Victoria Secret Case Study Example | Topics and Well Written Essays - 4750 words

Victoria Secret - Case Study ExampleMetrics 16 Outcome careful 16 Performance Metric 16 13. Leveraging its brick and mortar store 17 14. Changes judge after the 24 months launch period 17 workings Cited 19 1. Current target seg custodyt The new brand for workforce The managework forcet of Victorias secret has come up with the strategy to blow up their line of products into the mens segment. They expect to be equally successful in this segment as they had been in the womens segment. The underlying idea fuck this expansion is to introduce color and style to mens underwear thereby exploring a market which is tremendously underserved. The new line brand of products targeted towards men willing add a new dimension to Victorias Secret range of products. Expanding into the new line of mens undergarment will fetch consumer loyalty to Victorias from this segment of customers as well alongside the loyalty of their existing customers. The underlying strategy behind the companys expansion into the mens underwear line is to attract new customers. This strategy will help the business to diversify into a segment that is in so far to be explored in the US and henceforth in the world. In addition to that, the expansion program will help Victorias secret to come upon a wider customer base thereby creating new sources of revenue stream. 2. Do men consider underwear purchases discretionary? According to a logic outlined by Alan Greenspan, mens practice of buying underwear is thought to be a good indicator of discretionary spending (What Is the Mens underclothes Index?). The logic that Alan Greenspan stated is both elegant and simple. According to him, more often than not most of the guys have their drawer filled with fairly shabby underwear which they choose to wear until and unless the elastic has ruptured or the boxers are riddled with holes. Because of the fact that co workers and friends generally do not notice a guys undergarments, hence this frayed underwear ofte n looks like a purchase made on discretionary basis. Mens approach pattern of buying underwear is a crucial indicator of how the economy is performing. Whenever, men starts to apprehend that the economy is about to dip, they simply stop refilling their drawers with pertly undergarments. A perfect example to support this theory was when the economy started dipping the year 2008, annual sales of mens underwear dropped by 12% (Trex Boxers, apprise or Loincloth? A Brief History of Mens Underwear). In accordance with these recent theories, expanding into the mens segment will bear to be a prospective decision for Victorias secret. The primary reason that can be attributed to this fact is that currently the United States economy is find at a steady pace. Moreover, not many undergarment brands exist in the country which produces mens underwear suggesting that, this segment is highly unexplored. So, it is expected that the changing pattern in the performance of the United States econom y will bring about a profound change in the way men buy their undergarments. Thus, an expansion in this division will prove to be a value maximizing decision for the company. If the products are well appreciated by customers and society, Victorias Secret has a possibility for extended growth. 3. Potential target market The potential target market is young and trendy men between the age group 15 and 45. As of now, in terms of geography, the chosen target market is USA. The reason for this is because of a slow growth (10%) witnessed in the annual sales of me