Group 1 Dr. Kristen Heflin 12/9/2011 Victoria’s Secret Comprehensive Social Media Analysis Project Introduction Victoria's Secret is the leading specialty retailer of lingerie operating more than 1,000 stores across the United States. Victoria's Secret has brought attention to the lingerie industry perhaps more than any other brand. Victoria’s Secret was established by Roy Raymond, who felt embarrassed purchasing lingerie for his wife in a department store. He started Victoria’s Secret in the San Francisco area during the 1970s to provide a comfortable place for men to buy lingerie. After he opened the first store a mail-order catalog and three other stores soon followed. The stores were meant to create a comfortable shopping environment for men, with woodpaneled walls, Victorian details and helpful sales staff. Raymond saw an opportunity to take the “underwear” of the time and turn it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colors, patterns and style that gave them more allure and sexiness. In 1982, after 5 years of operation, Roy Raymond sold the Victoria's Secret company, its six stores and 42-page catalogue, grossing $6 million per year, to Leslie Wexner, creator of The Limited, for $4 million. By the early 1990s, Victoria's Secret had become the largest American lingerie retailer, topping one billion dollars. Beginning in 1995, Victoria's Secret began holding the annual Victoria’s Secret Fashion Show, which is broadcasted on primetime American television. The show is a lavish event with elaborate costumed lingerie, varying music and set design according to the different themes running within the show. The show attracts hundreds of celebrities and entertainers with special performers and/or acts every year. Basic Store Facts* Net sales (millions) $4,018 Comparable store sales 14% Number of stores 1,028 Selling square feet 6,057,00 *As of January 29, 2011 By first developing a strong name in lingerie, Victoria’s Secret also entered the clothing industry, offering customers choices in clothing, accessories, fragrances, personal care, swimwear and athletic attire. In 2004 Victoria’s Secret founded its sub-brand, PINK, which sells underwear, sleepwear, lounge wear, beauty products and accessories marketed towards teens and young adult females. Business for the Victoria’s Secret Brand is principally conducted from offices, distribution and shipping facilities located in the Columbus, Ohio area. Additional facilities are located in New York, New York, Kettering, Ohio, Rio Rancho, New Mexico, and Paramus, New Jersey. Current Communication Initiatives Victoria’s Secret has proven to be effective in defining beauty for consumers through various marketing, advertising and public relations strategies. This company has united their traditional and online marketing efforts successfully. The $12 million Victoria’s Secret Fashion Show is the key focus for the brand’s advertising machine, used as a platform to promote and sell its goods in a high profile setting. This event is able to reach an audience of over 1 billion people, including news coverage. The brand also has nationwide retail presence and markets themselves through their store interiors. About 390 million copies of the Victoria’s Secret catalogue are distributed in the United States free of charge full of intimate apparel, women’s clothing, beauty products and accessories. To reach the teen, college age and adult women audiences, Victoria’s Secret pays for advertising space in popular women’s magazines. The company also pays for commercial spots on major networks to announce sales or new collections. Occasionally, Victoria’s Secret also puts on special events to heighten the publicity surrounding the release of a new line of lingerie. To model their lingerie and clothing, Victoria’s Secret capitalizes on their elite group of supermodels, “angels”, to represent their brand with beauty and class. Their international supermodels receive major media attention and are of celebrity status, including: Miranda Kerr, Alessandra Ambrosio and Adriana Lima. Victoria’s Secret has done a wonderful job reaching their target audience and primarily using the online resources that their consumers use. Unlike many companies online, Victoria’s Secret has followed their consumers to the place they spend the most time. When searching for Victoria’s Secret on social media, they can be found on Facebook, Twitter and YouTube. They also have a mobile app for iPhone, iPad and Android devices. And finally, they offer an exclusive email for people who want to sign up. Victoria’s Secret uses social media impeccably. With more than 15 million fans, it is safe to say that their Facebook approach has made an impression on their consumers. On their official Facebook account, they offer everything from Victoria’s Secret themed wallpapers to gift card information. Victoria’s Secret also has a great YouTube Channel. They consistently upload content to their channel including commercials airing on television and exclusive behind-thescenes videos. On Twitter, Victoria’s Secret consistently updates their over 300,000 followers on the deals they are having or the programs they are producing, such as the Victoria’s Secret Fashion Show. Besides the well-known social networking tools, Victoria’s Secret has expanded to mobile communication efforts as well. They have mobile apps for iPad, iPhone and Android devices that allow their customers to shop wherever they may be. Finally, Victoria’s Secret offers an email and text service that will alert customers who have opted in on special deals and events. Victoria’s Secret has created a model for women for how they should treat themselves and they have also created a model for other companies demonstrating how to successfully be present on the Web. Need for Social Media Monitoring Victoria’s Secret seems to be everywhere in the online world. They have a strong presence on every social media platform, and their website is strong as well, but it is still important for Victoria’s Secret to monitor social media and all online presence for their business. There are a lot of things being said on Twitter and blogs about their products which may or may not have a negative impact on the company. The main thing Victoria’s Secret needs to be aware of are the fake deals that people are putting on Twitter and Facebook. Recently, Facebook was inundated by fraudulent coupon codes for free Victoria’s Secret panties and Victoria’s Secret has yet to do anything to negate these coupons. Not only should they make their customers aware of the discount fraud, they should also direct their customers to legitimate discounts. On Victoria’s Secret Twitter they do a great job of re-tweeting fans and posting relevant comments but the majority of their posts remain promotional. By monitoring their online presence on social media and across the internet, Victoria’s Secret would be able to see what people are saying about themselves as well as their competitors. While monitoring the social media presence of the company, specifically when searching the keyword “bras”, a lot of positive posts about Playtex were discovered. Victoria’s Secret could use this information and comments to find ways to improve their products and advertising to remain the frontrunner in the market ahead of Playtex. By monitoring the positive feedback on its own brand, Victoria’s Secret will be able to replicate the things customers already like and improve on things that aren’t working. Methodology During the two week span beginning October 24, 2011 and ending on November 7, 2011, our group monitored Victoria’s Secret and their presence on social media. During this time frame, the brand was most discussed on various blogs but also on Twitter, Facebook and reputable websites. The keyword search terms we chose were Victoria’s Secret Pink, Victoria’s Secret Fashion Show, Victoria’s Secret Angels, lingerie and bras. The keyword phrase Victoria’s Secret Fashion Show was the most discussed among all the phrases we chose because the monitoring period ended within days of the live event. The blogs discussing Victoria’s Secret were found using social media monitoring sites such as www.addictomatic.com and www.socialmention.com. These sites allowed us to search each individual phrase and returned results from various social media platforms. These sites provided a convenient way to find and read relevant blogs about each specific keyword. Twitter Advanced Search was also used to follow the conversation about the brand on Twitter, however, the keywords Pink, lingerie and bras mainly yielded results about sales and coupons many of which did not seem like they were from legitimate sources. www.moniterr.com was another tool we used to search for Twitter mentions about the brand. The Google Trends tool also provided us with insight as to when certain keywords would spike in interest. We used various factors to determine the credibility of our sources depending on the social media platform. On Twitter, we looked at the number of followers and the quality of the users’ previous tweets. We looked at blogs similarly, but also used Alexa to look at the blog’s ranking and the number of sites linking in to provide additional support for credibility. The Huffington Post and International Business Times were the most credible websites we referenced. Both of these sites regularly provide their audience with business and entertainment news and they have large followings. Results Strengths Advertising: One of Victoria’s Secret’s strengths is their very successful advertising strategy. Victoria’s Secret spends $66 million annually on advertising, essentially defining beauty and packaging it for consumers. Thousands of newspaper ads, catalogues and televised fashion shows convince women that buying Victoria’s Secret products will boost their confidence and enhance their appeal. A Victoria’s Secret product represents fun, romance, fantasy, desire and love all in one. Print Ads in Magazines and Newspapers: What Victoria’s Secret doesn’t spend on Internet, television ads, fashion shows, or catalogues they spend on newspaper and magazine ads. Newspaper and magazine ads are effective for reaching a specific audience. In particular, Victoria’s Secret targets magazines it expects its consumer base to read, which include Cosmopolitan, In Style, Glamour and Allure. Catalogues: A person simply has to go to the Victoria’s Secret website, enter a mailing address, and a few weeks later a Victoria’s Secret catalogue is delivered to their doorstep, free of charge. Over 390 million copies of the Victoria’s Secret catalogue are distributed in the U.S. alone. Annual Fashion Show: The Victoria’s Secret Fashion Show is a centerpiece for the brands intricately designed and elegantly functioning advertising machine. With this event, Victoria’s Secret reaches an audience of over 1 billion. Victoria’s Secret obtains one hour of nationwide advertising and CBS is granted the exclusive rights to one of the most popular annual programs on TV. Facebook: Victoria’s Secret official Facebook page has 15,987,963 “likes”. Their Facebook page offers specials, such as giving away 100,000 reward cards worth anywhere from $10-$500, various ways to stay connected to Victoria’s Secret, videos/photos, events tab and other helpful links for those interested. The Supermodels/Angels: Victoria’s Secret holds one of the most important input supplies in the lingerie industry: supermodels. Advertisements capitalize on this association and cement in consumer minds that Victoria’s Secret represents beauty and class. Store Front: Store interiors are also consistent with Victoria’s Secret’s brand image. Wallpaper hues of soft pink promote a soft, feminine environment. Victoria’s Secret stores are meant to evoke images of class. Sweepstakes & Contests: Victoria’s Secret website has contests and sweepstakes year round that offer prizes ranging from $10 gift cards to $10,000. Victoria’s Secret further reinforces positive shopping experiences with customer service. At its Direct Client Contact Centers, trained call center personnel not only assist callers with sizing and other concerns, but also talk about products in a manner that communicates the romance of the brand. They recommend complementary items or alternatives to products that are out of stock. Weaknesses As Victoria’s Secret is a very well-established company, there are only a few weaknesses this organization reveals. First, Victoria’s Secret is not interested in expanding their target market. Some people believe this limits them by keeping their products targeted to younger girls and not older, married women. Also, Victoria’s Secret could take some more time with their online presence, including responding more to their consumers on Twitter and blogs monitoring the internet for discussions about the brand. Opportunities Victoria’s Secret is a strong company with a prominent online presence and is extremely active on social media world. The one opportunity Victoria’s Secret could take advantage of is the promotion of the annual fashion show. There is always a lot of hype about the show. Victoria’s Secret does a good job of advertising on its website and social media platforms for this fashion show. However, if they created official Facebook and Twitter accounts dedicated to specifically promoting the event, the already impressive viewership ratings could be increased. They could include information such as the model’s bios, pictures and other interactive information sources for the fashion show’s audience. Victoria’s Secret could also create a smart phone app with a countdown to the event and run specials in their store the whole week leading up to the show. Although the fashion show is advertised, it blends in with the rest of the website and advertisements. It needs to stand out as its own entity and not be grouped in with the general function of the company. Threats The public and the media have often criticized Victoria’s Secret for promoting incredibly thin models, creating a negative idea of the brand. These “angels” are required to be at least 5 feet, 8 inches tall and meet specific measurement requirements in order to model the clothing. Models with a 34-inch bust, a 24-inch waist and 34-inch hips are the most desired. Because Victoria’s Secret angels are the most prestigious models in the industry, this creates an almost physically impossible body standard to live up to. The brand also provokes numerous Federal Communications Commission (FCC) complaints every year following the annual fashion show. The FCC has yet to impose a fine against Victoria’s Secret but could in the future. Groups like the American Family Association annually flood the FCC with criticisms about how the Victoria’s Secret Fashion Show is indecent or obscene. Conclusion Overall, Victoria’s Secret is consistent with their appearance across all communication outlets including traditional and online media. They reach their customers through almost every source available and update their audience frequently. Victoria’s Secret controls the majority of the lingerie market with little to no competition. The success of the brand name and their products is a result of their overall communication efforts. As a nationwide retailer they market themselves through their store interior, packaging and event through the name of the Pink product line. Customers are promised quality service when they walk into a Victoria’s Secret store. Employees are knowledgeable about all of their products and make sure customers are comfortable throughout their shopping experience. These are some of the strengths attributed to the Victoria’s Secret company. Since Victoria’s Secret is such a well established company, they aren’t open to expanding their market. Even though their status as a company is a strength, the weakness is they may be too comfortable with the brand’s identity. Victoria’s Secret has a prominent online presence but they don’t use it to their advantage and actively join in the conversation with their customers. The annual fashion show is a strong part of Victoria’s Secret’s marketing efforts but it tends to blend into the company’s general marketing. They should exclusively use the official Twitter account for the annual fashion show to promote the event and make it stand out rather than blend in to Victoria’s Secret’s everyday promotions. This missed opportunity could increase the already impressive viewership of the show. Victoria’s Secret provokes numerous FCC complaints every year following the fashion show. Prominent groups like the American Family Association regularly complain that the show is indecent or obscene and should be televised during late night television rather than during primetime. Victoria’s Secret is also criticized by the media and the public for promoting impossibly thin models that could potentially create a negative image for the brand. The “angels” are the most prestigious women in the modeling world and are considered celebrities. This creates an almost physically impossible body standard for girls to live up to. These all create a negative brand image threatening the Victoria’s Secret company. We recommend Victoria’s Secret implement the following in their overall communication efforts: Edit their company information page on Facebook. It is text heavy and consists mainly of legal notices about copyright and use of information. Even though this is important information, it should appear elsewhere and not under the mission section of their information page. Redesign Victoria’s Secret home page to make the Facebook link more prominent and visible, rather than in the bottom right hand corner. Add icons with links to the Twitter page and YouTube channel, Flickr group and blog. Create a group on Flickr to share pictures from recent photo shoots and events. Use the fashion show’s Twitter account more effectively. As of the day after the 2011 show aired, the account only had only 22 tweets and less than 1,000 followers. Twitter could be a major help behind the fashion show if used properly. Vary what their posts are about on both Facebook and Twitter. Currently their tweets and posts are almost all promotional. Give fans and followers an incentive to visit the store, like a code for a discount or a free item at least once a week. Focus on creating deals on gift set items and share those gift ideas on both Facebook and Twitter around the holiday season. Respond to customers’ feedback more on social networking sites such as Twitter and Facebook. Create a blog dedicated to directly communicating with customers to answer questions, solve issues in store and online, etc. Create a blog for Victoria’s Secret employees to encourage communication between employees in the corporate offices along with the retail stores. Participate in the conversation with influential bloggers who talk about Victoria’s Secret. Inform customers about coupon scams that spread through social media and how they can spot fake discounts. Reach out to the American Family Association to generate feedback about the annual fashion show. Involve models in organizations that promote healthy lifestyles and a positive body image. Monitor potential competitors like Playtex as their presence on social media has started to increase. References 2011 proxy statement & 2010 annual report. (2010-2011). Limited Brands. Retrieved November 30, 2011. Retrieved from https://materials.proxyvote.com/Approved/532716/20110328/CMBO_86861/HTML2/def ault.htm p.26 Bonander, R. (n.d.). 5 things you didn't know: Victoria's secret. Retrieved from http://www.askmen.com/entertainment/special_feature_150/165b_special_feature.html Denley, S. (2001, November 11). Fashion news: Angels walk runway in victoria's secret fashion show [Web log message]. Retrieved from http://citationmachine.net/index2.php?reqstyleid=2&mode=form&rsid=14&reqsrcid=AP Aweblog&more=yes&nameCnt=1 Limited brands 2010 annual report. (n.d.). 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