United Colors of Benetton


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Sudip Dutta
PGDM Marketing
2010 - 2012
Globsyn Business School, Calcutta

Published in: Lifestyle, Business, Design
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  • OS: (opening soon) is the future of retail
  • Canniblization by other brands of the group
  • United Colors of Benetton

    1. 1. By: -Sudip DuttaPGDM Marketing2010 – 2012Globsyn Business SchoolCalcutta
    2. 2. Founder‟s ThoughtLuciano Benetton : "The purpose of advertisingis not to sell more. Its to do with institutionalpublicity, whose aim is to communicate thecompanys values. We need to convey a singlestrong image, which can be shared anywhere inthe world.”Oliviero Toscani pursues this : "I am not hereto sell pullovers, but to promote an image"...Benettons advertising draws public attentionto universal themes like racial integration, theprotection of the environment, Aids...
    3. 3. ADVERTISING PHILOSOPHY“Communication should not be commissioned from outside the company, but conceived from within its heart.” - Luciano Benetton
    4. 4. Meaning Of United Colors Of Benetton LogoStylized knot of yarn with word Benetton printedunder it, contained within a dark green rectangleshows that brand deals in apparels and has astyle statement which differentiates it from otherbrands. It emphasizes its principal and mostimportant characteristic - uniqueness.
    5. 5. The Benetton Group Present in 120 countries around the world. More than 6000 retail stores worldwide. Produces around 130 million garments every year. Offers high quality customer services and generates a total turnover of over 2 billion Euro. Core business is clothing with a strong Italian character whose style, quality and passion are clearly seen in its brands.  The casual United Colors of Benetton  The fashionable Sisley  Playlife leisurewear  Killer Loop street-wear  Undercolors of Benetton undergarments
    6. 6. India Overview  Benetton is in India since 1992, through a licensee, but since Dec 2004, they have become a 100% subsidiary of Italy.  Avg. growth rate in India since 2004, year on year is 56%.  Expansion through multi format strategy.  UCB has the largest network for a fashion retail brand in the country across 52 cities.  Launched Sisley in Oct 2006 in India.  Launched UnderColors in Oct 2007.  Launched Playlife in March 2008.
    7. 7. India Overview Contd…  Retail Area – Over 250000 sq. ft.  Average Store Size – 1500 sq. ft.  No. of Stores with 20 million Plus turnover – 24%.  130 plus Exclusive Stores.  Selling more than 2.5 million garments a year.
    8. 8. Mumbai UCBMegastore 11,000 sq. feet 2 Floors Menswear Womenswear Childrenswear Undercolors
    9. 9. Delhi UCBMegastore 7000 sq. feet 3 Floors Menswear Womenswear Childrenswear
    10. 10. Bengaluru UCBMegastore 10000 sq. feet 3 Floors Menswear Womenswear Childrenswear
    11. 11. Chandigarh UCBMegastore 10000 sq. feet 4 Floors Menswear Womenswear Childrenswear
    12. 12. Stellar Performance in Indian MarketNORTH INDIA• UCB South Extension is the highest revenue grosser among singlebrand retail stores.• At Rs. 134/sq. ft. UCB Khan market is the highest. It is closelyfollowed by UCB Defence Colony @ Rs. 116/sq. ft.WEST INDIA• UCB Megastore at Linking Road, Mumbai is credited for developingthe high street and the highest turnover.• UCB Inorbit Malad at Rs. 135 / sq. ft. is amongst the highest salesper sq. ft. in the fashion apparel category.SOUTH INDIA• UCB Forum Bangalore does highest turnover for a single brand inthe mall.EAST INDIA• Shillong is the biggest Single brand store in the North East region.• South City Kolkata does the highest turnover for a single brand.
    13. 13. Entering Core IndiaBenetton is not just a brand for the metros; they are alsopresent in Tier II & Tier III Cities.
    14. 14. LucknowUCBMegastoreRecentlylaunched its 3rdstore inLucknow- area of 3200sq. ft., withexciting visualmerchandising& a wide rangeof merchandisefor adults &kids.
    15. 15. Other Fashion CitiesMega stores in Tier-2 towns with carpet area in excess of4000 sq.ft. e.g. Dehradun, Amritsar, Jaipur positioned as“THE FASHION DESTINATION” in that city.Mall Road, Amritsar Tonk Road, Jaipur Rajpura Road, DehradunThese stores have shown results 30% above expectation -shows the customer‟s trust and acceptance of Benetton.
    16. 16. Fashion @ Small TownsEven towns likeNasik, Kolhapur, Aurangabad, Mysore, Mangalorehave shown very impressive performances.
    17. 17. Visual Merchandising –treat for the eyes!• One of the only brands to represent“merchandise thematically”.• International standards and lookguides are followed with respect to: - – Folding – Tabletops – Browsers – In-store displays• Coordinated merchandize display – Consistency across stores
    18. 18. Visual Merchandising- Window Designs Innovative window display• In the fashion capitals of the world, the Windows of fashionbrands are kept lit at night, attracting passers by andreinforcing both visibility and brand recall.• UCB are also trying to make that happen in India, and thewindows change constantly, with the seasons, with newmerchandise and on special occasions.
    19. 19. Visual Merchandising- In-Store Visuals • Larger than life. • Theme specific. • Endorsement of ordinary people, no celebrity involved. • United: above racial origin of model.
    20. 20. UCB sells Fashion, not garments!• Plays a very important role because UCB don‟t believe inselling „one‟ piece but a complete ensemble.• In other words, UCB don‟t see themselves as sellers ofclothes but as fashion leaders who strives to uplift the youngand the restless.
    21. 21. Competitors International National Victoria‟s secret Jockey, Hanes Gap Numero Uno Tommy Hilfiger Tommy Hilfiger Wrangler Wrangler
    22. 22. Advertising Idea United color of Benetton carries “A Big Idea” as a concept. Grab attention by shocking images. A distinct image. Draw people attention towards issues like racial abuse. Position the company as a social conscious marketer.
    23. 23. Building Value For The BrandThe process of building value for UNITEDCOLORS OF BENETTON follows three phases: - The cycle of difference. The cycle of reality. The cycle of free speech and the right to express it.
    24. 24. The Cycle Of Difference In this cycle, the word “different” became a close controversy. Benetton learned that attempt to bring different individuals together can lead to conflict instead of happiness and euphoria.By acknowledging these differences andprohibitions, the brand appeared moreinvolved.
    25. 25. The Cycle Of Reality After equality and the exaltation of differences, Benetton turned to the reality of what is common to all and shared by humankind. In 1991, during the Gulf War, this image was created, a photo of a war cemetery.Benetton answered with a birth, thefamous image of a newborn baby stillattached to the umbilical cord. Photos of real, high- drama situations: - A man dying of AIDS, A car on fire.
    26. 26. The Cycle of Free Speech and Right to Express itThrough its alliance with non-profit associations,institutions, and large international organizations,Benetton proved that a “different” use of advertising wasindeed possible and seen as the creation of value and sooncame in fashion catalogues. For the sixth World AIDS Day, on December 1st 1993, an enormous pink condom, 22 meters high and 3.5 meters wide, was placed on the obelisk in the Place de la Concorde in Paris.All the daily and magazine press featured this imagethat has become a symbol of the fight against AIDS.
    27. 27. Advertising Campaigns 2001, Volunteers in Colors: Benetton communication campaign, a special issue of COLORS and a concert, in collaboration with UN Volunteers to celebrate the International Year of Voluntary Work. 2003, Food For Life:The campaign highlighted the problem ofhunger, which is still the greatesthumanitarian emergency around the world. 2004, James & Other Apes: Through this initiative, Benetton continued its exploration of diversity, extending it from the variety of human races to embrace the living beings that are our closest cousins.
    28. 28. 2008, Africa Works: Benetton chose to support and promote this important project because, unlike traditional acts of solidarity, it offers tangible support to small local entrepreneurs through the efficient use of micro-credit. This project effectively promotes the new face of Africa.
    29. 29. Media Selection  Magazines  Internet  Newspaper  Television
    30. 30. Different Appeals Portrayed Emotions Fear Fun
    31. 31. Promotional Tools
    32. 32. RECOMMENDATIONS Instead of shock advertising, it should go for more consumer friendly advertising. More TV Advertisement. Self cannibalization. Crowd sourcing.
    33. 33. THANK YOU