Spread you wings and own all the market shares

Hey you, 

Did you know that Victoria’s secret owns more than 1500 stores spread over the U.K., U.S and Canada, and 400 stores in more than 70 other countries like Latin America, Venezuela, Middle east and Africa  and the United Arab Emirates. The Market share of Victoria’s secret in the world has a total of 3,6%. These are divided in a couple of countries, examples of these are Latin America 0,2%, Venezuela 6,1%, Middle East and Africa 0,6%, North America 21,0%, Canada 6,1%, USA 22,0%, U.K. 0,2% and United Arab Emirates 4,2%. (Euromonitor, 2016)

When you look at the other countries where L brands and Victoria’s secret have stores you see a difference in what they sell there. For an example Sweden and New Zealand have only Fragrances, and Singapore has beauty and personal care, fragrances and sets/kits. And Venezuela does has underwear but not night- and swimming wear because these would not be appropriate in this market. These are examples of market entry strategy.

We al know some international turmoil (e.g. ukraine crisis/ trade with russia, isis in the

middle east, war in israel/gaza, ebola virus in africa, Brexit etc etc. I was wondering if any of

there factors had any impact on Victoria's secret, and this is what I found:

Victoria’s secret does export their products to U.S.A., the middle East, U.K. And Africa so you could assume that the recent international turmoil effects their sales, but when you look at their market shares they all have increases of an average 0.1%. Their world shares even went up 0.3%. So all these factors didn’t affect Victoria’s Secret underwear (Euromonitor, 2016)

If you think about international legal forces like the government pilicies and tax regulation there are always laws to guide them. Every country had their own laws, and these are very useful for me as a international business and management student. So I searched for some of these to show you the value of laws, and the differences in each county.

So when you look at Victoria’s secret lingerie you can think of a couple of laws that may have impact on the product, for an example the international trade law of the U.S.A : Trade Expansion Act (1962, c. 76 s. 872) or an International Tax Law like the Finance Act (2004 c 12 s23C) from the United Kingdome and the income tax act (1952, c. 148 s. 1) from Canada.

All these laws have correspondence with Victoria’s secret lingerie by where the Law/Act stands for and from which country they are.

Thank again for the attention that you give my blog! and love to see all the vieuws! Also if you want to know something else of have an topic that you want to read about, write it below and I will see what I can do for you!

Bye everyone!

xoxo Renée

Canada justice laws website. (2016, 10 11). income tax act. retreived from Laws Lois justice: http://laws-lois.justice.gc.ca/eng/acts/i-3.3/page-1.html

Euromonitor. (2016, October 11). Statistics Victoria's Secret. retreived from Euromonitor: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

L Brands. (2016, October 10). Victoria's Secret. Opgehaald van Our Brands: http://careers.lb.com/our-brands/victorias-secret/

Tullo, C. (2004). Finance Act 2004 Chapter 12. retreived from Legislation: http://www.legislation.gov.uk/ukpga/2004/12/pdfs/ukpga_20040012_en.pdf

Woolley, G. P. (2016, 10 11). Remarks Upon Signing the Trade Expansion Act. retreived from The Presidency: http://www.presidency.ucsb.edu/ws/?pid=8946

Victoria's Secret in the Netherlands!!

Hey guys, nice to see you here again. This week will be about market potential and sales potential if Victoria's Secret would export to the Netherlands. To estimate these things you can use an break down or a build up approach, and I used the build up approach like you see in the table beneath.

Age	Nr. of females in NL	Estimates purchase	Total
Younger than 20	1.863.687	0.1	186.368,7    (186,4 K)
Between 20 and 65	5.018.661	0.4	2.007.464,4 (2 M)
Older than 65	1.679.637	0.15	251.945,6    (251,9 K)
Total market potential			2.445.778,7 (2,5 M)

The reason behind my estimated purchase is that L brands sales are 11,5 billion (11.500.000.000). And Victoria’s secret has a 59% part of that. So sales of Victoria’s secret in 2015 was 6,785 billion (6.785.000.000). Victoria’s secret is located on different locations but you can buy it online from all over the world. So then I took the total market share of underwear of The Netherlands compared to the world, this is : 0,1%. So I did 6,785 billion times 0,1 (= 6.785.000) and this is how I got my total estimated purchase. After this I divided this in 3 categories. Assuming that the generation younger than 20 only buys for 10%, of 20 till 65 buys for 40% and 65 and older for 15%. So Nr. of females times the estimates purchase in the total per age group.

So the total of market potential using the Build-up Approach is: 2.445.778,7 (2,45 million) is divided by 33.3 because of possible competitors you have the sales potential of: 814.444,3071 (814,5 K)

Why Victoria’s secret should write a marketing plan for Dutch Market? This because the GDP of the Netherlands is growing with a growth rate of 0,6 percent, so this is steady but still save for the economy.

Also because of Brexit. Nobody know what will happen with the UK after they are separated from the Netherlands. And since Victoria’s secret is based in the UK they don’t know either what the future holds for them. So it would be wise so cross the North Sea to a country that is based in Europe after Brexit is done.

And my last argument is that the population is growing in a steady line. This means that over the years there will be more potential buyers for VS.

But to every upside there is a downside. The Netherlands is a small country, so there will not be as much expansion possibilities in the Netherlands compared to Germany or France for an example.

Also you can think about sales forecasts. In my case I would use surveys and specifically to question experts regarding their expectations about future purchases. This because of all the data they can get. From previous sales to possible future sales. They are experts for a reason, so their judgment has an important factor in sales markets. Also do they know what trend is in at the moment, and what consumers tend to buy in which season and in which country. The downside is that they only know these things about the past, so future trends and fashion statements are unknown for them. Another downside to this method is that the exports work outside of the company, so the experts may not be as motivated as company personnel to do an effective job

Bibliography

Euromonitor. (2016, october 19). Victoria's Secret. Retrieved from Euromonitor: http://www.portal.euromonitor.com.saxion.idm.oclc.org/portal/statistics/tab

statline. (2016, october 19). population. Retrieved from statline: http://statline.cbs.nl/Statweb/publication/?DM=SLNL&PA=03759ned&D1=2-3,6,9,12&D2=129-132&D3=0-4&D4=l&HDR=T&STB=G2,G3,G1&VW=T

worldbank. (2016, October 19). The Netherlands. Retrieved from Worldbank: http://data.worldbank.org/country/netherlands

Dibb, S., Simkin, L., Pride, W. M., & Ferrell, O. C. (2016). Marketing: Concepts and strategies: Houghton Mifflin.

Euromonitor International, E. (2016). Passport database.   Retrieved from http://www.portal.euromonitor.com/portal/magazine/homemain

Daly,J. (2015). How Ikea sends super-targeted promotional emails.  Retrieved from https://www.getvero.com/resources/ikea/

every woman is her own hero.

Week 1.5

Hi everyone,

Here I am again with my 5th assignment week. This week I will talk about L brands. Like I told you in week 1, L brands is the mother company of Victoria's Secret. I will also tell you about some statistics, and where you can find them. And last but not least about the differences in The Netherlands concerning my product.

First lets talk about L brands: Which environmental factors have a major impact on the marketing policies of the company.

So in the Annual report 2015 of L Brands Mr. Leslie H. Wexner talks to all the partners of Victoria’s secret, Bath and Body works, Pink, La Senza and Henri Bendel. He talks a lot about sales. How they are reaching their goals and are well on their way of being the best specialty retailer in the world. He uses the term: Focused, Fast and Frugal.

And if you look at the Press Releases of L Brands the first thing you see are the webcast for their sales report and the Sales reports itself. They post these reports every month.

So if you look at all the date and information L brands let the world see, it is safe to say that they are mainly focused on sales. (L brands, 2016)

The last thing they are focusing on and have an impact on their marketing is the Quality of their product. There have been reports that claimed that VS and La Senza bra’s caused skin reactions. This is not true and there for one of their Marketing factors.

(L brands, 2016)

“FOCUSED: We focused on our top priorities and the goal for each … and just as important, we intentionally decided what we were NOT going to do. For example, we exited the apparel and makeup businesses in Victoria’s Secret – a tough decision, to exit businesses, but the right decision to put more time and resources into core categories. We intensified our focus on our customers … spending more time in stores … so that we can significantly improve our customers’ experience.

FAST: Speed matters … we further reduced our lead times and managed inventory well, increasing inventory turns. We made decisions faster … so that literally everything moves faster.

FRUGAL: We were more efficient in time and money. As I said last year, being frugal isn’t about cost – it’s about value”  (Wexner, 2015)

If you want to find data in the Netherlands about external environmental issues concerning you company, you can find these in CBS. I looked there to find 2 statistics, let me tel you about them.

So the first statistical publication I found is about (47712) Shops selling ladies’ wear.

Here you see data about value, price and volume of the Turnover indices, this is important to see because you can indicate what the growth is of ladies’ wear is in the Netherlands. (CBS, 2016)

The second statistical publication I found is about Producer Prices of 1419 (underwear)

I find this data very useful because you can see the consumption of foreign products and total consumption. This data is relevant because VS lingerie is an product that is for the Dutch database an Foreign product. You can see how in just 6 years the sales have  increased with 27.8% and total consumption increased with 30% (CBS, 2016)

And the last thing I want to talk about this week is social, cultural and religious differences. This might sound weird coming from a dutch girl, because we are such a small country, but yes! There are social, cultural and religious differences in the Netherlands. This is because we are a very multi-cultural society. We recognize a lot of different religions like Christianity, Islam, Judaism, Hinduism and more. This means that there are a lot of norm and values about lingerie. For an example, the Islam thinks that you can’t show yourself to men in general except for the man that you are married to. But if you are a not religious woman in the Netherlands you can wear whatever you want. This is also an example for cultural differences. Because in some cultures it is normal to show a little bit of skin, and in some it is forbidden. These cultures all live in The Netherlands. A social different is for example the age gap. The elderly woman in the Netherlands think that we (the youth) are dressing to provocative sometimes, while we think that the elderly woman are too conservative with their lingerie.

Time flies! only 2 more weeks after this one. So keep tuned, and maybe I will continue my blog after my assignment finished. If you have and questions or additions for my blog, massage me and I will see what I can find.

Till next week.

Xoxo Renée

Bibliografy

CBS. (2016, 10 1). publication. Opgehaald van CBS: http://statline.cbs.nl/Statweb/publication/?DM=SLEN&PA=81804eng&D1=0-5&D2=22&D3=179-195&LA=EN&VW=T

CBS. (2016, 10 1). publication. Opgehaald van CBS: http://statline.cbs.nl/Statweb/publication/?DM=SLEN&PA=71934eng&D1=a&D2=a&D3=123&D4=90,103,116,129,142,155,l&LA=EN&HDR=T,G1&STB=G2,G3&VW=T

L brands. (2016, 10 1). L Brands, Media. Opgehaald van Our responses: https://www.lb.com/media/our-responses/our-bras-are-safe1/our-bras-are-safe1

L Brands. (2016, september 28). Press Releases. Opgehaald van L brands Media: https://www.lb.com/media/press-releases

Wexner, L. H. (2015). Annual report 2015. ohio: L Brands.

There are no angels without wings

Heeeii guys!

So nice that you are back here! this week is the fourth week already for my Marketing environment assignment. I hope you guys enjoy this weeks information.

So we know victoria's secret is a consumer product, but a lot of products are also a product for the business market. I will give a a couple of examples for this: 

First of all the have the Victoria’s Secret Fashion show is one of the biggest examples for this product in the business market. You can see the jewelries, the wings, the hair and make-up. These are all extern businesses. VS is also used in photo studios all over the world. For their own product and for the product of others to make it more sexy and show the “sensual fashion”. VS is also used in the television industry. You can see Victoria’s secret lingerie during the MTV Movie awards in 2015 on comedian Rebel Wilson and in different movies.

Even though Victoria’s secret can be used as an business product, VS has not adapted their product for any other business sell. They have their own standards, and if other businesses want their product they have to adapt to them.

Most business purchases are one of three types: new task purchase, modified rebuy 

purchase or straight rebuy purchase. Victoria's secret uses Modifies rebuy purchase, this is because victoria’s secret is always changing their products and lines. Always finding new products to add to their product line, and altering already existing products.

Lets discuss the buying procress and buying center of a business product for VS.

So if I would choose the photo studio you have a sales department who makes sure there is always in inventory to use during photo sessions, with different sizes and shapes for every (model) body type. The users are in this case the models who will wear the lingerie for the shoots.

so the last question that I had for this week, (because you all know this is part of my school assignment) Describe the concept of derived demand, and give an example how this impacts the demand for your product in a business market.

So derived demand means that the demand for the product constantly changes. It depends on the needs and demand of the consumer. So if you use this theory in the photo studio, the demand of the photo studio depends for example how many models there are, and which season we are in. Because in the winter season the models will be less likely to wear lingerie than in summer.

Bibliografie

business insider. (2016, september 23). victorias secret. Opgehaald van business insider: http://www.businessinsider.com.au/category/victorias-secret

forbes. (2016, augustus 7). why-is-victorias-secret-undergoing-restructuring-changes. Opgehaald van forbes: http://www.forbes.com/forbes/welcome/?toURL=http://www.forbes.com/sites/greatspeculations/2016/05/24/why-is-victorias-secret-undergoing-restructuring-changes/&refURL=https://www.google.nl/&referrer=https://www.google.nl/