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STP, EFFECTS AND FINANCIAL OVERVIEW OF THE COMPANY

STP, EFFECTS AND FINANCIAL OVERVIEW OF THE COMPANY:

Segmentation:

Many types of consumers:
  • Different ages and tastes
  • Different purchasing power
  • Look for comfort
  • Look for styles
Targeting:

Women are looking for:
  • Fashionable lingerie
  • Living in urban zones
  • From 25 to 60 year olds
  • CSP + consumers
  • As well as the men
Positioning:
  • Victoria's Secret is a fashionable brand which allows customers to wear comfortable intimate apparels available at an affordable price that is procure to the brand a competitive advantage
Effects on the company:
  • Opening new shops - costs increases of sale force 
  • Increase of production - cost/product decreases - economy of scale
  • Need of logistic for Europe and France
Financial overview:

Expected results of Victoria's Secret (including french activity):
  • Weak market share due to fierce competition 
  • Increasing Gross Margin thanks to new pricing policy and favourable exchange rate EUR/USD 
  • Net Profit Margin flat|: new sales compensated by initial investment and high tax rates 
  • Rising shares - the entry in a new market, the future profits and a possible appreciation of the dividends make often increase in the shares values
References: 
1. https://prezi.com/rx4ha_coaulh/untitled-prezi/

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