PINK P UPPY L OVE LINE

PINK PUPPY LOVE LINE A New Product Line for Victoria’s Secret/PinkYear - Long Promotion with Five Special EventsJan-Feb, Mar-May, Jun-Jul, Aug-Sep, Oct-DecApparel Marketing Final ProjectJenny Sashi JosefssonMay 12, 2010

PINK PUPPY LOVE LINE_______________________________________________________________________________A Line of Fashionable and Trendy Dog Accessories!!!

PPLL- PRODUCTS_____________________________________________________________

PPLL – BENEFITS_____________________________________________________________________ • For Victoria’s Secret: • Attract a new brand of customers into stores • Help expand the Pink brand • Increase loyalty to the Pink brand • Grow sales and profits • Support charities

PPLL – BENEFITS____________________________________________________________________ • Convenient (Existing Victoria’s Secret customers) • Better quality (than existing/competing products) • Better and wider selection • More fashionable – accessorize & match • The first to be in on a fun, cool new product

PPLL – CHARITIES & CAUSES___________________________________________________________________________________________________________________________ During special events promo, a % of sales will be donated to charities. At other times, customers can choose to contribute to a dog-related charity/cause. • Humane Society and American Society for the Prevention of Cruelty to Animals (ASPCA) • PAWWS (Passionate Animals Working With Survivors). Dogs for children who are abused or disabled. www.pawwstoheal.org) • Nat’l Service Animal Resource Center/Delta Society. Training and support of service and therapy dogs. www.deltasociety.org • Patriot PAWS. Raising and training dogs for disabled veterans). www.patriotpaws.org

PPLL = Unique Products _______________________________________________________________________________ • Dog owners can match the dog’s outfit with their own dress style and color preference • Dog owners can match their dog’s outfit with its personality and style • Dog lovers can match their dog mascot’s outfit with their own style and color choice

PPLL - Organization___________________________________________________________________________

PPLL-BUSINESS INFORMATION______________________________________________________________________________________________________________________________ Data for Victoria’s Secret (2008) Annual Total Sales: $5.1 billion Annual Total Profits: $412 million Annual Sales - Retail Stores: $3.1 billion Estimated Sales - Pink: $775 million

PPLL - Company Mission____________________________________________________________________________________________________________________ Victoria’s Secret - part of Limited Brands: • Committed to growth (of business) and creation of shareholder value This is achieved by: • Increasing the presence of Victoria’s Secret brands via stores, catalogs, e-commerce, distribution channels, social networking, magazines and media marketing

PPLL - Company Mission ____________________________________________________________________________________________________________________ Victoria’s Secret – Personal Mission: Deliver a best-in-class, captivating, branded, customer experience that builds loyalty and enables consistent sales and profit growth.

PPLL - Market Situation____________________________________________________________ _______________ • Victoria Secret’s PINK brand targets younger females (primarily teens and early 20’s) • We plan to introduce the new dog accessories under the PINK brand as the Pink Puppy Love Line (PPLL) • A selection of trendy and fashionable brand name dog accessories are currently not available in retail stores.

PPLL – MARKET OPPORTUNITIES______________________________________________________________________________________ • There are currently about 34 million people aged 12-19 in the US. Roughly half are females. • Teens age 12-19 spent approximately $250 billion in 2007. About 1/3 of this was spent on fashion. • E-commerce and promotion by social networking is increasing rapidly. This can help increase sales to males and other dog lovers who don’t wish to shop in a Victoria’s Secret store. • The Pink Puppy Love Line offers mascot-sized versions of the products. Dog lovers who are not able to own dogs can buy Pink’s dog mascots and PPLL products.

PPLL– MARKET THREATS______________________________________________________________________________________ • The weak US economy – declining sales: • Female baby boomers spend less money on fashion for themselves and their young daughters. • Sales in malls have decreased nationwide. • Victoria’s Secret is in a highly competitive market. Department stores, mail-order companies and online businesses are able to offer lower prices and attract customers when money is tight. • Hard to know how the Pink Puppy Love line will attract established Victoria Secret customers and non-customers. Minimize risk with excellent promotion and early test marketing in a few stores.

PPLL – COMPETITIVE STRENGTH_______________________________________________________________________________________ • Victoria Secret/PINK is a leading, prestigious brand. • PPLL can build on the world famous runway shows for lingerie and swimwear with dog-related runway shows. • PPLL means selling high quality, higher priced products. There will be limited competition from competitors selling lower quality products. • Victoria’s Secret has stayed competitive through extensive product innovation and marketing. The Pink Puppy Love line follows this recipe for success.

PPLL – COMPETITIVE WEAKNESS_________________________________________________________________________________________________________ • Victoria’s Secret is experiencing somewhat increased debt, lower profits and less cash flow • Introducing PPLL may reduce sales from apparel (less square feet in stores) • Large number of suppliers, difficult to ensure consistent quality and time of delivery • The young work force at V.S. may reduce productivity (absenteeism, tardiness)

PPLL – OVERALL GOALS ______________________________________________________________________________________________ • Create a new line of attractive dog products and accessories for the Pink brand – the Pink Puppy Love Line • Open the Pink brand up for future innovation and expansion into other products

PPLL- MARKETING OBJECTIVES____________________________________________________________________________________________________________________________

PPLL – SALES PLAN________________________________________________________________________________________________________ • Prospect identification • Build on existing V.S./Pink customers • Girl customers love dogs, want cute accessories for their family’s dog or their Pink mascot • Many adult females love dogs or are moms to daughters who love dogs • Reach non-V.S./Pink customers via web based, targeted ads (GoogleWord and Facebook)

PPLL – SALES PLAN, ctd____________________________________________________________________________________________________________________ Creating awareness • Use variety of media: in-store displays, social media, ads in magazines Creating conviction • Based on V.S./Pink established brand • Strong influence from female teens, pre-teens on mom to buy cute, fashionable dog products at V.S./Pink

PPLL – SALES PLAN, ctd____________________________________________________________________________________________________________________ Creating orders and reorders • First orders when introducing 1-2 new PPLL products at special sales events and fundraising drives for charities • Repeat orders – customer wants: • More products to have complete, matching set for dog or mascot dog • More dog products to be able to match dog’s outfit with her own

PPLL – SALES PLAN, ctd____________________________________________________________________________________________________________________ Five in-store sales drives during Year 1 • 1-2 new PPLL products introduced and promoted during each 2-3 month period • In-store displays combined with media promotion campaign • PPLL products also sold with other Pink products online and via catalog

PPLL – UNIQUESELLING PROPOSITION ___________________________________________________________________________________________________________ Problem: Beautiful, stylish dog products are: • Hard to find, few styles to choose from • Often low quality, not durable, high price Solution: PPLL Products at V.S./Pink • Convenient one-stop shopping • Great selection of fashionable and high quality dog products

PPLL – CREATIVE STRATEGY______________________________________________________________________________________________________________________________ Copy/Tone Theme: • Color tone is pink: • PPLL products to be marketed in the PINK division within V.S. • Color of Love • Visual/Image Theme: • Business logo of V.S./Pink already has a dog image • Incentive: • Discount to existing customers during product introduction • New PPLL products available at sales price all year

PPLL – MEDIA MIX__________________________________________________________________________________________ Main emphasis on advertising in main fashion magazines: • Seventeen • Elle • Marie Claire Web based promotion important for young females: • GoogleWord ads (per click) • Facebook sidebar ads (per click) • Emails to existing V.S. customers • New PPLL products featured on V.S./Pink website, coordinated with promo/sales drives • What will be your media mix? • What is your rationale for using media?

PPLL – MEDIA MIX, ctd_________________________________________________________________________________________________________________ Use of Direct Mail • Add-ons to existing V.S./Pink mailings: • Postcards to Angel members w/ special offers • Insert sheet with PPLL products in Spring and Fall mass mailed catalogs Use of Broadcast Media • One time use of National TV commercial for Pink Puppy Love Line Runway Show

PPLL – OTHER MARKETING_____________________________________________________________________________________________________________________ Trade Shows: • Participate in trade shows together with V.S./Pink • Attract new visitors to the V.S./Pink booth • Get attention from established V.S./Pink visitors Public Relations • Press releases sent out to create publicity for special events and cause-related promotion activities

PPLL – OTHER MARKETING,ctd____________________________________________________________________________________________________________________________ Cause-Related Marketing Promotions • Fundraising special event – Feb, to benefit: • PAWWS to Heal (dogs for abused & disabled children) • ASPCA (prevent cruelty to animals) • Service and therapy dogs for people with disabilities. Special event – April, raising awareness and funds for: • National Service Animal Resource Center and • Local Humane Society Chapters. • Service dogs for veterans. Special event - June • Fundraising for Patriot PAWS and local non-profit organizations.

PPLL – PROMO BUDGET, Year 1________________________________________________________________________________________________________________________________ Ads – fashion magazines $976,000 Emails – Angel members $2,500 Web based ads $17,500 Direct mail – catalog inserts $40,000 TV commercials $550,000 Special events & cause related $245,000 Reserve, follow-up promo 486500 Puppy Love Runway Show $550,000 TOTAL $2,867,500

PPLL – PROMO BUDGET, ctd___________________________________________________________________________________________________________________ Marketing, sales and profits for Year 2 • Marketing budget (same as Year 1) $2.9 million • Sales $17.7 million • Gross profits $9.8 million • Marketing budget is 16% of annual sales

PPLL - CALENDAR – Year 1________________________________________________________________________________________________________________________

PPLL - CALENDAR – Year 1, ctd. ______________________________________________________________________________________________________________________________

PINK P UPPY L OVE LINE