Marketing communications involves how an organization communicates its product or services to the consumer. This plan must incorporate messages that will rise above the rest of the marketplace and help the organization solidify itself with one voice to cover all products, services, and customer interactions. The following marketing communication (MARCOM) plan outline will concentrate upon the lingerie brand of Victoria's Secret.
- Situation Analysis
- Product Situation - what is the current product mix? How does the current mix meet consumer needs? Victoria's Secret has become the number one American brand by offering a range of products that appeal to a wide range of women (Lutz, 2013). Products are constantly being updated so that loyal consumers are consistently enticed to purchase the newest item. The Pink line is aimed towards a younger demographic and the original line is being restored to a product that will suit women of all ages and sizes at stages of their lives.
- Competitive Situation - comparing competitors' products mix and how do the benefits/features meet customer needs. The largest established competitors for Victoria's Secret are GAP, Fruit of The Loom, and Hanes (Hoovers.com, 2014). This set of competitors focuses upon comfort and value and does not offer a wide variety within their product mix. Purchasing their products is more focused upon practicality rather than aesthetics. These companies create a "chore" out purchasing underwear. Up and coming competitors AdoreMe, Intimint, and True & Co. are utilizing a customer friendly approach AdoreMe has no brick and mortar stores, instead they ship directly to the consumer. Intimint asks consumers to fill out surveys and sends them a selection of lingerie based upon their choices. True and Co. sends a number of bras to consumers and allows them to keep the ones they prefer and send the others back (Lutz, 2013). Established clothing companies such as Abercrombie, American Eagle, and Express are creating their own lingerie line.
- Distribution Situation - how is the product/service reaching the consumers? Product is shipped from the main distribution center in Ohio to over 1,000 mall based outlets. The same distribution hub also supplies catalog orders and ecommerce from the Victoria's Secret website.
- Environmental Factors - analyze any internal or external factors that must be considered that may hinder or boost the communications plan. Even during economic downturn Victoria's Secret is showing growth (6% in 2012) utilizing marketing that focuses upon the experience of shopping at Victoria's Secret has made the purchasing behavior into an experience that the final purchase is seen as an investment. The lingerie industry is seen as an oligopoly, where there are a few large established brands.
- SWOT Analysis
- Strengths -
- Strong brand with over 1000 company stores and a loyal consumer base
- Strong advertising strategies that use emotional basis to influence women into purchasing.
- Successful sister brand, Pink targeting late teen and college age women.
- Utilizes active online marketing wherein they have well organized website that seamlessly correlates with their catalogue.
- Environmental trends have caused the brand to utilize organic and fair trade raw materials for its clothing lines.
- Weaknesses
- Several competitors in the value sector means consumers have the choice of obtaining a similar product for much less cost may lead to brand switching.
- Counterfeit products affect sales as well as brand image.
- Opportunities
- Continue to extend its product mix into skincare and fragrances by moving into different lines to expand its offering.
- Focus on more global markets such as Asia where there is limited reach.
- Victoria's Secret could create digital dressing rooms to create greater appeal for their products.
- Threats
- Outlet stores may hinder same store sales in areas that contain a Victoria's Secret outlet store.
- Due to limited resources the Victoria's Secret brand may face serious issues in lieu of an economic downturn if they are unable to sustain present sales.
- Fragmented clothing industry may lead to less brand loyalty.
- Counterfeit products
- Has come under fire for new line targeting and promoting the ideal body image to women
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- Fundamental Decisions
- Targeting
- Victoria's Secret targets women with the lure of being sexy and confident
- Also targets men by making the purchase of Victoria's Secret lingerie is a special purchase for their female partner
- The Pink line is aimed towards teenage and college age women
o Positioning
- Victoria's Secret has positioned itself as an affordable premier lingerie brand
- Purchasing lingerie from Victoria's Secret is viewed as an investment/treat due to the experience the brand has created around the purchasing behavior
o Objective - entice current and new consumers about the value of purchasing Victoria's Secret lingerie.
- Beginning at the start of October until the holiday season become more aggressive with offers, not discounts but offers that will entice consumers to purchase more on their visits
- Offerings such as buy x and receive x free of certain products
- Secret Santa cards have been successful in seasons past in inviting consumers to return to the store to validate their cards and hopefully receive a $500 spree
o Budgeting
- Annual fashion show has a budget if $12-$13 million, this hour long commercial is viewed by an audience of mostly women, the key target audience.
- Due to the past success of this campaign an aggressive budget of $5 million will be allotted for the secret Santa cards, allowing each store two of the $500 gift amounts, five of the $100 gift amounts, and varying amounts of the lesser gift amounts
- The implementation of the secret Santa gift cards will increase SOV as it offers a reason for the consumer to return to the store and purchase as they will receive a minimum gift of $10
- Implementation
- Methods
- Direct mail with a secret Santa card enclosed for Angel card holders
- In store promotion in which the secret Santa cards are handed to visitors entering the store.
- Notifications can be sent to registered consumers that will remind them of the secret Santa promotion
- Implemented Messages
- The "gift" portrayal further encourages the fact of purchasing a Victoria's Secret product is a treat, an investment in oneself
- It is also viewed as the brand taking care of its loyal consumers by offering this gift
- Maintaining Promotion Momentum
- The secret Santa gift cards entice consumer to return at a later date to utilize their gift, therefore increasing same store sales from the purchase of the second visit in as many weeks.
- The annual fashion is followed by promotional in store offers that will discount merchandise that must be moved in order to bring in new products for the upcoming season.
- Continue the offering of free fashion show t-shirt with every $75 purchase this will continue the momentum of the fashion show by enticing consumers to spend more to receive the free t-shirt
- Evaluation
- Being able to evaluate the fashion show promotion can be done by consolidating the information of attaching the free t-shirt with qualifying purchases.
- The secret Santa gift promotion can also be evaluated by consolidating the amount of cards that were turned in to receive the gift amount.
- The goal of these promotions is to exceed or at least match the growth rate of last year of 6%