Situation Analysis
I. Brief History of the Company
a. Start of the Company

Victoria’s Secret was established in the 1970’s by Roy Raymond.

Raymond had the idea for Victoria’s Secret out of his own
embarrassment of purchasing lingerie for his wife in a department
store environment.

The first store was opened in the San Francisco area with the intent of
having a “cozy and inviting atmosphere.”

Raymond sold the Victoria’s Secret catalogue operation and six stores
to the Limited (known now as Limited Brands) in 1982.
b. Major Changes

Victoria’s Secret has had an impressive growth rate ever since it’s
start, reaching $3 billion in annual sales by the late 1990’s.

The name Victoria’s Secret has become one of the most recognized
among millions of women – this fact being quite apparent through
their catalogue distribution reaching over 390 million copies each
year in the United States alone.

In 1998, a survey determined that Victoria’s Secret was the nation’s
ninth most recognized brand and was synonymous with “romantic
and stylish lingerie.”

In 2005, Victoria’s Secret launched their sub-brand Pink, aimed at
late-teen and college aged women.

The launch of this sub-brand was done with the intent of transitioning
buyers into more adult lines of Victoria’s Secret products such as
Angels, Very Sexy, and Body by Victoria.
c. Present Status

There are currently over 1,000 Victoria’s Secret stores in the United
States.
1

Current divisions of Victoria’s Secret options include:
i. Victoria’s Secret Stores
ii. Victoria’s Secret’s Catalogues
iii. Victoria’s Secret’s Beauty Products
iv. Pink by Victoria’s Secret

In 2010, Victoria’s Secret opened their first stores outside the United
States: two in Edmonton, seven in Toronto, one in Kuwait and one in
the United Arab Emirates.

The company plans to launch its first UK location in 2012 with a
16,500 square foot store on Bond Street in London.

Victoria’s Secret has averaged approximately $5 billion in annual
revenue for the past five years.
II. Industry Analysis (For New Product)
a. Industry Category

Break into the jewelry market.

More specifically the affordable, medium-quality jewelry for young
women market.
b. Industry Competition

Our competition consists of other stores who sell inexpensive jewelry
to young women.

This includes:
i. American Eagle
ii. Aldo Accessories
iii. Forever 21
iv. H&M
v. Delia’s
vi. Charlotte Russe
vii. Claires
viii. Bebe
ix. Francesca’s Closet
2
c. Industry Changes

The jewelry market is a growing industry.

Always new stores adding jewelry to their stores

Young women are always looking for fun jewelry to dress up their
wardrobe.

They want these pieces to last, but also they don’t want to pay a lot
since they are most likely going to go out of style by the next season.
d. Industry SWOT Analysis

Strengths
International Industry
Wide range of products from
rings to bracelets and necklaces
Affordable




Opportunities
Constantly changing trends
Growing Industry
Already an established industry
Seasonal products








Weaknesses
Luxury, so in time or recession
industry lacks
Target has low income
Constant changing trends
demanding new designs
Threats
Natural Resources (supplies for
jewelry)
Abundance of competition
Economy
III. Market Analysis (For New Product Industry)
a. Current Consumer Motivations

Consumers of this product are young women looking for fun,
affordable jewelry.

They are motivated by the want for trendy jewelry to go with each of
their different outfits.

They are motivated by the ever-changing trends and new styles of
clothing and jewelry.

They are looking for affordable jewelry that will also last as long as
the trend does and stay in good condition.
b. Future/Potential Markets:
3

Based on the market analysis and the consumer motivations the
potential target market for the Pink jewelry line is:
i. Women
ii. Ages 16-28
iii. Who are interested in buying affordable, trendy jewelry to
accent all of their favorite outfits.
IV. Competitor Analysis (For New Product Industry)
a. Current Competition

Based on potential markets

Competition which we think will have the most impact on Pink
Jewelry:
i. American Eagle
i. Aldo Accessories
ii. Forever 21
iii. H&M
iv. Old Navy
v. Charlotte Russe
b. Competitive SWOT Analysis
Strengths





Well known Company
Large customer base
Many pre established locations
Quality
Price
Weaknesses



Opportunities




Growing interest in line
Exhibition in Fashion Show
Charm incentive
New, unfamiliar line
Season specific jewelry
Lack of classic pieces
Threats





More affordable brands
More quality brands
Economy
Income of target audience
4
c. Competitive Feature Analysis
AE
Aldo
Forever
21
H&M
Old Navy
Charlotte
Russe
Price
Quality
N
N
N
+
+
-
+
-
+
N
+
-
Availability
+
-
N
N
+
-
Originality
N
+
+
N
-
N
Fashionable
N
+
+
+
N
+
Variety
N
+
+
N
-
+
Marketing Analysis
I. Evaluation
a. Evaluate Competitive SWOT for Victoria’s Secret Pink Jewelry Line

Our strengths as a jewelry line include being well known, having a
large customer base, having many locations, the quality of our
products, and the price in which we set them at.

Victoria’s Secret Pink is an extremely well known brand throughout
our target market and we also have a large customer base that is loyal
to our products.

The quality and price of our products mirror the quality and the price
that our target audience expects; our clothing and accessories are
built to last and they are set at reasonable prices for high school and
college aged young women.

Our weaknesses as a newly formed jewelry line are our unfamiliarity,
the fact that we sell season specific jewelry, and the lack of classic
pieces that are found in our competitor’s stores.

However our opportunities include the growing interest we
anticipate for our newly formed line, our exhibition of the jewelry line
in the annual Victoria’s Secret Fashion Show which airs to millions of
5
viewers each year, and the incentives we provide with our specific
jewelry line.

Threats that we will take into account will be more affordable and
better quality brands by our competitors, the status of the economy,
and the incomes of our target audience.
b. Evaluate Feature Analysis for Victoria’s Secret Pink Jewelry Line

In regards to our feature analysis, we consider our main competitors
to be American Eagle, Aldo, Forever 21, H&M, Old Navy, and Charlotte
Russe.

All of these stores offer small accessory lines similar to ours.

Our main competitors as far as price goes are Forever 21, H&M, Old
Navy, and Charlotte Russe. American Eagle and Aldo have the same
price rages that we have.

However, when it comes to quality we surpass all of our competitors
except for Aldo.

Our availability is about the same as our competitors.

Our originality surpasses the majority of our competitors, with the
exception of Aldo and Forever 21.

Aldo, Forever 21, and H&M are our main competitors based on how
fashionable our jewelry lines are.

Finally, the variety we offer surpasses the majority of our competitors,
excluding Aldo and Forever 21.
II. Positioning and Differentiation Strategy
a. Positioning Statement

Pink Jewelry is the one line of exciting and young jewelry that
provides 18-30 year old women with a fashionable variety of jewelry
in order to fulfill their need for trendy, affordable, everyday
accessories.
b. Positioning Strategy
6

User Positioning – Our strategy is to target our specific group of
customers.

Our specific group includes fashion-forward, young, and independent
users.

Our models that we use for our jewelry advertisements will also
exhibit these same characteristics.

We want our customers to be able to relate to our line, and also the
models who wear our products.
c. Differentiation Strategy

We are different from other competing jewelry brands because our
prices are affordable, yet our jewelry still exhibits superior quality.

Our jewelry line will release limited edition charms throughout the
year, which also differs from other brands of jewelry in our
competitive market.

We also will provide incentives when a Pink purchase is over a certain
amount of dollars.

We will implement a points system to introduce the jewelry line,
where the customer earns points when they make Pink purchases.
III. Marketing Mix Elements
a. Product and Package
i. Product

Brand Name: Pink by Victoria’s Secret

Product Name: Jewelry by Pink

Description: Fun, young jewelry, including: necklaces, rings,
earrings, bracelets, and charm bracelets at an affordable price.
ii. Package

Pink boxes with a white bow and the signature dog figure
attached to the bow.
7

Each charm bracelet clasp will include a small round pendent
with the dog symbol signifying that it is an exclusive piece of
jewelry from Jewelry by Pink.
b. Pricing

Our price range for all pieces in our collection will range between $1040.

All charms will be $10, rings between $10-$20, and bracelets and
necklaces between $20-$40 based on how intricate they are.

All starter charm bracelets will be set at $15.
c. Distribution

Our jewelry line would only be sold in Pink Stores, not Victoria’s
Secret stores.

The line would also be available on the Pink section of the website.
d. Marketing Communication

We will target our audience through direct mail and print (specifically
magazine) advertisements.

We will also target our audience through social media websites, and
television commercials.

Through our advertising we will mention the incentives that our
jewelry line has over other competitive jewelry lines, and mention
limited edition charms for the charm bracelets.

Our advertisements will be relatable, and therefore appealing to our
target audience.

The jewelry line will also be debuted at the annual Victoria’s Secret
Fashion Show.
IV. Target Market
a. Target Demographics

Age: 16-18

Gender: Female

Race: White
8

Marital Status/Family Size: Single with no children

Economic Class: Middle class

Income: $5,000-$40,000 a year

Occupation: Student to entry-level jobs

Education: High school and College

Geography: Urban to suburban areas of the United States
b. Target Psychographics

Personality: Fun and outgoing women who loves fashion

Values: They like to live life and have fun

Attitudes: Optimistic and easy-going

Interests: Fashion, going out on the town, socializing

Lifestyle: Work hard in school and work, but enjoy themselves on the
weekends.
c. Target Geography

All suburban and urban communities in the United States that have
access to a Victoria’s Secret Pink store and/or access to the internet.
Objectives
I. Objectives
a. Increase consumer awareness
b. Stimulate trial use of product service
c. Increase sales
II. Quantitative Benchmarks
a. Send out direct mailers and have print ads in magazines

In order to increase consumer awareness we are going to be sending
out direct mailer’s to consumer’s households.

We are also going to have print ads in magazines.
9

The print ads will be full-page ads showing our jewelry to the
demographics we are trying to reach.
b. Offer a free charm when customers purchase a signature charm bracelet

In order to stimulate trial use of our product, we are going to offer a
free charm when customers purchase a signature charm bracelet.

This will make the clients want to continue shopping with us,
especially since they will be earning points to gain more charms.
c. Offer new promotions and have sales

In order to increase sales, we are going to offer new promotions in
different times of the year, especially during the holiday seasons.

We are also going to have semi-annual sales both in the summer and
winter.
Budgeting
I. Amount
a. $10 Million
II. Allocation
a. Print Advertisements

We are going to spend 50% of the money on print advertisements in
magazines.

We feel as though that will represent our company the best, especially
with the demographic we are targeting our product towards.
b. Direct Mailers

30% of our budget will go toward the direct mailers.

We are going to send them to all of our Victoria’s Secret and Victoria’s
Secret Pink customers, as well as anyone in our database and in local
areas.
c. Online Advertising
10

The remaining 20% of the budget will go towards online
advertisements.

Facebook will be the most popular online advertisement, along with
Twitter.

Banner ads will also be used to display our new line of product.
Communication Strategies
I. Communication Objectives

The media campaign to advertise Pink Jewelry will be launched in
order to increase consumer awareness of the new product line.

Since Pink jewelry is a new product being launched by Victoria’s
Secret, it is important that the advertisements are clear and concise,
displaying the product in such a way that consumers will instantly be
aware of the necklaces, bracelets, and rings that will be a part of the
Pink Jewelry line.
II. Creative Brief
a. Client

Victoria’s Secret Pink
b. Key Fact

Consumers need affordable jewelry that can keep up with their mood
and ever-changing style.
c. Key Benefit

Quality jewelry at an affordable price, Pink charm incentive.
d. Target Market

Women, ages 16-28, white, single, no children, middle class, some
college, students or entry level job, urban and suburban areas, VALS
experiences and innovators.
e. Consumer Problem
11

Consumers don’t associate the Pink brand with jewelry.
f. Advertising Goal

Our advertising goal is to increase consumer awareness. This is
important because our product is new and just starting out, so we
need to get the word out about our new product line.
e. Message Strategy

Affective Association by Situating the Brand Socially
f. Reason Why

The target would respond well to “feel good” ads that they can relate
to. The target has a busy social life and therefore situating the brand
socially can show how Pink jewelry fits into their daily social lives.
g. Competition

Forever 21, Old Navy, American Eagle, Aldo Accessories, Charlotte
Russe, and H&M.
h. Mandatories

Victoria’s Secret Pink logo, Facebook web address.
III. Advertising Recommendations
a. Print Ad

Our objective with the print ad is to increase consumer awareness
about the new line, and specifically get the word out to our target
audience.

The ad will be in magazines that are relevant to the target audience’s
lifestyle.

We will use affective association to create feel good ads for the target
and also incorporate the brand socially into the lives of our target
audience by showing the ad model(s) engaging in activities that the
target does often and relates to.
b. Direct Mail-Out Ad
12

The mailer will go directly out to our current customers who are part
of our loyalty programs such as Pink Nation and the Victoria’s Secret
Angel Card, and to the people who receive our catalogue in the mail.

This will create a buzz among customers who are already loyal to the
Victoria’s Secret brand.

The objective is to raise awareness of the new brand.
c. Internet Advertising

Our Internet advertisements will mimic the style of the print ads and
also be displayed on similar websites such as the print magazine’s
website and other pages that the target customers would frequent.

The ads will have multiple frames and use Flash and motion graphics
to catch the eye of the viewer.

The objective is to raise awareness of the brand and also to switch
consumers from competing brands that may also advertise on similar
websites.
IV. Media Plan Recommendations
a. The majority of our media budget will go towards the print ads that will
be shown in magazines as full pages advertisements.
b. Magazines we aim to advertise in:

TeenVogue

Vogue

Seventeen

CosmoGirl

Cosmopolitan

Elle

Harper’s Bazaar

Glamour

Redbook
c. Our print ads will first appear in the month/issue that the line will be
launched in, and in following issues after the launch.
13
d. Direct Mail-Out ads will be small, 5x7 cardstock invitation/announcements
about new Pink jewelry.

These will be mailed out one month before the launch of the line.
e. Internet ads will be displayed two weeks in advance of the jewelry line
launch.
f. They will be displayed on websites of all magazines listed above, Facebook,
and YouTube.
V. Social Media Strategy & Methods

Through the Victoria’s Secret Pink Twitter page (@VSPINK) and
Facebook page, we will promote Pink Jewelry through tweets, photos,
videos, and status updates.

Coupons will be offered exclusively to followers on Twitter and those
who “like” the Victoria’s Secret Pink Facebook page.

We will also be taking surveys on the VS PINK Facebook page after the
Pink Jewelry line is launched to ask their opinions of the product line
and ideas on how to improve it.

Under “The Scoop” tab on the VS PINK page, we will be offering free
pieces of jewelry for the PINK Nation members.
14