Bienvenido a Mxico, el

Secreto de Victoria
The Expansion of Victorias Secret
into Mexico
Aparna Donthi
Man Tsun Lee
Bouphavanh Mathouravong
Marisol Rivera
Nicole Winkle

Research Overview
Primary Research
In-depth survey
Industry Analysis
Demographics
Perfume Industry
United States
Mexico
Company Analysis
Situation Analysis
STP
Marketing Mix
Implementation

Executive Summary
Due to the declining market in the U.S. and
growth in Mexico, Victorias Secret has the
potential for a sizeable fragrance market in
Mexico.
Mexican consumers product values are
congruent with that of the Victorias Secret brand
image.
Significant similarities and differences in
marketing Victorias Secret brand in Mexico.

Primary Research
Bilingual In-Depth Interview
Parallel Translation
Administered in Cuernavaca, Mexico

Goals of the Interview

Awareness of Victorias Secret in Mexico
Product Perceptions/Knowledge
4 Ps
Competitor Awareness

Situation Analysis
Mexican Consumers
Highly rank service and price
Have short term view of products initial
price means everything
Receptive to high quality products that are
sold in smaller packages
Implications
Victoria Secret offers great service/personal
attention to customers
Offers smaller, affordable product selection

Situation Analysis (Cont.)

Company
High International Awareness
Sales Growth 8.1% (2003)

Competitors
Estee Lauder, Avon, JC Penney, Lancme

Collaborators
CBS, Musicians
Supermodels Heidi Klum, Tyra Banks,

Environmental Factors

Perfume Industry Analysis

Perfume Industry in The United States
Perfume industry to grow at declining rate over
next five years
Dominated by female fragrances (2/3 of sales)
Male fragrances accounts for 23.5% of market)
Implications
Declining U.S. market
Seek International Growth
Mexican Perfume Market

Mexican Demographics
Male customers account for 70% of
perfume sales despite the fact that mens
fragrances represent 1/3 of the market
Women between 40-50 years can afford to
pay $40-$150 for a bottle of perfume
Mexico City represents 52% of sales
Guadalajara and Monterrey have large
potential for sales

Mexican Market
Perfume Industry in Mexico
Female Fragrances Experience Dramatic Growth
2001 - $253 million
2006 Predicted $348 million (37.5% increase)

Many competitors (Satisfactory sales

suggeststhere is still space for new
launches)
Black market
Relevant to price and distribution

Mexican Economy
Increased Purchases of Luxury Commodities
Economic recovery in 1996
Increase in private consumption
International Companies are increasing their
presence

Victorias Secret (STP)

Positioning
For the woman who wants to feel sexy, sophisticated,
and ultra feminine

Segmentation
Does not segment based on age
Segment based on products
various Victorias Secret brand fragrances appeal to different
aspects of the Victorias Secret woman

Targeting
Target how a woman feels, rather than her age,
ethnicity, or other specific demographic

VS Marketing Implementation
They cross promote between their online
and offline operations.
360-degree brand connects all 3
selling channels (catalogs, the stores, and
website)
Sex appeal is portrayed through
advertisements and promotions.

Expansion into Mexico

Segmentation and Targeting
Highly populated/developed cities
Mexico City, Monterrey, Guadalajara
Product selections to appeal to different tastes and
preferences
Low price-sensitivity

Positioning
Provide high quality product that delivers a flawless
experience
Creates an image of sensuality and femininity

Who and How Old?

AGE
>18 years

MALE
(0) 0%

FEMALE
(1) 6%

19-25 years (3) 60%

(6) 52%

26-35 years (1) 20%

(2) 18%

36-45 years (1) 20%

(2) 18%

46+ years

(0) 0%

(1) 6%

Total

(5) 100% (12) 100%

More
women
between the
ages of 1925
responded
to the
survey.

Interest

Are you interested in receiving a

catalog?

Male
Female

Yes

No

40%

60%

100%

0%

Are you interested in shopping at a

Victorias Secret store?

Male
Female

Yes

No

20%

80%

100%

0%

Women are more apt to put their name on a mailing list to

receive Victorias Secret catalogs than are men , thus it is
important to target women with catalog advertising mediums.

Women are interested in shopping at Victorias Secret more so

than men. Tactics emphasizing femininity and sensuality would
be appropriate.

Where and How?

25%

Preferred Female
Shopping Location
0%

67%

Brick and Mortar

Provide service
Provide quality

Discount store
Black market

TV Ads

department
store

discount
store
8%

Media Channels Influencing Product

Awareness

specialty
store

17%

8%

17%

Fashion
Mags
Friends
and
Family
Gift

supermarket
58%

Focus on print ads

De-emphasize
online ads

Characteristics of Target Market

Importance of Price Among
Females
slightly

Typical Amount Paid for a

Perfume by Women

important
17%

83%

8%

$26-$40
>$40

59%

33%

neither
important nor
unimportant
extremely
important

Mexican consumers are willing to pay Victorias

Secret price-range.
Customers are not price-sensitive.

Marketing Mix
Product
Victorias Secret perfume lines

Price
Equivalent to USD: range between $15-$60

Place
Open retail stores in major cities
Primary distribution channels: specialty/beauty stores and
discount stores

Promotion
Fashion magazines, catalogs
People, Cosmopolitan, Elle
Mailing of 364 million catalogs worldwide

Less emphasis of online sales

Goals
Short-term (one year)
Establish test markets in urbanized cities
Monitor sales and product awareness
Evaluate effectiveness of distribution options

Long-term
Evaluate potential production possibilities in
Mexico
Gain competitive market share
Evaluate opportunity to expand to lingerie and
clothing line

Summary
Emphasis on fashion magazines,
catalogs, and television ads, not internet
Specialty stores and discount stores
Acknowledge differences in sex roles
when promoting
Women are seductive, not assertive and
aggressive

QUESTIONS?