Victoria’s Secret
1 Executive Summary
This report looks into the current market
position of the brand Victoria’s Secret. It analyses its strengths, weaknesses
and current marketing strategies of the brand and thus recommends ways it can
progress as a successful lingerie brand against current competitors.
The report is constructed from both primary and
secondary research, with primary data ranging from in-store visits and
comparisons, as well as surveys and interviews. Secondary research includes
data from Mintel and other websites, articles and various social media
analysis.
2.0 Introduction
2.1 Brand Overview
Victoria’s Secret is the leading American lingerie
retailer (Condé Nast, 2018) which carries a sexually provocative aesthetic.
First establishing itself in the USA, Victoria’s Secret as a brand has grown
massively and expanded globally over the past few decades, thanks to their
iconic fashion shows and supermodel endorsement.
In recent years Victoria’s Secret has faced
challenges within the fashion industry; from inclusivity issues, to debate
about their ethical values. This has led to a significant drop in sales,
‘Victoria's Secret saw its fiscal third-quarter operating income tumble 89%, or
a whopping $120 million, to $14.2 million.’ (A. Cheng, 2018). These losses could be due to unsuccessful marketing strategies,
and a lack of adaptation within the brand.
2.2 Brand Timeline
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2.3 Brand Background
Victoria’s Secret was founded in 1977 by
businessman Roy Raymond to combat the “racks of terry-cloth robes and ugly
floral-print nylon nightgowns” (Newsweek, 1981) he encountered when lingerie
shopping for his wife. The name ‘Victoria’ is based off Queen Victoria, to give
a “fanciful” and “private” (Vogue, 1992) illusion, and the Victorian-esque decor followed, to “impart the sense of class and dignity
associated with the Victorian era” (Time, 2015).
Although Victoria’s Secret is a brand that is still
loved by many, they are faced with a lot of competition from both high-street
and online lingerie retailers. In recent years, the brand has begun to crumble
under the new market of increased diversity and inclusivity that Victoria’s
Secret does not exhibit. With fresh brands which promote body-positivity
like SavagexFenty and Aerie on the rise, consumers are looking away from Victoria’s Secret’s
perfect aesthetic and high prices.
2.4 Objectives
This report will investigate into the current
market position of Victoria’s Secret, analysing the successful and
unsuccessful strategies the brand currently uses, including product selection
and social media and influencer marketing. Research will then be done into the
brand’s competitors, and why they have an advantage over Victoria’s Secret.
Finally, new strategies will be suggested with an overall clear recommendation
being made to help Victoria’s Secret become more appealing to the modern
consumer.
3 Macro Economic Analysis
There are a variety of factors to consider when
evaluating a company’s success in the fashion market. Marketing communications
management is complex and uncertain, because of the nature of marketing
variables, including political, economic, social, technological, environmental
and legal factors (Fill, C., 2013).
At current, the future of the market in the UK is
very uncertain due to Brexit. Although Victoria’s Secret is an American brand,
they currently have many stores in the UK, including a flagship store on Bond Street.
Trade barriers could be modified as the UK gains independence, as well as the
value of the pound coin fluctuating throughout the duration of the Brexit
timeline, and this uncertainty could make foreign companies such as Victoria’s
Secret apprehensive to trade within the UK.
Victoria’s Secret has encountered many
controversies in recent years. Firstly, they have had issues with diversity and
cultural appropriation, namely by wearing Native-American headdresses on the
runway in 2012, and more recently appropriating Chinese culture in 2016, and
tribal culture in 2017. They have also experienced controversy related to their
values in body-image and gender. In an interview with Vogue in November 2018,
chief marketing officer Ed Razek concluded that Victoria’s Secret should not
use transgender models “because the show is a fantasy”, resulting in adverse
reactions from the public. Victoria’s Secret has been heavily criticised for
their use of very slim models and lack of plus-size angels in their runways, as
well as backlash from their ‘the perfect body’ campaign which promoted
unrealistic beauty standards.
With online-exclusive retailers on the rise, and
brick-and-mortar shops transferring to online and apps, Victoria’s Secret faces
added pressure to keep up with the current market. As for social media,
Victoria’s Secret has a high follower count, but low engagement rate. This may
be due to the lack of influencers featured on their page or doing sponsored
posts. This influx of
modern social media use has resulted in a shift of power differential towards
individual consumers and away from large organisations, resulting in pressure
for Victoria’s Secret to stay relevant on these platforms.
4 Brand Market Position
Victoria’s Secret has a very strong brand image,
with over 1500 stores worldwide in over 80 countries (L Brands, 2017), making
many consumers are aware of the brand’s presence. This, combined with the
world-famous Victoria’s Secret fashion show, has made the brand the leading US
lingerie retailer.
Recently, the brand has faced backlash from
consumers for being transphobic and exclusive of certain body-types,
particularly within the Victoria’s Secret fashion shows, resulting in the
number of viewers to drop from 5 million in 2017 to 3.3 million in 2018.
Despite knowing Victoria’s Secret does not use transgender or plus-size models,
72% of people would continue to shop from the brand, meaning they have a loyal
fanbase (appendix 1). This has the potential to change however, especially with
more inclusive brands such SavagexFenty on the rise, and consumers are beginning to look elsewhere for
their lingerie. Victoria’s Secret has the potential to capitalise on the plus
size market, especially as it continues to grow and gain importance, in order
to attract more audiences.
Another strength of Victoria’s Secret is that they
use very powerful influencers to represent the company, such as Kendall Jenner
and Gigi Hadid. However, these influencers are not very relatable to consumers
as they are so famous. Nowadays, the power is shifting to more accessible
micro, mid and macro influencers such as youtubers rather than celebrities.
Victoria’s Secret have the opportunity to capitalise on this by using new
models, particularly on their social media.
5.0 Competitors
5.1 Competitor Analysis
Although Victoria’s Secret has a strong presence in
the US, it is still overshadowed by big retailers such as M&S and Primark
in the UK (appendix 2) and faces competition from online-exclusive retailers
with competitive pricing (appendix 3). Many of their competitors use influencer
marketing, for example reposts and paid collaborations, such as M&S with
their Rosie for Autograph range, whereas Victoria’s Secret only use their own
‘angels’ in campaigns and on their social media.
As mentioned before, Victoria’s Secret has a lot of
competition from inclusive lingerie retailers which promote body positivity,
such as Aerie and SavagexFenty. Millennials are more likely to shop
from places that promote inclusivity, with 48% expressing they “try to use brands of companies that are active in supporting social
causes”, according to a BCG survey. Both brands have
created campaigns featuring plus-sized models, from a range of ethnic
backgrounds, which Victoria’s Secret is yet to do.
5.2 Brand Positioning Map
At the top end of the map is high-end lingerie
retailers such as La Perla and Agent Provocateur. Both brands carry a luxury
aesthetic at a high price point, with a high-quality finish. At the lower end
is high-street retailers such as Primark and H&M, who focus more on
fast-fashion and trend over quality.
Victoria’s Secret has been placed somewhat in the
middle, on the lower quality side but high price end. This is because
Victoria’s Secret is like the high-street stores in which they produce the
trends quickly and are manufactured in sweatshops, but many people believe they
are overpriced for the quality they are receiving. In a survey with Wells
Fargo, 58% of consumers who had shopped there less in the last year said it was
because of high prices (Business Insider, 2017).
5.3 Current
Brand Marketing Position and Competitors
This moodboard represents Victoria’s Secret’s current position in today’s
market, compared to their competitors. The underwear/lingerie market is
becoming increasingly socially and environmentally aware, with companies such
as SavagexFenty and Aerie focusing on body positivity, and Svala and Ayten
Gasson putting an emphasis on sustainability, both with very positive feedback
from consumers. Nowadays, Victoria’s Secret’s biggest selling point is the
fashion show, which has suffered declining views in recent years.
6.0 Consumer Demographic
6.1
Consumer Overview
Victoria’s Secret is a brand which
portrays itself to be very sexually provocative and luxurious. However,
according to a Condé Nast survey, Victoria’s Secret was the favourite brand of
Millennial and Gen Z consumers (girls aged 13-34). This could be due to the
association of the brand with ‘it girls’, such as Kendall Jenner and the
Hadids, who young audiences look up to, as well as so closely linking
Victoria’s Secret with their sister brand PINK, which is specifically aimed at
younger audiences. With the way that Victoria’s Secret brand themselves
combined with their high pricing, it is alarming that their consumer
demographic is so low.
Most Gen Z consumers and a
proportion of Millennials are students, and therefore do not have much of a
disposable income. This can make revenue for Victoria’s Secret unstable, as
political factors such as rising tuition fees may affect the amount of money
consumers are spending on lingerie.
It is also controversial that a
shop as highly sexualised as Victoria’s Secret is attracting such a young
audience. With the promotion of extremely fit models, combined with a sexually
provocative aesthetic, Victoria’s Secret are sending out the wrong message and
not catering to their target demographic.
6.2
Current Consumer Demographics
This moodboard represents the current
consumer that shops at Victoria’s Secret. Victoria’s Secret styles their stores
with a luxurious, boudoir theme to appeal to a mature audience, with decor such
as chandeliers and sexually provocative quotes. This is a contrast to their
actual consumer demographics, with Victoria’s Secret being the favourite store
amongst girls as young as 13. Their current consumer looks up to young angels
such as Kendall Jenner and Bella Hadid, as they are very influential role
models to Generation Z and Millennials. These models also place an emphasis on
fitness and very slim, toned bodies, which Victoria’s Secret’s current consumer
may have or aspire to have.
7 Product
Selection
The
Victoria’s Secret brand itself sells under 4 different categories; Victoria’s
Secret, PINK, Victoria Sport and Victoria’s Secret Beauty. The main Victoria’s
Secret brand consists of mostly intimates, such as bras and underwear, and
sleepwear, such as their signature robes and pyjama sets. To add to their main collection,
Victoria’s Secret created their sister brand PINK in 2004, which consists of
apparel targeted to college students. There is also the sportswear brand
Victoria Sport, and Victoria’s Secret Beauty, which stocks the extremely
popular body-mists and other skincare and beauty products.
Victoria’s
Secret offer a very wide range of bras and pants. They offer 10 different bra
collections ranging from sizes to 30A-40DDD and priced between £15 and £129.
There are also 10 panty collections ranging from XS-XL and ranging from £9-£49.
Victoria’s
Secret do regular offers within their stores and online, such as seasonal sales
and 5 for £25 underwear deals. They also offer online incentives, such as
discount codes and free delivery when you spend over £75.
8.0 Social Media
& Influencer Marketing
8.1
Social Media and Influencer Overview
The main social media platforms Victoria’s Secret
utilises to communicate with their audience is Twitter, Facebook and Instagram,
with 11M, 30M and 65M followers respectively. Instagram is their biggest
platform with the widest reach, and the one they update most frequently, with
on average between 3-5 posts per day.
The type of photos Victoria’s Secret posts fit a
very specific motif, with every post following a certain theme and order. This
can come across as repetitive to their audience, which may be why their
engagement rate is only 0.22%, according to phlanx.com (appendix 4). Each photo
is very professional and airbrushed, which lacks realism. Competitors such as
Aerie (1.3% engagement rate) and SavagexFenty (1.42% engagement rate) use more
variety in their posts, such as reposting micro, mid and macro influencers on
their Instagram pages, posting relatable memes and promotional videos.
Victoria’s Secret makes an attempt to communicate
with their audience through various interactive hashtags including
#wearitdaily, #VSBeauty and #VSBombshell. They use #regram a lot when reposting
photos of their own models wearing the brand, however they do not regram photos
of anyone who isn’t a Victoria’s Secret angel. They have the opportunity to
feature more influencers on their Instagram page to attract a wider audience,
rather than just fans of the Victoria’s Secret angels.
During Halloween 2018, the Victoria’s Secret
Instagram page reposted a photo of the Kardashian/Jenner sisters wearing
Victoria’s Secret angel costumes. Their average interactions per post is 142k
likes and 493 comments, however this particular post attracted over 1.5M likes
and 11k comments, making it hugely successful. The Kardashian/Jenner sisters
featured in the post are some of the most influential people on social media,
with Kim and Khloe Kardashian and Kylie and Kendall Jenner being within the top
15 most followed people on instagram. This means they have an enormous out-reach
with many young fans looking up to them; thus showing that influencer marketing
is successful, therefore Victoria’s Secret should utilise this technique more.
8.2
Current Social Media/Influencer Marketing/Marketing Mix
This moodboard represents Victoria’s Secret’s
current position within social media. Victoria’s Secret does not use any
external influencer marketing on their social media, except that of their own
angels, and the occasional repost of a celebrity that endorses the company,
e.g. the Kardashian/Jenners. They also receive social media support from celebrities
that perform in their fashion shows, for example Taylor Swift, but these posts
only occur once a year around the time of the shows. Victoria’s Secret’s social
media pages generally follow a set theme, only using their own photos with a
recurring design/colour palette.
9 Marketing Mix
Product
Victoria’s Secret has a wide and
extensive range of products, consisting of mostly underwear with a sexy
aesthetic, and the addition of apparel such as nightwear and also a beauty
range. The underwear selection is varied, meaning there is a style suitable for
most consumers, however some of the more favourable styles feature the
Victoria’s Secret brand name itself, meaning people like to display the fact
they shop at Victoria’s Secret.
Price
The average bra cost at Victoria’s Secret
is £34.39, which is deemed too expensive by many people. The high price point
is fitting to their current consumer demographics - which averages out at 13-39
year olds.
Place
Victoria’s Secret has a global presence,
with over 1,600 brick-and-mortar stores worldwide (L Brands, 2017). Victoria’s
Secret also has an online shop, with shipping to most countries, with
exceptions for their beauty range. Finally, they also have an online app for
both iOS and Android, which allows the consumer to shop and get access to
behind-the-scenes news and exclusive offers.
Promotion
Victoria’s Secret’s main source of
promotion is through their annual fashion shows, which attract millions of
viewers every year. Although they use no influencer marketing, the Victoria’s
Secret angels which model for the brand are a huge selling-point as they all
have very large reaches and social media presences.
10.0 Recommendations
10.1
Proposed Strategy
Based off of primary and secondary
research gathered and the analysis of these findings, recommendations have been
made to ensure Victoria’s Secret is able to continue to progress as a
successful lingerie company. Victoria’s Secret is already established as store
with a luxurious and sexually provocative aesthetic with a high price point,
therefore recommendations will maintain these things to an extent in order to
preserve the strong brand image.
Some of Victoria’s Secret’s biggest
competitors include Aerie and SavagexFenty, both of which place a strong emphasis
on being inclusive and promoting body positivity. In order to become more
relatable and desirable to the modern consumer, Victoria’s Secret should also
make efforts to become more diversified, both in terms of size and ethnicity,
in store and on the runway. For the 2018 fashion show, Victoria’s Secret
introduced model Winnie Harlow, who has vitiligo. This received a vast amount
of praise and therefore Victoria’s Secret should continue to diversify their
model cast even further, by involving a range of body types and ethnicities.
At current, the average Victoria’s Secret
consumer is aged between 13-34, and is not reflective of its high prices, as
many of their customers are young and therefore students or on unstable incomes
(part time jobs/unemployed). Victoria’s Secret should aim to attract a higher
age demographic that is more reflective of the high prices, more specifically
middle-class 18-39 year olds with stable and disposable incomes.
The sexually provocative aesthetic that
Victoria’s Secret possesses is also not reflective of its current consumer. The store itself features
suggestive quotes throughout such as “bombshell” and “showstopper” (appendix
6), which is not appropriate to the audience that they are currently attracting
and is also not very liberating to the current consumer. Victoria’s Secret’s
particularly young audience may be due to consumers of sister-store PINK
crossing over to Victoria’s Secret due to how closely-linked they are. To
overcome this issue, Victoria’s Secret should further implement their
segmentation strategy by creating a bigger differentiation between Victoria’s
Secret itself and PINK. There are many ways in which this could be done.
Firstly, Victoria’s Secret could use different models than PINK, as currently
there is no disparity between the two, making them appear as the same brands.
PINK would be better suited using the young models such as Kendall Jenner and
Bella Hadid, as they are looked up to by the young fans who shop at Victoria’s
Secret and are more appropriate to the ‘student’ aesthetic that PINK markets
towards. Secondly, most Victoria’s Secret and PINK stores are linked together,
allowing access from one store to the other with almost no separation between
the two. Segmentation strategies could be applied further by completely
isolating the two stores from each other, preventing such a large crossover of
young PINK consumers shopping in Victoria’s Secret, thus maturing the audience
of Victoria’s Secret.
One of Victoria’s Secret’s most notable
factors is their luxury aesthetic; however, this is a big contrast to their
social media, which features models posing again blank backgrounds with plain
compositions. To strengthen their brand identity, Victoria’s Secret should
incorporate their luxury store aesthetic into their Instagram page. This could
be through a range of ways, from models posing in interesting places, or
showing off collections in a fancy room, this would make their Instagram more
varied and interesting to the consumer, whilst also building on their brand
image.
Unlike other big lingerie companies such
as Boux Avenue, Victoria’s Secret does not engage in any influencer marketing,
and their social media only consists of photos of their own ‘angels’. As
mentioned before, one of their most successful Instagram post was a repost of
the Kardashian/Jenner sisters, proving that influencer marketing is successful.
Therefore, Victoria’s Secret should engage in more paid sponsorships and
collaborations with social media influencers, whether it be reposts, YouTube
videos such as hauls, or sponsored posts. This would also attract a bigger
audience, as fans of the influencers would be more likely to shop at Victoria’s
Secret after seeing their favourite influencer endorse the brand. To further
combat their diversity issues, Victoria’s Secret could also capitalise on new
and widened markets through their social media page, by collaborating with
plus-size or transgender influencers, such as Ashley Graham or Nikita Dragun.
10.2
Proposed Brand Market Position and Competitors
This moodboard represents the proposed
brand market position of Victoria’s Secret, based off previous recommendations.
Aerie and SavagexFenty, two of Victoria’s Secret’s biggest competitors in the
US, put an emphasis on diversity and body positivity. Victoria’s Secret should
focus on becoming more inclusive both in campaigns and on the runway in order
to keep up with today’s market.
10.3
Proposed Consumer Demographics
This
moodboard represents the proposed consumer that would shop at Victoria’s
Secret. Victoria’s Secret is already defined as a store with a luxurious and
provocative aesthetic and high price point, therefore Victoria’s Secret’s
proposed consumer should reflect this. This would result in the target
demographic shifting from 13-34 to a more appropriate 18-39, through a mix of
segmentation and branding strategies.
10.4
Proposed Social Media/Influencer Marketing
This
moodboard represents the proposed position of Victoria’s Secret within social
media. Victoria’s Secret should make an effort to start to engage in influencer
marketing, as it is proven to be effective. They should also use more varied
compositions for their Instagram posts, to avoid repetition and keep people
interested.
