Final Marketing Plan, Victoria Secrets

Final Marketing Plan

Marketing is a crucial part of any new product line. A well researched, innovative marketing plan is a must when planning a successful product launch. This final marketing plan for Victoria’s Secret Lil’ Devil’s line of men’s-wear incorporates all the necessary steps involved in a successful marketing plan and product launch.

Organizational Overview

Victoria’s Secret is the leading specialty retailer of lingerie, operating more than 1,000 stores across the United States. Part of the larger organization Limited Brands, which is based out of Columbus Ohio, has built a superior form of brand recognition. Victoria’s Secret has helped, perhaps more than any other brand, attract attention to the lingerie industry (White, 2004, p.1). The brand Victoria’s Secret virtually monopolizes the lingerie business in malls all across the United States.

Roy Raymond established Victoria’s Secret in San Francisco during the early 1970’s. The concept was to establish a cozy, inviting atmosphere similar to that of a Victorian boudoir (White, 2004, p.1). Roy’s Victoria’s Secret, consisting of three stores and a catalog business, was acquired by Limited Brands, among some controversy, in 1982. Many incorrectly believe that Victoria’s Secret was of British heritage, an image which some say was perpetuated by its parent company (White, p.1).

Currently, Victoria’s Secret offers a large assortment of products that are not only lingerie based. In the store part of the organization, there are also beauty and fragrance products that include cosmetics and skin care. In the Victoria’s Secret catalog and Web, the assortment varies even further with lingerie, fragrance and beauty, swimwear, apparel and shoes. Within the Victoria’s Secret brand, there are sub-brands or collections. These sub-brands have also built recognition. The sub-brands are Pink, Very Sexy, Body by Victoria and Angels. These sub-brands have their own identity but offer and deliver quality, fashion and sexy that the mega-brand is known for.

Much of Victoria’s Secret’s success is attributed to Grace Nichols. Nichols joined Victoria’s Secret in 1986 as vice president, general merchandise manager. In 1988, she was promoted to executive vice president. In 1991, Nichols was named President and CEO of Victoria’s Secret. Under Nichol’s leadership, Victoria’s Secret has become one of the top 10 recognized brands in the world and the leading specialty retailer of lingerie (White, 2004, p.1). Currently, Nichols is part of a co-leadership model and shares her position with Mark Weikel. Both are considered Presidents of Victoria’s Secret, however, Nichols specializes in the merchandise piece and Weikel in the operations. The mission statement of Limited Brands, Victoria’s Secret parent company, sums up the goals and focus of the company. “Limited Brands is committed to building a family of the world’s best fashion brands to create sustained growth of shareholder value by focusing its time, talent, and capital on the highest return opportunities.”

Product Description

A man’s merit is largely determined by the clothes he wears. So logically, a man’s undergarments provide the necessary foundation for his outward appearance. Men’s underwear has not always been a fashion statement. Any kind of undergarment that did not bulge, sag, bind or shrink in the wash was deemed adequate.

Victoria Secret knows that a man’s needs are more than the classic long-handles with the posterior two-button flap that were worn many decades ago. “Once the mainstay of sense and respectability has long been silently lost, that is that the back of a man’s undergarments should be a large buttonable square of material, which could flap comically if left undone” (Graham). In reference to the modern-day boxer shorts, Victoria’s Secret realizes times have changed dramatically and is ready to launch the Victoria’s Secret Men’s line.

Victoria’s Secret will be the new ‘designer’ of men’s underwear and sleepwear. We have designed a new brief with great design, unusual fabrics, wonderful colors and combinations, and great variety of choice made for underwear becoming a ‘fashion’ item. Today men can get underwear for sports, casual, romance, figure enhancement, warmth (thermals), humor, and with dual purposes such as the inclusion of pockets from the same store that has made their women’s sleep/underwear line the leader ahead of all the others. In addition, like the women’s designs, the newest and hottest styles are almost completely seamless.

Underwear is a fashion mainstay today and what better corporation to manage that fashion than Victoria’s Secret. ” Executives from the manufacturing, retail and marketing arenas agree the key challenge is learning to understand the cultural divides and how they affect different taste levels” (Monget). All manner of bikinis, briefs, thongs, strings, boxers and jockstraps are available for the modern man’s tastes and preferences. The vast majority of brands employ young, lean, nearly nude male models as their selling point. Calvin Klein, Sauvage, Tommy Hilfiger, Jockey, and a myriad of others post their sex-drenched ads in magazines and on billboards everywhere. Today, sex sells just about anything, and it would be more than safe to assume that Victoria’s Secret knows sex appeal and what it takes to stand above the rest when it comes to underwear and sleepwear.

Victoria’s Secret markets their products exclusively through their own stores, catalogs and Internet site. Purchasers for each of the Victoria’s Secret stores as well as end-consumers will be expected buyers of the new men’s line. The target market for the expansion into intimate menswear will be wide and deep. Men of all ages will enjoy the luxurious feel of the silk pajamas and boxer shorts as well as the assortment of other undergarments and slippers planned for the new launch. The product assortment will also focus on comfort, fit, quality and fashion. Women who are current purchasers of the Victoria’s Secret women’s line of bras, panties, lingerie and beauty including fragrance and cosmetics, will soon be pampering the men in their lives.

The Victoria’s Secret men’s line will include a full range of men’s intimate wear. Included in the line up are five different styles of underwear, two styles of pajamas, two styles of robes and four different styles of under-shirts. Available in a variety of solid colors and prints in cotton, poly-cotton blends, satin and silk and cotton-spandex blends, these products are sure to provide long lasting comfort while helping the customer break out of the plain white boring underwear routine. The accessories will include soft cotton slippers. The patented design features a seamless and removable tag so there is never anything that will get between the client’s skin and clothing that could cause discomfort. Whether the customer is looking for casual, romantic or fashion intimate wear, Victoria’s Secret is sure to have the right item for day or night.

The men’s underwear styles include boxers, boxer briefs, regular briefs, bikinis, and thongs. The underwear styles are available in cotton, cotton-poly blend and silk. All of the Victoria’s Secret underwear features the seamless and removable tag design that ensures comfort and functionality. All of the styles in this line are guaranteed to never bulge, sag, bind or shrink.

Men’s sleepwear styles are made to compliment the customer’s lifestyle while providing warmth and comfort. Pajamas are available with both long and short pants in a variety of solid colors and prints. Pajama fabric is either cotton-poly blend or satin. Coordinating tie wrap robes come in both hooded and non-hooded styles.

Men’s under-shirts are available in crew and v-neck. The undershirts are available in cotton, cotton-poly and cotton-spandex blend. These sharp-looking under-shirts are available in a variety of solid colors and prints that coordinate with the men’s underwear line. All of Victoria’s Secret under-shirts feature the seamless and removable tag design as well.

S.W.O.T.T. Analysis

Victoria’s Secret proposed new product line is not without endless opportunity and boundless challenges. Identifying these opportunities and challenges will help our marketing team in their decision efforts. The final decision will undoubtedly carry on the tradition that Mr. Raymond envisioned of a cozy-inviting atmosphere similar to that of a Victorian boudoir.

Strengths

A leader in the industry for over twenty years, Victoria’s Secret transition into a men’s line would provide potential customers with an opportunity to purchase garments for men from a name trusted in the intimate apparel industry. Also, Victoria’s Secret does a great job of putting their apparel catalog in the hands of millions of shoppers. According to www.yahoo.com “Victoria’s Secret Direct, meanwhile, mails about 395 million of its sexy catalogs per year, offering intimate apparel, women’s clothing, and footwear”. The 395 million catalog holders are a great start for potential customers.

Weaknesses

The Victoria’s Secret brand name can be considered a brand specifically made for women. A male shopper may be more apt to shop for a female than purchase items for himself in a Victoria’s Secret store. The female shopper has been marketed since the Victoria’s Secret inception. The proposed men’s line may take years before shoppers consider Victoria’s Secret for male under garments and sleepwear.

Opportunities

The opportunity to get new shoppers to purchase the new product line already exists with the current male customer. For example, on average male shoppers spend more money than female on gifts for St. Valentine Day. “The cheapest gift would be for about $100 and it’s all uphill from there, said a company spokeswoman. That works out well for both for male shoppers and Victoria’s Secret, given that the average man is expected to spend $126.96 on a Valentine’s Day gift this year as opposed to $38.22 for women, according to the National Retail Federation” www.cnnmoney.com (2003).

Threats

Brand names like Hanes, Joe Boxer, and Fruit of the Loom are synonymous with men’s undergarments. This could be viewed as a significant threat to the proposed line for Victoria’s Secret. According to www.marketresearch.com (2003) “one of the major challenges for retailers and manufacturers of men’s underwear is that, for many consumers-particularly men-underwear is not a ‘fashion’ apparel item, and thus contains less potential for self-expression or aspiration purchasing”. The Victoria’s Secret brand could prove to be too “fancy” for men’s underwear.

Trends

Trends for men underwear are whatever makes you feel comfortable. “Most men are either boxers or briefs. It’s Republican or Democrat. You know, it’s just very simple”, Simon Doonan, creative director at Barney’s New York. If Victoria’s Secret can find what makes men comfortable and that product is affordable, then delving into the men’s intimate apparel business may workout for the intimate apparel giant.

Market Research

To ensure a successful launch of our new men’s line of undergarments we need to carefully market the new products. Victoria’s Secret believes that a three-step process of marketing research will help us achieve our goal of selecting the best strategies and tactics. The first step of the research is to have our marketing teamwork closely with our product development department. The product development department will be able to educate us on the various products, including comfort features, fabrics, and available styles and colors. This research will provide the marketing team with a complete understanding of each product in the new line in order to successfully market the undergarments.

The second step in our marketing research plan is to conduct point of sale surveys of our current customers. The surveys will be explained to the customers on their receipts and will invite them to call in and answer a few questions. This survey will provide the marketing team with valuable information on purchasing habits for both male and female Victoria’s Secret customers.

The final step in our marketing research plan will involve evaluating the demographics of our current customers and identifying which market segments are more likely to purchase items from our new men’s line. Once the marketing research is concluded, our marketing team will be in a better position to accurately determine the best marketing strategies and tactics that we should use to promote this exciting new line of men’s products.

Segmentation

Segmentation of the market is one of the most important steps in venturing out into the business world with a new or improved product. Without identifying the market that will be profitable, the company will fail and suffer a great loss of profits and money invested in the product. Identifying the criteria that will be used to segment the market is one of the keys to a successful product launch.

There are several different criterions that can be used to segment a market. The team has the benefit of having a base homogeneous market by targeting the existing Victoria’s Secret customer. The team is hopeful that if men enjoy Victoria’s Secret products for their significant other, then they may be interested in purchasing the male version of those products as well. Another key statistic the team will take advantage of is that most men’s fragrances are purchased by women, thus leading to the fact that most men’s undergarments are probably purchased by the women in their lives. By using the existing Victoria’s Secret customer base, the project team hopes to find the portion of that market that has homogeneous tastes.

Another criterion that must be applied to market segmentation is that it is a substantial market. Because Victoria’s Secret and all of their sub-brands have been in the industry for several decades and are a respected and well-known brand name, the team is confident that there is a substantial market size in which to advertise a new men’s line.

The market segment must also be operational. This helps the company identify the marketing mix they wish to use. The data must be tangible such as age, income or location (McCarthy, Perreault 2002). In addition, the market must be accessible. The team must be able to reach and identify the segment that was targeted.

Once the criteria are developed to segment the market, the marketers must decide on whether or not they will target a single, multiple or combination market. Due to the wide variety of products Victoria’s Secret will roll out within the new line, the multiple target market approach will be taken. Victoria’s Secret also has the resources necessary to be able to meet different needs within different markets.

Similar to many other organizations, Victoria’s Secret must decide if the new product that the team is launching will benefit the organization and its customer base. The team understands that the organizational buyers for Victoria’s Secret must satisfy the needs of the organization. Organizations buy goods and services that will help them meet the demand for the goods and services that they in turn supply to their markets. In other words, the organization’s basic need is to satisfy their customers and clients (McCarthy & Perreault, 2002). As a retailer, Victoria’s Secret buys from its producers at a cost that the organization will be able to resell the products to its customers at a profit. Victoria’s Secret utilizes inside and outside vendors.

There are three kinds of buying processes that may be useful to organizations such as Victoria’s Secret; new-task buying, straight rebuy, and modified rebuy. These three types of buying processes are available to Victoria’s Secret. Considering the new line of menswear the team is introducing, new-task buying would be a factor that could influence the organizational buyers and consumers’ purchasing decisions. New task buying occurs when an organization has a new need and the customer wants a great deal of information (McCarthy & Perreault, 2002).

Often times the term customer is thought of as the buyer that purchases from the retailer. Many marketing managers aim at customers who are not final consumers, in fact, more purchases are made by businesses and other organizations than by final consumers (McCarthy & Perreault, 2002).

Relationships also play a key role in influencing the organizational buyers and consumers’ purchasing decisions. Perreault & MCarthy (2002) suggests that most buyer-seller relationships are based on reducing the customer’s total procurement costs. However, for completeness, some relationships are based on reciprocity meaning trading sales for sales.

Victoria’s Secret markets their products exclusively through their own stores, catalogs and Internet site. Purchasers for each of the Victoria’s Secret stores as well as end-consumers will be expected buyers of the new men’s line. The target market for the expansion into intimate menswear will be wide and deep. Men of all ages will enjoy the luxurious feel of the silk pajamas and boxer shorts as well as the assortment of other undergarments and slippers planned for the new launch. The product assortment will also focus on comfort, fit, quality and fashion. Women who are current purchasers of the Victoria’s Secret women’s line of bras, panties, lingerie and beauty including fragrance and cosmetics, will soon be pampering the men in their lives.

Positioning

Positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the mind of the target audience (Karia, 2004, p.2). The end result of effective positioning is the successful creation of customer value and a clear reason why target customers should buy a product. The Victoria’s Secret brand has demonstrated the ability to position itself in the marketplace. The brand signifies sexy, glamour, luxury and value. It truly has become a destination place in every major mall in the United States. Because of this positioning power, the time is right to introduce a new category at Victoria’s Secret; a very sexy and sophisticated line of men’s intimate apparel called Lil’ Devil’s.

The task of positioning is to deliver a central idea about a company or an offering to the target audience. Differentiation goes beyond positioning to spin a complex web of differences characterizing that one brand should be differentiated from another brand available in the market of similar nature (Karia, 2004, p. 2). Differentiation is the process of adding a set of meaningful and valuable difference to distinguish the company’s offering from the competitor’s offering (Karia, p.2). Product differentiation and product positioning are the central theses in marketing strategy of a firm and are closely interlinked (Karia, p.2).

No company can win if its products and offerings resemble every other product and offerings. Today, most companies fail in market front because undifferentiated strategies (Karia, 2004, p.1). Companies must have strong, meaningful and relevant position and differentiation strategies (Karia, p.1). As Victoria’s Secret has been able to clearly demonstrated strong abilities in product positioning and will continue to do so with Lil’ Devil, the company is also set to execute differentiation strategies as well. Among those strategies, Victoria’s Secret is offering unique and innovative textures in the cloth or fabric used to manufacturer the products. Also in the differentiation strategy is the ability to logo all products available in the men’s line. There is also great exposure in the Victoria’s Secret catalog which will feature two- page coverage. There is no other men’s intimate apparel company that can match these differentiation features.

Through differentiation can be achieved in many ways, the maximum scope for exploiting differentiation remains with the product. The product forms a core part in the differentiation strategy amongst the other four P’s of the marketing mix (Karia, 2004, p.3). Ultimately, the company should want its customer to say “it’s different”, difference creates identity and brand loyalty (Karia, p.3).

Product Life Cycle

All products go through a product life cycle. The cycle begins when the product is first introduced to the point at which is it no longer produced. Because product life cycles can vary from 90 days to 100 years (McCarthy, Perreault 2002), it is important to understand how the product life cycle can affect the Victoria’s Secret Lil’ Devil’s line.

The product should move quickly through the market introduction phase. Because Victoria’s Secret is already a well-established name, the new products will be easy to roll out to consumers. We will have the advantage of being able to introduce this to existing customers to get the word out of our new line.

Once the product is introduced, we enter the market growth phase. It is expected at this point, we should see sales rise along with profits. However, we must be careful not to fall into the trap many companies do at this phase and think our job is done. After introduction of the new men’s line, we open ourselves up to be copied by competitors. An important step within this phase will be to closely analyze what the competitor is doing so that we can stay a step ahead of them. During the market introduction phase, it will be crucial for us to differentiate ourselves so that when the competitors enter the market, we are able to show we have the better quality product.

After the Lil’ Devil’s line sustains profits with competitors involved, it will reach market maturity. At this point, we will have to develop innovative promotions to make our product stand out from the competitors. If we have focused and been successful at differentiating ourselves from the competition from the market introduction phase, this will not be such a daunting task. During this time we will also need to begin our evaluation on whether or not it is time to start developing and introducing new products to replace our original Lil’ Devil’s line.

The last phase of the product life cycle is declining sales. Because we will be evaluating our products during the market maturity phase, we will be prepared to either improve upon our existing line or introduce a new and improved line with additional products.

We must be cognizant of the normal product life cycle and not become a victim of it. In order to prevent this from happening, we will consider employing a new approach such as reverse positioning (Moon, 2005). In reverse positioning, a company focuses on a few quality attributes of their product and differentiates themselves from the competition. This keeps consumers from becoming overwhelmed with so many attributes of new and improved products.

Marketing Mix

To market the products included in the Lil’ Devil’s men’s line, Victoria’s Secret will pay close attention to the “Four P’s.” The goods have been identified, and the distinctive features of the Lil’ Devil’s line will be linked to the already strong Victoria’s Secret brand.

. Distribution issues come into play heavily in deciding brand level strategy. In order to secure a more exclusive brand label, it may be necessary to sacrifice volume. It would not be beneficial for Victoria Secrets to create a large number of low priced sleepwear. Some firms choose to engage in a niching strategy where they forsake most customers to focus on a small segment where less competition exists (e.g. underwear for women, Victoria Secrets).

In order to maintain the brand image, it may be essential that retailer and other channel members provide certain services, such as warranty repairs, providing information to customers, and carrying a large assortment of accessories. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to the product.

Distribution provides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mix. For example, at a cost, the firm can promote its objective by such activities as in-store demonstrations/samples and special placement (for which the retailer is often paid). Placement is also an opportunity for promotion. Other opportunities involve “parallel” distribution, having products sold both through conventional channels and through the Internet or factory outlet stores. Partnerships and joint promotions may involve distribution.

Firms make money on the totality of products and services that they sell, and sometimes, profit can be maximized by settling for small margins on some, making up on others. Retailers involved in a more exclusive distribution arrangement are likely to be more loyal, they will tend to recommend the product to the customer and thus sell large quantities as well as carry larger inventories and selections and provide more services.

· Promotion/Advertising: Customers can be quite effectively targeted in many situations because of the context that they themselves have sought out. For example, when a consumer searches for a specific term in a search engine, a “banner” or link to a firm selling products in that area can be displayed. Print and television advertisements can also feature the firm’s web address, thus inexpensively drawing in those who would like additional information.

· Customer service: The site may contain information for those who no longer have their manuals handy and, for electronic products, provide updated drivers and software patches.

· Market research: Data can be collected relatively inexpensively on the Internet. However, the response rates are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to read instructions. This is one of the reasons why the quality of data collected online is often suspecting.

As we continue to move through the marketing mix for the menswear line of clothing for Victoria’s Secret (VS), we arrive at one of the major factors involved in the process, the price of the product. Stated simply, the price is the amount charged for a particular item of value. There are many considerations a marketing team must be aware before “pricing” an item of value. Competition, the new or revised product, the consumer, and finally a target return objective are factors when considering the price.

The pricing plan for the new VS line of menswear will mirror the mindset of its customers. Being able to acknowledge the needs of customers when they need it is our plan for success. Having flexible-price policy will allow VS to take advantage of the existing customers’ loyalty and attract new customers with quality products and affordable prices. “A flexible-price policy means offering the same product and quantities to different customers at different prices. When computers are used to implement flexible pricing, the decisions focus more on what type of customer will get a price break” Perreault & McCarthy (2002). Since VS offers a store credit card, it will be able to tap into that particular resource before the product actually is on the store shelves. Another resource that will be available to receive information and discounts are the online shoppers. And finally, the customers that enjoy shopping in our showrooms will be able to take advantage of seasonal and regional discount pricing when available.

By being flexible with our pricing, VS is sending a message to consumers that all of the benefits that are currently being used for existing products will continue with the introductory menswear line. “Value pricing means setting a fair price level for a marketing mix that really gives the target market superior customer value” Perreault & McCarthy (2002). The VS brand is one of the leading names in the undergarment industry. Having the ability to use value pricing with the new menswear line is a resource that can mean continued success in the undergarment arena.

Victoria’s Secret has been very successful with their Angel’s line for women. In compliment to that, the new men’s line will be called Lil’ Devil’s. Contrasting the traditional Victoria’s Secret pink, the Devil’s line will sport bright red packaging.

The promotion approach will be two-fold to include both men and women. Many women purchase clothing items for the men in their lives. Full-page advertisements will be placed in men’s magazines such as Maxim and Sports Illustrated and also those that appeal to women such as Cosmo and Marie Claire. Flyers will be inserted with statements going to existing customers and a discount coupon will be attached to each statement to encourage sales. Billboards will be used throughout the United States as well as advertisements on city transit buses and subway trains. Victoria’s Secret will be sponsoring a devilish red NASCAR entry in 2006. NASCAR is one of the most widely viewed sports and appeals to both men and women. The search is on for the driver who can evoke the perfect image for the line. We are looking for someone who will promote our line the way Michael Jordan has for Hanes. Once that person is signed, there will be an extensive television blitz to introduce the new spokesperson.

The Lil’ Devil’s line will be heavily promoted within the Victoria’s Secrets stores right down to devilish lighting and music in that section of the store. Rather than the traditional pink and white striped Victoria’s bags, the Lil’ Devil’s purchases will be wrapped in red tissue and bagged in red and white bags with a small winking devil in the lower corner. The Victoria’s Secret website will include a special menswear section touting the Lil’ Devil’s line in the near future.

The launch for our new line is planned for mid-November in order to take advantage of holiday shopping. Each holiday purchase made in Victoria’s Secrets stores will include a small tin of breath mints in Lil’ Devil’s packaging. The mints will be devils dressed as Santa Claus.

In today’s very competitive marketplace a strategy that insures a consistent approach to offering our product or service in a way that will outsell all other competition is critical. However, in concert with defining the marketing strategy we must also have a well-defined methodology for the day-to-day process of implementing it. It is of little value to have a strategy if we lack either the resources or the expertise to implement it.

In the process of creating a marketing strategy one must consider many factors. Because each strategy must address some unique considerations, it is not reasonable to identify ‘every’ important factor at a generic level. However, many are common to all marketing strategies. Some of the more critical are Promotion and Pricing.

Promotion strategies include advertising and direct customer interaction. Good salesmanship is essential for small businesses because of their limited ability to spend on advertising. Good telephone book advertising is also important. Direct mail is an effective, low-cost medium available to small business.

To sell an offering we must effectively promote and advertise it. There are two basic promotion strategies, PUSH and PULL. The PUSH strategy maximizes our use of all available channels of distribution to “push” the offering into the marketplace. This usually requires generous discounts to achieve the objective of giving the channels incentive to promote the offering, thus minimizing our need for advertising. The PULL strategy requires direct interface with the end user of the offering. Use of channels of distribution is minimized during the first stages of promotion and a major commitment to advertising is required. Our objective is to “pull” the prospects into the various channel outlets creating a demand the channels cannot ignore.

The right price is crucial for maximizing total revenue. Generally, higher prices mean lower volume and vice-versa; however, a smaller business can often command higher prices because of their personalized service. Our pricing strategy is mostly influenced by our requirement for net income and our objectives for long-term market control. There are three basic strategies we can consider.

· A SKIMMING STRATEGY

If our offering has enough differentiation to justify a high price and we desire quick cash and have minimal desires for significant market penetration and control, then we will set our prices very high.

· A MARKET PENETRATION STRATEGY

If near term income is not so critical and rapid market penetration for eventual market control is desired, then we will set our prices very low.

· A COMPARABLE PRICING STRATEGY

If we are not the market leader in our industry then the leaders will most likely have created a ‘price expectation’ in the minds of the marketplace. In this case we can price our offering comparably to that of our competitors.

Budget

The Budget for the Lil’ Devil’s line is an important part of the entire product launch. With accurate forecasting, Victoria’s Secret can successfully launch the new line while providing the profits that shareholders and stakeholders demand.

It will be in Victoria Secrets business and marketing plan that should suggest how the company could best put its unique resources to use to maximize stockholder value in our new men’s fine product. There are several resources that an organization could use that would assure them of this:

· Financial – possession of cash or the ability to raise it

· Ability and willingness to take risk:

· Distinctive competencies – knowledge of how to manufacture, design, or market certain products or services effectively.

· Running facilities (no amount of money is going to get a new manufacturing plant started tomorrow);

· The image of the firm’s brand;

· Contacts with suppliers and distribution and others who influence the success of the company.

Twelve – Month Marketing Budget

2005

Victoria’s Secret (VS) has annual sales of over $2 billion dollars (www.finance.yahoo.com). The women’s intimate apparel brand has enjoyed financial and brand name success since 1982. The launch of the menswear division (Lil’ Devils) is expected to be one of the largest in men’s intimate apparel history. Expected annual sales for the new division are expected to be $15 million dollars each of the first two years. With an initial investment of $30 million dollars, the expected return on investment (ROI) is within our projected 24 – month plan. The attached Excel spreadsheet provides the details of this budget plan.

Control Mechanisms

After the marketing plan is created and put into place, it is important to have procedures by which the results can be measured. It is not beneficial to the marketing area to create a plan and then not be able to evaluate whether or not it was successful. This provides the basis for expanding upon the marketing techniques because it will identify if the original plan reaped the necessary results.

One of the best ways to know if the product is doing well is to ask the customer directly. This type of primary research is normally too time consuming and expensive to conduct. However, we will take advantage of the fact that Victoria’s Secret already has an established market that we can survey.

When a customer makes a Lil’ Devil’s line purchase, we will offer a discount coupon on a future purchase if they answer a few short questions. Customers will have the option of filling out the card and mailing it back or by accessing the Victoria’s Secret Internet site. If they mail the card back, we will mail the coupon back. If the customer submits answers online, they will have the ability to print out the coupon or obtain a code to use their discount right away. We feel the coupon will give customers a good reason to complete the survey and will give us the data we need to analyze our promotion plan.

We can also use the existing customers who have visited the store recently and have not made a Lil’ Devil’s purchase. This will provide ideas on how we need to change our plan to attract more customers.

Salespeople are also a valuable resource for information. We will ask employees to fill out a weekly survey that indicates how well the new line is moving. Incentives will be offered to employees who consistently provide feedback and an award given if they offer a suggestion that is incorporated into the current marketing plan.

Because Victoria’s Secret already has an established market, we will be able to measure progress frequently. Sales reports will be monitored monthly to identify what products are selling so that adjustments to the plan can be made quickly, if necessary.

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