Wednesday, December 3, 2008


Victoria’s Secret Fashion Show is an example of a project. The Victoria's Secret Fashion Show is more than a show, it is an annual event. In 1995, Victoria's Secret held its first fashion show; the world press reported it as the "lingerie event of the century". Last year, this Fashion Show was performanced by the Spice Girls. The Victoria’s Secret Fashion Show is a centerpiece for the brand’s intricately designed and elegantly functioning advertising machine. The show attracts hundreds of celebrities and entertainers, with special performers and/or acts every year. With this event Victora's Secret reaches an audience of over 1 billion people. This year the Fashion Show is at Fontainebleu Miami Beach and you could see it tonight (December 3). The Victoria’s Secret Fashion Show is a highly anticipated, well-known event that everyone looks forward to, but very few get to intimately experience. Televised annually, the Victoria’s Secret Fashion Show Extravaganza has an exclusive contract with nationwide broadcasting station CBS. A symbiotic relationship exists between the two firms. Victoria’s Secret obtains one hour of nationwide advertising, while CBS holds the exclusive right to one of the most popular programs on TV. For one full hour, beautiful supermodels parade about in Victoria’s new-line of beautiful lingerie with chic special effects and music that heightens the fashion show to the level of a Broadway production. CBS announced that it would be expanding the Victoria’s Secret Fashion Show presence through the use of multiple platforms including the on-air broadcast, a dedicated website and its own Victoria’s Secret Fashion Show mobile television channel. will host a social viewing room where viewers can chat online, watch clips from the show and will feature model bios, portfolios, behind-the-scenes footage and interviews. Viewers will also be able to watch the show in its entirety from the site once the show has concluded. CBS has also teamed up with MediaFlo USA to launch Victoria's Secret TV, a dedicated 24/7 channel on FloTV. The channel will give mobile-users an all-access look at the fashion show beginning with behind-the-scenes pre-show coverage available now.

Some of the task are:

- Should you leave time for networking?
- How long should the event run for?
- Do they need to produce a programme for the event?
- Gifts or acknowledgement for presenters or entertainment
- Will they sell tickets, who’s doing ticket sales, how much?
- Equipment requirements for entertainers
- Parking for VIP’s Sponsors and entertainers
- Do you need to provide transport?

Facilities and equipment
- Where will you hold the event?
- How big/small will the venue/location need to be?
- Will it be indoors, outdoors or both?
- Do they need decorations?
- What equipment do you need for the event?
- Will they require security?
- Who is going to present the show?

Promotion/ Marketing
- Do they need to advertise the event?
- Do you want the media at your event?
- Do you require media prior to the event or post the event?
- How many invitations need?
- Should you use a graphic designer?
- Do you want to consider selling merchandise?
- Invitations. How many?
- Don’t forget to include an RSVP on invitation
- Do you require a photographer/someone to video tape?

- Do you provide catering for the event?
- Do you provided a full meal or finger food?
- Will you require catering staff to serve?

Finance / budget
- Assign a person to take responsibility for the budget
- Details on budget
- Ticket sales, how much?
- Sponsorship – can you get some form of sponsorship?

Victoria Secret uses the Gantt Chart which is a chart that keeps all types of time across the top. For example, the people who work their, machines they use, hours the employees get are all example of what would be put on the Gantt Chart. The chart can be evaluated with respect to how the machines perform and how long the machines take to make a satisfied product. This chart can also be uses with all the employees and how many hours the employees work. Since there is a high demand with all Victoria secret products and they are known for their batch process they need to make sure all products are finished in a certain amount of time. As soon as a batch of products are completed they must be immediately packed and shipped out to stores all over.

Recommendations for Victoria Secret is to keep on putting out new styles of clothing and new lines of their products for each season. This will attract buyers to keep on coming back, knowing that Victoria Secret is always new and up to date. This is a challenge for Victoria Secret because they must always make sure they are reaching there goals to satisfy all customers. Management plays a huge roll in satisfying the customers because if management fails then the store will fail. Victoria Secret is a strong company and they have great success every year. This will continue for their company as long as they continue to focus on the customers needs and keep looking into the future with all their products.

Friday, November 21, 2008

Supply Chain

Victoria Secrets supply chain starts off with raw materials chosen by their designer's which then gets shipped from China for a cheaper price. This helps the company with price especially because the quality is high quality material. This high quality is satisfying to all their customers and that is Victoria Secrets top concerns. Once the raw materials get processed through specific factories with specific machines Victoria Secrets products are on its way to becoming a product. After the raw material gets processed and becomes a product, the product is made in batches in different colors, sizes, designs, and cuts depending on the product design. Once these product's are finalized they are shipped out to all Victoria Secret stores.

Their performance is determined depending on delivery, quality, time and cost of their products. Victoria Secret does not ship all products to all countries because of specific restrictions. However, if Victoria Secret can not ship a certain item before you check out, you will receive a notice right away stating that you must remove that specific item and why. It may be because of an address change or a possible change in another shipping method. Shipping and handling charges are determined by the merchandise dollar amount of your order before any deductions. Charges will be calculated before taxes. If products are on backorder your total will not be charged until the product is shipped out.The price and the quality of Victoria Secrets products are all reasonable prices and very high in quality. The delivery time is usually 4-7 business days and could be quicker for additional prices depending on the delivering company.

Limited Brands, an upscale branded consumer packaged goods company, sells women's intimate apparel, personal care products and women's and men's apparel under various trade names through its catalog, e-commerce and network of more than 3800 stores. Limited Brands is currently implementing Manugistics' web-based demand and supply chain management solutions including collaborative logistics management for both inbound and outbound planning, optimization and execution.
Limited Brands, an upscale branded consumer packaged goods company, sells women's intimate apparel, personal care products and women's and men's apparel under various trade names through its catalog, e-commerce and network of more than 3800 stores.

On holidays like Black-Friday when the most of their consumers begin their Christmas shopping, the corporate head-office has to deal with huge volumens of hourly phone calls from individual stores for updates on sales.

Limited Logistics Services has set up some functions to manage the company's supply chain processes. Also, it wants to concentrate on maximizing distribution and logistics efficiency, fulfilling with international trade and customs laws, ensuring regulatory compliance and facilitating product allocation and flow planning. All departments also have to make sure there are no weak links in the supply chain management. One of the important facts is that Limited Logistics Services investing in its employees.

Victoria’s Secret’s supply chain management is well managed. They could start supplying their stores with clothes which are offered through Internet and catalogues. Since manufactory is in Sri Lanka, it would be good if all stores could place an order and the products would be sent directly to the store from the manufactory. Victoria's Secret should keep using the same manufacturing process which is being used in present.

Wednesday, October 29, 2008

Quality Control

The quality control methods they currently use are the following:

1. Identify critical Points: assessing and assuring capabilities of raw materials, incoming materials which Involved the shipping, receiving, storing, and distribution of materials, parts,supplies and equipment, in which the employees will report to a team lead for inspections and specifications. Inspecting and testing product quality from pre-production to post-production, including issues related to product color, construction, labeling, packaging, and pricing.The area of technical, sourcing and product development ensures that the quality meets specifications by checking new products, monitoring raw materials and work in progress prior shipping or prior placing the product in inventory.

2. Attribute measurement is used for Victoria Secret. The company uses the percentage of dissatisfied customers, percentage of defective materials, and other. For an attribute control chart, samples are large, the range of 50 to 300 observations. The sample must be at least large enough to allow for the detection of one defective unit. If the process is being controlled produces 1 percent defective units.

3. The amount of inspection to be used: VS, uses also technical, quality control, product development, to ensure that everything is met for specifications. Statistical process control, is used to minimize the amount of inspection is needed.

4. Who should do the inspections: Workers, Prevention programs, managers.

Victoria Secret has continuous improvements in its quality control through out the whole company. With their fabrics Victoria Secret makes sure that they are properly used and meet specific specifications for the customers. The company is constantly improving on current, new and future products to be put out in the store for every next season to come. Victoria Secret is always improving on the quality of their products for their customers.

Victoria Secret uses Pareto analysis to shut out all the problems in quality control. Victoria Secret is a well-known brand and it offers high quality products, therefore if there are any problems they will be fixed immediately. However, there should not be any problems and if there is they are usually taken care of before the products are put out in stores.

Victoria's Secret practices Six Sigma program like any other major brands, because they want to protect their reputation. Victoria’s Secret has manufacturing company Brandix Group that is the biggest exporter in apparel sector in Sri Lanka. The factory by itself produces a sixth of bras sold by U.S. retailer Victoria's Secret.

It's the largest lingerie maker in South Asia. Limited Brands, a parent company of Victoria's Secret, also uses Six Sigma to cut manufacturing cost,improve the quality of their products and to reduce the margin of imperfection.

One of the recommendations is to look into the fishbone diagrams.The fishbone diagram is an analysis tool that provides a systematic way of looking at effect and the causes that create or contribute to those effects. A common use of this diagram is in “product design” to identify desirable factors leading to an overall effect. Another recommendation is Six Sigma trainings and aggressive leaderships so they can help in the improvements of the company.

Monday, October 20, 2008

Managing Quality

Victoria's Secret dimensions of quality:

Quality of design:

Victoria's Secret retail chain redefined America's conception of lingerie beginning in the early 1980s. At the same time, Victoria's Secret decidedly built its image with a fairly conservative, middle-class shoppers in mind and avoided any connotations of sleaziness which lingerie might carry. Victoria’s Secret has patented and copyrighted many of their collections and product technologies because of their quality and innovation. Most of their targeted customers are teenagers and women between the ages of 18-40. Most of their customers know that all Victoria's Secret designs are very innovated, new and unique in design and very sexy.

Quality of Conformance:

Everyone knows Victoria's Secret for its quality of conformance. All their products meet all the specifications of their designs. Manufactures make the products according to the specifications and limitations that are given to them from the Operation managers.
Victoria's Secret is the leading specialty retailer of lingerie and beuty products, dominating its world with modern, fragrances and cosmetics. Victoria's Secret stores, the catalogue and their website allow customers to shop anywhere, any time, from any place.

The Abilities:

Victoria’s Secret has the top quality products which lasts for years. Through their catalogue and their website (, Victoria's Secret Direct makes it possible for their customers to feel the sexy and sophisticated intimate lifestyle of Victoria's Secret 24 hours a day, 7 days a week.

Field Service:

This is the last dimension of quality. Their website takes many types of security measures like, uses of technologies and policies such as limited access data-centers, firewall technology, secure socket layer certificate authentication and limitations of administrative access to their systems. In addition, their policy is NOT to send the credit card number via e-mail. They designed their page to accept orders only from Web browsers that permit communication through Secure Socket Layer (SSL) technology. will ask you to provide personal information when you establish or update an account with them, ask to sign up for Victoria's Secret E-mail, when you shop online they also may ask for your personal information, check the status of an order, request a catalogue, purchase an e-gift card or send a wish list or gift reminder or if you sign up to receive information about their products, promotions and events through text messaging for all that actions Victoria's Secret might ask for your personnal information just because they want to provide an excellent service.
Categories of information collected include name, address, e-mail address, recipient's name and e-mail address, order information, telephone number, credit card information and messages or reminders you create.
Also they have a return policy. They know that they have a strong reputation for their quality. But, if for any reason you aren't satisfied with your purchase, they will assist you with a prompt refund or exchange. Their sales aren't final. Refunds for the items returned within ninety days of the purchase date will be credited in the same form as the original payment type. And items returned more than ninety days after the purchase date will be in the form of a merchandise credit redeemable with your next purchase. Unfortunately, customers can't return the merchandise bought through their catalogue or website at the Stores.

Victoria Secrets quality systems are their "quality in their design". All of the designs are new, different and unique. The quality of all these designs is excellent and very appealing to their customers. The products are put out according to the different seasons of the year. This allows the customer's to easily go through a variety of clothing for a particular season. Victoria Secrets abilities and quality of conformance are always coming out with new clothing, lingerie and beauty products. Their products have the best new sexy colors, sizes, materials and designs for all occasions. Victoria's Secret lingerie and beauty stores, their catalogue and their web site allow customers to shop for their wonderful designs at anytime, anywhere. Victoria Secret wants you to experience the sexy, comfortable and sophisticated lifestyle you can have wearing this designed brand. The store has more than 390 million customers a year come to visit and their web site has now grown.

New ideas that they should consider, is open a new Victoria's Secret for clothes and shoes. Victoria's Secret website has a variety of clothes and shoes, that customers are not able to find it in the store. Last year, VS introduced bathing suits to the store, which it never happened before, VS just had bathing suits available online, and since they brought bathing suit to the stores, the customers were very exited about it, because some of them don't like to buy bathing suits or clothes online. By opening a Victoria's Secret just for clothes and shoes, the company would have more quality design. In addition, customers who don't like to buy clothes online, would be attract to the stores, and this would increase profits to the company. Also, it will be a good idea to have a Victoria's Secret overseas. In the store, VS have foreign customers, which every time they come to the United States they come to Victoria's Secret. It will be good idea to have VS in Canada, Mexico and England.

Monday, October 13, 2008

Process Design

The three elements of the service-product bundle for Victoria's secret are: Explicit serviceImplicit serviceFacilitating goodFor example, at Victoria's Secret customers receive a explicit service. Customers want that employees at the stores make the fastest and most accurate service than other stores when they make an order. Explicit service is also available at the stores where there is an high level of interaction between employees and customers. Another example of explicit service is when customers get in the store and see that the store is divided in lingerie and clothing in one side and perfumes, lotions, and makeup in the other side (Visual impact). Customers at Victoria's Secret also receive an implicit service which includes customers feelings- if they like or not the product. Also, they offer a credit card and gift cards that are implicit service too. In the perfume section for example, there are testers which customers can use it and test the scent so if they like it, they will purchase the product. Facilitating goods are the products that they sell in the stores, Internet and catalogue. Those products are clothes, perfumes, lotions, makeup, shoes, lingerie. The service matrix that Victoria's Secret use is co-route service matrix. Those stores offer a moderate number of choices (products) that are going to satisfy their customers. Most of their customers already know the brand so their needs and wants are quiet similar. Victoria's Secret sell their products at the stores, Internet and catalogue. In this type of matrix customers have a reasonable degree on decision making power in how they are going to make the purchase.
Victoria's secret encounters customer contact in different ways. In stores, there is high contact system, because the sales associates have to interact face to face with the customers, to understand the customer wants and needs and also to increase sales. The associate shows the customers the variety of products that Victoria's Secret sales, such as intimates, pink clothes, and beauty products. Associates let the customers know the experience with the product, and how has it work for them. The sales associate also let the customer know the importance to get measure every six month (The breast), and feminine information, in order to get the client attention, and also to convert a "just looking customer", to a "potential buyer."
Victoria's Secret uses self- service through the Internet and the catalog. This low contact service allows the customer to use technology. This service allow the customer an easy way to shop at home, Victoria's Secret website offers more products and more selections than the stores, and this help the company to get new customers, because of online promotions and the easy way to get the products deliver. The technology the Victoria's Secret use in the stores are bar code reader, inventory control readers, and a particular reader that let managers knows how many clients enter and exit the store.

Victoria's Secret use focus operations, in order of paper handling, they use direct mail to let the customer aware of the new products offer in the store. VS, every month send a coupon of free cotton panty and a $10 off any bra, in regard of demand management, VS use Internet technology, capacity management and client mix.
VS support employees in a vey outstanding way. The internal service quality is great because the workplace design makes the employees enjoy and feel comfortable. The reward are also great because every new item the employee get it for free or for a very low cost besides of the associates discounts of 30% or 40% off. Which is great because this help the employee to have a personal experience with the product that she will share with the customer. VS also give recognition to the outstanding employees in every department (intimates, pink, beauty, and cashiers.)

Victoria Secret's service recovery has a great gurantee that if the customer is not satisfied with any of their products they will get their money back. If any of the Victoria Secrets products were used or even worn, the store will still give their money back guranteed. Victoria Secret is all about the satisfaction of the customer and will do what it takes to please all of them.

Sunday, September 28, 2008

Process Selection

Victoria's Secret product flow is the Batch Flow. The advantage of batch production is that Victoria's Secret has a variety of products rather than just one type; therefore it gives customer a larger choice and a larger possibility of sales. Another advantage is that this company is reducing its risk on simply concentrating in one product; it produces a variety of different ones of the same type. However, the disadvantage is the setup time required to change from one product to the other. Victoria's Secret is a company, which produces medium variety and volume depending on their customers needs.

Victoria's Secret customer order process is Make To Stock (MTS), which provides powerful production solutions for handling recipes, sequencing, batch balancing, and environmental information. In addition, the MTS gives you a strong competitive advantage through more efficient production planning, on-time deliveries, and higher product quality. Victoria's Secret products are customized in different colors and sizes. And is the producer who makes the designs, not their customers. Also, the MTS give fast service to the customers because all the products are available at the stores the only thing that customer has top do is go to the store and choose what ever they like and purchase it.

Victoria's Secret falls into the process of low volume multiple products characteristics matrix where the product is produced in low volume with multiple varieties.

Victoria's Secret process selection is influenced by many factors, however, we are going to focus in three main factors that influence process selection. Market conditions, is one factor, like characteristic of a market into which a firm is entering level of competitiveness and the market's growth rate. Price Competition, is a second factor, as everybody knows Victoria's Secret has good competitors like Fruit of the Loom, Hanes, Calvin Klein, Betsy Johnson and department stores that offers a variety of lingerie products from different brands. Last but not least, are technology, labor supply and cost.

Victoria’s Secret, do not customize their products for their customers because they carry and distribute different product such as Victoria’s Secret intimates, Pink, Beauty Products, that have different styles, color, sizes, scene, etc. that gives customers a variety to satisfy customers’ want sand needs. That is why Victoria’s Secret does not adapt mass customization. Nevertheless, at the beginning of March 2008, Victoria’s Secret introduces a new strategy for mass customization; a bra that is customizes for every client “ The new Biofit Uplift’ll think its custom made.” Televisions ad, and direct mail were all about of “ a bra so revolutionary, you will think it was made for you. Your shape, your cup size, coming on March 4th”.The website asserts that the bra provides lift based on individual cup sizes, so as the cup size increases, the padding decreases. Victoria’s Secret has built the custom-made fit value proposition into a compelling ad campaign

Tuesday, September 23, 2008

Inventory Management

Victoria's Secret Stores makes inventory every 6 months and it hires a datawarehouse to do its inventory. Today, Victoria's Secret is using MicroStrategy's DSS Agent a relational On-Line Analytical Processing (OLAP) server optimized for very large database (VLDB) analysis. This system help the company to manage inventory, analyze market demand and gather information about the sales and inventory levels for each item in each store. In addition, using DSS Agent, reduce the time and personnel required to perform ad hoc analysis.

DSS Agent has enabled Victoria's Secret to reduce out-of-stock instances on selected items from 20% to 5%, by tracking daily movement figures and minimizing inventory shortfalls. DSS Agent is providing Victoria's Secret with a better understanding of critical information such as size selling patterns and how they vary by geography. For example, using DSS Agent, merchandisers were able to determine that Miami-area consumers buy ivory bras 10 times more often than black bras and that in New York, demand for size 32 bras is 20 times higher than the company average. By improving the in-stock situation, Victoria's Secret avoids lost sales and more efficiently allocates its inventory to its stores