SWOT Analysis Project Marketing 1030 by Shelby, Nicole, Riley, and Rogelio 09.16.2015 Our mission is to deliver a best class, captivating, branded customer experience that builds loyalty and enables consistent sales and profit growth. What is Victoria Secret? • Victoria Secret is the leading specialty retailer of women’s lingerie and intimate apparel. • Victoria’s Secret located Fashion Place employs 30 associates on average. This doesn’t include the 20-25 additional associates they hire seasonally. • The company’s sales in 2012 exceeded the 6 billion dollar mark. • Victoria’s Secret is also home to celebrated supermodels and a world famous fashion show. STRENGTHS • Supply chain initiatives have resulted in lead times for merchandise being reduced by 50% (this result has provided a cost advantage) • They create brand loyalty with programs such as Angel Card. Angel Credit Card is a reward program that is provided by Victoria’s Secret • Customer Growth is rising in incredible amounts. Profits increase annually. STRENGTHS CONTINUED • With Social media strength becoming a more popular, Victoria Secret has learn to capitalize. Victoria Secret’s Facebook page has reached over 26 million likes. They have succeeded with Brand Awareness. • Product Starts to Trend once Victoria Secret’s product is in the spot light it brings in more customers. This brings in more profit. Together with Fashion Shows also being a strength using celebrated models to model the brand. • Promotions also being used on a regular basis brings in more and more customers. WEAKNESSES • Limited sizes are a big weakness when it comes to Victoria Secret’s due to the big amount of customers that don’t buy due to sizes being limited. • Their target only focuses on women and cuts out men by not selling men’s clothing. Cutting their target in half. • Cost at Victoria Secret’s can often be seen as inconvenient at times as well. Seeing as it can be on the expensive side. • Image can be taken as a weakness as well due to the models seeming unhealthy or unrealistic by some. • Locations of Victoria Secret’s can also become a weakness in the way that there is not many locations in Utah. Cutting the possible profit that they could be earning by not covering enough ground. • Interior is outdated the stores and some are not in top shape or not as up to trend as they could be to earn more profit. OPPORTUNITIES • A huge opportunity for Victoria’s Secret is carrying more sizes. By carrying more sizes you open the doors to larger customer base. • They could also start to carry more clothing. This would stray from their core concept but there would be opportunity. • Victoria Secret locations are limited in Utah. There are 12 locations in this state which limits access to customers. By opening more locations they could build more customer growth in Utah. • The brand also uses models that can be seen as unhealthy so using more realistic models would be opportune. • Victoria’s Secret at Fashion Place could also use some remodeling and upgrades. Some fixtures and mirrors are damaged need to be replaced. Maintaining brand image is important. • Another opportunity is appealing to a larger customer base. As in growing more internationally. The first Victoria’s Secret in another country opened in London in 2011 and now has 10 sister locations. They could apply this concept to other countries. THREATS Local boutiques are a threat to this store. There has been a movement in "shopping local" and it is influenced to support your local artists and retailers. • Another threat is department stores. Department stores provide a one stop shop to customers. They can get full outfits at a department store. It is more time efficient. • Another threat could be high end product. Other retailers are expanding to carrying intimate apparel. • This store also has a reputation. Customer surveys reveal that customers don't always feel welcome or assisted properly. • Another threat that Victoria Secret’s is facing is that other stores are coming up with commercials. That are taking on the store face to face. With commercials like Dove vs Victoria Secret’s. Affecting Victoria Secret’s brand and customer loyalty • RECOMMENDATIONS FOR IMPROVEMENT IN THE NEXT SIX MONTHS 1. The Fashion Place Victoria’s Secret Store could update and modernize its store. 2. The Fashion Place Victoria’s Secret Store could try a hybrid of traditional and fast fashion: they could continue to stock the popular items and restock them when they are sold. They could also stock some items that are not restocked so they incentivize people to buy when they come into the store and to come back often.