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United Colors of Benetton pdf

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United Colors of Benetton pdf

  1. 1. BRAND DEVELOPMENT AND COMMUNICATION STRATEGIES Unit Code: FFM610 Assessment Type: Report Assessment Title: Fashion Brand advert proposal Assessment Number: AE1 Unite Leader: Tamsin Mclaren Student Name: Viktorija Kolosova Student Number: Q09854215 Level: 6 Word Count: 4092 United Colors of Benetton Advert Proposal
  2. 2. 2 The Title United Colors of Benetton is a well known Italian brand which targets the mass middle market, with mildly fashion-influenced ranges aimed at younger adults in the age range of 25-40. United Colors of Benetton has become more recognisable for its profound and creative approach to advertising than for its clothing. The brand has concentrated on issues such as the death penalty, AIDS, race relations, world hunger and child labour. Many past billboards’ posters arguably have caused problems worldwide for the brand as people’s interpretations and understandings were different from the original intensions to. This report addresses this problem by investigating opportunities within the United Kingdom market of creating a new distinctive company image. It will present a solution by means of a new advertising scenario; specifically via a billboard design.
  3. 3. 3 Contents page Introduction ....................................................................................4 Executive summary............................................................................5 History and Heritage of United Colors of benetton.......................................6 Core values of United Colors of Benetton..................................................7 Situation analysis ..............................................................................9 Competitors of United Colors of Benetton ............................................... 18 Consumer overview.......................................................................... 25 Benetton long and short term goals....................................................... 26 Brand positioning ............................................................................ 28 United Colors of Benetton guidelines..................................................... 29 Billboard Current trends .................................................................... 34 Billboard advertisement key facts ........................................................ 36 Business metrics ............................................................................. 37 Conclusion .................................................................................... 40 References.................................................................................... 41 Appendices.................................................................................... 49
  4. 4. 4 Introduction United Colors of Benetton is a well-known Italian fashion brand being present in 120 countries worldwide with over 6,500 stores. The company was founded by Benetton family in 1965 in Treviso, Italy. Benetton clothing has a strong Italian character in various styles and designs. The company produces over 110 million garments every year, 90% of which is manufactured in Europe. The total turnover is over 2 billion euro each year. Benetton is famous for its shocking advertising where it is uses provocative images as technique to raise public awareness of social issues such as peace, racial integration and AIDS. These advertisements brought much criticism and caused damage to the brand image, however, it developed a distinctive identity. This report will analyse and investigate whether there is an opportunity within the United Kingdom market to build a new distinctive company image. It will present a solution via a billboard design which is very different from previous advertisements.
  5. 5. 5 Executive summary This report intends to professionally analyse and evaluate the United Colors of Benetton brand current reality, management activities, marketing strategies and competition. Within this report there will be data, communication strategies and facts regarding the Benetton brand and what is their current brand identity. The aim of the report is to investigate if there are any opportunities within the UK for the brand to develop a new unique brand image by creating a billboard, for the purpose of increasing brand awareness from the different perspective, hence boosting sales margins. Finally, the context of this report will also assess the market research, by means of examining the brand’s current situation within the UK market; consider their main competitors and comparing their communication techniques implemented to Benetton methods used to deliver message to the customers.
  6. 6. 6 History and Heritage of United Colors of benetton United Colors of Benetton is an Italian clothing brand based in Triviso, which was founded in 1965 by Luciano Benetton. The name of the company comes from the Benetton family. The company has integrated distinctiveness including colours, genuine fashion, quality at reasonable prices and passion for its work. (Benetton 2013) To attract a fast growing youth market, the company decided to make the sweaters in bold, bright and enjoyable colours. To cooperate with this new image, the company had changed the name from ‘Benetton’ to ‘United Colors of Benetton’. (Iml 2013) It moves at the world’s speed, overcoming geographical, political and ideological limitations. Nowadays Benetton is one of the most famous fashion companies in the world. (Benetton 2013) In 1978 Benetton was reorganised as a limited liability company and in 1986 they took on the name Benetton Group. Before June 1986, the company was entirely owned by the Benetton’s family. (Slideshare 2013) The Benetton Group head office is located in Villa Minelli, Ponzano, which is 30 kilometres from Venice. Villa Minelli is a complex of 16th century buildings of great historical and cultural interest. They have purchased this complex in 1969 and renovated it; the renovation process took over fifteen years to finish. From the mid 1980’s, Villa Minelli has been the Group’s base and the spirit centre of its business activities. (Benetton 2013) Benetton’s apparel business includes 5 brands: 1. UCB- flagship brand 2. Sisley- the trendiest brand 3. The Hip Site- the newest group brand 4. Killer Loop- sportswear 5. Playlife- sportswear At the moment they have over 6,500 stores in 120 different countries. Benetton is Europe’s largest clothing manufacturer and the world’s largest buyer of wool in the garment sector and they have 9 factories in different parts of the world and an- annual revenue of 2.0 billion Euros in retail sales. (Tv1408 2012) Alessandro Benetton has been Chairman of the Benetton Group since April 2012 and is now guiding the company into their next stage of development. (Rames Gaiba 2012)
  7. 7. 7 Core values of United Colors of Benetton Benetton’s core values are being a globally responsible and a concerned company in social, environmental and economic terms. (For ‘Onion Model’ see section 9) They are committed for present and future generations, growing together with society in which the company operates, in Italy and all other markets. Benetton is friendly to human dignity and to the change of society. All this creates their company’s values and aims to grow by making a contribution into a progress of a developing market. (Tv1408 2012) How it has started In the beginning, the company started with the advertising strategy which was based on picture of young people who is are of different skin types, colour, and race wearing colourful clothing. They tried to convey that there is no difference between skin colours; everyone is equal. Benetton’s aim was to show their tolerance to cultural diversities. (Burpee 2011) The denotative sign of this image is eight people wearing colourful clothing who belong to different races. The connotative here is ‘diversity’, ‘multiculturalism’, ‘equality’, ‘political’ and ‘social’ change. Nevertheless, later, Benetton changed their advertising strategy. They started to design advertisements showing the world’s biggest issues; war, Aids and other social problems. These advertisements were shocking and controversial which was a source of negativity coming from the public’s side. Benetton tried to make exciting emotions but developed (raised) the opposite feeling in people. (BBC 2011) In the picture is the pope kissing Imam Ahmed el Tayyeb, from Benetton’s ‘Unhate’ campaign. There are two main signifiers who are the heads of two religions. They were connoted with the idea of power, representation of their country or religion and that they signify ‘opposition’. Benetton putting them on the same image related to inducing the concept of cultural, political or national barriers. The aim of this ad was to show the equity and totally reverse the message by uniting the
  8. 8. 8 opposite leaders into a kiss what means ‘sign of love’, ‘intimacy’, ‘trust’ and in this context ‘peace’. It was the most controversial and inappropriate of advertisements, compared previous campaigns. This campaign caused a lot of disapproval and enmity. The Vatican protested and next day it was removed; they found it unacceptable and disrespectful. Besides of all the negativity, Benetton’s aim to attract attention was attained. People talked about it and discussed the advert for a long time. However, now, Benetton in people’s minds is a brand with shocking advertisements and forgotten its reputation for its colourful, high quality clothing. United Colors of Benetton Brand Identity Externalisation identifies what Benetton is to the outside world it interacts with: Physique: colours, individuality, shocking ads, controversies Relationship: unity, equality, friendship Reflection: multicultural, exciting, unconventional, modern, independent minded Internalisation identifies Benetton image internally: Personality: innovative, rebellious, daring, provoking, full of energy Culture: Italian, quality, tolerance, brotherhood, awareness Self image: feel good, extrovert, comfortable, vibrant Figure 2.1 Kapferer’s Brand Identity Prism (Brahimi 2010)
  9. 9. 9 Situation analysis Benetton is an incorporated Italian manufacturer, distributor and retailer of clothing and textiles. It merchandises through a mostly franchised store network operating in Europe, Asia and the United States of America. (Mintel 2011) Primary Research: The questionnaire was conducted to complete online through Surveymonkey. There were 52 respondents altogether.  For the full questionnaire data see appendix 1. Key Findings: Brand familiarity: 96% of respondents are familiar with the brand Brand association:  Advertising 74% of respondents  Colours 48% of respondents  Clothing 39% of respondents Shop at Benetton:  56% do not shop at Benetton  44% do shop at Benetton 44% of respondents usually shop for:  34% -outerwear  22%- knitwear and denim  12%- accessories 55% of respondents on why they do not shop at Benetton:  Not enough marketing on clothes  No stores nearby  Prefer other retailers Position of Benetton:  57%- Mid- market  39%- Upper-middle market  4%- Lower-middle market Suggestions to Benetton how they could improve their brand image:  More emphasis on product than controversial ad campaigns  Change advertising strategies  Follow the latest trends
  10. 10. 10 Customers recognise Benetton as a global, colourful clothing retailer for everyone who offers high quality clothing at affordable prices. It is trustworthy, different, and reliable with a wide variety of clothing in offer which provides a good value for money. Its clothing is full-of-energy, comfortable, cheerful and satisfies needs of a customer. The brand builds loyal and engaging relationships with its customers and stays friendly. Conclusion: According to the primary research, United Colors of Benetton need to work in the advertisement segment and the way they want to communicate with the potential customers. This would help it to bring in new customers. It needs to increase its brand awareness by advertising clothing rather than the world’s social problems. The people who know about the brand and are using it are very loyal to it. They have trust in the quality of the product and they want to be associated with it. However, Benetton should focus more on creating awareness and try to bring in new potential consumers who could then become a loyal. Figure 3.1 Keller's Brand Equity Model Benetton Brand Equity Salience: Colourful clothing Performance: Affordable, quality, reliable Imagery: For everyone, worldwide Judgments: Trustworthy, variety, value for money, different Feelings: Full of energy, comfort, fun, satisfaction Resonance: Loyalty, engagement and attachment.(Mindtools 2013)
  11. 11. 11 Secondary Research: Figure 3.2 Top 10 ‘Clothing retailers’ shares of consumer spending on clothing and footwear 2011-2012 (Mintel 2013) Where United Colors of Benetton is now? According to Mintel’s report (Mintel 2013) on ‘Clothing retailers’ shares of consumer spending on clothing and footwear 2011 and 2012 it is seen that M&S holds the biggest market share in this sector. M&S has over 700 stores across the United Kingdom and Republic of Ireland (Marksandspencer 2013) with 7.6% of market share in 2012. It is seen that M&S market share decreased in 2012 comparing to the previous year. Next has taken the second biggest market share of 7.2%. Based on this information Benetton has less than 1% of this market share as they are included in ‘All others’ category with 57.4% in total.
  12. 12. 12 (Mintel 2011) Figure3.3 Benetton Sales as share of clothing specialists’ sales in Europe 2006-10 According to Mintel’s report on ‘Benetton Sales as share of clothing specialists’ it is clear that Benetton struggles with finding its position within the fast paced fashion environment. It has resulted in a poor market share performance over the past five years; over the period it decreased by 0.5%. (Mintel 2011) Benetton market share within the UK is only 0.7%. The first goal should be to return to the European division, in this case England, and salvage sales growth by what can be achieved by making improvements in consumer reaction, for instance, changing the direction of advertising.
  13. 13. 13 (Mintel 2013)  Trends in the Age structure of the UK male population, 2007-2017 see appendix 2. Conclusion: Benetton with good marketing communication methods and by remaining a colourful and qualitative fashion brand at reasonable prices can attract attention and strengthen awareness of all positive aspects of casual clothing retailing. Also they are likely to increase the number of consumers who are willing to buy their clothing range, if they will improve their e-commerce channels. It will bring to Benetton a great chance to engage with existing and potential customers as today a large number of customers shop via online. Figure 3.4 Trends in the Age structure of the UK female population, 2007-2017 Benetton is aimed at adults aged 25-40. According to the figure shown above, there are a growing number of 25-34 year old women who are shopping more often. This age group are the most ready to pay more for a brand they like. (Mintel 2013) It will provide new opportunities for Benetton to catch the attention hence increase sales margins. This can be done by implementing different marketing approaches, for instance, social media. Social media is an important part of everyday life and can assist with communication and spreading news around the world. As women love colours and stories behind clothing, Benetton has an opportunity to communicate in a positive and creative way.
  14. 14. 14 Benetton Marketing Mix Table 3.1 Benetton Marketing Mix Product  Rich choice of colour  Clothing for women, men and children  Accessories  Footwear  Various sizing  Swing tags  Product guide  Product care instructions  Quality Benetton clothing is made for women, men and children from different fabrics such as alpaca, angora, cashmere, cotton, organic cotton, viscose and wool. All clothing is of a high quality and very colourful which is available in various sizes. (Benetton 2013) Nowadays, it is important to make clothing available in variable sizes for all types of customer. Price Architecture of Benetton (average) (Posner 2011) Benetton price range for quality clothing is reasonable as they focus on the mid-market customers. Their dresses can be bought for £20 which is the cheapest price point; coats and jackets are available for a higher price, the most expensive garments, where the cheapest price point is £65. (Benetton 2013) Benetton’s benefit is that it has a great variety of clothing and footwear at different prices which potentially can attract a new customer target market. Place  In-store distribution  Franchises  Online distribution Benetton sells their clothing in-store worldwide and also through the online channel, on their official website www.benetton.com. They are distributing through many franchises who sell their clothing in the stores. (Benetton 2013) There are opportunities to increase sales by implementing different marketing tools, for instance, an advertising campaign which is not related to any global issues but focuses the attention on clothing itself. Promotion  Facebook  Twitter  Pinterest  Youtube  Foursquare  Benetton’s website  Advertising campaigns  ‘Colors’ magazine  ‘Fabrica’ communication research centre of Benetton Benetton promotes its products through the social media such as Facebook, Twitter, Pinterest, its website, Youtube and Foursquare where they show the latest collections and special deals. In 2012 Benetton organised a competition called “The Unemployee of the Year” for young unemployed people age 18-30. This competition was designed to motivate the unemployed youth to take back their dignity and show the world they have practical skills to offer. (Thomas 2012) In the writer’s opinion, it was a great idea to attract positive attention from
  15. 15. 15 the younger generation; it built the brand awareness and made people to look at it from a different perspective. Benetton is selling online and if a customer decided to buy online there is many available options on how to pay for the order. They accept visa, master card, American express and even PayPal. They also offer exchanges and returns but they do not cover shipping expenses which might change a customer’s desire to buy. (Businesstudies 2013) (Mintel 2012) Figure 3.5 The size in which UK women buy their clothing 2011-2012, aged 16+ The report shows that in 2012 size 12 was the most frequently bought size among UK women. Results also show that 17% of UK women wear size 18 or over which reflects health statistics data; it put the rate of obesity among women at around one in five. (Mintel 2012) Benetton should consider producing clothing in bigger sizes if they want to increase their sales and strengthen brand image within UK market. At the moment, specifically, knitwear, dresses and shirts are available in the biggest size of 12.
  16. 16. 16 PESTLE ANALYSIS (Brassington and Pettit 2006, p.46)  For the full PESTLE Analysis see appendix 3. Table 3.2 PESTLE Analysis for United Colors of Benetton Political  Tax Policy  Employability regulations  Wage regulations  Tuition Fee rise  Trading laws  EU safety standards Consumer protection is very important nowadays, if Benetton fairly treats its customers then they do not have to change their business practices to follow agreements with the regulations. (Gov 2013) Economic  Recession  Unemployment  Growing inflation  Interest rates increase  Exchange rates With the growth of interest rates, for example, on mortgages, as a result customers’ expenditure increase, this can harmfully affect Benetton as customers have less left to spend on clothing. (BBC 2013) Socio-cultural  Demographics  Socio-cultural influences  Lifestyle  Consumer buying patterns If Benetton will create the styles that suit people’s lifestyles of a certain area then they will attract more customers to buy their products. (Suttle 2012) Technological  Availability of resources  Marketing tools  Production For Benetton it is important to raise their appeal and succeed through marketing tools. Social media is one of the most important tools of communication with existing and potential customers, especially Facebook and Twitter. (Belam 2012) Legal/regulatory  Health and Safety regulations  Copyrights  Consumer protection  Trade regulations Trade regulations have to be met by Benetton as they sell products internationally; they have to make sure that all procedures meet International laws. (Gov 2013) Environmental  Sustainability  Recyclable  Personal ethics Benetton has to follow recycling regulations otherwise it could harm the environment. (Defra 2012) Benetton is creating a picture of a company who is caring about the environment; this shows how much they are concerned about the planet which will attract more customers.
  17. 17. 17 SWOT ANALYSIS Table 3.3 SWOT ANALYSIS of BENETTON (Brassington and Pettit 2006, p.1007) According to table 3.3 Benetton strengths and opportunities dominate over the weaknesses and threats. Nevertheless, Benetton wants to avoid any possible threats and weaknesses with building the outstanding brand which is recognisable worldwide. To achieve this, Benetton will design a completely new advertising campaign while continuing to produce colourful clothing. This new campaign will be presented to reach new customer base and strengthen relationships with existing customers. Moreover, if Benetton will start using celebrity endorsements it can make people being more aware of the brand and its values. Therefore, Benetton can achieve a higher percentage of sales figures in the future. Strengths  Brand equity  High quality materials  Range of sizes, shapes and colours  Multiple distribution channels  Global assortment Weaknesses  Competitors  Age limit  Recession Opportunities  Producing bigger sizes  Implementing a new theme for advertisement  Celebrity endorsements  Raise of minimum wage Threats  Retailers with the similar products’ range  Increased taxation rates  Unemployment  Copyright
  18. 18. 18 Competitors of United Colors of Benetton The competitors of Benetton are brands with similar targeted customer market and in the offered product range. Benetton competitors are listed below: 1. Inditex Zara- a Spanish fashion brand with 6 fashion chains and over 1,200 stores worldwide. 2. The Gap- an international American fashion brand worth 11 billion dollars. 3. H&M- a Swedish fashion company whose sales are about 6 billion dollars. (Andreiadis 2012) 4. Mango- an international Spanish brand which designs women’s and men’s clothing and accessories. (Mango 2013) 5. Esprit- an international American fashion brand. (Esprit 2013) According to Porter’s 5 Forces, it is important to be aware of competitors and their products as it helps to analyse whether new products have the potential to be profitable and what can be undertaken to compete effectively. At the moment, United Colors of Benetton is currently in 120 countries while brands like Zara and H&M are not in more than in 30 countries. (See Table 4.1) It is clear, that Benetton has dominance and great potential over its competitors to be globally recognisable. However, to stay competitive in the market Benetton it has to implement different marketing strategies to increase awareness of the brand. Figure 4.1 Porter’s 5 Forces (Geekyfry 2012)
  19. 19. 19 Table 4.1 Global Brands’ Presence Brand Global presence (countries) Benetton Inditex Zara Gap H&M Mango Esprit 120 77 90 53 107 >40 United Colors of Benetton has five competitors but the writer chose to analyse the two main competitors which are Zara and Esprit. Zara was chosen due to its fast response, in terms of a new style and modification whether Esprit due to its customer profile. Both competitors are evaluated below: ZARA: The fashion brand Zara has a unique marketing strategy. Zara’s expenditure on promotion is about 0.3% of their revenue. Based on this information, this could be the reason that Zara does not appear on television or poster advertisements. (Chan 2011) Zara’s the main centres of attention in terms of promotion are:  Product- Zara never places their brand or logo on the products, very rarely promotes store sales.  Place- Zara’s stores are always located in the epicentre of retail.  Price- Zara’s innovative products at affordable pricing is the key that keeps customers returning to their store. (Chan 2011) Product and Price: For the people who are fashion aware Zara lights up hopes and dreams as they are making lines inspired by the latest catwalk shows. Zara are designing clothing ranges keeping up with the latest trends which are sold at reasonable prices. Moreover, their new stocks get delivered to stores in less than 15 days. (Belle Kwan 2011)
  20. 20. 20 Louis Vuitton Fall ’13 Catwalk show. Zara’s Fall ‘13 lingerie style dress. Zara amazingly redesigns the most luxurious garments presented in the catwalk shows. This style of dress represents sexuality, attractiveness and lack of restrictions. Place: Zara’s store locations and window layouts are their biggest form of advertising. They also spend a lot of time designing window layouts in an artistic and attention catching manner. (Chan 2011) From personal observations made displays will never be seen for more than two weeks in the same windows. In the picture is shown Zara’s window display on Bond Street, London 2013. (Retaildesignblog 2013) This window display denotes the clothing range and connotative meaning is stylish, trendy and mysterious. Echevarria says: “I think this is the best form of advertising, because the customer walks past a shopfront, becomes interested in our display and can immediately come inside to start shopping. It is an instant process.” (123Helpme 2013) On the right picture is shown Zara’s Flagship store in Rome. (Designboom 2013) The store is very spacious, has lots of light, and is sparkly and modern. Everything looks very classic and glamorous. Zara always gets it right in terms of store design and display; a customer will definitely want to
  21. 21. 21 experience the shopping spree at Zara. Conclusion: Zara’s product life cycles is the main marketing tool to communicate with their customers, for example, all their stores are located in the heart of retail for making marketing visible. Today, customers know that every visit will be different and with new stock to choose from. Their products seemingly advertise themselves as they represent the latest catwalk show’s styles. Benetton would benefit if they would locate their stores on the busiest High Streets across the country. As Benetton’s potential customers are students and they will raise brand awareness, hence popularity by presence in the cities with universities. Zara’s strategy is designing clothing which is copied from the catwalk shows making them a successful brand. If Benetton will try to follow the latest fashion trends and show them in their range, they could gain recognition from potential customers and return the loyalty of past customers.
  22. 22. 22 Esprit: Esprit uses various advertising tools to communicate their brand message. The advertising campaigns they use:  Billboards and bus shelters. Every Esprit Campaign is implemented with extra carefulness. The campaign is always supported by powerful images and a comprehensive communication strategy. The pictures below shown are an example of how they present their outdoor advertising; they are very eye-catching. (Esprit 2012) The left side advert denotes a woman where connotative meaning is mystery, intrigue and innocence. The right side poster’s connotative meaning is self-confidence and charisma.  Print campaigns- another tool of communication which are presented in magazines such as Elle, Glamour, InStyle, Grazia and Cosmopolitan. (Esprit 2012) Esprit through these campaigns is trying to focus on the key products and interpret them in a very creative way; it catches attention, therefore attracts existing and potential customers to buy products. Esprit Womenswear Summer 2013 Print campaign for Glamour magazine. (Glamour 2013) An ocean on the background shows independence and freedom and it is demonstrated in the model’s look-in the way she is posing for the camera. Also the model is wearing pastel colour clothing that represents calm mood and readiness for the time to relax.
  23. 23. 23  The most recent Esprit campaign was ‘Skye Photography and Installation’ by Astrid Munoz who is a model and photographer. It was a special event which took place September 27, 2013 in Paris. Esprit together with Astrid Munoz invited guests to get on an exceptional journey to the Esprit Fall/Winter 2013 campaign place, the Scottish Isle of Skye. This campaign was presented through photography, multimedia installation, video projections, and sound effects of various picturesque Scottish places. (Esprit 2013) This is one of the campaign’s photographs. Esprit is a fashion brand and if this picture would be interpreted as a woman and her personality then the writer would say that the green and dark colours, small water waves with a small amount of lightning give the feeling of a woman who is self- confident, talented, adoring and naturally elegant. The Scottish landscape photo leaves an impression of mystery and creativity; a great and surprising choice to engage customers.  Esprit also uses top models for their campaigns, for instance top models Erin Wasson, Coco, Missy, Du, Anne V, Gisele Bundchen and Cathrine McNeil. Erin Wasson gives a feeling of a lady temptation whether Cathrine McNeil represents deception and assurance.
  24. 24. 24 Conclusion: Esprit uses various marketing strategies to engage customers; from advertising on bus shelters to the use of top models in their advertising campaigns. Benetton could start using celebrities to advertise their clothing as it has a huge impact on customers’ buying behaviour as it also attracts their attention. Esprit put all their energy on advertising their clothing and design on very well presented billboards. That is what Benetton should start doing; concentrating on clothing a range rather than on social issues which will give the customer an opportunity to look at the brand with a fresh view.
  25. 25. 25 Consumer overview Existing customers: Existing consumers of United Colors of Benetton are women and men aged 25-40 belong to ABC1 social group. They are educated and in full-time employment, so they have a sufficient amount of money to spend every month on their desires. Their belief is by being equal no matter what race or colour the person is will help make this world much happier. A particular favourite quote of consumers is expressed by Pablo Picasso: “Colours, like features, follow the changes of the emotions.” (Brainquote 2013) Existing Benetton customers perhaps have children, as Benetton offers a wide range of clothing for children which is colourful and bright like the adults’ assortment. In their free time of work they love spending time with children and doing different outdoor activities so they give a preference to casualwear which is comfortable. Benetton is the shop where they find clothing for all family and this clothing makes them feel good and comfortable. Potential customers: Potential Benetton customers are students in full time education in their early twenties. Some of them are in part-time employment to earn extra money for their every day needs. They love to express themselves when around their peers. Their belief is by being honest and it will help make new friends and contacts which are important going through different life cycles. Their favourite saying is: “Everyone shall love their neighbours as themselves.” In spite of their young age they are self motivated and enthusiastic. Their dearest wish is after graduation to become professionally organised and successful people. In their free time they like socialising and going out with like minded peers. They prefer listening to pop culture music like Rihanna, Beyonce, Bruno Mars and Justin Timberlake. They are wearing clothing rich in colours so Benetton is the place where they can enjoy the paradise of colours.
  26. 26. 26 Benetton long and short term goals Long-term Benetton wants to be a socially responsible international retailer known for its fashionable, colourful and high quality clothing. The brand wishes to strengthen brand image, specifically in the United Kingdom and this can be achieved by implementing short-term goals. Example: In the picture is shown the Ralph Lauren Polo Resort 2013 Campaign. (Sageclothing 2013) The American brand is famous for offering clothing in colourful prints, bright and vibrant colours; Ralph Lauren is also well- known as a high quality fashion brand. The brand is communicating its values inside out without forgetting the label’s signature traditional style. Short-term  They want to achieve an increase in sales, Benetton will implement a new advertising campaign demonstrating the colourful and trendy clothing which, therefore, will attract a new customer base and strengthen relationships within the existing customer base. The goal is set to be achieved by the 30th of September 2014. Example: Ad Campaign of Etro: Autumn/Winter 13/14 Collection. Etro is well-known for its paisley prints, and this campaign represents it all. Models males
  27. 27. 27 and females look very sophisticated; clothing is very rich in hues and ornate. The place is perfectly chosen for this ad, a dark atmosphere with fresh flowers in the background, giving a feeling of mystery whilst adding a modern twist to a heritage setting.  Benetton will start using celebrity endorsements as celebrity influence is vast. Nowadays, celebrities have a huge impact on consumer buying patterns therefore; it will be implemented for Autumn/Winter Collection 2014. Example: In the picture is shown the H&M Summer Collection 2013 campaign with Beyonce. H&M by featuring a song from Beyonce’s own album and linking the ad to her tour with the same name, H&M has reached millions of fans following her through social media. (Peck 2013) It was a great choice of celebrity which succeeded in terms of building brand awareness and attracting customers’ attention, hence increasing sales figures.  The short term goal is to increase social media impact on consumers. Benetton will get 2-3 posts on its Facebook page every day communicating the fashion trends, new arrivals supported with a hidden story and discuss their daily activities. It will give an opportunity to engage customers and increase Facebook followers. This goal will take place from the 1st of January 2014 prior to the 31st of December 2014; the success will then be measured by change in amount of Facebook followers. Example:Burberry builds broader customer relations through social media channels. The Chief Executive of Burberry Angela Ahrendts said: “You have to be totally connected with everyone who touches your brand.” (Salesforce 2013) Now, the brand has more than 10 million Facebook followers which make a stronger Burberry World where visitors can engage, entertain and interact. It can also be where they can experience outstanding luxury shopping.
  28. 28. 28 Brand positioning Vision and Values were written according to the primary and secondary research. The primary information was gathered from the manager of the brand; the manager was contacted directly. (See app. 4) Personality and Positioning was created based on what the writer of this report has devised. (Cohesionbrandblog 2010)  Vision- Benetton positions itself as a company which looks ahead with the young eyes of the future. Its story is built on innovation and seeing what others fail to see. Always distinctive in colours, with absolutely exceptional production and business complex with a worldwide form of communication, creating both a phenomenon and cultural debate – Benetton was global before globalisation, but in its own way. (Benetton 2013)  Values- United Colors of Benetton is devoted to being a globally responsible company in social, environmental and economic terms. These commitments are for present and future generations, to grow together with the community in which the company operates such as Italy and all other Figure 7.1 Benetton Brand Position
  29. 29. 29 markets. Through marketing techniques they want to be associated with a company who is trying to raise awareness of world issues. Moreover, the name United Colors of Benetton indicates that people of different racial backgrounds should come together and live in harmony and unison. (Benetton 2013)  Personality- Benetton is a fashion brand with a strong Italian character who offers high-quality clothing in various colours. Nowadays, they are a well- known company for their controversial advertising campaigns rather than for its clothing. Back in the these days, consumers were positively reacting on these adverts but after a series of billboard posters showing images of a nun and a priest kissing, plus many more shocking posters. Benetton started to lose loyal customers as complains were made. Now is the time to let people know the other side of the brand- the colourful clothing range.  Positioning- The main competitors are Mango, Zara, banana republic and Esprit. All these fashion brands have similar style clothing at alike pricing. However, Benetton seems to be richer at choice of colours and knitwear. Its ways of advertising left different opinions in consumers’ minds- as shocking and unacceptable, and as intriguing and extraordinary. There is no one who would not have their own opinion about the brand communication methods which makes it more distinguished over its competitors.
  30. 30. 30 United colors of Benetton guidlines Benetton Logo Adaptations: Logos listed left to right. Top: 1969, 1972, 1977. Bottom: Toscani 1989, Vignelli 1996, Pentagram 2009. The last logo ‘Pentagram’ is used since it was created. It represents in a perfect way the union of a contemporary logo with a traditional one, making it timeless. The logo United Colors of Benetton Is executed in such an accurate way that including it in any place will never result in a problem. A green background gives me a feeling of nature, self-respect and well being; a great choice of colour to represent the brand. Typography: Typography Gill Sans I am using Gill Sans typography which is very beautiful and visually appealing. It has been chosen due to its artistic and friendly character. I believe that Gill Sans font attracts the customers’ attention and gives them a clear understanding of the brand’s message.
  31. 31. 31 Imagery: United Colors of Benetton imagery represents and symbolizes independence, friendliness, attentiveness, simplicity, extravagance and elegance; the brand which is for every personality and occasion. I chose this imagery to show the customers’ characteristics who are wearing Benetton clothing; not in sense of colour. Colour Palette United Colors of Benetton is all about colours; it attributes a large amount of brightness and bravery. The brand offers a broad variety of effortless chic clothing to its customers’ which could be found in their favourite hues. For those who is not ‘colour wild’ Benetton presents less rich tones.
  32. 32. 32 The Tone of Voice  For the Benetton Press Release see appendix 5. Billboard Guidelines Message: “We do not live a black and white life”. It is short and straight to the point as people see billboard less than 4 seconds. Font: Gill Sans thick which is easy readable and eye-catching Product image:  Park  Different ethnic people  Black and white Press Release: BENETTON COLOURFUL EMOTIONS. United Colors of Benetton is proud to announce a launch of the ever fashionable Spring/Summer 2014 Collection WHICH CANNOT BE MISSED. The collection concentrates on music to reveal how the union of diversities lays the future. FOR RELEASE January 28, 2014 It does not matter if you are into rock or pop, house or hip-hop, drum&bass or classical, as we are all different in our preferences in music. Whatever background, nationality and religion we are, what we all have in common is our love and passion for fashion. The New Benetton’s Collection calls attention for the ‘Full of Energy’ clothing which is very original, provoking and loveable. Just like colour, music is a way to express yourself, to communicate your personal feelings, and above all, it is universal. Benetton’s Group Chairman Alessandro Benetton says: “This collection unites different cultures and experiences in a melting pot of musical genres. Benetton would feel honoured to share with you this love for fashion.”
  33. 33. 33  Putting an accent on clothing by leaving it colourful therefore making them stand out on a black and white background. For example: Park as a background International Students who will appear on this background. Their clothing will be in different colours.
  34. 34. 34 Billboard Current trends Jimmy Choo billboard for his Fall/Winter 2013 Collection. (Dailybillboardblog 2013) One of the main trends in billboards remains celebrity presence; on the billboard is seen the glamorous and sophisticated Nicole Kidman. This outdoor advertising is very simple and does not involve bright colours; however, it looks eye- catching and attractive due to its chic clothing demonstration. According to the AIDA Model, Jimmy Choo created a billboard that raises attention and interest in the brand which is leading to desire to buy. Figure 9.1 AIDA Brand Identity Model (Localcenters 2010)
  35. 35. 35 Tommy Hilfiger billboard (Jasonhollywood 2013) for its Spring 2013 Collection. This billboard is very different to Jimmy Choo’s advertisement. It consists of various bright colours, representing maritime mood and also as it is seen on the billboard he used diverse age and culture models which tell a story that every person can find something for themselves in the store. Referring to the model, Tommy Hilfiger catches the public’s attention by representing friendly mood and bright colours. Conclusion: Billboards are one of the most common ways of outdoor advertising. Many fashion brands prefer buy outdoor advertisements on a regular basis. The main advantage of billboard advertising is long life. For companies billboards are a distinguished advertising mechanism as the people see it every time they pass it by. Billboards can be placed on trams, buses, houses and all kind of stations and parks. They provide an efficient way to communicate a company’s location to travellers. Therefore United Colors of Benetton chose outdoor advertising to communicate its brand’s message to their audience.
  36. 36. 36 Billboard advertisement key facts Date and time of billboard: The billboard will be created and posted for United Colors of Benetton Spring/Summer 2014 Collection. It will be advertised on the 14th of February, just before the collection will be available in stores. The time of this billboard will be 4 weeks. It was considered that if advertising it for fewer than 4 weeks there will not be enough exposure. As a result the brand will be communicating their brand message prior to the collection appearance in stores and after to raise the company’s profile and drive sales. Moreover, the brand’s intention is attracting the customers’ attention and informing them about the new clothing range available. Frequency: According to the above information, the first billboard will be displayed for 4 weeks. Further billboards will be created for the same time of 4 weeks with different photographs. Location: Billboards will be posted in the metropolitan areas where the traffic of people is extremely high. Populated cities have a greater potential to be exposed to the message. United Colors of Benetton position themselves as a brand for everyone so the most suitable places to advertise are train stations, buses and near shopping malls. These locations are chosen in purpose of reaching their goal of attracting new customers hence remain loyal to existing customers. Communication vehicle: The main advantage of billboard advertising is long life. Benetton gives a preference to this advertising method as it guarantees that people will see it. Moreover, public will notice the billboard whether they like it or not. For Benetton is important to advertise in busy locations where people pass the same places repeatedly, for example, people’s way to work each day. This means that they will see it on a daily basis which makes it more likely to stay in their minds. Also the billboard’s benefit is that a brand can use billboards to inform people who do not have computers or access to the Internet.
  37. 37. 37 Business metrics The cost to make and advertise a billboard: Price per billboard for 4 weeks: London Local 48 Sheet (20ft x 10ft) - £700 Benetton will place 85 billboards across London. The total cost: £59.500 Billboard poster production: 1 x 48 Sheet Corex (Long Life, Weather durable sign) £400 Benetton will produce 100 billboards which will be placed across London and in the Underground. The total price of production: £40.000 Price of 15 posters in the London Underground: Platinum 2 weeks price cost £57.960. Benetton will advertise for 4 weeks in the London Underground. The total cost: £115.920 Total cost: £40.000+£59.50 0+£115.92= £215.420 Prices can be found on the link showed below: http://www.cbsoutdoor.co.uk/Global/UK/documents/2011_Rate_Cards/London%2 0Underground%202011.pdf
  38. 38. 38 The cost of studio, models, make-up artists and graphic designer: Studio Hire Price (8 hours) £80 (all lighting is included as part of the studio hire) Professional Make-up artist half day (4 hours) £100 Professional Photographer full day (8 Hours) £180 Professional Model full day (8 hours) £160 Graphic designer £200 Total Cost: £720 The prices can be found on the link showed below: http://www.uniqstudios.co.uk/prices-rates/photographer-model-mua-hire-price- list Based on the above stated data, the total cost (thousands) of the billboard: £99615.92+ £720=£216,140
  39. 39. 39 Benetton designed billboard to ‘go live’ February 2014 for four weeks advertised in the London Underground and across London. Key Facts:  Almost 3.5 million commuters daily use the London Underground. (Tflgov 2013)  London’s population is 8.3 million people. (Onsgov 2013)  In London Benetton have twenty one stores. (Benetton 2013) On the corner of the billboard will be Twitter, Facebook and Pinterest symbols with words ‘Follow Us On’. According to this information, after the billboard’s presence of four weeks, Benetton has set objectives on what it aims to achieve: SMART Objectives:  Facebook followers increase by 15% by the 31st of March 2013.  The store traffic increases by 20% by the 31st of March 2013. The success will be measured by:  Conducting online surveys to track brand awareness.  The response to advertising messages by calculating changes in website visits.  The change in store traffic. Return on Investment:  Increase in sales Previously Benetton’s controversial advertisement campaigns did not accomplish sales increases due to its shocking images, (Rangaswami 2011) however , the new advertising campaign, launched for February 2014, that concentrates its attention on clothing, Benetton believes it will boost sales hence increase brand awareness. It will be seen from different perspectives and attract attention by its vibrant colour clothing. As a result, it will give a completely different image of Benetton as now the public have divisive opinions about it.
  40. 40. 40 Conclusion A brand manager working within the fashion industry will develop brand strategies and work to the aim of maximising the sales volume and profitability of a brand’s adjustment. This position involves working on campaigns, for the purpose to retain drive and dealing with media agencies on a daily basis. To stay competitive in the market, the brand manager has to analyse market conditions to ensure the company can deliver tactical plans against the competitive marketplace. For instance, during the busiest periods such as launching new collections the role will be focused on maintaining a competitive and pioneering campaign each year. A brand manager examines market trends, runs advertising and implements marketing activities, by means to assure the right communication is delivered for the brand’s product. Besides a brand manager will ensure the delivery of exceptional customer service and the accomplishment of the sales targets of the fashion brand. The role of the brand manager involves recruitment, training and development of a highly motivated, service focused sales team. It is important to provide great training as a sales team represent the brand and they are direct communicators with customers. Moreover, the brand manager will push, control and support all sales and promotional activities by making concerned business decisions based on relevant store and competitor action. The distinctive brand identity is vital to a company as it is the way the consumer perceives the company. The Benetton brand’s personality consists of a unique intangible product attributes such as ‘friendliness’, ‘fun’, ‘care’, ‘equity’ and ‘lively’. However, this image was damaged by controversial advertising and now the brand is associated with the world’s related problems rather than its clothing. To conclude, there are found to be opportunities for Benetton within the United Kingdom to attract customers and stay competitive within the market. The suggested solution is to change the impression of the brand built by creating a new distinctive company image, in this case, via billboard. This can be achieved by the brand manager working together with marketers on designing a billboard, which points out the character of Benetton colourful clothing. The new advertising will change customers’ current perception of Benetton and increase brand awareness that is expected to be positive. Benetton believes the new business’ concept will be successful which will attract customers hence increase sales.
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  49. 49. 49 Appendices App. 1 SurveyMonkey Questionnaire
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  57. 57. 57 App. 2 App. 2 Trends in the age structure of the UK male population, 2007-17 (Mintel 2013) According to Mintel’s report, the growing group of men aged 25-34 is expected to increase between 2012 and 2017. (Mintel 2013) It will create an opportunity for the industry to improve sales and for Benetton’s future development amongst these men who are shopping the most regularly. This age group are the biggest online clothes shoppers and favour multichannel retailers. (Mintel 2013) It is a challenge for Benetton to improve their e-commerce and attract male customers to buy directly from the website. Research shows that they are still savvy shoppers and are more likely to shop around. Mintel: Menswear-UK-March 2013
  58. 58. 58 App. 3 App. 3 PESTLE ANALYSIS Political: With increased tax rates Benetton and its customers will have to spend more money which will negatively affect the company. (Collinson 2013) There are existing laws on how the employees have to be treated. If Benetton does not meet these regulations it will cause big problems and the company will lose its prestige but if it follows all the set regulations then the company will have a good continued reputation. (Brebners 2012) Wage regulations can have a positive impact on Benetton as customers with higher disposable income customers will come more often to the store or visit the website to buy products. (Businessstudiesonline 2012) Economic Recession affects the company’s success. During recession time governments might increase ‘value added tax’ which reduces the amount of disposable income and Benetton profit margin might decrease significantly. (Moulds 2013) Unemployment causes many problems for the business as unemployed people have a minimal amount of money to spend on clothes as it is not their main priority. Benetton could be negatively affected by this factor. (BBC 2013) The growing inflation can affect Benetton as during inflation, prices rise on goods and services. This means that costumers have not been able to buy as much with the money that comes in. (BBC 2013) Socio-cultural A company can evaluate and research what demographic situation is in a certain area and attract new potential target customers for the new range of clothing. (Demographicsonline 2011) Benetton can be negatively affected if they will not react on current economic factors such as recession. When people want to spend less on clothing, it can be beneficial if they could create a less expensive clothing line which could be afforded by people with low disposable income. (Keynote 2010)
  59. 59. 59 Technological Benetton have 9 factories so they are not dependent from suppliers and independent factories. It has a positive impact on the company such as fabric and product delivery is less likely to be delayed. (Gov 2013) Legal/regulatory If Benetton does not meet the Health and Safety regulations, it will harm its position within the market and possibly will have to pay fines. They should provide their employees with all the required conditions for work. (Hse 2013)
  60. 60. 60 App. 4 E-mail to Benetton manager:
  61. 61. 61 Tessa’s Curtis Answers over the phone: 1. Questions- young adults. Unique brand. High Quality fashion brand. They would position themselves- High Street retailer. 2. Competitors- Zara, Esprit and H&M 3. Potential customers: From children to all age adults. They are expanding their market in Eastern Europe. Esprit did not reply on the e-mail sent.
  62. 62. 62 App. 5 The tone of voice: PRESS RELEASE United Colors of Benetton launches ‘UNEMPLOYEE OF THE YEAR’. A new global communication campaign to support non-employed youth. London, 18 September 2012. Today, United Colors of Benetton presents its contribution to the youth non-employment issue, a crucial theme for the future of our planet and to which the brand wants to draw the public’s attention. United Colors of Benetton, through the UNHATE Foundation, launches an online contest to sustain 100 projects, submitted and selected by young non-employed people all over the globe. The UNEMPLOYEE OF THE YEAR communication campaign, set up under the aegis of the UNHATE Foundation, seeks to challenge clichés about youth non- employment and asserts a belief in the creativity of the world’s youth. Through it, the UNHATE Foundation, whose aim is to promote a culture of non-hate, will support youth to become actors of change against indifference and stigma. Young non-employed people, between the ages of 18 and 30, are invited to submit outlines of projects to be supported: within the UNHATE Foundation mission, their ideas must lead to concrete social impact in their community. (Benetton 2012) Available from: http://www.benettongroup.com/archive/press-release/united-colors-benetton- launches-unemployee-year-new-global-communication-campa

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