SlideShare une entreprise Scribd logo
1  sur  18
Télécharger pour lire hors ligne
STRATEGIC MANAGEMENT
COURSE PROFILE PROJECT

COMPANY: VICTORIA’S SECRET
Tereza Koudelková
Markéta Magyarová
Company Overview
• Division of Limited Brands Inc. (flagship)
• Around 60% of its revenues

• Present only in North America
• 1017 shops in US; 19 in Canada

• Operates mainly in the Lingerie, swimwear and
bridal stores industry
• Wide product range - bras, panties, sleepwear, swimwear,
cosmetics

• Strong financial position
• High profit margin, high inventory turnover (compared to
the industry average)
Vision, Mission
Ultimately Seductive.
Victoria‘s Secret is committed to being global
trendsetter in premium women lingerie providing
superior shopping experience to both men and
women. Tradition and employee expertise help us
attain loyal customers and therefore create
sustainable value for our shareholders.
SWOT Analysis
Strengths

Weaknesses

•Strong brand recognition
•In-store experience
•Customer care
•E-commerce
•Product range

•Premium prices
•US locations only
•High share price fluctuations
•High inventory
•Part of weaker group

Opportunities

Threats

•Economic recovery
•External competition
•Growth of the target population •Low profit margins due to price•International expansion
competition or purchasing costs
•PINK line strategy is successful
•Debacle of the to-be-opened
stores in Europe
Suggested long-term objectives
Objective #1

To establish Victoria’s Secret as a top retailer of premium
women lingerie in Europe.
Time horizon: 10 years
Objective #2
To discontinue all operations of Limited Brands except for the
Victoria’s Secret and Body&Bath divisions.
Strategic goals and initiatives
Establish the VS brand as a
top lingerie retailer

• Launch a marketing campaing in countries where stores will be opened.
• Hire VS Angels and organize annual VS Fashion show in Europe
• Establish brand awareness and sentiment among men buying lingerie as a gift

Open 200 stores in Europe
over the next 10 years.

• Hire and train staff using the U.S. know-how
• Try to select convenient occassions for store openings to increase the interest (such as Summer
Olympics in London)
• Choose countries to operate in (see organizational structure)
• Choose site to open stores at (sites rather in thecity centre, complementary in malls)
• Choose suitable products for the Europen customer and the store format

Establish successful
pricing and sales policy
Provide excellent
customer care.
Establishing cost-effective
logistics
Use e-commerce.

• Profile as a premium brand, but stay competitive in this segment
• Set the prices at levels comparable to U.S.
• Implement the U.S. sales model (2-for-1)
• Implement the U.S. know-how regarding in-store experience
• Create a reward card programme
• Train staff to become an experienced workforce able to advise both women and men with
product selection
• Minimize average delivery time

• Build an European distribution centre based in Germany
• Ship all products for Europe directly from the producer to the distribution centre
• Choose a cost-effective way of transportation to ship products to stores or end
customers
• Choose a suitable product range for the target market
• Set the prices lower than in stores or use specials
• launch an internet marketing campaign to raise awareness of the website and e-shop
• Ship the products to all countries of the European Union
Open 200 stores
in Europe over
the next 10 years.

• Hire and train staff using the U.S. know-how
• Try to select convenient occassions for store openings to
increase the interest (such as Summer Olympics in London)
• Choose countries to operate in (see organizational structure)
• Choose site to open stores at (sites rather in the city centre,
complementary in malls)
• Choose suitable products for the Europen customer and the
store format
Victoria's Secret - Strategic Plan
Establish the VS
brand as a top
lingerie retailer

• Launch a marketing campaing in countries where
stores will be opened.
• Hire VS Angels and organize annual VS Fashion
show in Europe
• Establish brand awareness and sentiment among
men buying lingerie as a gift

Establish
successful pricing
and sales policy

• Profile as a premium brand, but stay competitive in
this segment
• Set the prices at levels comparable to U.S.
• Implement the U.S. sales model (2-for-1)

Establishing costeffective logistics

• Build an European distribution centre based in
Germany
• Ship all products for Europe directly from the
producer to the distribution centre
• Choose a cost-effective way of transportation to
ship products to stores or end customers
Provide excellent
customer care.

Use e-commerce.

• Implement the U.S. know-how regarding in-store
experience
• Create a reward card programme
• Train staff to become an experienced workforce able to
advise both women and men with product selection
• Minimize average delivery time

• Choose a suitable product range for the target market
• Set the prices lower than in stores or use specials
• Launch an internet marketing campaign to raise
awareness of the website and e-shop
• Ship the products to all countries of the European Union
Organizational Structure
Limited Brands
VS USA

VS Europe

VS Stores

VS Direct
Sweden

Germany
Spain
UK

Italy

Stores in
catchment areas

Romania
Logistics –
distribution
centers and
catchment
areas
Key Process Logistics

Producer

Store manager

Germany

E-shop
purchases
Web purchases – standard delivery

Catchment areas

Inventory
tracking system

Stores inventory
demand
Store inventory transport

Web purchases –
express delivery

Catchment areas

DHL
DHL / UPS /
postal service

End customer

End customer

Transportation
company

Stores
KeyKey Processes
Processes cont.
• Employee hiring

HR
• New IT system implementation

IT
• Customer Feedback Collection
Marketing
Cause-Effect Relationship Model
(Customer Care)
Shareholders

Customers
Products
Employees

Net Profit
Margin

Share Price
Growth

Sales

Reward
Programme

Range

Avg. Delivery
Cost

Avg. Delivery
Time

Satisfaction

Price

Display

Expertise

E-commerce

Customer
Mind-setting

Training

Know-how
Key Success Factors
Key Success Factors

#

Metrics

Target Value

Frequency

Susceptibility to
influence

Rising the VS brand awareness as
a top lingerie retailer

1

Survey/Questionnaire
(MRG)

90%

Every two years

high

First choice for men buying
underwear for their partners

2

Annual increase in # of purchases
(MRG, Sales)

10%

Per purchase/annually

high

Customer satisfaction

3

Scale 1-10 (at the desk)
(Sales, STMNG)

95%

Per purchase/annually

low

4

# of reward cards (MRG)

30% of customers

Quarterly

low

5

Conversion Rate (Sales, STMNG)

40%

Quarterly

high

6

Total # of stores
(COO)

Differs each year

Annually

low

7

Revenues (CFO)

Proportionate to US

Annually

low

8

Avg. delivery time
(COO)

Stores 24h
Web standard 5days
Web express 36h

Quarterly

medium

9

Avg. delivery costs (COO)

?

Quarterly

medium

10

Inventory turnover (CFO, COO)

6

Annually

medium

11

Net profit margin (CFO)

8%

Annually

medium

12

Avg. € amount per purchase (Sales)

€45

Quarterly

high

13

# of unique visitors (entries) (IT, MRG)

10.000/day

Monthly

low

14

Conversion Rate (# of
purchases/unique entries) – (MRG, IT)

20%

Monthly

low

Successful store opening

Effective logistics

Pricing policy

E-commerce

Required Precision: 95% for all the metrics
Conversion Rate = percentage of purchases to entrants
Balanced Score Card
Key Success Factor

Importa
nce

Rising the VS brand awareness as a top lingerie retailer

1

0,15

First choice for men buying underwear for their partners

2

0,06

Customer satisfaction

3

0,06

4

0,08

5

0,1

6

0,02

7

0,08

8

0,02

9

0,02

10

0,03

11

0,1

12

0,1

13

0,06

14

0,12

Successful store opening

Effective logistics

Pricing policy

E-commerce

Total:
1 – not at all; 2 – partially achieved; 3 – achieved; 4 – exceeded expectations

1

Score
THANK YOU FOR YOUR
ATTENTION.

Contenu connexe

Tendances

Victoria's Secret- Marketing Analysis: Assignment 1
Victoria's Secret- Marketing Analysis: Assignment 1Victoria's Secret- Marketing Analysis: Assignment 1
Victoria's Secret- Marketing Analysis: Assignment 1Pallabh Bhura
 
Victoria\'s Secret Brand Analysis
Victoria\'s Secret Brand AnalysisVictoria\'s Secret Brand Analysis
Victoria\'s Secret Brand Analysisbjgerman
 
H&m in fast fashion
H&m in fast fashionH&m in fast fashion
H&m in fast fashionBishwa Kadia
 
Zara Case Study presentation
Zara Case Study presentationZara Case Study presentation
Zara Case Study presentationSouvik Mukherjee
 
ZARA 's Business Strategy
ZARA 's Business StrategyZARA 's Business Strategy
ZARA 's Business StrategyMaria Giokarini
 
Prada Business Model Evolution and Future
Prada Business Model Evolution and FuturePrada Business Model Evolution and Future
Prada Business Model Evolution and FutureAlar Kolk
 
Zara company profile with history and marketing strategy
Zara company profile with history and marketing strategyZara company profile with history and marketing strategy
Zara company profile with history and marketing strategyTanveer Ahmed
 
Zara Case Study (Value Chain Management)
Zara Case Study (Value Chain Management)Zara Case Study (Value Chain Management)
Zara Case Study (Value Chain Management)Syed Ali Roshaan Raza
 
Crocs Marketing Strategy: Rise & Fall
Crocs Marketing Strategy: Rise & FallCrocs Marketing Strategy: Rise & Fall
Crocs Marketing Strategy: Rise & FallYASSER ELSEDAWY
 
Global Marketing - UNIQLO Case Study Analysis
Global Marketing - UNIQLO Case Study AnalysisGlobal Marketing - UNIQLO Case Study Analysis
Global Marketing - UNIQLO Case Study AnalysisJenny Lee
 
Comparing Zara and UNIQLO Using Supply Chain Analysis Deshmukh
Comparing Zara and UNIQLO Using Supply Chain Analysis DeshmukhComparing Zara and UNIQLO Using Supply Chain Analysis Deshmukh
Comparing Zara and UNIQLO Using Supply Chain Analysis DeshmukhMika Deshmukh
 
Zara's Fast-Fashion Edge
Zara's Fast-Fashion EdgeZara's Fast-Fashion Edge
Zara's Fast-Fashion EdgePhi Jack
 
Zara - a marketing strategy redefining retailing
 Zara - a marketing strategy redefining retailing  Zara - a marketing strategy redefining retailing
Zara - a marketing strategy redefining retailing Shivansh Surana
 

Tendances (20)

Victoria's Secret- Marketing Analysis: Assignment 1
Victoria's Secret- Marketing Analysis: Assignment 1Victoria's Secret- Marketing Analysis: Assignment 1
Victoria's Secret- Marketing Analysis: Assignment 1
 
Victoria\'s Secret Brand Analysis
Victoria\'s Secret Brand AnalysisVictoria\'s Secret Brand Analysis
Victoria\'s Secret Brand Analysis
 
H&m in fast fashion
H&m in fast fashionH&m in fast fashion
H&m in fast fashion
 
Zara Case Study presentation
Zara Case Study presentationZara Case Study presentation
Zara Case Study presentation
 
Charles & Keith
Charles & KeithCharles & Keith
Charles & Keith
 
ZARA 's Business Strategy
ZARA 's Business StrategyZARA 's Business Strategy
ZARA 's Business Strategy
 
Burberry Business Model
Burberry Business ModelBurberry Business Model
Burberry Business Model
 
Prada Business Model Evolution and Future
Prada Business Model Evolution and FuturePrada Business Model Evolution and Future
Prada Business Model Evolution and Future
 
Zara company profile with history and marketing strategy
Zara company profile with history and marketing strategyZara company profile with history and marketing strategy
Zara company profile with history and marketing strategy
 
Uniqlo
UniqloUniqlo
Uniqlo
 
PRADA
PRADAPRADA
PRADA
 
Zara Case Study (Value Chain Management)
Zara Case Study (Value Chain Management)Zara Case Study (Value Chain Management)
Zara Case Study (Value Chain Management)
 
Crocs Marketing Strategy: Rise & Fall
Crocs Marketing Strategy: Rise & FallCrocs Marketing Strategy: Rise & Fall
Crocs Marketing Strategy: Rise & Fall
 
Gucci: Brand Analysis
Gucci: Brand AnalysisGucci: Brand Analysis
Gucci: Brand Analysis
 
Zara1
Zara1Zara1
Zara1
 
Global Marketing - UNIQLO Case Study Analysis
Global Marketing - UNIQLO Case Study AnalysisGlobal Marketing - UNIQLO Case Study Analysis
Global Marketing - UNIQLO Case Study Analysis
 
Comparing Zara and UNIQLO Using Supply Chain Analysis Deshmukh
Comparing Zara and UNIQLO Using Supply Chain Analysis DeshmukhComparing Zara and UNIQLO Using Supply Chain Analysis Deshmukh
Comparing Zara and UNIQLO Using Supply Chain Analysis Deshmukh
 
Zara's Fast-Fashion Edge
Zara's Fast-Fashion EdgeZara's Fast-Fashion Edge
Zara's Fast-Fashion Edge
 
Zara - a marketing strategy redefining retailing
 Zara - a marketing strategy redefining retailing  Zara - a marketing strategy redefining retailing
Zara - a marketing strategy redefining retailing
 
Burberry Case Study Report
Burberry Case Study ReportBurberry Case Study Report
Burberry Case Study Report
 

En vedette

Lipotherm Center Dossier Franchise
Lipotherm Center Dossier Franchise Lipotherm Center Dossier Franchise
Lipotherm Center Dossier Franchise Lipotherm Center
 
Groupe Monceau Fleurs - Documentation 3 franchises du Groupe
Groupe Monceau Fleurs - Documentation 3 franchises du GroupeGroupe Monceau Fleurs - Documentation 3 franchises du Groupe
Groupe Monceau Fleurs - Documentation 3 franchises du GroupeGroupe Monceau Fleurs
 
Pourquoi choisir la franchise ? Avantages
Pourquoi choisir la franchise ? AvantagesPourquoi choisir la franchise ? Avantages
Pourquoi choisir la franchise ? AvantagesTeemster
 
11e enquete annuelle de la franchise - 2014
11e enquete annuelle de la franchise - 201411e enquete annuelle de la franchise - 2014
11e enquete annuelle de la franchise - 2014MagazineLSA
 
Tipos de empresas y su clasificacion
Tipos de empresas y su clasificacionTipos de empresas y su clasificacion
Tipos de empresas y su clasificacioneduardoth212
 

En vedette (6)

Franchise
FranchiseFranchise
Franchise
 
Lipotherm Center Dossier Franchise
Lipotherm Center Dossier Franchise Lipotherm Center Dossier Franchise
Lipotherm Center Dossier Franchise
 
Groupe Monceau Fleurs - Documentation 3 franchises du Groupe
Groupe Monceau Fleurs - Documentation 3 franchises du GroupeGroupe Monceau Fleurs - Documentation 3 franchises du Groupe
Groupe Monceau Fleurs - Documentation 3 franchises du Groupe
 
Pourquoi choisir la franchise ? Avantages
Pourquoi choisir la franchise ? AvantagesPourquoi choisir la franchise ? Avantages
Pourquoi choisir la franchise ? Avantages
 
11e enquete annuelle de la franchise - 2014
11e enquete annuelle de la franchise - 201411e enquete annuelle de la franchise - 2014
11e enquete annuelle de la franchise - 2014
 
Tipos de empresas y su clasificacion
Tipos de empresas y su clasificacionTipos de empresas y su clasificacion
Tipos de empresas y su clasificacion
 

Similaire à Victoria's Secret - Strategic Plan

Global marketing - Unitedworld School of Business
Global marketing - Unitedworld School of BusinessGlobal marketing - Unitedworld School of Business
Global marketing - Unitedworld School of BusinessArnab Roy Chowdhury
 
Aw12 uni presentation fbgl 02-11-12
Aw12 uni presentation fbgl 02-11-12Aw12 uni presentation fbgl 02-11-12
Aw12 uni presentation fbgl 02-11-12Chris Raw
 
Windfall Presentation Aug 2015 NK
Windfall Presentation Aug 2015 NKWindfall Presentation Aug 2015 NK
Windfall Presentation Aug 2015 NKNiki Keeley
 
eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...
eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...
eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...David J. Salisbury
 
Bluebell_magentocom_china_2013
Bluebell_magentocom_china_2013Bluebell_magentocom_china_2013
Bluebell_magentocom_china_2013Bluecom Group
 
Redespresso presentation
Redespresso presentationRedespresso presentation
Redespresso presentationRedespresso
 
Tam's cut out tops (2)
Tam's cut out tops (2)Tam's cut out tops (2)
Tam's cut out tops (2)Tamekahparker
 
UNIQLO Case _ Lâm Tiên Khải
UNIQLO Case _ Lâm Tiên Khải UNIQLO Case _ Lâm Tiên Khải
UNIQLO Case _ Lâm Tiên Khải Khải Tiên
 
Ecommerce UK - Cross-border Ecommerce conference
Ecommerce UK - Cross-border Ecommerce conferenceEcommerce UK - Cross-border Ecommerce conference
Ecommerce UK - Cross-border Ecommerce conferencePracticology
 
Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...
Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...
Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...Christie Lee
 
walmart strategies.pptx
walmart  strategies.pptxwalmart  strategies.pptx
walmart strategies.pptxRamyRamzy10
 
Brandhome & Blackcoffee - Intelligent International Expansion
Brandhome & Blackcoffee - Intelligent International ExpansionBrandhome & Blackcoffee - Intelligent International Expansion
Brandhome & Blackcoffee - Intelligent International ExpansionBrandhome
 
Retail Activity Optimization & Digital Image Recognition
Retail Activity Optimization & Digital Image RecognitionRetail Activity Optimization & Digital Image Recognition
Retail Activity Optimization & Digital Image RecognitionGlobal Creative Group, Inc
 

Similaire à Victoria's Secret - Strategic Plan (20)

PLATFORM
PLATFORMPLATFORM
PLATFORM
 
Global marketing - Unitedworld School of Business
Global marketing - Unitedworld School of BusinessGlobal marketing - Unitedworld School of Business
Global marketing - Unitedworld School of Business
 
Conferecia Instituto de Empresa pricing
Conferecia Instituto de Empresa pricing Conferecia Instituto de Empresa pricing
Conferecia Instituto de Empresa pricing
 
Global marketing
Global marketingGlobal marketing
Global marketing
 
Aw12 uni presentation fbgl 02-11-12
Aw12 uni presentation fbgl 02-11-12Aw12 uni presentation fbgl 02-11-12
Aw12 uni presentation fbgl 02-11-12
 
Windfall Presentation Aug 2015 NK
Windfall Presentation Aug 2015 NKWindfall Presentation Aug 2015 NK
Windfall Presentation Aug 2015 NK
 
MANGO (6)
MANGO (6)MANGO (6)
MANGO (6)
 
Global marketing
Global marketingGlobal marketing
Global marketing
 
eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...
eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...
eTail London 2013: Omni-channel shopping a personalisation strategy beyond tr...
 
Bluebell_magentocom_china_2013
Bluebell_magentocom_china_2013Bluebell_magentocom_china_2013
Bluebell_magentocom_china_2013
 
Redespresso presentation
Redespresso presentationRedespresso presentation
Redespresso presentation
 
Tam's cut out tops (2)
Tam's cut out tops (2)Tam's cut out tops (2)
Tam's cut out tops (2)
 
UNIQLO Case _ Lâm Tiên Khải
UNIQLO Case _ Lâm Tiên Khải UNIQLO Case _ Lâm Tiên Khải
UNIQLO Case _ Lâm Tiên Khải
 
Ecommerce UK - Cross-border Ecommerce conference
Ecommerce UK - Cross-border Ecommerce conferenceEcommerce UK - Cross-border Ecommerce conference
Ecommerce UK - Cross-border Ecommerce conference
 
Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...
Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...
Getting Started with Ecommerce for Food & Beverage Brands: Creating Your Chan...
 
walmart strategies.pptx
walmart  strategies.pptxwalmart  strategies.pptx
walmart strategies.pptx
 
Business strategy- Walmart
Business strategy- WalmartBusiness strategy- Walmart
Business strategy- Walmart
 
Sales management
Sales managementSales management
Sales management
 
Brandhome & Blackcoffee - Intelligent International Expansion
Brandhome & Blackcoffee - Intelligent International ExpansionBrandhome & Blackcoffee - Intelligent International Expansion
Brandhome & Blackcoffee - Intelligent International Expansion
 
Retail Activity Optimization & Digital Image Recognition
Retail Activity Optimization & Digital Image RecognitionRetail Activity Optimization & Digital Image Recognition
Retail Activity Optimization & Digital Image Recognition
 

Dernier

PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxEduSkills OECD
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxDr. Santhosh Kumar. N
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
Human-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming ClassesHuman-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming ClassesMohammad Hassany
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational PhilosophyShuvankar Madhu
 
Presentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphPresentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphNetziValdelomar1
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxKatherine Villaluna
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptxraviapr7
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxPractical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxKatherine Villaluna
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxraviapr7
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationMJDuyan
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...Nguyen Thanh Tu Collection
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17Celine George
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice documentXsasf Sfdfasd
 

Dernier (20)

PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
 
M-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptxM-2- General Reactions of amino acids.pptx
M-2- General Reactions of amino acids.pptx
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
Human-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming ClassesHuman-AI Co-Creation of Worked Examples for Programming Classes
Human-AI Co-Creation of Worked Examples for Programming Classes
 
Philosophy of Education and Educational Philosophy
Philosophy of Education  and Educational PhilosophyPhilosophy of Education  and Educational Philosophy
Philosophy of Education and Educational Philosophy
 
Presentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a ParagraphPresentation on the Basics of Writing. Writing a Paragraph
Presentation on the Basics of Writing. Writing a Paragraph
 
Practical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptxPractical Research 1 Lesson 9 Scope and delimitation.pptx
Practical Research 1 Lesson 9 Scope and delimitation.pptx
 
Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptxClinical Pharmacy  Introduction to Clinical Pharmacy, Concept of clinical pptx
Clinical Pharmacy Introduction to Clinical Pharmacy, Concept of clinical pptx
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxPractical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
 
Prescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptxPrescribed medication order and communication skills.pptx
Prescribed medication order and communication skills.pptx
 
Prelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quizPrelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quiz
 
Benefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive EducationBenefits & Challenges of Inclusive Education
Benefits & Challenges of Inclusive Education
 
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
CHUYÊN ĐỀ DẠY THÊM TIẾNG ANH LỚP 11 - GLOBAL SUCCESS - NĂM HỌC 2023-2024 - HK...
 
How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17How to Add Existing Field in One2Many Tree View in Odoo 17
How to Add Existing Field in One2Many Tree View in Odoo 17
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
The Singapore Teaching Practice document
The Singapore Teaching Practice documentThe Singapore Teaching Practice document
The Singapore Teaching Practice document
 

Victoria's Secret - Strategic Plan

  • 1. STRATEGIC MANAGEMENT COURSE PROFILE PROJECT COMPANY: VICTORIA’S SECRET Tereza Koudelková Markéta Magyarová
  • 2. Company Overview • Division of Limited Brands Inc. (flagship) • Around 60% of its revenues • Present only in North America • 1017 shops in US; 19 in Canada • Operates mainly in the Lingerie, swimwear and bridal stores industry • Wide product range - bras, panties, sleepwear, swimwear, cosmetics • Strong financial position • High profit margin, high inventory turnover (compared to the industry average)
  • 3. Vision, Mission Ultimately Seductive. Victoria‘s Secret is committed to being global trendsetter in premium women lingerie providing superior shopping experience to both men and women. Tradition and employee expertise help us attain loyal customers and therefore create sustainable value for our shareholders.
  • 4. SWOT Analysis Strengths Weaknesses •Strong brand recognition •In-store experience •Customer care •E-commerce •Product range •Premium prices •US locations only •High share price fluctuations •High inventory •Part of weaker group Opportunities Threats •Economic recovery •External competition •Growth of the target population •Low profit margins due to price•International expansion competition or purchasing costs •PINK line strategy is successful •Debacle of the to-be-opened stores in Europe
  • 5. Suggested long-term objectives Objective #1 To establish Victoria’s Secret as a top retailer of premium women lingerie in Europe. Time horizon: 10 years Objective #2 To discontinue all operations of Limited Brands except for the Victoria’s Secret and Body&Bath divisions.
  • 6. Strategic goals and initiatives Establish the VS brand as a top lingerie retailer • Launch a marketing campaing in countries where stores will be opened. • Hire VS Angels and organize annual VS Fashion show in Europe • Establish brand awareness and sentiment among men buying lingerie as a gift Open 200 stores in Europe over the next 10 years. • Hire and train staff using the U.S. know-how • Try to select convenient occassions for store openings to increase the interest (such as Summer Olympics in London) • Choose countries to operate in (see organizational structure) • Choose site to open stores at (sites rather in thecity centre, complementary in malls) • Choose suitable products for the Europen customer and the store format Establish successful pricing and sales policy Provide excellent customer care. Establishing cost-effective logistics Use e-commerce. • Profile as a premium brand, but stay competitive in this segment • Set the prices at levels comparable to U.S. • Implement the U.S. sales model (2-for-1) • Implement the U.S. know-how regarding in-store experience • Create a reward card programme • Train staff to become an experienced workforce able to advise both women and men with product selection • Minimize average delivery time • Build an European distribution centre based in Germany • Ship all products for Europe directly from the producer to the distribution centre • Choose a cost-effective way of transportation to ship products to stores or end customers • Choose a suitable product range for the target market • Set the prices lower than in stores or use specials • launch an internet marketing campaign to raise awareness of the website and e-shop • Ship the products to all countries of the European Union
  • 7. Open 200 stores in Europe over the next 10 years. • Hire and train staff using the U.S. know-how • Try to select convenient occassions for store openings to increase the interest (such as Summer Olympics in London) • Choose countries to operate in (see organizational structure) • Choose site to open stores at (sites rather in the city centre, complementary in malls) • Choose suitable products for the Europen customer and the store format
  • 9. Establish the VS brand as a top lingerie retailer • Launch a marketing campaing in countries where stores will be opened. • Hire VS Angels and organize annual VS Fashion show in Europe • Establish brand awareness and sentiment among men buying lingerie as a gift Establish successful pricing and sales policy • Profile as a premium brand, but stay competitive in this segment • Set the prices at levels comparable to U.S. • Implement the U.S. sales model (2-for-1) Establishing costeffective logistics • Build an European distribution centre based in Germany • Ship all products for Europe directly from the producer to the distribution centre • Choose a cost-effective way of transportation to ship products to stores or end customers
  • 10. Provide excellent customer care. Use e-commerce. • Implement the U.S. know-how regarding in-store experience • Create a reward card programme • Train staff to become an experienced workforce able to advise both women and men with product selection • Minimize average delivery time • Choose a suitable product range for the target market • Set the prices lower than in stores or use specials • Launch an internet marketing campaign to raise awareness of the website and e-shop • Ship the products to all countries of the European Union
  • 11. Organizational Structure Limited Brands VS USA VS Europe VS Stores VS Direct Sweden Germany Spain UK Italy Stores in catchment areas Romania
  • 13. Key Process Logistics Producer Store manager Germany E-shop purchases Web purchases – standard delivery Catchment areas Inventory tracking system Stores inventory demand Store inventory transport Web purchases – express delivery Catchment areas DHL DHL / UPS / postal service End customer End customer Transportation company Stores
  • 14. KeyKey Processes Processes cont. • Employee hiring HR • New IT system implementation IT • Customer Feedback Collection Marketing
  • 15. Cause-Effect Relationship Model (Customer Care) Shareholders Customers Products Employees Net Profit Margin Share Price Growth Sales Reward Programme Range Avg. Delivery Cost Avg. Delivery Time Satisfaction Price Display Expertise E-commerce Customer Mind-setting Training Know-how
  • 16. Key Success Factors Key Success Factors # Metrics Target Value Frequency Susceptibility to influence Rising the VS brand awareness as a top lingerie retailer 1 Survey/Questionnaire (MRG) 90% Every two years high First choice for men buying underwear for their partners 2 Annual increase in # of purchases (MRG, Sales) 10% Per purchase/annually high Customer satisfaction 3 Scale 1-10 (at the desk) (Sales, STMNG) 95% Per purchase/annually low 4 # of reward cards (MRG) 30% of customers Quarterly low 5 Conversion Rate (Sales, STMNG) 40% Quarterly high 6 Total # of stores (COO) Differs each year Annually low 7 Revenues (CFO) Proportionate to US Annually low 8 Avg. delivery time (COO) Stores 24h Web standard 5days Web express 36h Quarterly medium 9 Avg. delivery costs (COO) ? Quarterly medium 10 Inventory turnover (CFO, COO) 6 Annually medium 11 Net profit margin (CFO) 8% Annually medium 12 Avg. € amount per purchase (Sales) €45 Quarterly high 13 # of unique visitors (entries) (IT, MRG) 10.000/day Monthly low 14 Conversion Rate (# of purchases/unique entries) – (MRG, IT) 20% Monthly low Successful store opening Effective logistics Pricing policy E-commerce Required Precision: 95% for all the metrics Conversion Rate = percentage of purchases to entrants
  • 17. Balanced Score Card Key Success Factor Importa nce Rising the VS brand awareness as a top lingerie retailer 1 0,15 First choice for men buying underwear for their partners 2 0,06 Customer satisfaction 3 0,06 4 0,08 5 0,1 6 0,02 7 0,08 8 0,02 9 0,02 10 0,03 11 0,1 12 0,1 13 0,06 14 0,12 Successful store opening Effective logistics Pricing policy E-commerce Total: 1 – not at all; 2 – partially achieved; 3 – achieved; 4 – exceeded expectations 1 Score
  • 18. THANK YOU FOR YOUR ATTENTION.