Three Part Semester ProjectBy:

Brandi Walker~~~

Fashion Merchandising Buying and PlanningKent State University

The Fashion SchoolDecember 2, 2014

Table of Contents♥ Page 1: Objective♥ Page 2: Introduction♥ Page 3: Company History♥ Page 4: White Space Opportunity♥ Page 5: Target Customer Profile♥ Page 6: Trend Report♥ Page 7: Mood Board ♥ Page 8: Color Board ♥ Page 9: Marketing and Promotion Strategy♥ Page 10: Pricing Strategy♥ Page 11: 6 Month Plan♥ Page 12: Justification for 5% Increase♥ Page 13-20: Assortment Mix♥ Page 21: Financial Information♥ Page 22: Justification for Finances

ObjectiveIdentify a “White Space” opportunity within your assigned retail store brand. Build an assortment plan for this classification and develop a 6 month plan including a marketing and promotional strategy. ♥ Part One: Company Overview and

Identification of Growth Opportunity- Gain a more in-depth perspective of the retail environment by researching, analyzing and describing current strategies within today’s competitive landscape.

♥ Part Two: Develop a Six Month Plan and Promotional Strategy-Gain an understanding of the business decisions made in developing a 6 month plan. Apply the knowledge by creating a 6 month plan through the evaluation of key variables.

♥ Part Three: Classification and Assortment Planning- Demonstrate your understanding of building an assortment plan using the concepts of OTB dollars.

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Victoria’s Secret

The Sweet as Sugar Maternity Lingerie Collection

Coming Summer 20152

Company HistoryVictoria's Secret was founded by Tufts University and Stanford Graduate School of Business alumnus Roy Raymond, and his wife Gaye in San Francisco, California in 1977. Eight years prior to finding Victoria's Secret, Raymond was embarrassed when purchasing lingerie for his wife at a department store. Newsweek reported him looking back on the incident from the vantage of 1981: "When I tried to buy lingerie for my wife," he recalls, "I was faced with racks of terry-cloth robes and ugly floral-print nylon nightgowns, and I always had the feeling the department-store saleswomen thought I was an unwelcome intruder. As a result, Victoria’s Secret has become the largest subsidiary of L Brands (almost 50% of sales) is also North America's #1 specialty retailer of women's intimate apparel, operating over 1,000 mostly mall-based Victoria's Secret and Victoria's Secret Pink shops throughout the US, Canada, and now the UK. Bras, panties, hosiery, swimwear, and fragrances are sold under the Victoria's Secret brand and grouped in collections such as Angel and Very Sexy. Many Victoria's Secret lingerie stores also sell beauty products. The chain's youth-oriented PINK brand targets teens and younger women with less-racy bras and panties, as well as sweats and hoodies and beauty products.

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White Space Opportunity ♥ Victoria's Secret can benefit greatly from adding

maternity lingerie to its collection, due to increasing rate in pregnancies.

♥ Pregnant women often fall from one extreme to another… such as struggling with self-esteem, confidence, and other insecurities . However, Victoria’s Secret can cater to this mood.

♥ For the insecure pregnant woman a gorgeous piece of lingerie will make her feel powerful and beautiful while adding a sexy little twist.

♥ These head turning pieces can also be the perfect thing to take pregnancy photos in.

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Target Customer ProfileFor this collection I have identified two potential market segments:

♥ Parents - This segment is primarily the expecting mother, and also includes the father.

Ages 24-34, median age 32.Household income above $80,000.Go out to eat 2.3 times a week.89% have an undergraduate degree.39% have a graduate degree.Spend $500 a month on clothing for themselves.

♥ Family & Friends - This segment is buying gifts for the new parents .They are looking for something upscale, something they would really enjoy.

Ages 25-57.Household income greater than $83,000.Go out to eat 2.1 times a week.83% have an undergraduate degree.23% have a graduate degree.

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Trend Report♥ Fabrics: Chiffon, mesh, tulle, silk, lace, & satin.

Industrial skills are celebrated in the openwork raschel lace, tulle and jacquard silk touch weaves. These elegant pieces will have refined finishing's and trims.

♥ Patterns: Embellishments, embroidery, cross-stitch with toile de Jouy lace.

♥ Colors: Sherbet tone colors such as light pinks, blues, purples, and greens.

♥ Silhouettes: Pleating and gathering; corsetry, bustiers and camisoles in silk and satin are combined with cotton slip dresses and skirts. Elements of traditional bloomers can be seen in smock details and lace-trimmed cotton, but it ‘s the sexy designs that really makes this collection unique.

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Tulle Mesh Lace Chiffon Silk Satin

Pink Pastry

Blueberry Muffin

Conrad Grape

Mint Chip

Banana Pudding

Raspberry Sorbet

Marketing and Promotion Strategy♥ To promote The Sweet as Sugar Maternity Collection there will

be a two part launch.♥ Part one of the launch will be a party at the largest Victoria’s

Secret store in the country which is located in New York. This will be large scale event, including a candy land inspired theme, exclusive coupons, a candy buffet, a fashion show, gift bags, and even a live performance by Katy Perry!

♥ As soon as the guests walk into the launch party they will be given a swirl lollipop, and the inside of the wrapper will contain a exclusive coupon ranging from 10-30% off their first purchase in-store or online.

♥ The coupon will expire the day after the launch party. By making the coupon a limited time offer, the hope is that the guests will be enticed to buy a piece from the collection right away.

♥ Part two of the launch will take place two hours into the launch party which will be an online launch.

♥ They will be a jumbo screen at the party with a live countdown to the release of the collection online, and once the countdown hits zero there will be a candy and confetti drop!

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Pricing Strategy♥ Price points will range from $50.50-

$250.50 depending on what is being purchased.

♥ Competitors include retailers such as, Nordstrom, Rosie Pope, and Liz Lange Maternity.

♥ These retailers offer a wide variety of maternity wear ranging from lounge/sleepwear, lingerie, nursing tops and nursing bras.

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6 Month PlanPlan - This Year 2015              

Plan Aug Sept Oct Nov Dec Jan Total Actual Markdown

Beg.Month Stock  $159.6  $209.4  $290.5 $ 314.1  $148.6 $126.2 $1,248.4 $    191    31.9%

Sales  $68.2  $89.1 $108.8  $104.7  $190.2  $68.2  $598.0Sales Change +5.0% 

Sales % Total  11.4 14.9 18.2 17.5 31.8 11.4  100.0 Average Stock

Markdowns  $10.5  $12.6 $10.5 $52.5 $63.0 $42.0  $191.0 PLN 208.1Markdown % Total  5.5% 6.6% 5.5% 27.5% 33.0% 22.0%   Turnover

Purchases  129  183 142.9 -8.3 230.8 119   PLN  2.87

End Month Stock  $209.4 $290.5 $314.1 $148.6 $126.2 $135    

                 

MONTHLY STS  2.34 2.35 2.67 3.00 .78 1.85 Mark-Up 

*Monthly sales and markdown remained the same

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Justification for 5% Increase

♥ Maternity is a growing market as population is rapidly increasing with over 4 million babies being born yearly according to the census.

♥ “The intimate apparel industry as a whole is on a rise according to Marshal Cohen, Chief Industry analyst at the NPD group

♥ Intimate apparel grew over 5.3% year to year representing 10.7 billion in sales in 2009

♥ The lingerie market in 2012 was worth $29.23 billion, and is predicted to be increasing up to $30.55 billion during the next five years.

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The Sweet Sugar Maternity Lingerie Collection

Assortment Mix

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Garment 1Mint Crème Cake Bra & High Waist Short Set

♥ Sizes: XS-L♥ Sale Price: Set- $75.60 ♥ Fabric: Satin♥ Color: Mint Chip♥ Item Description: Unwind in

sexy satin, with pretty Chantilly lace on this pj set and a flirty deep v-back on the cami.

♥ Available in 3 colors: Mint, Cotton Candy, & Blackberry

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Garment 2Pink Pastry Push-up Garter Slip

♥ Sizes: XS-L♥ Sale Price: $98.00♥ Fabric: Silk & Mesh♥ Color: Pink Crème♥ Item Description: Go for

glamour in a silk and mesh garter slip with a peplum shape at the sides.

♥ Available in 2 colors: Pink Crème & Kiwi

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Garment 3Blueberry Cheesecake Teddy

♥ Sizes: XS-L♥ Sale Price: $100.50♥ Fabric: Lace & Mesh♥ Color: Blueberry♥ Item Description: Where lacy

meets racy, with a mesh back and a bikini bottom.

♥ Available in 2 colors: Blueberry & Red Velvet

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Garment 4Red Velvet Cake Sheer Bra & Thong Set

♥ Sizes: XS-L♥ Sale Price: Set- $97.50♥ Fabric: Chiffon & Mesh♥ Color: Red Velvet♥ Item Description: Designed for

private engagements with your lover, this barely-there thong tempts with mesh, with this ultimate lift-loving push-up

♥ Available in 2 colors: Red Velvet & Blackberry

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Garment 5Raspberry Sorbet Lace Teddy & Thong Set

♥ Sizes: XS-L♥ Sale Price: $250.50♥ Fabric: Lace♥ Color: Raspberry♥ Item Description: This teddy

dares to bare in allover lace with a plunging front, and a lace-up v-string thong.

♥ Available in 1 color: Raspberry

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Garment 6Fruit Tart Ruffled Bustier & Short Set

♥ Sizes: XS-L♥ Sale Price: Set- $100.50♥ Fabric: Chiffon♥ Color: Cherry♥ Item Description: Unwind

in sexy chiffon, with pretty floral embellishments on this lingerie set and a flirty push-up bra top adorn with ruffles.

♥ Available in 1 color: Cherry19

Garment 7Kiwi Popsicle Tulle Bra & Panty Set

♥ Sizes: XS-L♥ Sale Price: $220.50♥ Fabric: Chiffon & Tulle♥ Color: Kiwi♥ Item Description: Drift off to

sleep in a soft and sexy lingerie set, with a flirty tulle bra and matching panty with tulle puffs.

♥ Available in 1 color: Kiwi20

Financial InformationOTB: $70,000

Description Units Cost Retail Total Cost Total Retail MU%Bra w/Short 160  $16.37  $65.50   $2,624.20   $10,500.00  75%Pushup Garter Slip 86  $24.50  $98.00   $2,100.00   $8,400.00  75%Blue Teddy 153  $24.37  $78.00   $3,717.99   $11,900.00  69%Sheer Bra w/Thong 43  $24.37  $97.50   $1,049.78   $4,200.00  75%Lace Teddy w/Thong 88  $22.00  $88.00   $1,925.00   $7,700.00  75%Purple Bra w/Panty 108  $19.50  $78.00   $2,100.00   $8,400.00  75%Bustier w/Short 125  $25.12  $100.50   $3,149.37   $12,600.00  75%Tulle Bra w/Panty 64  $24.50  $98.00   $1,575.00   $6,300.00  75%Total 827  $180.73  $703.50   $18,241.34   $70,000.00  74%

Description % Of BuyBra w/Short 15%Pushup Garter Slip 12%Blue Teddy 17%Sheer Bra w/Thong 6%Lace Teddy w/Thong 11%Purple Bra w/Panty 12%Bustier w/Short 18%Tulle Bra w/Panty 9%Total 100%

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Justification for Finances♥ The Sweet as Sugar Maternity Lingerie Collection has

many style choices that will flatter expecting mothers from the time they start showing through to the late stages of pregnancy.

♥ The largest part of the budge, 60%, was dedicated to the styles that show the most flexibility as far as the size of the mother’s belly.

♥ The fabrics chosen are cool, lightweight and can move easily with the body.

♥ Maternity pictures have also become very popular so there are pieces in the collection that will make for appropriate photos as well as helping the expecting mother to feel more secure in what she is wearing. Since these pieces will be more geared toward special occasions, like the above mentioned photos, only 40% of the budget was used to cover these pieces.

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The End

Sourceshttp://articles.latimes.com/2013/may/12/image/la-ig-lingerie-20130331 http://news.globalintimatewear.com/Sales/5634/Lingerie_Market_Worth_29_23_Billionin_in_2012.html http://www.census.gov/topics/health/births-deaths.html http://thestorkmagazine.com/lingerie-fashion-week/ http://thelingeriejournal.com/category/trends-for-retailers/ https://www.lb.com/our-brands/victorias-secret