Victoria's International expansion Essay Example | Topics and Well Written Essays - 2000 words

Victoria's International expansion - Essay Example Victoria’s secret was established in San Francisco during 1970s by Roy Raymond. The aim of the firm was to provide women brands and be the highest producer in US. They were to produce different types of women brands and which were new in the market. For any company to sustain its customer in the market it has to set goal and be able to compete with its rivals and to forecast on how the company will be doing in the upcoming years (Goldman, 1999). For example, being the largest American retailer of lingerie, Victoria’s secrets competes with other companies to be the world distributors of women shop including brands such as bras, panties, sleepwear, clothing and shoes among others. Victoria’s secrets like any other company receives stiff competition from a company know as Gap which normally provides the same products at a lower price. This paper aims at undertaking an Internal Analysis of Victoria's Secret foreign expansion like in China, designing products for spec ific markets, manufacturing and advertisement. Additionally, the paper will discuss manufacture of the products and advertisements of the products Victoria’s secrets, a firm operating under monopolistic economic model, are faced with stiff competition from foreign expansions. ... In addition, China has the second largest economy after US. As A result, households enjoy high income thus enhancing their purchasing power leading to increased sales for Victoria’s secrets. Product design for specific markets Victoria’s secrets aim at designing its brands in such a way that the needs of its specific markets are met. For example, in China market where lingerie are on high demand, Victoria’s secretes will involve Chinese marketers and designers so as to come with a brand that is acceptable in China market. The company increases its sales by producing attractive design that makes the female customers to have a feeling of red carpet treatment. Manufacturing and advertisement Victoria’s secrets manufactures high quality brands to be used in foreign expansion like in China and makes sure that advertisement is done effectively to make sure that the brands are acceptable in the market. Similarly, since by keeping its prices competitive than its r ival, Victoria’s secrets targets upper class and middle class customers, the lower class customers are in most cases forced to go to Gap which offers the same products at a throw away prices. Key competitors that have emerged in the foreign immerged includes Maxx, Marshall’s and Homegoods. TJ Maxx and Marshall’s are huge competitors since they provide lingerie at discount prices for the middle and lower class (Monget, 2011). This has made the market to be more competitive and each company has to look the way forward to outdo their rivals. The strategy which Victoria’s company adopts is the introduction of new styles in the market and ideas that kept their products easily identifiable by the customers. Additionally, the company designs are attractive in the eyes of the customers. In