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Introduction and History
United Colors of Benetton is a leading global fashion brand known for its luxury brands. The group is based in the Treviso in Italy and draws its name from the Benetton family which created the company. The company runs a network of more than 6400 store in over 120 countries worldwide. It also provides employment to more than 7,987 employees around the world. The stores, which are run by autonomous partners, yield annual revenue of about 2 billion Euros. The company is also listed in Milan and its performance is impressive. It churns out over 130 million pieces of garment annually which are sold through the autonomous outlets. Other than Milan, the company is also listed on the Frankfurt Stock Exchange and the New York Stock Exchange.
United Colors of Benetton was founded in 1965 in Treviso. It was founded by Luciano Benetton a thirty year old salesman who had notice a market for colorful clothes. Starting with a second hand knitting machine, which he acquired using proceeds from the sale of his younger brother’s bicycle, his initial compilation of sweaters received a positive reception in the local stores around Veneto (Salvemini, 24). With this success and signs of more to come, Luciano asked his younger brothers Carlo and Gilberto and their sister to join him. Immediately, they formed the Benetton group named after their family name “Benetton”.
In 1966 the siblings opened their initial shop in Belluno and the second one in Paris three years later (Salvemini, 31). Luciano acted as chairman, Gilberto was in charge of administration, and Carlo oversaw the production while Giuliana served as the chief designer. Between 1965 and 1966 the Benetton created a log for their entity base on stylistic knitting (Levi). This log became the entities trademark. Later in the 1991, there was a series marketing campaigns targeting the whole globe. The campaigns brought about the notion of United Colors pioneered by Oliviero Toscani (the group’s creative director from 1984), leading to development of a new brand and logo with centralized text (Levi). This logo was enhanced five years later, in 1996, when architect Massimo Vignelli shifted the text to the left upper corner of the Benetton’s green box. The log was maintained although its positioning was rationalized. The group’s controversial advertisement campaigns and unique products are responsible for its fame in the 1980s-90s (Levi).
Brand, Product & Service and their Marketing Mix Elements
The group’s main business is concentrated on its clothing lines. The clothing lines include: United Colors of Benetton, Sisley, the Undercolors of Benetton, killer Loop and Playlife. The company’s products include men’s wear, women’s wear, underwear and children’s wear. It also produces a range of perfumes, eyewear, stationary and travel bags. United Colors of Benetton brand is mainly concerned with the production of casual wear products for both men and women. It is this brand, through the advertisement activities of Oliviero Toscani, which got the group on to the global fashion industry map. Toscani made photo shoots of models and children from varied racial backgrounds and called it “all colors of the world”. This became the first slogan to appear in the groups advertisements and was later changed to “United Colors of Benetton.” This slogan was so strong that it became part of the groups’ logo, a trade mark and a brand. The Benetton brand is characterized by colorful and luxurious fashion for both men and women. Most people find it inspiring that the company produced clothing that’s takes into account of all races and skin color variation.
With colorful mix being the selling pint of the company, its other brands too embrace that concept of color despite being in different lines. The Under Colors of Benetton brand is concerned with under garments; Sisley brand is all about fashion wear; Playlife is concerned with leisure wear; while Killer Loop is all about Street wear.
Marketing mix
The group employs marketing mix elements to enhance and sustain the competitiveness of its brands. The first aspect of marketing mix that this group has successful employed is its products. The group through its brand has consistently satisfied the customer expectation. There is also diversity in the products to ensure that every consumer and occasion is captured. Pricing has also been used appropriately by the company. It employs a moderate pricing strategy to match its internal capabilities and external relationships (Maguire 18). The company further exploits the dynamics of ‘place’ in an efficient way using retail stores around the world. The products can further be purchase through online cloth store and auction store such as eBay (Maguire 18). The fourth element, which is perhaps the market mix element that has been exploited extensively, is promotion. The company employs controversial advertisement campaigns, sponsorships and endorsements to promote its products (Andreiadis et al 32). It is the controversial advertisements are responsible for the firm’s popularity.
Customers and the sub-brands
The products attract and serve a wide range of customer; adults of all professions, gender race and religion; youths and children. There are product made targeting different age’s gender and social classes (Som). Men and women who like leisure activities are targeted by the companies leisure brand Playlife while those who like looking elegant while going around with the business can target the United Colors of Benetton brand which specializes in casual wear and the Killer Loop brand which is the company’s main brand for street ware clothing line. All consumers irrespective of age are targeted by the company’s underwear brand, Under Colors of Benetton. This brand consists of undergarments designed for men, women and older children. The Sisley brand is designed for the consumers who are in to fashion. There are also, eye wear, perfumes and bags designed specifically for women and for men
The company also has clothes targeting children (Som). The children clothe line products are a recollection of a colorful flower. This line has products designed for toddlers, children of ages between 1-5 year, those of ages 6-12 and teenagers. The company also designs eye clothing specifically for children.
The firm does not aim at singling out a singlesocial class or racial group as evidenced by its advertisements. It aims at expanding its market to reach every consumer in the world irrespective of their social standings. It targets any person who appreciate color and fashion which is virtually every person in the world.
Advertisement Campaigns
Benetton group’s advertising campaigns are critical aspect of its marketing mix and are responsible for the group fame. The advertisements have been largely controversial but emphasis unity, peace and equality. The onset of this controversial activities was initiated Oliviero Toscani. Toscani started by photographing models and children from different racial back grounds and referred to the photos as “all colors of the world,” creating a powerful campaign slogan for the group. The multiracial pictures send to the world strong messages of racial unity (Salvemini 34). They presented an image of racial peace and world harmony.
The campaigns benefited from a shift in creative approach in 1991. During this time Toscani focused on social issues to create a new powerful strategy and achieving communication of general ideas to everyone, everywhere. The adverts were meant to draw attention to and generate public debate. Toscani had achieved on exalting difference and equality and now focused on common realities common to all mankind (Salvemini, 40). First, he created a photo of gulf war cemetery. This new style was realistic and its touch on real life issues influenced advertising worldwide. Numerous articles were also written around the world concerning the photo. According to Toscani, his controversial images were designed to raise awareness around the world and communicate the position of the company as a social conscious marketer.
The Benetton’s communication strategy was born out of the desire to create an image of a global concern for its customers. In this regard, the advertisements focus on issues instead of clothes and targets on mixed audiences as well. Other campaigns, which focused on contrast between white and black to promote racial equality this included a black mother suckling a white baby known as “breast feeding” (Mauk & Metz, 116). Similar campaigns included the “Handcuffs,” “Benetton’s Children,” and “Angel and devil,” Advertisements.
AIDs campaigns were also conducted in the 90s. The first one depicted a dying HIV patient surrounded by his kin. These were aimed at creating awareness through public debate on HIV/AIDS. In 1996 the company came up with a heart competing depicting a white, yellow and black hearts which was a continuation on its antiracism works (Salvemini, 48). This was followed by a wooden spoon campaign in which the company communicated its collaboration with the Food and Agriculture organization. The company was also announcing the World Food summit scheduled for November 1996. In 1998, the company launched a human rights advertisement celebrating the 50th anniversary of the UN Declaration of Human Rights (Mauk & Metz, 116).
Most recently the company created an advertisement containing the pictures of presidents kissing e.g. the United States president Barrack Obama kissing his Chinese counterpart to indicate the close ties between China and US (Turner). The Benetton campaigns maintain a characteristic of being short and clear.
SWOT Analysis
Strengths
The institutional advertisements conducted by Benetton are easily noticeable because the company is a famous brand and a world leader.
The advertisements are very creative and grab viewers’ attention at a single glance.
They have good visualization.
The advertisement further present massages in a concise and clear manner.
They use simple and true information,
They are very influential.
The advertisement further conducts corporate social responsibility.
They reach out to a global audience.
Weaknesses
The morality of some of the advertisements is questionable
They bring about controversies and heated discussions
Some of the advertisements are obscene
Opportunities
Benetton should focus on touching social issues without being crude or obscene
They can take care of national problems in various countries with diversified campaigns around the world targeted at local issues
Exploit audio-video channels of communication such as radio, internet and televisions
Threats
The public feel that the group employs a cheap marketing strategy in its institutional advertisements
Controversial advertisements can fail to communicate the desired message
Unauthentic situations
There are a few unauthentic situations faced by Benetton before. These situations were basically a product of images created by the company for advertisement. The images were considered fake by critics. Such images include images of presidents kissing and “fake picture of Pope Benedict XVI kissing Ahmed Mohamed el-Tayeb” (Gilgoff). While un-hate and unity are powerful themes it is wise to pursue approaches that worn stir a backlash.
Conclusion
The Benetton group is a world leader with popular clothing brands. The group was founded in 1965 and went on soar to global popularity curtsey of its controversial advertisements. The company created advertisements campaigns based o prevailing social issues. The firm aimed to promoting racial unity and global peace. Some of the advertisement resulted in backlash from critics while others were totally successful and helped the company popularize it brands.
Works Cited
Andreiadis, Eugin et al. “United colors of Benetton: Case Study.” Web. April 8, 2012 http://andreiadis.net/files/Marketing_UCB.pdf
Gilgoff, Dan. “Vatican pledges legal action against Benetton over doctored pope-kissing-imam ad”. November 17th, 2011. Web. April 8, 2012 < http://religion.blogs.cnn.com/2011/11/17/vatican-pledges-legal-action-against-benetton-over-doctored-pope-kissing-imam-ad/ >
Levi, Joshua. “Brand New: United Colors. Now with more Benetton.”. Web. April 8, 2012 . <http://www.underconsideration.com/brandnew/archives/united_colors_now_with_more_benetton.php>
Maguire, Marion. “United colors of Benetton- A company of colors and controversies.” GRIN Verlag, 2002. Print.
Mauk, John & Metz, John. “Inventing Arguments”. Wadsworth Publisher Company, 2012.Print.
Salvemini, Lorella, P. “United colors: The Benetton campaigns.” London: Scriptum Ed., 2002. Print.
Som, Kiddy. Product lines United Colors of Benetton August 9, 2009. Web. April 8, 2012 <http://sally22standalone.blogspot.com/>
Turner, Christopher. “Benetton’s controversial ‘Unhate’ ad campaign features world leaders kissing”. The Fashionst. Nov ember 16, 2011. Web. April 8, 2012 <http://www.fashionist.ca/2011/11/benettons-controversial-unhate-ad-campaign-features-world-leaders-kissing.html?cid=6a00e54f9153e088330153932805c5970b>
