The marketing project of victoria’s secret perfume

Through the analysis of marketing strategy, company''''s marketing objectives and marketing tactics, recognizing the opportunities of the product releasing in the market, the following are

THE OPEN UNIVERSITY

THE MARKETING PROJECT

Nguyễn Nhựt Hào - 2154010206

TABLE OF CONTENTS

Hoàn thiện bài t làm mục lục sau.

CHAPTER I: EXECUTIVE SUMMARY

This Victoria’s Secret Marketing Project aims to effectively explore core marketing strategies applied by Victoria’s Secret brand such as brand positioning, differentiation strategy, advertising cum digital strategy and multichannel synergy By positioning a new Victoria’s Secret product in the market, this marketing plan analyzes target customer markets to

successfully launch the product.

Through the analysis of marketing strategy, company's marketing objectives and marketing tactics, recognizing the opportunities of the product releasing in the market, the following are the Tactics Sections that the product targets.

MissionTo stand out with a new fragrance, feel safe with theantibacterial feature on the fabric surface of perfume.

Vision The first supplier of antiseptic fragrances in the Vietnamese market, while developing brand recognition during the launch of the new product for Vietnamese consumers.

Core ValueSustainable, respect for culture, and trust.

From there, we come up with a proposed marketing plan with target, budget and time as follows:

VICTORIA'S SECRET X-COVID not only makes you feel confident about your own scent – Romantic and Seductive, it also helps you feel more safe when going out during Covid 19 pandemic Balanced sweet and function of

reducing the risk of Covid 19 Pandemic is our unique selling point Through surveys and reviews, we offer the first price for products in this campaign is 1,300,000 VND/60ml and 1,800,000 VND/100ml With the message "One spray, worries fly away." , we want our customers to have the best

experience when using the product.

CHAPTER II: INTRODUCTION TOVICTORIA’S SECRET

a) Perfume

- “Perfume” is derived from the Latin word "per fumum," which means "transmission through dew, smoke." The ancient Greeks are believed to have been the first to make human perfumes By combining fragrant plants with pine resin and oil, the Greeks created a method of massaging with aromatic oils and then a product that they use every day like today Later, France was a leading country in the manufacture of perfumes by machines and by lines during the Industrial Revolution.

- Development Process:

● Egyptian Empire: It was discovered that in the Egyptian era, the scent was

used in the embalming of the Pharaoh and was also worn by the rich Recipes for perfume were found in many Egyptian temples.

● 14th century: The first alcohol-based scent was created in 1371 for Queen

Elisabeth of Hungary, known as Hungary Water.

● 15th century: Perfume remained the main substitute for the everyday

hygiene of the upper classes, and after the creation of lighter "perfumes", fragrance became more accessible to all classes of families.

● 17th century: Perfume was considered very important to the French

aristocracy.

● 18th century: In 1709, Italian perfumer Giovanni Maria Farina put the

German town of Cologne on the incense map with her wine masterpiece 'France Eau de Cologne'.

● 19th century: During the Victorian era perfume finally became more

affordable to the market Queen Victoria gave The Crown Perfumery special permission to add an image of her crown to the perfume bottles.

● 20th Century: Perfume is considered a must-have fashion item.

Chanel No.5, one of the most famous and iconic fragrances of all time, was launched in 1921 Then in 1947, Miss Dior was released by Christian Dior.

● 21th Century:In the quest for purity and simplicity of the 1990s, the 21st century was a turning point as manufacturers released groundbreaking fragrances Today, perfume is a popular fashion accessory worn by millions of people around the world, they are no longer reserved for the elite and aristocracy Several layers form a rich and complex perfume that is often a blend of both natural and synthetic ingredients.

b) Victoria’s Secret

● In 1977, Roy Raymond had founded Victoria’s Secret in California, and this

brand is defined as a retailer of women's wear, beauty products and lingerie Victoria's Secret grew $500,000 in its first year of sales, enough to pay for a headquarters, four new stores, and e-mail ordering.

● In April 1982, Raymond released his 12th catalog; each book costs 3

dollars Catalog sales contribute more than 55% to the company's $7 billion in annual sales.

● For $1 million, Raymond sold the company to Les Wexner, the creators of Limited Stores Inc in Columbus, Ohio.

● In 1983, Wexner improved Victoria's Secret's sales model to focus more on

female customers.

● In 1986, Victoria's Secret swiftly expanded to 100 stores Five years after buying the company, The Limited has transformed from 3 fashion stores to 346 retail stores.

Howard Gross took over as chairman, from his position as vice president in 1985 In October of that year, the Los Angeles Times reported that Victoria's Secret was entering the stock market in shopping malls; In 1986, Victoria's Secret was the only domestic lingerie chain.

● In the early '90s, Victoria's Secret faced a management loophole that led to

the "once-reputable lingerie brand" being "suspected by a series of quality problems.

● In 1998, Victoria's Secret's share in the lingerie market was 14 percent.

That same year, Victoria's Secret entered the cosmetics market.

● In 1999, the company set a goal to increase its image coverage with Body

by Victoria.

● In 2006, Victoria's Secret's 1,000 stores nationwide accounted for a third of

the market share in the lingerie market.

● In 2008, she admitted that "the quality of the product is not consistent with

the name of the brand".

● Victoria's Secret announced the closure of 53 stores in the U.S in 2019 as

well as the re-launch of its swimsuit line after its share price plunged 40 percent in a year And in 2020, reports of widespread bullying and harassment to appear at Victoria's Secret surfaced.

● In 2021, Victoria’s Secret was spun off to become an independent company

by Wexner’s parent company Following the brand's positioning, Victoria's Secret reported an increase in sales in all three completed quarters of 2021 II.VICTORIA’S SECRET PRODUCTS

Victoria's Secret is a famous fashion brand, best known for its fashion-inspired collections including signature bras, panties, lingerie,

1 One of the secondary product lines of Victoria’s Secret is Victoria sportsswimwear: Outstanding are the bralettes (wireless, usually visible) and

sportswear, which were launched by the brand in 2017 to attract young customers.

2 Victoria Secret Fragrance is also one of the brand's premium products

that are popular around the world for its design and quality: In the U.S market, Victoria's Secret has always led sales between 2005 and 2010 Victoria Secret perfumes received various awards from world-class

VICTORIA’S SECRET INDUSTRY

Company: Victoria's Secret brand is the largest lingerie and beauty products brand in the US, founded by Roy Raymond in 1977 The company specializes in selling lingerie, women's clothing and cosmetics through catalogs, websites VictoriasSecret.com and more than 1,500 stores worldwide Currently, the brand is owned by the trading company L Brands.

Publics: The international expansion of Victoria's Secret stores began in

2008 As of 2016, L Brands maintains operational control of company-owned stores in Canada, the United Kingdom and China countries but relies on franchises elsewhere in the world for Victoria's Secret Beauty & Accessories Location (VSBA).

- In Vietnam, there are no stores or factories of Victoria's Secret brand Genuine Victoria's Secret products on the Vietnamese market are imported Recently, Victoria's Secret launched a bold strategy when hitting the potential Asian market with the first destination being China.

Competitors: Victoria's Secret faces competition because of its different

perspectives on strategies to reach customers from many emerging brands ThirdLove, an online retailer that has been in operation for five years, has been actively exploring consumer body shapes and reassuring them that each woman's body is unique and different Other companies like Chico’s, Frederick’s of Hollywood, the Gap and Fruit of the Loom.

Customers: The brand seems to have been tied up in the outdated idea

that "sexy" should be small-sized, sexy-looking and attractive to outsiders However, the current trend points out that new features are a factor that determines attractiveness, such as coolness or comfort Accordingly, the company introduced the Mother's Day campaign in May 2021, featuring a pregnant model The campaign quickly spread and became popular The brand said it will soon sell breast-feeding bras and a variety of product lines with diverse features in the near future.

2 Macro Marketing EnvironmentDemographic factor

- As of December 31, 2021, the population of Vietnam is estimated at 98,564,407 people, an increase of 830,246 people compared to the population of 97,757,118 people the previous year In 2021, the natural population growth rate is positive because the number of births exceeds the number of deaths by 912,801 people Due to migration the population

decreased -82,555 people The sex ratio in the total population of 0.997 (997 men per 1,000 women) is lower than the global sex ratio The global sex ratio in the world in 2021 is about 1,017 males per 1,000 females.

+ 38.05% of the population lives in urban areas (2019)

- Viet Nam’s Age Structure: As of the beginning of 2017, according to our estimates, Vietnam has the following age distribution:

+ Under 15: 25,2% + 15 - 64: 69,3% + Over 64: 5,5%

Economic factor

In 2021, the COVID-19 pandemic was complicated globally with new variations, hindering the recovery of the world economy Vietnam is one of the countries heavily affected by the epidemic, economic growth in 2021 is only 2.58%, the lowest in the past 30 years In the general growth rate of the whole economy, the agriculture, forestry and fishery sector increased by 2.9%, contributing 13.97% to the growth rate of total added value of the economy; the industry and construction sector increased by 4.05%, contributing 63.80%; the service sector increased by 1.22%, contributing 22.23% If compared with the period 2016 - 2020 (with an average increase of 25.9% in the number of enterprises temporarily suspending business), this rate will be basically unchanged in 2021 In Vietnam, the forecasts of prestigious international organizations have assessed that Vietnam has a high chance of recovering at 6% to 6.5% in 2022 in the context that the epidemic is under control, the rate of recovery is high Vaccination rates are widespread and the new strain Omicron does not cause much damage to the economy.

Natural Environment Factor

In order to achieve economic growth, it is required that the inputs to the production process be increased in terms of the quantity used.

Land, mineral and water resources are especially important in economic development In Vietnam, marine resources are especially abundant with the diversity of fish species and reserves In addition, extensive forest resources are an advantage The land area in Vietnam is somewhat

modest, accounting for only 1.35% of the world's area, but Vietnam's river system and freshwater sources account for a total of 2% of the world's river flows On the other hand, abundant mineral resources including kerosene and gas make Vietnam a country of great value in terms of natural resources.

With the above examples, it can be seen that Vietnam deserves to be a country with full conditions to promote economic growth This opens up opportunities as well as challenges for resource exploitation plans.

CHAPTER II: STP

When entering VietNam, Victoria’s Secret was targeted for its marketing strategy as a niche market Most customers are young people from the middle class and upper class.

Positioning products on targeted market:

1 Positioning based on product characteristics Features:

+Perfume is made from natural ingredients combined with disinfectant and is safe for users.

+Elegant and noble style design suitable for all genders.

+Consist of three notes (Top, Middle and Base note) with EAU DE TOILETTE (EDT) which contain 10-15% aromatic essential oils on a mixture of water, the scent can last about 4 hours.

+EDT-type perfume bottles are suitable for daytime use, especially when going to work.

2 Positioning based on Quality/Price

Although Victoria’s Secret had a good brand awareness But the company still targets that Vietnamese people who often choose affordable products with equal or better quality, thereby setting out initial strategy that will push product into the market with “low price-moderate quality” in order to attract a wide number of customers aware of new product who want to use a perfume but there are now too many high-end perfume or high-priced perfume with opposite quality or high-quality perfume with very high price This is also an advantage for the first steps of Victoria’s Secret perfume to penetrate into VietNam.

This strategy is considered suitable up to now When we successfully entice customer to try a new product and increase market share in the hopes of maintaining the new clients once thereby gradually improving the quality and price

Target market: target both women and men, students, and young people who are working and most from middle to upper class because of affordable price, elegant and noble style design with low price strategy but moderate quality, that giving customer an impressive experience

Catching customer’s needs for beautifying,looking to get into the dating scene,pay much attention to aesthetics.

-Propagating the use of perfume combined with disinfectant to reduce the risk of Covid 19 pandemic-an issue that is of great concern to people today

-Good quality product with reasonable price compared to the common ground -Searching for potential customers who meet their requirements.

Segmentation

1 GEOGRAPHIC

● Region: VietNam

● Density: According to the survey, most customers who use perfume in general and Victoria’s secret perfume in specific are from major cities such as Ho Chi Minh city, Ha Noi and Da Nang Therefore, we need to focus on developing and exploiting customers in these markets.

2 DEMOGRAPHIC

● Victoria’s Secret enjoys a huge customer, these customers are mostly women but men are also targeted Thus, the main marketing strategy for Victoria’s Secret is to appeal to the women’s sex appeal This means most of their products are meant to showcase a woman’s sexuality.

● Men who purchase Victoria’s Secret merchandise for their partners also form a significant customer block.

1.Under 18: Usually students who are interested in using perfume with dynamic, youthful scent and global brands More specifically, This group is largely made up of women that are looking to get into the dating scene Women in short-term relationships are also represented in this category These young ladies have not yet found steady partners, and their image is extremely meaningful to them.

2.From 18→30: This segment is made up of women who are in partnerships or are looking to get into the dating scene and they pay much attention to aesthetics, glamor and sensuality in perfume scent Besides, gentlemen in this category are very interested in using foreign perfume as a gift for their wives at this age And their image is extremely important to them.

3.Upper 30: A small group of customers in this segment are still interested in perfume.

● The targeted clientele is mostly from the middle income group (>4million/month) People who have lower are rarely or never pay attention to this field.

● Class: Upper class and middle class

● Lifestyle: Youthful lifestyle, mature lifestyle, Dynamic lifestyle,…

● Benefits:

- Quality: Help customers feel fascinated and look fascinated, bring sexy beauty into a symbol.

- Convenience: Diverse product lines and styles for customers to freely choose: women's clothing, women's underwear, bathing suits, shoes, perfumes and cosmetics,

- Service: The staff are warm and enthusiastic with customers ● Attitude towards product:

- Enthusiasm: Customers always respond strongly whenever Victoria’s Secret has a new product.

- Positive: Products of Victoria’s Secret are always appreciated by customers because of their quality and style.

● Buying habits:

- Most Vietnamese people nowadays have the habit of buying online, especially young people

Buying habits-Online

CHAPTER III: CUSTOMER BEHAVIOR Most people use perfume, but according to the survey, the most users arefemale (79.5%), the rest are male (20.5%).

Up to 100% of customers have never used an integrated perfume with

disinfectant solution, but customers will be willing to buy it if VS launches thisnovel product.

Age of using perfume:

According to a survey aged 30 and under, the majority of perfume users are aged 18-30 (95.9%), the rest are under 18 (5.5%).

1) Week of use:

According to the actual survey, up to 52.1% of users always sprayperfume when going out, 29.6% use it 1-2 times in a week, theremaining 22.5% use it more than 3 times in a week.

2) Criteria:

User psychology is interested in 3 criteria when using perfume:quality, price and scent When users go to buy perfume, they willpay attention to the scent and it accounts for 94.5% of the actualsurvey Because scents express their personality and preferences.Besides, the price and quality of the product are also what they payattention to after the scent For customer centricity, price and qualitymust be proportional to each other, about 71.2% Because no onewants to spend a fortune to receive a product whose quality doesnot match the price they paid.

3)How many bottles of perfume?:

Most users have more than 1 perfume bottle Among them, there arepeople who have 2 more perfume bottles to serve for walking andwork.

4) Price:

Users prioritize products priced from 500 VND-1 million VND, gainingfull trust with 76.1% on the actual survey Along with that, more than33.8% choose to buy at the price of 1 million VND- 1, 500,000 VND.

5) Is perfume combined with antisepticsolution right for you?

Based on the actual survey, 80.6% of users highly appreciate the

combination of perfume and disinfectant solution Because customerscan meet both scent and health needs during the epidemic season.The remaining 20% disagreed because they thought that the perfumehad a high alcohol content, and if it was combined with antisepticwater, it would cause skin burns.

6) WHY CUSTOMERS USE:

For the most part, Chanel is the leading ambassador for luxury, sophistication and class, which is no longer strange, but for VS, it is more popular because the price is not too expensive, accounting for 36% of buyers Dior makes up a minority of 25%.

7) PRIORITY CONDITIONS:

On the expression, client of the first quality is more than (to 68%) because when the good mode of the better, website well, many scents to choose from, many incentives, luxurious design, will make people Buy remember and trust choose to

buy more The remaining about 56% because there are limited business people can not buy perfume money.

8) CUSTOMER SATISFACTION:

Customers are satisfied with Victoria's secret up to 47.2%, the rest is normal 19.4%.