MARKETING COMMUNICATION MANAGEMENT

21MS3088
CASE STUDY: UNITED COLOURS OF BENETTON

CONTENT
1. INTRODUCTION ABOUT THE COMPANY
2. ADVERTISING STRATEGIES AND TACTICS
3. ADVANTAGES OF FRANCHISING
4. ADVERTISING PROS AND CONS

By,
Ch Jupiter
PRK21MS1047
 INTRODUCTION

 Benetton is an Italian retailer engaged in the manufacturing and

distribution of clothing, undergarment, shoes, cosmetics, and
accessories.
 Itwas founded in 1965 by three brothers and a sister, and later
established the Benetton chain all over the world.
 1969 internationalization of Benetton with the opening of the first
shop.
 Late1980s groups of franchisees began to suffer as a result of
Benetton's relentless expansion which brought strong competition.
 By 2001 Benetton group operate in 120 countries through 5,000
franchised Benetton stores.
ADVERTISING STRATEGIES OF BENETTON

 Benetton follows “FRANCHISING” strategies to pitch their

product.

 Benetton has often been quoted as an example of a company that

has been able to grow extensively and rapidly with minimal
financial commitment in retail outlets because the individual
franchisees have been responsible for their own financing.
ADVERTISING STRATEGIES OF BENETTON

 Benetton grabs attention by using shocking images.

 Draws public attention towards issues like peace, racial
integration, AID’s, etc.
 Used distinctive images.
 Censors images to attract the attentions.
 Position the company as a socially conscious marketer.
 Gave birth to a new genre of advertising “Shock Advertising.
ADVANTAGES FOR THE FRANCHISEE

 Ease of brand identification

 Neither fee nor royalty paid

 Selection of a good location

 Selection of desired clothes

 ADVERTISING The pros point of view

 Memorability / Brand Recognition

 Innovation in communication

 Production of images of global concern for global customers

 Socially responsible business

 No provocation but awareness

 ADVERTISING The pros point of view

 Differentiation from a misleading campaign

 Challenge stereotypes

 Cost effectiveness

 Awards winning and exposure in galleries around

 the world

 Exploitation of clothing to raise social issues

 ADVERTISING The cons point of view

 Negative impact on consumer’s decision to buy.

 Dislike advertising from the audience

 Legal actions from social organizations.

 Benetton promotes censorship