Victoria's Secret Presentation
Victoria's Secret Presentation
Victoria's Secret Presentation
Secreto de Victoria
The Expansion of Victorias Secret
into Mexico
Aparna Donthi
Man Tsun Lee
Bouphavanh Mathouravong
Marisol Rivera
Nicole Winkle
Research Overview
Primary Research
In-depth survey
Industry Analysis
Demographics
Perfume Industry
United States
Mexico
Company Analysis
Situation Analysis
STP
Marketing Mix
Implementation
Executive Summary
Due to the declining market in the U.S. and
growth in Mexico, Victorias Secret has the
potential for a sizeable fragrance market in
Mexico.
Mexican consumers product values are
congruent with that of the Victorias Secret brand
image.
Significant similarities and differences in
marketing Victorias Secret brand in Mexico.
Primary Research
Bilingual In-Depth Interview
Parallel Translation
Administered in Cuernavaca, Mexico
Situation Analysis
Mexican Consumers
Highly rank service and price
Have short term view of products initial
price means everything
Receptive to high quality products that are
sold in smaller packages
Implications
Victoria Secret offers great service/personal
attention to customers
Offers smaller, affordable product selection
Company
High International Awareness
Sales Growth 8.1% (2003)
Competitors
Estee Lauder, Avon, JC Penney, Lancme
Collaborators
CBS, Musicians
Supermodels Heidi Klum, Tyra Banks,
Environmental Factors
Mexican Demographics
Male customers account for 70% of
perfume sales despite the fact that mens
fragrances represent 1/3 of the market
Women between 40-50 years can afford to
pay $40-$150 for a bottle of perfume
Mexico City represents 52% of sales
Guadalajara and Monterrey have large
potential for sales
Mexican Market
Perfume Industry in Mexico
Female Fragrances Experience Dramatic Growth
2001 - $253 million
2006 Predicted $348 million (37.5% increase)
Mexican Economy
Increased Purchases of Luxury Commodities
Economic recovery in 1996
Increase in private consumption
International Companies are increasing their
presence
Segmentation
Does not segment based on age
Segment based on products
various Victorias Secret brand fragrances appeal to different
aspects of the Victorias Secret woman
Targeting
Target how a woman feels, rather than her age,
ethnicity, or other specific demographic
VS Marketing Implementation
They cross promote between their online
and offline operations.
360-degree brand connects all 3
selling channels (catalogs, the stores, and
website)
Sex appeal is portrayed through
advertisements and promotions.
Positioning
Provide high quality product that delivers a flawless
experience
Creates an image of sensuality and femininity
MALE
(0) 0%
FEMALE
(1) 6%
(6) 52%
(2) 18%
(2) 18%
46+ years
(0) 0%
(1) 6%
Total
More
women
between the
ages of 1925
responded
to the
survey.
Interest
Male
Female
Yes
No
40%
60%
100%
0%
Male
Female
Yes
No
20%
80%
100%
0%
Preferred Female
Shopping Location
0%
67%
Discount store
Black market
TV Ads
department
store
discount
store
8%
specialty
store
17%
8%
17%
Fashion
Mags
Friends
and
Family
Gift
supermarket
58%
important
17%
83%
8%
$26-$40
>$40
59%
33%
neither
important nor
unimportant
extremely
important
Marketing Mix
Product
Victorias Secret perfume lines
Price
Equivalent to USD: range between $15-$60
Place
Open retail stores in major cities
Primary distribution channels: specialty/beauty stores and
discount stores
Promotion
Fashion magazines, catalogs
People, Cosmopolitan, Elle
Mailing of 364 million catalogs worldwide
Goals
Short-term (one year)
Establish test markets in urbanized cities
Monitor sales and product awareness
Evaluate effectiveness of distribution options
Long-term
Evaluate potential production possibilities in
Mexico
Gain competitive market share
Evaluate opportunity to expand to lingerie and
clothing line
Summary
Emphasis on fashion magazines,
catalogs, and television ads, not internet
Specialty stores and discount stores
Acknowledge differences in sex roles
when promoting
Women are seductive, not assertive and
aggressive
QUESTIONS?