Caressing Controversy Any company that is perceived to sell sex should expect plenty of critics waiting in the wings to attack any marketing move that can be perceived as risqu
Angels in the Architecture Victoria’s Secret has arguably created the fashion show to stop all fashion shows. A standard in fashion circles, the runway show traditionally was primarily directed toward industry insiders who gathered to look at upcoming styles and lines. As the retail industry changed, the runway show evolved from its roots in the buying arena to focus on media and consumer attention. The bigger the brand personality, the more celebrities attend (and vice versa), and the greater the media coverage and brand exposure.
Victoria’s Secret, however, one ups all other fashion shows, hands down. Rather than turning the heads of industry insiders, it shamelessly courts fans by broadcasting an hour long skinfest that highlights the hottest, barely there fashions of the season. Originally developed as a live Internet event, the 2000 show in Cannes, France, broke all records for attracting eyeballs, to the point that volume eclipsed capacity and the webcast shut down. The subsequent publicity buzzed about the show itself, its high consumer draw, and the Web crash, eventually reaching an estimated 1.5 billion people worldwide. From a revenue standpoint, it stimulated sales in May-a typically slow period for retail sales.
In 2002, the Victoria’s Secret fashion show jumped from computer screen to prime time television screen, reaching an even broader audience than the Internet alone could deliver. Broadcast in November, it also connected with people primed to shop for the holidays. Victoria’s Secret Fashion Show was hosted by supermodel Heidi Klum and singer Mark McGrath and featured the runway show in addition to backstage sneak peeks at the models and the chaos of a fashion show. Add to that performances by pop salsa superstar Marc Anthony, Destiny’s Child (one of the best selling female groups in the world), and singersongwriter Phil Collins (who has sold over 100 million solo albums worldwide), and the hour long event was more variety show entertainment than fashion show. The event culminated with the “Dream Angels” runway pass, in which the Angels float in the air above the runway and one supermodel-who has literally competed for the right to wear the Angel wings-struts her stuff and stops the show.
The Victoria’s Secret brand is about more than sexy images and supermodels, however. The functional component of the brand is paramount in creating and maintaining fans. Just as Neil Diamond’s concerts depend on high end equipment, competent crew, and experienced band members, Victoria’s Secret depends on the Product Quality group at corporate headquarters to execute the brand experience seamlessly, from new product development through sourcing to production. Supply chain issues, from inventory control to delivery, fall under the realm of Limited Logistics Service (LLS), which makes sure that the right products are delivered at the right time, in the right condition, in the right quantities, at the right price, when consumers want them. Rather than relying on vendors to deliver quality goods on time to stores as most department stores do, Victoria’s Secret exercises Madonna like control of its own logistics systems.
Unlike many other firms that view logistics as little more than an operations function, Limited Brands incorporates logistics excellence into its brand strategy and strength. Nick LaHowchic, president and CEO of LLS, explains the role of logistics to a brand. “We’re always asking ourselves,
September 22nd | Investment Strategies
Total customer experience drives the Victoria’s Secret retail formula. Not only does management want the store atmosphere to make people feel welcome, comfortable, and eager; it wants the clothing to make women feel sexy, desirable, and good about themselves. Nowhere is Victoria’s Secret’s brand better executed than at its new, two story flagship store in New York City’s Herald Square, a 25,000 square foot stage of sexy images of silky lingerie and enticing colors, luscious fragrances and scents, and romantic music that courts fans and titillates media.
As with Madonna and Neil Diamond, Victoria’s Secret’s brand is as much about how it makes others feel about themselves as it is about itself. Fans leave a Diamond concert uplifted and thrilled with what they’ve experienced. Getting this reaction from customers shopping for something that could make even the most macho of men blush is not always easy. This is painfully evident around Valentine’s Day (the firm’s second biggest holiday), when gaggles of men enter Victoria’s Secret stores wearing a collective deer in the headlights look of panic.
That’s when the associates enter the theatre’s stage. At that moment the brand experience rests completely in their hands. How they interact with customers is guided by Limited Brands’ Diamond like values of honesty, integrity, openness, respect, fairness, and inclusion. The ability of associates to exude passion for the product, make customers feel comfortable, and create a glamorous, intimate, and indulgent experience for customers determines overall satisfaction with the total Victoria’s Secret brand. Never discount the value of the associates, because they execute the look, feel, and image that marketing and branding strategies create among customers.
September 22nd | Investment Strategies
A few years ago, in a bold move, the intimate images of the Victoria’s Secret catalog leapt from its pages to the small screen, where the supermodels appeared in television ads featuring skin, an occasional hint of satin and lace, and more skin. A throaty female voice with a British accent spoke over the soft music, inviting one and all to the Victoria’s Secret bra and panty sale. Most would say the ads rocked; they surely have come a long way since Jane Russell modeled the 18 hour bra outside her sweater. In a slight advertising twist, the 2003 ads used the Bob Dylan tune “Love Sick” from his 1997 album Time Out of Mind, proving that classic rock musicians have even invaded the lingerie business.
An unusually strong tentacle of the Victoria’s Secret brand is Victoria’s Secret Direct-its web site is the premier example of a retail firm adding e commerce to its multichannel arsenal for reaching and serving customers. VictoriasSecret.com allows browsers to see the models in action, create a wish list, view runway shows, and, of course, buy the products. While Bloomingdale’s and other retailers are retreating from their disappointing e commerce ventures, Victoria’s Secret grows with an achievement few can match-profitability from the start. Even though Victoria’s Secret’s online venture performs head and shoulders above other retail sites, its stores still generate a majority of corporate sales and profits. It’s analogous to album releases for the Rolling Stones and Neil Diamond: Albums generate awareness and some profits, but their primary role is to generate buzz and support concerts-the real money makers.
September 22nd | Investment Strategies
Victoria’s Secret’s brand authenticity allows it to evolve without alienating its fans. Similar to the challenges Madonna faces in maintaining a sexy image, Victoria’s Secret battles against consumers’ changing tastes and perceptions of what is cool or sexy. New colors, fabrics, styles, scents, and visuals need to continually redefine sexiness, because what is hot today may be humdrum tomorrow. Sexiness can also mean cotton briefs, boxers, flannel nighties, and boxy pajamas, all of which have been incorporated into the line in recent years. Victoria’s Secret knows that selling sex works only on a limited basis; it may intrigue customers enough to try a product once, but if the product isn’t world class or falls below expectations, chances are repeat purchases and loyalty won’t ensue. Therefore, its products need to feel good, look great, pleasure the wearer, and hold up to wear, tear, and washing. In the stores, customers need to feel comfortable selecting and buying intimate apparel, an uncomfortable experience for many people.
The steward of the Victoria’s Secret brand is Victoria herself.
This fictitious creature wanders the halls and collective minds of the Victoria’s Secret home office, representing the guiding force of what the brand needs to be to connect with customers. Victoria represents the lifestyles, dreams, and aspirations of her customers.
And she is ever present among associates as they design lingerie, buy products throughout the world, and plan stores in locations where she would want to shop. Everyone involved in brand management can always return to the question, “What would Victoria do? What would she like?” Touching Fans with the Brand The Victoria’s Secret brand is a 360 degree experience, creating an extrasensory connection with customers at many levels. Under the leadership of Ed Razek, president of marketing and creative services, Victoria’s Secret has fashioned an “octopus” approach to branding, in which it sends the same brand message to customers through its catalog, web site, and stores. The tentacles of the octopus include extensive television advertising, online fashion shows and information, television appearances for the supermodels, stylish in store signage and high impact visuals, and dramatic catalog layouts, all coordinated to consummate in store and online sales.
September 22nd | Investment Strategies
Observing Wexner as he leads the $8 billion business is kind of like watching Neil Diamond perform. The direction is clear, the execution precise, the performance consistent, the business strategies sound and proven, and the values noncontroversial. But a Madonnalike sense of control and evolution lingers throughout the corporation, keeping Limited Brands fresh and sexy in its quest for increased profits and market share. Examining Victoria’s Secret, arguably its most recognized brand, reveals insights into: S The use of controversy in capitalizing on a brand S The use of sexuality and sexiness in selling positioning, and promoting brands S The role of brand authenticity in connecting with fans S The role of logistics and operations in executing a brand promise Wexner changed the nature of retail branding by creating stores that are brands, instead of stores of brands that are controlled by manufacturers. Victoria’s Secret is the store; Victoria’s Secret is the brand; Victoria’s Secret is the experience.
This Ain’t Your Grandma’s Underwear The Victoria’s Secret brand embodies sex. Its catalog has achieved iconic status in American culture, constantly mentioned on television sitcoms and by Hollywood stars. It draws megadoses of media attention. It causes chaos when it arrives in households, as brothers duke it out for first viewing rights. Reactions from raving fans have made the catalog and the brand the standard of sexiness in mainstream America.
Taking underwear from the “unmentionables” category to the “talked about” category and thereby redefining the lingerie market, Victoria’s Secret represents true brand authenticity among its fans. Its authenticity is bolstered by a diverse portfolio of models from Claudia Schiffer (the German classic blonde) and Tyra Banks (AfricanAmerican) to Yasmeen Ghari (Canadian, Pakistani, and German all in one) and Karolina Kurkova (the latest tall, blonde Czech). Individually, they represent many personalities and definitions of beauty. Collectively, they give the Victoria’s Secret brand a culturally diverse but global personality of sexiness, sophistication, and beauty.