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8/3/2019 Benetton Case Group 1
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UNITED COLORS OFBENETTON
PRESENTED BY:THE ASPIRANTS GROUP 1 MEMBERS: MINTI HARYANI (04)PANKAJ JAIN (05)VIBHUTI MEHTA (08)
EBIN VARKEY (11)
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ABOUT THE COMPANY
Benetton - Italian retailer manufacturing anddistributing clothing, undergarments, shoes,cosmetics and accessories.
It was started in 1955 by the Benetton family (consisting of three brothers – Luciano, Gilberto,Carlo and a sister - Guiliana) in a small Italian town.
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The Benetton family Luciano Benetton
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HISTORY
1960s - The idea of color
1965 - The Benetton Group is established.
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1970s - A business model making thedifference: unique, flexible and innovative.
• 1980s - Benetton communication campaigns:known all over the world.
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1990s - A global company present in 120countries.
•2000s - Benetton grows with the market:over 150 million garments produced every
year and distributed in around 6,000contemporary stores.
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Benetton’s communication strategy
• Benetton’s communications always carried a
‘big idea’ that focused on a social or apolitical issue.
• It used ‘shocking images’ in the context ofadvertising to grab the attention of its
audience.
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• Benetton used its communication to take astandpoint on such social and political issues affecting the world and forced thepublic to take a positive action.
• This strategy gave Benetton a distinct
image – a competitive edge.
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SOME CAMPAIGNS
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Benetton’s advertising objectives
Purpose of advertising was not to sell morebut to:
• To create and unconventional way ofadvertisement to stand out of the crowd
• To create a single strong distinctive
corporate image
• To encourage action on social and politicalissues
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BEFORE 2000
Ads had no image of the product
It positioned Benetton as a caring, sociallyresponsible brand with the interest of societyat heart.
But in the mind of critics Benetton was acontroversial brand.
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• It used strong visuals that can make alasting impact in the minds of the people.
• In its all Ads there was no copy, just theBenetton Logo
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It also used images that were an attempt to
break down the social barrier of indifferencesurrounding the topic of racism.
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• Ads were creative that grabs attention at asingle glance
• The company's controversial ads have won
awards and United Colors of Benetton hasbecome the third most recognized brand in
the world-following Coca-Cola andMcDonald's
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Ethical View Point
Benetton has been always committed toethical values
Respect minorities
Supports human rights
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Problems with its Ads
• Ads are controversial and gives rise topublic resentment
• Morality and ethics of the ads arequestionable
• The company has faced a lot ofproblems tied to its marketing practices
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Caused Sears to canceled an exclusive $100million contract to sell a line of Benetton clothes
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Most of the advertising is irrelevant to theproducts/services sold by the company
The ads evoke strong emotions thatsometimes cannot be control or that areunwelcome by viewers
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• Offended consumers may avoid Benetton’s
products that can affect sales
• Controversies may gradually affect the brandimage
• Withdrawn ads - waste of advertisingbudget
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Return to conventional Ads
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OUR VIEW POINT
• Social causes can be touched withoutcontroversies
• If Benetton would like to make a social impactor fight what they view as injustices in othercountries, they could approach a different
manner in being socially involved, besidestotally going against the grain.
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This way they are not throwing all their eggsinside one basket and Benetton would notbe risking consumers for political views.
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