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This is an American retail shop that deals with women dresses, lingerie and a range of beauty products. It is among the largest dealer in beauty products in America with a profit of over $1 billion and annual sales of over $5 billion. It is identified since it holds annual fashion shows and has catalogues that feature top beauty queens and models in America each year. This company is jointly owned and run by the Brands Company Limited group.
This is the fastest growing subsidiary of the Brands Company Limited and it is recorded that it contributes to over 42% of the company’s profits. Roy Raymond established the company in the year 1970 and the headquarters is situated in San Francisco. The company provides its consumers with a variety of products, which are distributed through the website and online catalogues where the clients are able to order them.
New product description
In the lingerie business, the company has witnessed a tremendous growth, the first strength is that it differentiated itself from other companies to the extend that it ensured it has no competitors in the lingerie business. In addition, its sales also higher then the sales of all other underwear sellers in the market. The sales are subsequently enormous due to the successful advocacy of the company’s products. The lingerie brand is widely available and the compliments contribute to its ever-increasing demand of the company’s products. The firm is able to make huge profits since the buyers do not have high bargaining powers hence they are able to sell at high markups. The firm also has an advantage of a wide market base, which it enjoys without competition. Its other strength is the advertisement in which it has made a lot of investment. The company has the secrecy of retention where it is able to retain the image of beauty using the images of top models in the America (Kerin, Hartley, & Rudelius, 2009).
Any individual organization collects data and analyzes the market to determine its position in the market where they operate in this way (Kerin, Hartley, & Rudelius, 2009). Victoria’s Secret major channels of sales are stores, catalogues and online shops on the internet. It markets its products through fashion shows, catalogues, printed advertisements and magazines, special events, supermodels and online.
The firm employs a very wide network when doing research on its market. It does this through surveys in form of questionnaires and interviews. The questionnaires may be administered online to reach as many people as possible (Kotler & Armstrong, 2012). Victoria’s Secret employs the target market approach in it marketing research exercising and a bit of qualitative and quantitative marketing. The target market approach is conducted one-on-one with the clients, hence it is able to know what its consumers demand in the ever changing market of consumer wear.
The major market of the company’s products is the women wear and beauty products. Segmentation is in the first place based on sex where women products are separated from the men underwear. The other component of segmentation is based on age, children clothing is designed differently from those of the adult. Segmentation by Victoria’s secret is also based on taste and preference. Taste and preference ensure that products are designed so that it would fit the consumers’ demands, like beauty and for fashion.
Differentiation and positioning
Despite the willingness of women to spend more on bras, it was still evident that price was still the driving factor alongside brand loyalty when it came to considerations for differentiation and positioning. Differentiation ensured that Victoria’s products were more competitive than those of their competitors in the same market. The positioning of the firm concerning future growth prospects was on the right track. Differentiation ensured that the products were highly aspired with the super models which facilitated profitability (Kotler & Armstrong, 2012).
This involves the integration of the 4P’s price, product, place and people to help the organization achieve its goals. The prices were not a challenge since the target market composed of the models is luxurious and has no problems with spending. The distribution channels involve online booking and doorstep delivery, which ensure that they reach a variety of customers and clients. The company was customer oriented hence quality of product is paramount; this would promote its sales since it would develop a click of customer loyal hence constant profitability growth. The firm invests much in advertisement, which incorporates print and audio media alike (Kotler & Armstrong, 2012).
NB: the budget is subject to amendment where deemed necessary
Techniques that are used to monitor progress by Victoria’s Secrets are the customers. The company has employed an online system feedback system and they act swiftly on customer concerns whenever they arise. The company conducts frequent evaluation and assessments of its employees to determine their effectiveness and improve on the areas that require such upgrading. The company holds over 50% of the market share with tremendous records on profitability. Its major investment is on intensive marketing to help promote its products, this also assists the firm in highly penetrating market, which is the resultant effect of the larger market share that it holds (Kerin, Hartley, & Rudelius, 2009).
Kerin, R. A., Hartley, S. W., & Rudelius, W. (2009). Marketing (9th ed.). Boston: McGraw-Hill/Irwin.
Kotler, P., & Armstrong, G. (2012). Principles of marketing (14th ed.). Boston: Pearson Prentice Hall.