Victoria's Secret: An integrated 360-degree brand strategy

Dear Fellow Panties lovers,

Let’s go back in time today, and dive into the history of Victoria’s Secret to find out how they managed to become the solid brand they are today. Here is a little answer as to how they built the brand around a 360-degree brand strategy.

Back in the days when Leslie H. Wexner was chairman and CEO of the Limited Brands Inc.’s, he decided to put in place a monthly “branding” meeting. The goal of these meetings was to ensure that the products sold in Victoria’s Secret catalogs, in the 1,000-plus stores and on the company Website are consistent throughout. He would bring in key department managers such as creative, merchandising, circulation, and new media. The plan behind this strategy, was to solidify the brands on the global stage.

The Limited Brand Inc. wanted to create what its executives call a “360-degree brand”. The idea behind it is to implement a comprehensive marketing strategy where all three selling channels of the brand are connected in order to reach consumers anyhow, anywhere and at anytime, as well as to offer them the same high quality products no matter where they buy.

In September 1999, Wexner was talking about the company’s flagship and said: “ We've been working diligently on a coordinated basis to make sure that Victoria's Secret stands as an integrated world-class brand. Across all channels - catalog, stores, Internet that the same products are launched at the same time, in exactly the same way, same quality, and same price. […} Prior to 1998, there was no real efforts to interact or connect the catalog with the retail business. Cindy Fields, the president of Victoria’s Secret catalog, and Grace Nichols, the president of Victoria’s Secret retail stores, ran independent businesses – there was no coordination of styles or marketing efforts.”

And we could sense it as Victoria’s Secret had a problem with its clothing and lingerie line, because marketing for retail stores and catalog wasn’t done together, communication was inconsistent. This inconsistency, added to another issue which was that the company was often over mailing its catalogs, resulted in a shy mail order response in the end of the 90’s.

An integrated 360-degree brand strategy: The same bra, in any venue

After launching this new strategy, sales doubled in 4 years in the women’s apparel division. But these results were hard-won. The shift began in August 1998, when in an effort to boost sluggish response the Victoria's Secret catalog cut circulation for the first time, mailing 30% fewer catalogs for the second half of 1998. More pages per book in 1999 also helped increase response by 20%, says Victoria's Secret's Fields.

And of course, the company concentrated on trying to standardize offerings in the retail, catalog, and Web channels. "We wanted to more closely align the catalog with the retail [and Web] stores," Fields says. "It was a massive undertaking. But we've made great improvements. More than half of the merchandise in our stores, the catalog, and our Website are now exact duplicates. We began with bras and panties, which are highly fit-sensitive."

Still, trying to sell the exact same merchandise throughout your selling channels presents some hurdles. "Lingerie that might look fabulous on a store mannequin might not translate as well in the catalog," says Glenda Shasho Jones, a New York-based catalog consultant. On the other hand, certain apparel and lingerie might sell better in the catalog than in a retail environment. "In a catalog, where you can show merchandise on models, you can really romance merchandise" that would otherwise look flat on hangers in a store, Jones says. "It may be one of the reasons the Victoria's Secret stores carry only lingerie."

Beyond borders via the Web

As for the global aspect of Victoria’s Secret new brand strategy, like many other multichannel marketers, the company has high hopes for its Website, which it thinks will blaze a trail for its brands overseas. "The Internet raises the ease with which you can sell your brand to overseas markets," says Ken Weil, the vice president of new media at Limited Brands Inc.

For instance, within the first few hours of going live in December 1998, Victoriassecret.com, had received orders from 37 countries. Its first live Webcast of a lingerie fashion show, during the 1999 Super Bowl, was so successful that the system became overloaded by the rush of people (30% of buyers are men) trying to access it.

"Going global is a natural for Limited Brands," says catalog consultant Marty Brill, former president of women's apparel book Tweeds. "It's probably the next step for them. In my travels to the Far East, consumers in China and Japan are fascinated with all things American. And I can't think of anything more American than Victoria's Secret. My strong reaction says it will be successful in the Pacific Rim and to a lesser extent Europe."

John Pitzen, chief financial officer of women's apparel cataloger California Style and formerly the senior manager of financial reporting at Limited Brands Inc., says Limited Brands has grown so big that it's very difficult to get new names, "so it's a natural progression to go overseas." (The cataloger already mails in Canada, the U.K., and Japan.)

In the long run, international success will depend heavily on the success of Limited Brands new global brand strategy. "It seems like common sense, but most companies struggle with their branding," consultant Jones says. "With brand building, everyone has to have the same vision, from the CEO right on down."

And then there's channel integration. Regardless of what channel they buy from, Jones says, consumers everywhere want what they want, when they want it, and they still expect a certain level of service. "But Victoria's Secret has done a good job of taking away those barriers by providing consistent products and services across all channels," she says.
Source: Multi Channel Merchant – Strategies.

Selin K.