Week 8: Pricing, Channels and IMC (VS)

1. Reflect on a firm or product you like which you believe is highly effective in bringing all the elements of the Mix together to create beautiful symphony for their consumers.

I'm ashamed to say it (and possibly shouldn't on a public Kelley marketing class blog), but I am a bit obsessed with Victoria's Secret. I know as a company have had their ups and downs, but just one glance at my bank account and you'll see their success (and I'm no easy sell). I think Victoria's Secret as a company utilizes their product, price, placement and promotion in a beautiful, burlesque-inspired symphony.

1. Who are the target audience for the company's market offerings? 

The target audience for Victoria's Secret would be women, likely professional women with disposable income (ages 22-45). They also have an offshoot, "Pink" that caters to a more youthful audience of high school and college women (age 14-22).

1. What are the tangible products the company offers?

Boudoir: Bras (both practical and impractible), underwear, lingerie, intimates
Clothing: Business casual, cruisewear, dresswear, swimwear (upscale)
Beauty: Makeup, perfume, hair products, lotions

1. How does the company utilize price, and place to enhance the value of its offerings and why do you think their choice works well together?

What's wonderful about bras is that every woman needs one (or feels she needs one, due to our culture). Every woman has different needs when it comes to bras--bras that enhance, bras to tone down, bras to support, bras for looks and bras for comfort. But, not every department-store brand bra will satisfy those needs.

That's where Victoria's Secret comes in. Their sleek, sophisticated, black-and-pink style resonates with many women--women who will pay the extra money (a higher price) for the quality comfort, design, and look of a Victoria's Secret brand name bra.

However, Victoria's Secret offers all things "sexy" and "womanly," and once they get you in the door for a product that might be considered necessary (a bra), you must also walk through rooms showcasing lingerie, clothing, and beauty products that also help (or are perceived to help) enhance the final image: A woman who looks good, smells good, and is wearing clothes that give her confidence.

Without fail, I walk into a Victoria's Secret store expecting to spend money on only what I need (a bra, a T-shirt, etc.) and end up walking out spending more than I expected. Victoria's Secret offers knows that if they can get customers in the door (with coupons and "free panty" incentives), they can increase the dollar amount on purchases.

The company also offers a catologue and website that includes more clothing and swimwear options, offering ease of use for busy women on the go.

1. Does the company have a unique approach to communications with their target audience?  How is the approach well suited to the other elements of their mix? 

Victoria's Secret uses an interesting approach to communication and promotion, including:

• Creative emails/mailers: Fun, flirty promotional taglines
• Events: Events for "VIP" customers with special discounts
• VS card (pink and black): The Victoria's Secret Angels card, first in pink and then in black (the color for luxury) once a cardholder hits VIP status
• "Angel rewards": A point system for Angel Card holders that offers birthday discounts and coupon books
• Special offers: Semi-annual sales, free totes with purchases 
• Free product incentives/coupons
• Secret Rewards: "Secret" amounts of next purchases when you purchase an item

All of these are well-suited for the target audience of women and for the "unique to you" bra options Victoria's Secret offers. These communications make Victoria's Secret customers feel special, sexy, and fun--likely, the messaging strategy the company has always had in mind. With this in mind, I think they have been quit successful!