• 6th November
    2011
  • 06

5-Year Expansion Plan for Asia

Year 1: Focus on Product Strategy

In order to penetrate into the Asian market, Victoria’s Secret should focus on product strategy, as the pressure for customization is high in order to offer points of difference to Asian consumers. This can be carefully managed by establishing an R&D team in Singapore to focus on the Asian market. By setting up a human engineering research centre which carries out detailed research into body shapes and sizes and other related areas such as human sensibilities and physiology, centering its research towards Asians, Victoria’s Secret could successfully tailor its products to suit the local market.

Year 2 – 4: Product testing and performance evaluation

With new innovations, Victoria’s Secret can subsequently test its new products via its official website or a new website catered to the Asian market. This allows the company to track and analyze sales, which in turns helps to improve research. In addition, it is important to use the existing physical stores at Resorts World Sentosa and Changi Airport to showcase new products catered specially to the local market.

Performance audit and brand tracking can be done to identify areas of improvement as well as testing the feasibility of the strategies used. Evaluating the performance would help Victoria’s Secret to decide if the company should continue with the geographic expansion strategy and also identify areas that may enhance its expansion efforts.

Year 5: Establish strong brand presence in the region

Full penetration into the Asian market can be done through setting up of physical stores in prime shopping district in the region, namely, Hong Kong, Korea, Japan, Singapore and Shanghai. Victoria’s Secret can also adopt a transnational strategy which strives to optimize the trade-offs associated with efficiency, local adaptation and learning. Local responsiveness can be maintained through periodic brand audits to ensure success in the geographic expansion strategy.

Evaluation

Undertaking geographic extension can be slow and time consuming. Much effort would be required for a successful implementation. However, by introducing high control, brand value would be carefully managed and positive brand equity can be built to cultivate positive responses from the new market. Risk associated with the high initial investment could also potentially affect the parent company in the first few years. However, with the success of expansion, Victoria’s Secret could potentially build strong brand equity in the region and continue to rip profits from such associations in many years to come.

  • 6th November
    2011
  • 06
  • 6th November
    2011
  • 06
  • 27th October
    2011
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  • 19th October
    2011
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  • 19th October
    2011
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  • 19th October
    2011
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  • 19th October
    2011
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  • 19th October
    2011
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  • 9th October
    2011
  • 09

Strategic Gap: Challenges faced and solutions

1) Consumers do not see Victoria’s Secret lingerie as suitable for everyday use, as illustrated by the low ratings obtained from our surveys.

16% of the females surveyed indicated that they do not think Victoria’s Secret is suitable for everyday use.

Solutions:

  • Victoria’s Secret stores are located only in Changi Airport and Resort World Sentosa. As they seek to create exclusivity, consumers are inculcated with the idea that Victoria’s Secret lingerie are only worn during special occasions.
  • Victoria’s Secret can place its stores in accessible yet high end malls such as Ion Orchard. It can create the same premium atmosphere but at the same time allows more Singaporean to access it.


2) Our brand association map showed that Victoria’s Secret was linked to “American” and “Western culture”.

With its opening in Singapore, the brand may face difficulties in targeting conservative Asians, without losing its sexy appeal.

Solutions:

  • Victoria’s Secret should consider using more Asian models in fashion shows to show that their lingerie can equally appeal to Asian women as well.
  • To create greater brand awareness in Singapore, Victoria’s Secret can sponsor events and hold parties that are consistent with its image.


3) As a new brand with small market share in Singapore, Victoria’s Secret needs to attract new customers or convince loyal customers of other lingerie brands to switch to Victoria’s Secret.


Solutions:

  • Victoria’s Secret can advertise in local fashion magazines about the presence of their stores in Singapore.
  • Use promotions such as limited offers and free gift packs to create hype around its brand.