PINK PUPPY LOVE LINE A New Product Line

PINK PUPPY LOVE LINE A New Product Line for Victoria’s Secret/Pink Year - Long Promotion with Five Special Events Jan-Feb, Mar-May, Jun-Jul, Aug-Sep, Oct-Dec Apparel Marketing Final Project Jenny Sashi Josefsson May 12, 2010 1

PINK PUPPY LOVE LINE ________________________________________ A Line of Fashionable and Trendy Dog Accessories!!! 2

PPLL - PRODUCTS _______________________________ Product Collars & Leashes Beds & Carry Bags Doggie Brushes Jackets & Jerseys Booties & Pajamas Introduction Jan - Feb Mar – May Jun – Jul Aug – Sep Oct - Dec 3

PPLL – BENEFITS ___________________________________ For Victoria’s Secret: • • • Attract a new brand of customers into stores Help expand the Pink brand Increase loyalty to the Pink brand Grow sales and profits Support charities 4

PPLL – BENEFITS __________________________________ • • • Convenient (Existing Victoria’s Secret customers) Better quality (than existing/competing products) Better and wider selection More fashionable – accessorize & match The first to be in on a fun, cool new product 5

PPLL – CHARITIES & CAUSES ______________________________________________________________ During special events promo, a % of sales will be donated to charities. At other times, customers can choose to contribute to a dog-related charity/cause. • Humane Society and American Society for the Prevention of Cruelty to Animals (ASPCA) • PAWWS (Passionate Animals Working With Survivors). Dogs for children who are abused or disabled. www. pawwstoheal. org) • Nat’l Service Animal Resource Center/Delta Society. Training and support of service and therapy dogs. www. deltasociety. org • Patriot PAWS. Raising and training dogs for disabled veterans). www. patriotpaws. org 6

PPLL = Unique Products ________________________________________ • Dog owners can match the dog’s outfit with their own dress style and color preference • Dog owners can match their dog’s outfit with its personality and style • Dog lovers can match their dog mascot’s outfit with their own style and color choice 7

PPLL - BUSINESS INFORMATION _______________________________________________________________ Data for Victoria’s Secret (2008) Annual Total Sales: $5. 1 billion Annual Total Profits: $412 million Annual Sales - Retail Stores: $3. 1 billion Estimated Sales - Pink: $775 million 9

PPLL - Company Mission __________________________________________________________ Victoria’s Secret - part of Limited Brands: • Committed to growth (of business) and creation of shareholder value This is achieved by: • Increasing the presence of Victoria’s Secret brands via stores, catalogs, e-commerce, distribution channels, social networking, magazines and media marketing 10

PPLL - Company Mission __________________________________________________________ Victoria’s Secret – Personal Mission: Deliver a best-in-class, captivating, branded, customer experience that builds loyalty and enables consistent sales and profit growth. 11

PPLL - Market Situation ______________________________ • Victoria Secret’s PINK brand targets younger females (primarily teens and early 20’s) • We plan to introduce the new dog accessories under the PINK brand as the Pink Puppy Love Line (PPLL) • A selection of trendy and fashionable brand name dog accessories are currently not available in retail stores. 12

PPLL – MARKET OPPORTUNITIES ___________________________________________ • There are currently about 34 million people aged 12 -19 in the US. Roughly half are females. • Teens age 12 -19 spent approximately $250 billion in 2007. About 1/3 of this was spent on fashion. • E-commerce and promotion by social networking is increasing rapidly. This can help increase sales to males and other dog lovers who don’t wish to shop in a Victoria’s Secret store. • The Pink Puppy Love Line offers mascot-sized versions of the products. Dog lovers who are not able to own dogs can buy Pink’s dog mascots and PPLL products. 13

PPLL – MARKET THREATS ___________________________________________ The weak US economy – declining sales: • Female baby boomers spend less money on fashion for themselves and their young daughters. • Sales in malls have decreased nationwide. • Victoria’s Secret is in a highly competitive market. Department stores, mail-order companies and online businesses are able to offer lower prices and attract customers when money is tight. • Hard to know how the Pink Puppy Love line will attract established Victoria Secret customers and noncustomers. Minimize risk with excellent promotion and 14 early test marketing in a few stores.

PPLL – COMPETITIVE STRENGTH ____________________________________________ • Victoria Secret/PINK is a leading, prestigious brand. • PPLL can build on the world famous runway shows for lingerie and swimwear with dog-related runway shows. • • PPLL means selling high quality, higher priced products. There will be limited competition from competitors selling lower quality products. • Victoria’s Secret has stayed competitive through extensive product innovation and marketing. The Pink Puppy Love line follows this recipe for success. 15

PPLL – COMPETITIVE WEAKNESS _____________________________________________________ • Victoria’s Secret is experiencing somewhat increased debt, lower profits and less cash flow • Introducing PPLL may reduce sales from apparel (less square feet in stores) • Large number of suppliers, difficult to ensure consistent quality and time of delivery • The young work force at V. S. may reduce productivity (absenteeism, tardiness) 16

PPLL – OVERALL GOALS _______________________________________________ 1. Create a new line of attractive dog products and accessories for the Pink brand – the Pink Puppy Love Line 2. Open the Pink brand up for future innovation and expansion into other products 17

PPLL - MARKETING OBJECTIVES ______________________________________________________________ TOTAL SALES GROSS PROFITS YEAR 1 $9. 8 million $5. 0 million YEAR 2 $17. 7 million $9. 8 million YEAR 3 $21. 3 million $11. 9 million 18

PPLL – SALES PLAN ____________________________________________________ • Prospect identification – Build on existing V. S. /Pink customers – Girl customers love dogs, want cute accessories for their family’s dog or their Pink mascot – Many adult females love dogs or are moms to daughters who love dogs – Reach non-V. S. /Pink customers via web based, targeted ads (Google. Word and Facebook) 19

PPLL – SALES PLAN, ctd __________________________________________________________ Creating awareness • Use variety of media: in-store displays, social media, ads in magazines Creating conviction • Based on V. S. /Pink established brand • Strong influence from female teens, pre-teens on mom to buy cute, fashionable dog products at V. S. /Pink 20

PPLL – SALES PLAN, ctd __________________________________________________________ Creating orders and reorders • First orders when introducing 1 -2 new PPLL products at special sales events and fundraising drives for charities • Repeat orders – customer wants: – More products to have complete, matching set for dog or mascot dog – More dog products to be able to match dog’s outfit with her own 21

PPLL – SALES PLAN, ctd __________________________________________________________ Five in-store sales drives during Year 1 • 1 -2 new PPLL products introduced and promoted during each 2 -3 month period • In-store displays combined with media promotion campaign • PPLL products also sold with other Pink products online and via catalog 22

PPLL – UNIQUE SELLING PROPOSITION ______________________________________________________ Problem: Beautiful, stylish dog products are: • Hard to find, few styles to choose from • Often low quality, not durable, high price Solution: PPLL Products at V. S. /Pink • Convenient one-stop shopping • Great selection of fashionable and high quality dog products 23

PPLL – CREATIVE STRATEGY _______________________________________________________________ Copy/Tone Theme: • Color tone is pink: – PPLL products to be marketed in the PINK division within V. S. – Color of Love • Visual/Image Theme: – Business logo of V. S. /Pink already has a dog image • Incentive: – Discount to existing customers during product introduction – New PPLL products available at sales price all year 24

PPLL – MEDIA MIX _____________________________________________ Main emphasis on advertising in main fashion magazines: – Seventeen – Elle – Marie Claire Web based promotion important for young females: – – Google. Word ads (per click) Facebook sidebar ads (per click) Emails to existing V. S. customers New PPLL products featured on V. S. /Pink website, coordinated with promo/sales drives 25

PPLL – MEDIA MIX, ctd _________________________________________________________ Use of Direct Mail • Add-ons to existing V. S. /Pink mailings: – Postcards to Angel members w/ special offers – Insert sheet with PPLL products in Spring and Fall mass mailed catalogs Use of Broadcast Media • One time use of National TV commercial for Pink Puppy Love Line Runway Show 26

PPLL – OTHER MARKETING ___________________________________________________________ Trade Shows: • Participate in trade shows together with V. S. /Pink • Attract new visitors to the V. S. /Pink booth • Get attention from established V. S. /Pink visitors Public Relations • Press releases sent out to create publicity for special events and cause-related promotion activities 27

PPLL – OTHER MARKETING, ctd ______________________________________________________________ Cause-Related Marketing Promotions • Fundraising special event – Feb, to benefit: – PAWWS to Heal (dogs for abused & disabled children) – ASPCA (prevent cruelty to animals) • Service and therapy dogs for people with disabilities. Special event – April, raising awareness and funds for: – National Service Animal Resource Center and – Local Humane Society Chapters. • Service dogs for veterans. Special event - June – Fundraising for Patriot PAWS and local non-profit organizations. 28

PPLL – PROMO BUDGET, Year 1 ________________________________________________________________ Ads – fashion magazines Emails – Angel members Web based ads Direct mail – catalog inserts TV commercials Special events & cause related Reserve, follow-up promo Puppy Love Runway Show TOTAL $976, 000 $2, 500 $17, 500 $40, 000 $550, 000 $245, 000 486500 $550, 000 $2, 867, 500 29

PPLL – PROMO BUDGET, ctd __________________________________________________________ Marketing, sales and profits for Year 2 • Marketing budget (same as Year 1) $2. 9 million • Sales $17. 7 million • Gross profits $9. 8 million • Marketing budget is 16% of annual sales 30