Victorias Secret

1292 Words6 Pages
Victorias Secret uses a business strategy that focuses on their “own store” strategy. Unlike many of their competition who distribute their merchandise through department stores, VS distributes their merchandise to the end user. This is done through their internet store, catalog and their own wholly owned speciality stores. By capitalizing on their competitive advantage of having their own stores, Victorias Secret is able to create efficient positioning, concept testing, distribution, pricing and advertising strategies. VS also uses a decision making process that evaluates the revenue versus cost requirements of all alternatives and how much control over products and brand image is relinquished in each. In 1995 when Les Wexner purchased the then single store that was Victorias Secret, he viewed their products as sleazy. He strived to change the way that women thought about undergarments and added an emotional aspect to it. By…show more content…
VS chooses advertising methods based not solely on sales but also on price. The internet and direct mail are big portions of their advertising budget. The internet and direct mail make up the majority of their advertising efforts. This is justified by the incremental profit they return versus the incremental cost they incur. The Victorias Secret television advertising is a more difficult venture. The short terms sales return does not warrant a large television budget in comparison to its internet and direct mail counterparts. Though what VS did learn from its television advertising is that when they measured it against pricing, they found television advertising made their consumers less price responsive, in turn allowing them to increase their prices. Television is an important median in changing consumer perspectives, but VS feels they can better utilize their resources in creating new products and expanding existing product
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