Analysis of Victoria Secret Core Brand

Question

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Analysis of Victoria's Secret Core Brand

The literature proposes brand extension (Grewal & Levy, 2011, pp. 219-221) as fundamental to exploiting the competitive advantage of the core brand product. According to Grewal and Levy (2011), brand extension involves using a similar brand name in different product lines. This paper uses an analysis to analyze and evaluate the core brand Victoria's Secret and a product extension, ' a proposal of a dye hair product’. This is to appraise the values of brand extension.

The Victoria Secret

The Vitoria Secret is a brand that invests in the apparel sector and products like Bras, panties, sleepwear, hosiery, women's clothing, lingerie, swimwear, footwear, fragrances and beauty products (Gross, 1987). Victoria's Secret is the largest United States retailer, with a high brand identity (Earnest, 2005). As a generic brand, Victoria Secret had a leading sales turnover of USD 6.12 billion in 2012 and has an operating income of USD 1.00 Billion. Victoria's Secret markets its products through its different stores and online shop

The ‘proposal of a dye hair product’ or ‘the Hair Product’

The ‘proposal of a dye hair product’ is a brand targeted at the same market for the different Vitoria Secret brands. The ‘Hair Product’ would have a ready market by exploiting the brand value of Vitoria Secret.

The Success Factors for the “Hair Product”

Through brand extension, the ‘dye hair product’ proposal could gain fast market penetration due to the exploitation of Victoria's Secret brand equity (La Ferla, 2007). Victoria's Secret brand points of parity, and the difference to gain market share. The ‘The Hair Product’ brand extension could make the ‘Dye Hair product’ use the brand identity of Victoria's Secret since it is well established in the target market. Victoria's Secret has a strong brand acceptance, and customers would have a higher perception, high attitudes, and exploitation of complementariness between Victoria's Secret brands and the Dye Hair Product (Grewal & Levy, 2011).

The success of the ‘proposed dye hair product’ would be realized due to the fitness between Victoria's Secret as a core brand with a large brand identity and the complementariness of the ‘dye hair product’ (La Ferla, 2007). The distance between the Victoria's Secret brand and the proposed ‘Dye Hair product’ should be small, meaning the proposed ‘dye Hair product’ could use the competencies of Victoria's Secret to gain from higher sales (Earnest, 2005). A high distance between Victoria's Secret as a core brand and the proposed ‘dye hair product’ could mean the proposed ‘Dye Hair Product’ could utilize a few core competencies of Victoria's Secret.

The Potential for Brand Dilution

The proposed ‘dye hair product’ could dilute the Victoria's Secret brand if the distance is short. It will also have little effect on the brand value of Victoria's Secret if the distance between the two brands is long. Brand dilution could arise from the high fit between Victoria's Secret brand and the ‘dye hair product’ and low customer experience and attitudes toward the ‘dye hair product’ (La Ferla, 2007). Brand dilution of the brand extension could result in a decrease in brand equity of Victoria's Secret brands like perfumes and make due to their complementariness with ‘proposed hair product. The brand extension of other brands, like perfumes and make-up, could suffer from low short-term sales. This will affect the annual sales turnover of Victoria sales and further constrict its working capital from the current USD 1.00 Billion due to exposure to risks of low movement of inventory.

Conclusion

The proposed ‘Hair product’ brand extension could gain from the core competencies of the core brand Victoria's Secret because Victoria's Secret is a well-established brand with higher brand value, brand equity and higher brand awareness. However, for the proposed ‘hair product’ to gain from Victoria's Secret brand, the ‘Dye hair product’ should have higher brand attributes. The attributes could result in higher brand perception, acceptance, and positive brand attitudes that model consumer purchase decisions. The distance between Victoria's Secret and the proposed ‘dye hair product’ should be enough to reduce the risks of diluting the Victoria's Secret brand. This will, in return, provide an opportunity for the proposed ‘hair product’ to leverage brand equity.