2.  Limited Brands bought it in 1982 › Four stores and a catalog  Victoria’s Secret grew with little help › Grew to a $5-billion in sales company › Began focusing on mainstream customers

3.  In 1990’s, began stocking more colorful, European inspired lingerie  Over time, began adapting to a more skin-baring culture

4.  “Pink” brand launched in 2002 › $900 million in sales during 2007 › Many lines began to imitate Pink › Relied too heavily on “Pink”s success

5.  Decline in sales › 12% drop in net income › Stocks fell more than 11% › 8% drop in holiday sales

6.  “Pink” line targets teenagers and college age students  Store front and corporate image changed  Older customers feel uncomfortable

7.  Older customers have a more refined sense of sexy  Negative Response › “Trashy” and “Uninspiring”

8.  American Eagle  Abercrombie & Fitch  J.C. Penney  Target  Kohl’s  Frederick’s of Hollywood  Wal-Mart

9.  Competitors target all age groups  Alienated customers find new places to shop

10.  Broadening the target audience  Reworking the lines › Including more diversity  Remodeling the stores  Super Bowl Commercial http://www.youtube.com/watch?v=71yE5C7_xLw  Fashion Show

11.  Win back the customers lost  Improve the Quality  Make lines for all age groups