Analysis of Marketing Campaign: Victorias Secret

Analysis of Marketing Campaign: Victorias Secret Currently, Victorias 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 Victorias Secret catalogue and Web, the assortment varies even further with lingerie, swimwear, apparel and shoes. Within the Victorias 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, Victorias Secret is one of the most successful businesses in the US today. Their Marketing strategy is hinged upon a well thought of advertising campaign and other special features. History Victorias Secret was established by Roy Raymond in the San Francisco area during the 1970s. Raymond saw an opportunity in taking underwear of the time and turning it into fashion. Products stood apart from the traditional white cotton pieces, which department stores offered, with colours, patterns and style that gave them more allure and sexiness. They combined European elegance and luxury. Even the name Victorias Secret was meant to conjure up images of 19th-century England. The store went so far as to list a fake London address for the company headquarters. Today, Victorias Secret enjoys nearly a monopoly position on the retail of intimate apparel in the US. The typical bra that once sold for $15 at Victorias Secret, when the company first opened and was worried about competition, now sells for over $40. Victorias Secrets Success Starting from Raymonds six stores, Victorias Secret has grown into a giant in the lingerie business. As my colleague just explained VS has virtually no competitors in the womens elegant lingerie market. In the more general category of all underwear, Victorias Secrets sales also tower over the sales of all other underwear brands. Victorias Secrets success is evident in the numbers. Not only does Victorias Secret dominate in its own market, it has also become the fastest growing branch in the Limited family. To understand the success of Victorias Secret, it is necessary to look at the forces in the lingerie industry. First, a range of complements contribute to increasing demand. Complements range from Britney Spears and MTV to perfume, basically anything that is sexually suggestive. The acceptable boundary for sexuality has with these complements been raised higher and higher. Along with this, the media has elevated the position of intimate apparel in our society. Magazines like Cosmo and Glamour advise women to pamper themselves with nice underwear as one of lifes secret survival tips. Bras and panties are commodities that need to be replaced at a modestly frequent level. Therefore, there is no concern for the intimate apparel industry of a decline in demand. The industry is not rivalrous either. Bras are priced over a fairly broad range with high markups. Firms in this industry have very high profit margins. Furthermore, neither the buyers who are women shoppers nor their husbands who are buying gifts have much bargaining power. Suppliers for the intimate apparel industry similarly have very little bargaining power because of the large number of manufacturers and few big buyers. Supermodels who can be considered suppliers in the highly-advertised lingerie business certainly do not have bargaining power, especially when it comes to Victorias Secret. Most models consider it a prestigious honor to be a Victorias Secret model. There is more supply (models) than demand in this case. For such a lucrative industry, there are surprisingly few competitors in the US market. Besides Fredericks of Hollywood, there are no other lingerie retail chain stores. Victorias Successful Marketing Campaign Advertising One of Victorias Secrets strengths is its very successful advertising strategy. In a business that sells an image and a lifestyle, advertising is crucial. Victorias Secret spends $66 million each year on advertising, essentially defining beauty and packaging it for consumers. Thousands of newspaper ads, catalogues, and televised fashion shows convince women that buying Victorias Secret products will boost their confidence and enhance their appeal. A Victorias Secret product represents fun, romance, fantasy, desire and love all in one. As long as they do Victorias Secret lingerie, women can be transformed like Cinderella from the ties of domestic life to one of the angels seen on the walkway. Annual Fashion Show Televised annually, the Victorias Secret Fashion Show Extravaganza has an exclusive contract with nationwide broadcasting station CBS. A symbiotic relationship exists between the two firms. Victorias Secret obtains one hour of nationwide advertising, while CBS holds the exclusive right to one of the most popular programs on TV. For one full hour, beautiful supermodels parade about in Victorias new-line of beautiful lingerie with chic special effects and music that heightens the fashion show to the level of a Broadway production. Women are persuaded that Victorias Secret lingerie will win the enthusiasm they see plainly in their male colleagues. The Supermodels Victorias Secret holds one of the most important input supplies in the lingerie industry: supermodels. Victorias Secret models are synonymous with beauty. Advertisements capitalize on this association and cement in consumer minds that Victorias Secret represents beauty and class. The fact that Victorias Secret has most of the top supermodels working for them is no surprise. Nobody boasts of Banana Republic models or GAP models, but mention Victorias Secret models and everybody gushes about how gorgeous they are. Being a Victorias Secret supermodel is a sign of prestige. Like the top animators who are honored to work for Disney, talented models are enthusiastic about signing up with Victorias Secret because it guarantees them a successful name and chance to be named in an elite group of supermodels, including the likes of Adrianna Lima, Heidi Klum, and Tyra Banks. In order to keep good business flowing, stores need strong marketing strategies. If they do not have people coming into their stores, they obviously will not have much business. Victorias Secret is well aware of this, and they constantly give customers reasons to visit by sending them coupons, special offers, and best of all free stuff! 1. Freebies:ÂÂ  The Free Panty coupon is one of the customers favourite methods. Victorias Secret sends these coupons out every month to all of their customers, and the best thing about this coupon is that there is no purchase necessary. Many times when stores give out coupons to receive free items, it is required that you buy something first. However, people love this particular offer because they can receive a free panty just by walking into the store and handing over the coupon. How does this help Victorias Secret?ÂÂ  Giving away a free item gives customers a reason to go into the store. There arent too many people who will just go in the store, get their free item, and then walk out. Every time one goes in to claim their prize, they always end up stopping to look around at everything else (and usually end up falling in love with something that they really did not need). One ends up spending money every time, and thats a nice profit for Victorias Secret. Theyve gained more business just by handing out a small panty that most likely costs them very little! 2. Exclusive, Limited-Time Coupons:ÂÂ  Another one of their great techniques is when they send coupons for 10 dollars off any Pink purchase. In this situation, customers would receive $10 off any Pink brand item bought in the store. Pink is extremely popular for Victorias Secret, and theres a wide selection in this line. Theres something for everyone. Why not see if you can save on a higher-priced item you may have had your eye on? How does this help Victorias Secret?ÂÂ  They may provide $10 off, but theyre getting you to spend money there. Again, the incentive gets customers through the door and the sought-after merchandise urges them to stick around and do some more shopping. 3. Clearance or Bargain Sales:ÂÂ  Victorias Secret also holds their Semi Annual Sales to drum up business. These sales occur in the winter time (usually every January) and also every summer. These sales are huge (some ladies ransack the displays to find the best deals) and they get tons of people into their store. Many of the items that go on sale during this time are usually discounted between 40 and 70%. People who love Victorias Secret go crazy over these prices, because on a regular day, their prices arent usually that cheap. How does this help Victorias Secret?ÂÂ  Bargain-hunting customers usually buy as many pairs of unmentionables as they can which not only brings in cash but also clears out previous-season merchandise. This frees up space for new designs, which people catch previews of while theyre waiting in line to pay for their purchases. 4. Incremental Incentives:ÂÂ  Not every patron sees the appeal of waiting in lines for the best prices, and VS understands that. Thats why they incorporate online-only deals. For example, they may give a $15 discount for every $100 spent, $30 off for every $150 spent, or maybe even $75 off for $250 spent. This incremental technique is another way for the store to gain new business. How does this help Victorias Secret?ÂÂ  Incremental incentivesÂÂ  encourage people to buy more for a price break or discount. This is especially beneficial for customers who may be near a price break lets say you have $90 worth of merchandise in your cart. Wouldnt you be likely to add one more item if you knew you could then use the coupon for $15 off? I would.

Ethics And Issues Essay

How should schools deal with Internet plagiarism? There are many ways as to how a school can deal with internet plagiarism. Firstly, they should teach their students the importance of writing a fair work and the worth of hard work it has. Students need to know that any piece written by them is their own accomplished hard work that is entirely original. In such a way, they have learned the essential elements of the work that the school teacher wanted them to work on. In other words, they have succeeded in meeting the requirements of the coursework, no matter what grade they get. Secondly, teachers should highly emphasize on the topic of ethics and ethical writing to the students. Apart from these, a school has to be up-to-date regarding the different ways as to how the students plagiarize. Keeping a track on the past papers of the previous is one way. The other is to use anti-plagiarism software today. The popular software used these days by the universities is Turnitin. com or Mydropbox. com. Students should be taught that plagiarism is a crime and is equivalent to stealing. Altering digital photos: Art or Fraud  Similar to plagiarizing, altering digital photos is fraud and can earn even legal consequences if used for financial or academic gains. Altering digital photos and stating it as your own work is like stealing someone else’s work, making some additions and stating it as your own. Just as the painting of Mona Lisa will always be the work of Leonardo Da Vinci, no matter how altered it is, any work done on anybody’s presently done work is a crime. In my opinion, altering digital photos can never be an art but a fraud because the original work is done by someone else. Photojournalism is mostly subjected to this fraud. If altering digital photos was to be considered as art, many people would misuse it to present as legal evidences. Since the natures of digital photos are, in a way, alterable, these pieces are never considered as a piece of legal evidence. Software have been developed where any alter in the digital images are spotted and traced that avoids altering of any digital piece as well (Pearson, 2006). Altering any image or piece for one’s own benefit in order to gain money is a crime, thus a fraud and not an art. Just as a re-mix music cannot be regarded as an original piece of art, altering digital photos, too cannot be regarded as an art.

Assignment: Economics Essay

1. Economists in Funlandia, a closed economy, have collected the following information about the economy for a particular year: Economists also estimate that the investment function is:  where r is the country’s real interest rate, expressed as a percentage. Calculate private saving, public saving, national saving, investment, and the equilibrium interest rate. Please note: national savings is not related to the interest rate, which means that the supply curve for loanable funds is vertical. (15 points) Private Savings= Y-T-C 10000-1500-6000= 2500 Public Saving= T-G 1500-1700= -200 National Saving= S=(Y-T-C)+(T-G)=(10000-1500-6000)+(1500-1700)= 2300 Investing= I=Y-C-G 10000-6000-1700= 2300 Real interest rate I = 3,300-100r , 100r = 3,300-I 100r = 3,300-2300 ( I=2300) 100r = 1000 100r/100 = 1000/100 (dividing it by 100) r = 10 2. In the summer of 2010, Congress passed a far-reaching financial reform to prevent another financial crisis like the one experienced in 2008-2009. Consider the following possibilities: a. Suppose that, by requiring firms to comply with strict regulations, the bill increases the costs of investment. On a well-labeled graph, show the consequences of the bill on the market for loanable funds. Be sure to specify changes in the equilibrium interest rate and the level of saving and investment. What are the effects of the bill on long-run economic growth (recall: higher investment would increase capital and capital per worker)? (7 points) i. The demand loanable would decline along with the equilibrium. The saving and investments will decline as well hence giving the economy a lower rate for the future. ii. b. Suppose, on the other hand, that by effectively regulating the financial system, the bill increases savers’ confidence in the financial system. Show the consequences of the policy in this situation on a new graph, again noting changes in the equilibrium interest rate and the level of saving and investment. Again evaluate the effects on long run growth. (7 points) i. The supply of loanable funds would increase. The interest rate will decrease while the savings and investments will increase. Which will let the economy growth for the future, ii. Problems for Chapter 14 3. According to an old myth, Native Americans sold the island of Manhattan 400 years ago for $24. If they had access to a financial investment that yielded an interest rate of 7% per year, how much would they have today? (8 points) a. (1.07)^400 x 24= $13.6 Trillion 4. For each of the following kinds of insurance, give an example of a behavior that can be called moral hazard and another example of behavior that can be called adverse selection: a. Medical insurance (6 points) i. A sick person is more likely to apply to medical insurance compared to a healthy person. Meaning it’s an adverse selection. A healthy person may get health insurance too but now he may less likely to take care of himself, this would be a moral hazard. b. Car insurance (6 points) i. A risky driver is more likely to apply for car insurance, this would be an adverse selection. Or once a driver has insurance, they may be driving more reckless, this would be a moral hazrd. 5. For each of the following pairs of bonds, which bond would you expect to pay a higher interest rate? Explain. (5 points each) a. A bond of the US government or a bond of an Eastern European government i. Eastern European because non-US bonds will include risk premiums and also have higher interest rates b. A bond that repays the principal in 2015 or a bond that  repays the principal in 2040 i. 2040 because higher maturity requires higher interest rate. c. A bond from Coca-Cola or a bond from a software company that run in your garage i. The software company due to not being well known so it would be a higher interest rate. d. A bond issued by the federal government or a bond issued by the state of New York i. Definitely federal government because they are not tax-exempted compared to municipal bonds 6. When company executives buy and sell stock based on private information they obtain as part of their jobs, they are engaged in insider trading. a. Give an example of inside information that might be useful for buying or selling stock. (6 points) i. Information on new products or any government involvement that may affect the firm b. Those who trade stocks based on inside information usually earn very high rates of return. Does this fact violate the efficient markets hypothesis? (6 points) i. Who does trade with inside information is not violating the efficient market hypothesis. The hypothesis includes all available information about the future of the firm. Inside information is not available to the public meaning the price of the stock doesn’t reflect this. c. Insider trading is illegal. Why do you suppose that is? (5 points) i. It’s illegal for sure due to the fact that it gives others an unfair advantage over everyone else who doesn’t have access to this. 7. Jamal has a utility function , where W is his wealth in millions of dollars and U is the utility that he obtains. a. Graph Jamal’s utility function. Is he risk averse? Explain. (7 points) i. 1. He is risk averse because of his chances of getting more money for more risk. b. In the final stage of a game show, the host offers Jamal a choice between: i. $4 million for sure ii. A gamble that pays $1 million with 60% probability and $9 million with 40% probability Should Jamal pick choice i or choice ii? Hint: evaluate the utility that Jamal would expect to receive in choice i and choice ii. Jamal would expect to receive utility in the amount of the weighted average of the possible outcomes, where the probabilities are the weights. (7 points) E(Utility) = 0.6*U(1000000) + 0.4*U(9000000) = 0.6*0 + 0.4*1 = 0.4 Jamel should pick option one because he has a only 40% in order to get the 9 million but it might not worth it because he could end up back at 1 million.

The Impact Of The Industrial Revolution On The World

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