Intimate Brands, Inc. Case Study

VICTORIA’S SECRET

MKT 2300

December 2, 2008

        Intimate Brands, Inc. is the parent company of Victoria’s Secret which is headquartered in Columbus, Ohio (Glamorous, Intimate, Powerful, On-line posting).  Victoria’s Secret is described as one of the hottest, sexiest, most glamorous stores in the world (Glamorous, Intimate, Powerful, On-line posting).  They sell a variety of items that they refer to as “dazzling” and these products range from apparel, beauty products, sleepwear, hosiery, and what they are known for most, their intimate apparel (Glamorous, Intimate, Powerful, On-line posting).  Victoria’s Secret’s net sales are 3.7 billion dollars, and they have over 1,000 stores throughout the United States (Glamorous, Intimate, Powerful, On-line posting).  This company was established in San Francisco in the 1970’s, and acquired by Limited Brands, Inc. in 1982.  It was not until the 1990’s when Victoria’s Secret began using hot super models to show off their sexy line of lingerie did they hit their stride (Victoria’s Secret, Par. 3).  They have fashion shows periodically to showcase new and already existing items which get a large amount of publicity (Glamorous, Intimate, Powerful, On-line posting).  The concept of Victoria’s Secret is to basically “establish a cozy, inviting atmosphere similar to that of a Victorian boudoir” (Glamorous, Intimate, Powerful, On-line posting).  They showed an impressive comp-store sales growth of 11% last quarter and have reported annual earnings increases of at least 20% every year since October of 1995 (Wexner, 2008).

        The Victoria's Secret team has continued to build strong brand equity through innovative product introductions, expanding new business opportunities such as Victoria's Secret Beauty and building its global presence through the catalogue and a website that they now offer however; stores, the lingerie catalog, and Beauty Products are treated separately (Glamorous, Intimate, Powerful, On-line posting).

        The selling area is an astonishing amount of 5,126,000 square feet overall, and the typical sales per selling square foot is $731 (Glamorous, Intimate, Powerful, On-line posting).  Each store has on an average of 5,111 selling square feet and the location of these establishments are based in mall settings and not usually found anywhere else (Glamorous, Intimate, Powerful, On-line posting).  Limited Brands, Inc. employs approximately 90,000 people and the number of Victoria’s Secret employees is included in that.  Unfortunately, the actual number of strictly Victoria’s Secret employees could not be found.  From the top positions holders to the sales associates assisting customers, Limited Brands, Inc. strives to be the best and pushes Victoria’s Secret to continuously commit to building a family of the world's best fashion brands while offering captivating customer experiences that drive long-term loyalty and deliver sustained growth for their shareholders.