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/