AUSSIE ANGELS

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AUSSIE ANGELS
Victoria's Secret
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Analyzing the country and the market

• Christie Sandidge

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Economic and Infrastructure Environment

• Unemployment rate Below 6
• Average income level per year/ hrs worked per
  week
• - 46,984/ 43.5 hrs. weekly
• Living Standards
• - Considered 3rd best place in the world to
  live and is the top ranking country along with
  Norway

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Basic Demographics

• Population 20,702,661
• - 19 is
• - 67.3 is between 16-64
• - 13.1 is 64
• Target Market 6,764,709 Women

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Cultural Environment

• Religion Dominantly Roman Catholic (26.6)
• Ethnicity Dominantly Caucasian (91)
• - Asian Australians are 2nd largest and fastest
  growing
• National Language English
• Literacy Rate 99

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Political Stability

• Very Stable Country
• The Commonwealth of Australia is a constitutional
  monarchy with a parliamentary system of
  government
• Its relations with the international community
  are influenced by its position as a leading
  trading nation and as a significant donor of
  humanitarian aid
• Key concerns include free trade, terrorism,
  integration with Asia and stability in the
  Asia-Pacific

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Buyer Analysis and Marketing Objectives
Segmentation, Targeting, and Positioning

• Rania Alzeideh

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Targeting a specific consumer group

• Women between the ages of 15-55 in Sydney,
  Australia
• The median age in Sydney is 34
• Victorias Secret store will be located in the
  Rundle Mall
• Target many of the local population, as well as
  the tourists

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Positioning Product and Brand

• product differentiation
• unique designs with different styles at
  competitive prices
• known for being very sexy

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Segmenting the Market

• English is the official language
• 99 literacy rate
• Approximately 67.3 of Australians are between
  the ages of 15-64
• Australia has a Western-style
• Sydney is the most populous city in Australia

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Marketing objectives

• Mail over 400 million catalogs worldwide,
  annually
• Online sales were 1,226 million for 2005, which
  is a 9.6 increase
• Generate 25 of the market share

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International Marketing Strategy Positioning,
Product and Branding Decisions

• Ashley Morales

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Positioning

• Victorias Secret is widely popular in the US,
  reaching over 900 stores nationwide
• With a secured positive image as a provider of
  quality products, this company has been
  successful in creating a personality and image
  around their name
• Victorias Secret produces various product
  categories, such as lingerie, womens apparel,
  and cosmetics, we will focus strictly on
  introducing lingerie into the Australian market
• Standardization is the best choice for this
  company in Australia because the US and Australia
  have close similarities in culture, fashion,
  language, entertainment, and both the political
  and social economy

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Product Decisions

• Legal/standards constraints and adaptations
• - Second Skin Satin products cannot be used in
  Australia
• - Sizing on labels
• - Colors, company name, and other lines will
  remain standard

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Brand Decisions

• Media
• Internet teaser ads leading up to store opening
• TV commercial advertising strictly in Australia
• 10 million in ad expenditure
• Advertising concepts fashion show in Australia
• Image consistency

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Promotion

• Matthew Koehn

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Communication Objective

• Build a 90 awareness of Victorias Secrets
  lingerie line among women between the ages of
  15-55 living in Sydney, Australia that boast an
  interest in womens lingerie, within 1 year

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Promotional Elements Mix

• Advertising
• TV, Radio, Print, and Internet
• Promotions
• Free panties on opening day
• Introductory Sale
• Buy One, Get One Free
• Customer Loyalty Program
• Public Relations
• Sponsor and host fashion shows and modeling
  competition for charity
• Free advertising
• Direct Marketing
• Catalogs, Coupons and flyers
• Info about current promotions, sales and new
  product offerings

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Placement/Distribution Decisions

• Alicia Clarke

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Mode of Entry

• Exporting using an independent distributor
• Little commitment and no foreign production
  facility costs
• Products will be manufactured in Columbus, Ohio
• If successful, our mode of distribution will
  change to foreign direct investment

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Intermediaries Freight Forwarder

• Find an international freight forwarder, an agent
  for the exporter in moving cargo to an overseas
  destination
• Responsibilities include
• - assist in preparing export quotes
• - advise on fees such as freight costs, port
  charges, and insurance and handling fees
• - reserve the necessary space on cargo planes
• - review all documents and prepare the bill of
  lading and any other required documentation
• - make arrangements with customs brokers
  overseas to ensure goods comply with regulations

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Intermediaries - Customs Broker

• Individual or company that is licensed to
  transact customs business on behalf of others
• Customs business is limited to transactions
  related to
• entry and admissibility of merchandise
• its classification and valuation
• payment of duties, taxes, and other charges
• the refund, rebate, or drawback

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Infrastructure

• Products will be exported by planes
• Although air carriers can be more expensive,
  their cost may be offset by lower domestic
  shipping costs, by using a local Sydney airport
  instead of a coastal seaport, and quicker
  delivery times

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Pricing

• Bras will be priced from 44-56 USD or
  57.50-73.18 AUD (1.001.30 AUD)
• Our market is not price sensitive because Sydney
  is a wealthy and very populated city
• Economic standing of the target market is middle
  to upper class
• Competitors prices range from 50.50 and up
• Our cost per unit will be 25 of our retail value