microeconomics milestone 1

Running head: VICTORIA’S SECRET 1

Victoria’s Secret

XXXXX XXX

ECO 201 Microeconomics

Southern New Hampshire University

Professor Annette Tanori

November 07, 2015

Comment [AT1]: Per criteria for Milestone 1, the selected company is a publicly traded company operating in the United States and is currently in business. Additionally this company was sent to the instructor for approval in Week 1.

Comment [AT2]: Make sure that APA formatting is followed throughout the entire Milestone and Final Project. This is the proper formatting for the title page, page header and page numbers. Also make sure margins are set to 1 inch on all four sides of the essay and font should be set at 12 point, Times New Roman. The SNHU Writing Center has a solid section on APA guidelines> http://libguides.snhu.edu/c.php ?g=92369&p=596254

Comment [AT3]: Your name here.

VICTORIA’S SECRET 2

Victoria’s Secret

Microeconomic principles impact the sustainability of a company and also determine

whether or not the business will be able to maintain a successful business indefinitely. Taking

microeconomic data and using it logically to make decisions within the business plays a big role

on whether or not they will have success or failure. This paper will discuss Victoria’s Secret’s

market and business data; such as the companies supply and demand conditions, the price

elasticity of demand for their products, the costs of their production, the overall market for the

company, and recommendations on how to manage their future production as a firm to ensure

success.

History of Victoria’s Secret

Many would be surprised to know that Victoria’s Secret was created with a target

audience directed towards the male customer, which is not what it is today. A man by the name

of Roy Raymond created the company after feeling like a sleazy perverted man when trying to

buy some sexy lingerie for his wife. He realized there weren’t any places for men to feel

comfortable when buying undergarments for a woman, and from there, Victoria’s Secret was

born in 1977 with it’s first location in California. Based around a Victorian era theme, the new

company had huge success within its first year with sales reaching $500,000. Five new locations

and a successful catalogue that brought in $6 million a year for earnings; founder, Roy Raymond

sold the business in 1982 (Anderson, 2014).

L Brands creator, Leslie Wexner, purchased Victoria’s Secret from Raymond for $1

million (Anderson, 2014). With sales no longer increasing, he saw a big piece missing in the

target audience, women, and had a vision to expand the marketing and gear it more towards

Comment [AT4]: Per APA, the title of the paper is repeated as the first line of the essay. Also notice that the entire paper is double spaced and the start of each paragraph is indented.

Comment [AT5]: The Milestone should include an introductory paragraph that outlines the purpose of the final project research paper and explains how it will inform your conclusions. The introduction of your paper should provide the reader with a “preview” of all the major topics that are going to be covered in entire essay, not just Milestone 1. Make sure you become familiar with all the major topics to be covered in the Final Project and introduce your reader to them in this opening paragraph. A solid introduction also includes a thesis statement at the end. This section of the paper is worth 30% of the grade for Milestone 1 – It is important that you include an introduction so points are not missed. Here is an additional resource on writing an introduction: https://owl.english.purdue.edu/engagemen t/2/2/58/

Comment [AT6]: Using Section Headers is a great way to keep your paper organized. It also lets the reader know what topic this section of the paper is going to discuss. Strongly consider using them in your paper. This is the proper formatting for a Section Header, per APA.

Comment [AT7]: In-text citations are must when using information, data, stats, facts, from other resources! If the information is not an original idea it must be cited. https://owl.english.purdue.edu/owl/resour ce/560/02/

VICTORIA’S SECRET 3

women as the prospective customer. His clever idea turned Victoria’s Secret into a multi-billion

dollar company with “more than 1000 shops in the US and responsible for thirty-five percent of

the country’s lingerie market” (Anderson, 2014). What we know Victoria’s Secret to be today is

much more than just a place to buy sexy lingerie. A customer can find sexy lingerie and

undergarments as well as beauty products like perfume and make-up. With the newest brand;

Victoria’s Secret PINK, products are geared more towards being less provocative for the younger

aged women offering cute underwear and bras, active wear, such as workout attire, sweats,

hoodies, and casual wear.

Comment [AT8]: This section of the paper should provide a summary of the history of the firm and discuss the goods/services that it provides. This section of the paper is worth 60% of the grade for Milestone 1.

Comment [AT9]: Milestone 1 should be 1 to 2 pages total.

Comment [AT10]: Articulation of Response (Writing Skills & Organization of the Essay) is worth 10% of the grade for Milestone 1. Make sure your submission has no major errors related to citations, grammar, spelling, syntax and organization.

VICTORIA’S SECRET 4

References

(2015). Adore Me. Retrieved from http://www.adoreme.com/panties/kacie-

bikini.html#category=673&promo=3%20for%20%2429.95

Anderson, Elizabeth. (2014, December 02. A Look At How Victoria’s Secret Became A Multi-Billion

Dollar Company. Business Insider. Retrieved from http://www.businessinsider.com/a-look-at-

how-victorias-secret-became-a-multi-billion-dollar-company-2014-12

(2015). American Eagle Outfitters. Retrieved from

http://www.ae.com/aerie/browse/undies.jsp?catId=cat6460002&navdetail=mega:aerie:c3:p1

(2015, July 01). Apparel Retailers and Ecommerce: Direct Marketers Dominate. eMarketer. Retrieved

from http://www.emarketer.com/Article/Apparel-Retailers-Ecommerce-Direct-Marketers-

Dominate/1012671

Buzzell, R., Gale, B., & Sultan, R. (1975). Harvard Business Review. Market Share-a Key to

Profitability. Retrieved from https://hbr.org/1975/01/market-share-a-key-to-profitability

BS. (2013, December 19). Victoria’s Secret Annual Report 2013: Quarterly Earnings, Sales, Revenue

and Profits. [Web log comment]. Retrieved from http://www.financeninvestments.com/annual-

report/victorias-secret-annual-report-2013.html

Comment [AT11]: Proper formatting for the Reference Page, per APA. This along with in-text citations must be included in your Milestones and Final Project. You will add to your Reference Page as the weeks progress and you conduct additional research for future Milestone topics. https://www.wctc.edu/current- students/library/apa-citing.pdf

Comment [AT12]: Reference page is also double spaced, only.

Comment [AT13]: First line is not indented, but subsequent lines are.