Victoria''''s Secret Presentation

and growth in Mexico, Victoria’s Secret has the potential for a sizeable fragrance market in Mexico.. • Mexican consumers’ product values are congruent with that of the Victoria’s Secr

Marisol Rivera Nicole Winkle

Executive Summary

• Due to the declining market in the U.S and

growth in Mexico, Victoria’s Secret has the potential for a sizeable fragrance market in Mexico.

• Mexican consumers’ product values are

congruent with that of the Victoria’s Secret brand image.

• Significant similarities and differences in

marketing Victoria’s Secret brand in Mexico.

Primary Research

• Bilingual In-Depth Interview

– Parallel Translation

– Administered in Cuernavaca, Mexico

• Goals of the Interview

– Awareness of Victoria’s Secret in Mexico

– Product Perceptions/Knowledge

– 4 P’s

– Competitor Awareness

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

Situation Analysis (Cont.)

Perfume Industry Analysis

• Perfume Industry in The United States

– Perfume industry to grow at declining rate over next five years– Dominated by female fragrances (2/3 of sales)

– Male fragrances accounts for 23.5% of market)

• Implications

– Declining U.S market

– Seek International Growth

• Mexican Perfume Market

Mexican Demographics

• Male customers account for 70% of perfume sales despite the

fact that men’s 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

• Perfume Industry in Mexico

– “Female Fragrances Experience Dramatic Growth”

• 2001 - $253 million

• 2006 – Predicted $348 million (37.5% increase)– Many competitors (“Satisfactory sales…suggests…there is still space for new launches…”)

– Black market

• Relevant to price and distribution

Mexican Market

Mexican Economy

– Increased Purchases of Luxury Commodities

• Economic recovery in 1996

• Increase in private consumption

– International Companies are increasing their presence

– Does not segment based on age

– Segment based on products

• “various Victoria’s Secret brand fragrances appeal to different aspects of the Victoria’s 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.

Expansion into Mexico

• Segmentation and Targeting

– Highly populated/developed cities

• Mexico City, Monterrey, Guadalajara

– Product selections to appeal to different tastes and preferences

Who and How Old?

25 responded

to the survey.

• Women are more apt to put their name on a mailing list to

receive Victoria’s Secret catalogs than are men , thus it is

important to target women with catalog advertising mediums.

• Women are interested in shopping at Victoria’s Secret more so

than men Tactics emphasizing femininity and sensuality would

Female 100% 0%

Are you interested in receiving a

catalog?

Are you interested in shopping at a

Victoria’s Secret store?

Where and How?

• Brick and Mortar

specialty store department store

discount store supermarket

Media Channels Influencing Product

•Focus on print ads

•De-emphasize online ads

Characteristics of Target Market

• Mexican consumers are willing to pay

Victoria’s Secret price-range.

• Customers are not price-sensitive.

Typical Amount Paid for a

neither important nor unimportant extremely important

– 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

– Less emphasis of online sales

– 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

• 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?