for a lower price and also those who use a wide range of body types. This is definitely an issue Victoria’s Secret need to be aware of as their consumers may choose to buy from these other brands.
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Competitors (to include at least Brand Positioning Map)
200 words?
There are a number of both online and high street stores that are considered to be competitors of Victoria’s Secret. To name a few, the UK competitors include Boux Avenue, Ann Summers, Marks and Spencer, Primark and online retailers such as Pretty Little Thing. It is reported that Marks and Spencer are the leading retailer for underwear with an impressive 46% of women in 2016 buying underwear from there, however, their customer base tends to be consumers over the age of 45 which is much different to Victoria’s Secret (Mintel, 2016). Although Victoria’s Secret is the most popular underwear specialist where people shop, in 2018 UK supermarkets Asda, Tesco and Sainsburys had a combined share of 41% of where people shopped for underwear in the last 12 months. These supermarkets are so popular as they are the most convenient place to buy underwear from with the lowest price (Mintel, 2018). The other main underwear specialists Boux Avenue and Ann Summers continue to do well in the UK market and provide a slightly lower price point than Victoria’s Secret for customers who maybe aren’t willing to pay up to around £60 for one bra. Ann Summers use a wide variety of body types on their website meaning that customers may feel more inclined to shop there if they are of a similar shape. Over in the US, competitors include Aerie and Savage X Fenty who cater for plus-size customers with lower prices.
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Further analysis needed in terms of the key competitors and how they are tackling body positivity and diversity.
Consumer Demographic
200 words?
Discuss the consumer demographic your chosen brand currently targets, you can look at age, income, disposable income, location, lifestyle, work.. create a consumer profile/identity for the audience supported by research/findings.
MOOD BOARD
Victoria’s Secret is one of the most, if not the most well-known underwear retailers globally. Although there is a limited number of physical stores around the country, 83% of UK women are aware of the brand. The brand is most popular amongst the 16-24 age group where 37% of them have said they are brand loyal (Mintel, 2018). However, Victoria’s Secret loses out on the majority of other consumer groups. This could be due to the fact that Victoria’s Secret only advertises their underwear on young models and do not tailor their advertisements towards the older generation. When visiting the stores, it was found that despite the main audience of Victoria’s Secret is the 16-24 age group, there was a wide variety of customers in the store such as men shopping for their partners and mothers and daughters. A questionnaire was conducted where 82% of answers came from a 16-25 age range – over half of people who answered either shopped at Victoria’s Secret or online retailers such as Pretty Little Thing who sell cheap underwear. The majority of answers came also from those who were students with a part time job and those that worked full time. This suggests that there could be an amount of disposable income they are able to spend on more luxurious underwear coming from Victoria’s Secret. (see online survey screenshots).
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Provide more detail on your key consumer group including income(Students), lifestyle and characteristics. Provide a consumer profile. Refine mood board to reflect target consumer group 16-24.
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