Marketing that Works
Leonard M. Lodish, Howard L. Morgan and Shellye Archambeau
It may be no secret that Victoria’s Secret, known for lingerie and beauty products, earned an operating income of $1 billion in 2006, on sales that crossed $5 billion. Or that the sales of ‘this remarkably powerful brand’ is anticipated to double in five years, as Leslie H. Wexner, Chairman and CEO of Limited Brands, declared in the 2006 annual report.
But not so well known may be the fact that Wexner bought the first VS store for $1 million in 1982. The shop had been started in California five years earlier by “Stanford Graduate School of Business alumnus Roy Raymond, who felt embarrassed trying to purchase lingerie for his wife in very public and awkward department store environment,” as Wikipedia recounts.
“After seeing the store, Les got the idea to reinvent underwear as lingerie and make underwear emotional – have underwear make you feel good,” write Leonard M. Lodish, Howard L. Morgan and Shellye Archambeau in Marketing that Works ( http://www.pearsoned.co.in/).