Victoria Secret Market Segment Development Plan

advertisement
Imprint Group, Inc.
Original: May 2009
Revised by Heather Castner: March 2013
Scott Anderson (Creative Director)
Heather Castner
Raymie Chapman
Michelle Lee
Nicole Miller
Sharon Thadeus
Kamila Tontz
Creative Brief
Product:
We analyzed the revival of the core market for Victoria’s Secret (1,000 stores and
catalog).
Key History:
Victoria’s Secret was the creation of Roy Raymond in the mid-70’s. He was frustrated by
his personal shopping experience for lingerie for his wife. His idea was to find middle
ground between the excessively frilly and the ultra conservative underwear options and
present it in a comfortable shopping environment that balanced “seduction with “classy”
charm”.
“Victoria’s Secret built its image with a fairly conservative, middle-class shopper in mind
and avoided any connotations of sleaziness which lingerie might carry. It helped women
of all shapes and sizes, if not tax brackets, feel that sensuality need not be limited to
models and celebrities.”
In 1982, Victoria’s Secret was sold to the Limited, who took Victoria’s Secret nationwide,
opening stores in malls across America, adding catalog sales and expanding merchandise
to include: clothes, swimwear, shoes, bath and body, and makeup, etc.
In the 1990’s, Victoria’s Secret vamped up it’s image with racy, highly sexualized ad
campaigns featuring young models with slim, busty figures called Angels that appealed
more to the male market than the original core market.
In 2004, Victoria’s Secret launched its sub-brand Pink geared towards the 18-22 year old
college girl set, further moving away from their heritage with the idea that a younger
market meant longer brand loyalty.
Yet, our research indicates that brand loyalty is wavering from a backlash to the overly
sexualized brand image geared towards men and young girls. This brand image actually
alienates the core market of middle-aged women who make up 95% of the annual
purchases.
Problem the Advertising Must Solve:
Victoria’s Secret has lost connecting with some of its core audience consisting of middleaged women who feel alienated by current advertising campaigns geared towards men
and young girls.
Advertising Objective:
Our main goal is to increase revenue, and reinforce brand loyalty within the core market.
We plan to do this by bringing VS's original consumer market back into the stores. By
taking better care of the core market we will give them a reason to return to Victoria’s
Secret.
We believe a pulsing frequency, combined with diversified media will be the most
effective. By advertising heavily during busy seasons using several different media, we
will be able to gain maximum exposure to the consumer at times when they are most
likely to buy. Our marketing strategy specifically targets a group of people who, once
avid VS fans, have been pushed away by the change in product focus. They no longer feel
that VS is able to serve them in the ways that they desire. Our strategy will expose our
prospective customers to reminders that we want them to treat themselves to the little
bits of luxury they deserve, bringing back the idea that VS is a brand that understands
their intimate needs.
Creative Strategy
Prospect Definition
Demographics
The market we are targeting with this campaign includes women of all races, over 30, in
a mid to high-income bracket.
Geographics
This market is located across the nation. We will have charity events in major
metropolitan areas such as New York City and Los Angeles, as well as print and electronic
campaigns aimed at women all over the country.
Psychographics
We will focus on women of all walks of life (housewives, business women, mothers, and
so on) who are interested in saving money for their family and who look for value. These
are women who know the difference between dressing sexy and being sensual.
Behavioristic Variables
These women know the Victoria’s Secret brand, but have started shopping at
competitors like Target, Sears, and other department stores to save money and time.
Department store brands are quicker to purchase, cheaper and easier, but not sexier.
The women shopping there cannot justify splurging on something just for themselves.
They are caught up in the business of life, taking care of the family, household, and work,
trying to juggle it all while losing themselves in the mix. These women seek comfort and
value, but may not realize that Victoria’s Secret can offer them this and even more.
Victoria’s Secret can also offer sensuality, with higher quality design at affordable prices.
Principle Competition:
Specialty stores – Nordstrom, Saks Fifth Avenue, Macy’s
Boutique – La Perla, Fredrick’s of Hollywood
Department stores – Sears, Wal-Mart, JC Penny, Target
Key Promise:
She is worth it. She deserves to indulge herself. Victoria’s Secret underwear will serve as
a reminder that she is a sensual being every day, no matter what she is doing. Our
combination of print ads, television commercials, electronic ads and charity events will
all relate to this theme of feeling sensual despite the drudgery of everyday life. The
quality of the product will offset the initial investment, with longevity and durability
making the purchase decision practical as well as indulgent.
Reason Why:
Our appeal is to combine the practical value of investing in lasting quality underwear
with the reality that women deserve to feel sensual every day. In our current economic
environment, people are cutting back on many things, but underwear is still a daily
need. Women are the caregivers of the world; they have great value and assets to give.
We intend to remind women that they are important and should not relegate
themselves to the bottom of the list, that something as seemingly trivial as underwear
can have a large impact on the way a person feels. The improved self esteem of wearing
special just-for-her Victoria’s Secret underwear will stay with her throughout the day,
giving her her own secret. And reminding her that underneath it all she is a beautiful,
sensual woman.
Mandatory:
Victoria’s Secret logo, color/design/style scheme, cannot be changed. Store layouts
cannot change. Cannot increase or decrease number of store branches.
Media Plan
Prospect Identification:
We want to appeal to the modern everyday woman, nationwide. We want to reach the
original core market that Victoria’s Secret was created for and remind every woman that
she is being sensual no matter what she happens to be doing.
Marketing Mix:
We chose to use television and print ads, charity events and in-store promotions, to
really give VS exposure to our target market in a way that would be both cost effective
and image-supporting. We may test the first run of print ads as ¼ page ads, on the top
right corner of a chosen publication. When this proves to be successful we will increase
the ad size to full-page ads on the right hand page. Likewise, we may test the TV
commercials during less expensive time slots and move them in to the more expensive
slots when they prove successful.
Circulation mode will be a combination of paid (magazine and internet) and controlled
(network TV), all in credible publications/programs. Distribution mode will be in
magazines (subscription and newsstand), regular cable television, and online.
MEDIA
ELECTRONIC
PRINT
PR EVENTS
ONLINE




INVESTMENT
55%
30%
8%
7%
55% TV ads (during programs such as “Design on a Dime”, “What Not To Wear”,
“Rachel Ray”, talk shows such as “Tyra”, entertainment shows such as “E”
channel programs)
30% Print ads (magazines such as Home and Garden, Interior Design magazines,
Cooking magazines…places one normally does not see Victoria’s Secret)
8% PR event promotions
7% Coupon and VIP card online promotions and blogs
Tangibles:
We would save money by putting print ads and TV commercials in vehicles with a lower
cost per thousand. For example, ad space in “Home and Garden Magazine” is less
expensive than “Oprah magazine”, yet still has wide readership and will be effective.
Also, TV ads during “Design on a dime” or “Tyra” are less expensive than during “Oprah”
or “Martha Stewart” but still have a wide audience. Since underwear products are not
typically advertised in these areas we will be positioning ourselves by ourselves, ignoring
the competition and drawing in our own clientele.
The publications we will advertise in have a high pass along rate, as women give these
magazines to friends, as well as dental and doctor’s offices when they are finished with
them. The publications may have a lower net reach than larger publications but the pass
along rate will help bolster exposure to the advertisements.
Intangibles:
Circulation mode will be a combination of paid (magazine and internet) and controlled
(network TV), all in credible publications/programs.
Distribution mode will be in magazines (subscription and newsstand), regular cable
television, and online.
Because we will be advertising in magazines and television programs that do not
normally advertise underwear we will be positioning ourselves as the leader of the pack
and will not be trying to compete openly with another established company.
We may test the first run of print ads as ¼ page ads, on the top right corner of the
publication. When this proves to be successful we will increase the ad size to full-page
ads on the right hand page. Likewise, we may test the TV commercials during less
expensive time slots and move them in to the more expensive slots when they prove
successful.
Media Tactics:
TV
Our biggest segment is TV. We propose that 55% of our expenditures go to TV ads, but
not just during your traditional talk show “Oprah” type shows. We still like the idea, but
we would try out our ads on a less expensive alternative, like “Tyra,” and entertainment
shows like “E” channel programming. In addition we will use other shows that are
currently missed by much of the competition like “What Not to Wear,” “Rachel Ray,” and
even shows that are not clothing specific like “Design on a Dime.” One key thing we
considered when choosing these programs was credibility. We will avoid any
programming that could be considered less than reputable.
Print Ads
Print ads make up about 30% of our mix. We separated this into several forms: magazine
ads, newspaper stickers, gift certificates and coupons.
Magazine Ads
For print ads, we would also go with magazines that had lower cost per thousand, and
that one wouldn't traditionally think to look for VS ads. Examples are Home and Garden,
interior design magazines, and cooking magazines; these magazines are geared towards
women, but lack the competition from other intimates brands. The publications we
think will be best have a high pass along rate, as women give these magazines to friends,
as well as dental and doctor's offices when they are finished with them. Some of the
publications may have a lower net reach, but we are confident that the pass along rate
will help bolster exposure to the advertisements.
Newspaper stickers/Coupons
We decided that one good way of getting our consumers information about charity
events and coupons that would get them into the stores and build on VS's strong brand
awareness, were “sticker” ads on the fronts of newspapers. Although this method can
be applied to events, sales, general advertisement, coupons, and many other
applications, the number of households it could reach and the likely-hood that the
consumer will see the ad before peeling it away to see the newspaper headlines was too
great for us to overlook this media. In addition, the costs are minimal: we don't have to
pay for advertising space “in” the newspaper itself, we just have to pay to be put in with
it. We plan to offer specific coupons that can be redeemed at special times, such as
coupons on or around the consumers birthday for a certain percentage off based on
their age (range).
Charity events!
We want to increase sales while give something back. Whether partnering with cosponsors, or setting up a walk for breast cancer research, we believe that VS can benefit
from the exposure of charity events. Only 8% of our budget was put towards these
events, but here, a little counts a lot. Most of the money involved doesn't go out to the
charity until we gain sales in stores, so the event makes money, and we make money
with little initial output.
Elegant events hosted for Fortune 500 executives: rewarding their employees with a
special deals exclusive to the event. A yacht party to help raise money for a featured
charity: each company that donates, gets VIP attendance for their executives and
consumer incentives to hand out to their employees as a thank you.
Nationwide “localized” events such as walks for osteoporosis, letting women participate
and help their fellow woman, while learning about self-checks for cancer and a properly
fitted bra. Flyers and coupons supporting a season at VS supporting those events could
bring attention from our target market into stores as a portion of proceeds during
May(national osteoporosis awareness month) and October(breast cancer awareness
month) go to charity.
Sales for Charity Events: This includes television advertised and sponsored events, where
the proceeds can be collected without a physical event being planned, just advertise the
“event” to raise money and a portion of the proceeds (from sales) to charity.
Coupons, VIP cards, and In-store promotions
7% of our expenditures went to coupons, VIP cards, and in-store promotions, but for a
section with a very small cost per thousand, this is quite an expenditure. Here we come
back to coupons, but lets not forget one major source of coupon distribution: the
internet! Online promotions and blogs are a primarily untapped resource for VS, and
could be very cost effective, and VIP cards keep customers coming back for the goodies
they get for being a VS loyal customer.
Online Coupons
Online deals and promotions, buy 3 get the 4th one free, only online, limited time offer!
It entices the consumer to buy now because a deal like this might not be around the
next time they have to do a bit of necessity shopping. Also important here might be
items no longer carried on your store shelves. It's an easy way to get rid of last season's
backlog.
Blogs and Social Networking
This is practically free advertising. Jump on the bandwagon of viral advertising, where
one post leads to another, asking people to tell their friends, let them know you love VS!
Quizzes: “what VS bra are you?” This along with blog submissions about how excited
someone is about their new VS sleep-shorts can spread quickly through an ever
broadening field of people on the internet. To focus this a bit more, we can aim
advertising here to the top social networking sites visited by women in our target
market: according to “Mashable: the social media guide” health and body networking
sites like iVillage, Café mom, Glam and Kaboose, are at the top of the list for SN sites
visited by women.
VIP cards: It's all about loyalty, and VS is going to show it's appreciation! Anything from a
Happy Birthday card in the mail to in store discounts for coming back time and time
again will help show our VS VIPs that they are not overlooked, but rather that their
satisfaction is our primary concern.
Media Budget:
Our financial tactic is to use a pulsing frequency.
January thru Valentine’s Day for the 1st Semi-Annual Sale in January, the National “Go
Red Day” in February and Valentine’s Day.
June for the 2nd Semi-Annual Sale, swimsuit season and the Susan G. Korman Global
Race for the Cure (Breast Cancer) in June.
Thanksgiving thru Christmas for the Victoria’s Secret Fashion show and Holiday season.
Then, spread evenly on the Internet with coupons and blog entries throughout the year.
Media Scheduling:
One thing we considered carefully in our strategy was timing and the idea that not every
marketing idea works everywhere and all the time. One of VS's own Brand Marketing
Managers, Ryan Davis of Indiana said he “quickly discovered that a marketing strategy
that works well on the Web may not be worth the investment at a retail store.” We want
to combine this knowledge with our marketing ideas to create a calendar that will
provide the most productive solutions at the most appropriate times. Our financial tactic
is to use a pulsing frequency.
MONTH
JANUARY
FEBRUARY
MARCH
APRIL
MAY
JUNE
JULY
AUGUST
SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
INVESTMENT
19%
19%
1%
1%
1%
19%
1%
1%
1%
1%
18%
18%
12-Month Timeline
Semi-annual sale in January (TV, Print)
National Go Red Day for the American
Heart Association charity in February
(TV and Internet)
Valentine’s Day (TV, Print, and Internet)
Semi-annual sale in June (TV, Print)
Susan G. Korman Race for the Cure in
June (TV and Internet)
Victoria’s Secret Fashion show (TV)
Christmas (TV, Print, Internet)
Closing
We've explained our media choices, the reasons behind them, and some of the
examples that we feel would bring the best to your advertising campaign. Our
marketing plan as we have presented it would get you the best for your dollar, and in the
end, we hope we have the chance to help make VS the brand every woman wants to
wear every day.
Download