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• Interior is outdated the stores and some are not in top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.