A. 1000-word reflection pieces that discuss how the lecture comple.docx

A. 1000-word reflection pieces that discuss how the lecture
complemented or contradicted the topic readings. Did you learn
something beyond the readings? What is / are the most
important takeaways on this topic? A final paragraph on
remaining unanswered questions / future readings / data you
would like to see or potential interest from a career perspective)
based on the lecturer. Please cite at least two references from
the assigned weekly readings.
B. You will begin with a portfolio worth $250,000, please make
an investment (s) totaling at least $25,000 in securities directly
related to the lecture topic. ETFs and mutual funds are
acceptable investments. You must provide a full description of
each investment position and investment rationale.
1. What is the dollar and percentage of your portfolio?
(portfolio trades must be completed by 4PM each Friday)
2. How does your portfolio performance compare to the S&P
performance since you made your first trade and the past week?
3. Discuss the reasons for the differences you identified in #2.
You need to include 1) the report or spreadsheet that shows
your open positions as a Table and 2) the Transaction History
report. You can hit the PrtSc button and then copy each into the
Word document.
Benetton Case Sample Case Study
Discussion Questions
1. What are the basic objectives of advertising? What are the
advertising objectives of Benetton?
Advertising may be used to achieve a variety of objectives

including building awareness of the brand and/or company,
informing customers about the product/service or company,
providing information and developing an image Additional
objectives include creating favorable attitudes and preferences
for a brand, persuading the target audience to switch brands,
and encouraging them to try new products. Advertising may also
used to maintain top-of-mind awareness of a brand and/or
company.
The objectives of Benetton’s advertising appear to differ from
those discussed above. Benetton’s shock advertising did not
focus on the company or its products, choosing instead to
address socially relevant issues that might concern the global
audience such as war, poverty, AIDS, discrimination and the
death penalty. Benetton believed that its advertisements could
project the company as a supporter of social causes and that its
customers would highly value that stance. Of course many
would argue that while Benetton’s goal was to use the ads to
position itself as a socially conscious company, the ultimate
objective was to use this image to help generate sales of its
products.
2. Discuss the pros and cons of the shock advertising campaign
that Benetton used for many years.
There are few companies in the world that enjoy the global
brand recognition of Benetton. The unconventional shock
advertisements used in this campaign evoked strong feelings
among consumers and helped the company attract attention and
generate publicity. One of Toscani’s quotes is appropriate here:
“Most good ads are forgotten after six months, but who still
remembers the Benetton ad with the priest kissing the nun? Ten
years later and people remember! That’s immortality!” Benetton
has always had an image as somewhat of a renegade in the
advertising community because of the avant-garde approaches

the company has used. However, the company is also known for
being very socially concerned and trying to make consumers
realize the realities of the world in which they live. Benetton’s
goal with the shock advertising campaign was to raise public
awareness of social issues and position the company as a
cutting-edge, socially conscious marketer. However, one might
argue that the ultimate goal of the campaign was to help the
company sell more of its products. The controversy
surrounding the various shock ads that Benetton used over the
past two decades generated a tremendous amount of publicity
and made many consumers aware of the company. Also, it is
important to note that Benetton’s primary target market is teens
and young adults who are likely to be more tolerant of the shock
ads as they may identify with the issues and causes the company
is raising in these ads. Thus, the campaign might have actually
helped Benetton’s image and sales.
There are also a number of negative aspects to the Benetton
shock ads. Many critics argued that Benetton was exploiting
human suffering to sell its products and felt that the company
used the ads to create controversy and generate publicity rather
than to address social issues. One might question whether the
type of publicity Benetton was getting from its shock ads was
really beneficial to the company. The Benetton ads were
controversial even in more liberal European countries, and
advertising self-regulatory bodies in Britain, France, and Spain
condemned some of the ads and urged magazines to reject them.
As long as the advertisements were just unconventional in
nature, Benetton’s image was enhanced and sales grew.
However, when Toscani resorted to using “shock techniques”
from 1991 onwards with the pictures of a priest and nun kissing,
a baby with uncut umbilical cord, etc., it generated huge furor
among religious and social groups, not to mention the
advertising regulatory bodies in various countries. Toscani
argued that the company’s intentions were misunderstood by the

public. While many thought the kiss to be inappropriate and the
uncut umbilical cord to be disgusting, the position of the
company was that all that was meant was to demonstrate love
and motherhood. Unfortunately for Benetton, many countries
banned the two ads. Another ad which created problems due to
its intensity was the scene of a dying AIDS victim. The ad
angered many viewers because they thought Benetton exploited
the man’s suffering and intentionally made him look like Jesus
Christ.
3. Oliviero Toscani has defended Benetton’s use of shock
advertising by noting that it constitutes nothing less than a
debate between advertising and art. He argues that potentially
offensive images are acceptable in the world of art and
journalism while in other realms such as advertising they are
not. Do you agree with Toscani’s position?
The position taken by Oliver Toscani, Benetton’s former
creative director, is that advertising should be free from any
type of censorship or scrutiny since it is often a form of art.
When viewing advertising as art it becomes difficult to say
where one ends and the other begins. If one views the Benetton
ads as a form of art, this suggests that there should be a wide
tolerance for the types of images used. The statement by
Toscani which is shown at the beginning of the case summarizes
his position very well:
When Life magazine makes a cover about war, it makes the
cover to inform, but also to sell the magazine and to sell the
advertising pages inside the magazine -- Chivas Regal and all
the others. So Time magazine and all the others make a cover to
inform and to sell. To do what I do, I do that to sell but also to
inform. And as soon as you inform, people point a finger at you
and say, "You are exploiting!" No. It's the people who don't
even inform [who are exploiting]. I don't care about the
rejection; I'm not afraid to be rejected. Actually, it's a big honor
in this world.

There are other examples which support Toscani’s argument.
For example, the December 22, 2003 issue of Time Magazine
featured the Year in Pictures 2003 and showed disturbing
images of the Iraq and Afghan war injured and dead -- not very
different from Toscani’s image of the bloodied uniform of the
Bosnian soldier shown in one of the Benetton ads. Ethical or
moral standards are very subjective and relative as evident from
reactions to the Benetton ads showing an image of a priest and
nun kissing. While this ad was banned in Italy, it won the
Eurobest Award in Britain.
Some people question Toscani’s position, however, and argue
that advertising is intrusive in nature and the public cannot
decide what ads they will be exposed to in a medium.
Advertising must often respond to a different set of standards
since consumers often have no way of controlling their exposure
to the images used in advertising and these images are often
offensive to many people. Benetton has taken a novel approach
and people are likely to disagree as to whether the ads are
unethical. However, as noted discussed in question five,
Benetton may have gone too far with the “We, on Death Row”
campaign. The surviving family members of those killed by the
inmates shown in the death row campaign were very offended
by the ads and opposed to the idea of having the killers lionized
in the national media. However, there were also those who feel
that capital punishment is inhumane and praised Toscani’s
effort to increase awareness of the issue.
4. Can you think of any other companies that use shock
advertising? For what type of companies might this type of
advertising be effective?
Calvin Klein and Benetton are the two companies that are
probably best known for using shock ads although there are a
number of other companies that have used the technique (see

Abercrombie). Calvin Klein has been using shock ads for nearly
two decades and built the company and brand by tapping into
both the charge and the cultural unease surrounding youthful
sexuality. The company’s controversial ads have explored the
taboo of youthful sexuality and appeal to the independent spirit
of young people. Calvin Klein was willing to accept the
controversy that accompanies its ads because the scandal and
sex appeal surrounding them help differentiate CK products. It
also helped generated hundreds of millions of dollars worth of
free publicity. Like Benetton, CK handles its advertising in-
house which means that an agency does not have to become
involved with the negative publicity and controversy
surrounding their shock ads. However, Calvin Klein also found
that there is a limit to how far they could push could push the
envelope with their advertising. Many retailers rebelled against
the Calvin Klein ads featuring childlike models in provocative
poses which was referred to as “kiddie porn” by many critics.
Irate consumer groups also called for boycotts and threatened to
picket stores carrying the brand.
Another company that has used shock ads is FCUK (French
Connection UK) who has been criticized for what many perceive
as pornographic images in its campaigns. As discussed in
Chapter 21 of the text, clothing retailer Abercrombie & Fitch
has also been criticized for using shock techniques its ads as
well as in other promotional materials such as its quarterly
catalog. It should be noted that all of these companies are
involved in the fashion industry and their primary target market
consists of young people. Younger consumers are less likely to
perceive shock ads as offensive or in bad taste and may even
help create favorable attitudes toward these companies because
of their edgy, rebellious tone.
While other companies have used shock ads, Benetton’s use of

the advertising genre is unique. While the ads of Calvin Klein
and FCUK are meant to differentiate these brands and increase
sales, Benetton’s goal (at least according to Toscanni) was to
raise the public’s awareness and make them more conscience of
important social issues. Few companies are brave enough to
experiment to such a degree with their advertising. One
exception is Egg Banking, a United Kingdom based online
financial services group that has used campaigns based on
stereotyping of men, women and certain ethnic groups. One
advertisement shows a dark-skinned man in an orange string
bikini that revealed the outlines of his small sex organ. The
caption reads, 'Black men are well endowed.' Another ad shows
a blonde woman studying a modern painting as the brunette next
to her studies an exit sign. The caption reads, “Blondes have
nothing in their heads.” However, while some consumers in the
UK have viewed the ads as humorous, other have been offended
by them and have protested.
5. Do you agree with Benetton’s decision to drop the use of
shock ads and return to the use of more conventional ads?
Benetton appears to have pushed the envelope too far with the
“We, On Death Row” campaign as the ads generated very
negative reactions and there were strong repercussions as a
result. Families of the victims objected strongly to the
campaign and accused Benetton of glamorizing murderers while
ignoring the crimes they had committed. The state of Missouri
filed a lawsuit arguing that it had been misled regarding the use
of the photos. The lawsuit was settled in June 2001 when
Benetton agreed to write letters of apology and to donate
$50,000 to the Missouri Crime Victims Compensation Fund. In
the US, retailer Sears canceled an exclusive $100 million
contract to sell a line of Benetton clothes, calling the death row
images “terribly insensitive.” Sears ended its contract even
after Benetton agreed to allow the retailer to preview future ads.
Toscani believed that the sharp criticism in the US was not
justified as many countries in Europe had more already banned

the death penalty. However, as a result of the increasing furor,
Toscani resigned in May 2000. He was replaced by James
Mollison, a graduate of Fabrica, Benetton’s cultural research
and development center that backs young artists from all over
the world.
In 2001 Benetton began running a new campaign featuring
product-focused ads that ran in print and on TV and billboards.
The ads showed exuberant teen models clad in Benetton
sweaters and jackets against a crisp white background and were
designed to convey a sense of freedom and a positive, dynamic
expression of the Benetton style. The impact of Benetton
reverting back to more conventional advertising is yet to be
determined, although given the way Benetton had built its brand
image under Toscani, this approach does appear rather
conservative. As noted in the case, Toscani dismissed the more
conventional ads as a “waste of money.” In some countries
such as Britain they were panned as “so innocuous as to be
invisible.” Benetton may be able to capture the customer’s
attention and interest with more conventional ads focusing on
young people wearing its colorful clothing and emphasizing
product qualities and perceived value. While these types of ads
may not generate as much attention and interest as the shock
ads, they may be effective in shifting attention to Benetton’s
products and image as a retailer rather than as a social crusader.
Rather than moving solely into product based advertising after
Toscani’s exit, the company could still continue to address
social issues like war, poverty, education, child labor and
exploitation and the like but with less controversial ads. In
fact, Benetton indicated that it would not be completely
abandoning its social issues messages and planned to run ads
speaking to the refugee issue. The subject is very important to
James Mollison who wrote a book on Kosovan refugees in

conjunction with the United Nation’s High Commission for
Refugees as well as an earlier book on foreign workers in the
factories of northeast Italy. In 2003 Benetton began a social
issues campaign dealing with the problem of hunger that exists
in many countries and promoting its work with the World Food
Program. The “Food for…” campaign consists of ads promoting
the important role the availability of food plays in relations to
issues such as education, work, peace, and life. Examples of
messages from this campaign, as well as other Benetton ads,
can be found on the company’s web site at www.benetton.com.
PAGE
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1
Benetton Group:
Evolution of Communication Strategy
This case was written by Senthil Ganesan with the help of
Vamsi Krihna Thota, ICRAI Knowledge Center. It is intended
to be used as the basis for class discussion rather than to
illustrate either effective or ineffective handling of a
management situation.
The case was compiled from published sources.
_____________________________________________________
_________________________
© 2003, ICFAI Knowledge Center, Hyderabad, India

The purpose of advertising is not to sell more. It’s to do with
institutional publicity, whose aim is to communicate the
company's values (...) We need to convey a single strong image,
which can be shared anywhere in the world.
- Luciano Benetton, Founder and Chairman1When Life
magazine makes a cover about war, it makes the cover to
inform, but also to sell the magazine and to sell the advertising
pages inside the magazine -- Chivas Regal and all the others. So
Time magazine and all the others make a cover to inform and to
sell. To do what I do, I do that to sell but also to inform. And as
soon as you inform, people point a finger at you and say, "You
are exploiting!" No. It's the people who don't even inform [who
are exploiting]. I don't care about the rejection; I'm not afraid to
be rejected. Actually, it's a big honor in this world
- Oliviero Toscani, Benetton Creative Director and
Photographer (1982 – 2000)2Benetton Group*: Evolution of
Communication Strategy
Introduction
Benetton, the Italian retailer was engaged in the manufacturing
and distribution of clothing, undergarments, shoes, cosmetics
and accessories. Benetton also licensed its brand name to
various manufacturers of sunglasses, stationery, cosmetics,
linens, watches, toys, steering wheels, golf equipment, designer
condoms and luggage. The group’s important brands included
United Colors of Benetton (UCB), Sisley, PlayLife and Killer
Loop. During fiscal 2002, Benetton reported revenues of €1.99
billion and net income of €128 million. Benetton spent €102
million on advertising and promotion during the year (see
Exhibit I for revenue split-up and Exhibit II for financial
highlights). In addition to retail outlets around the world,
Benetton also operated megastores (3000 square foot stores) in

such cities as Paris, Rome, Kobe, Osaka, New York, London,
Moscow and Lisbon. As of 2002, the company operated in about
120 countries through its 5000 retail stores and employed about
7250 people.
Benetton was well known for its colorful and provocative
advertisements (Benetton termed its advertising and marketing
activities as Communication Strategy). The company employed
unusual, controversial advertising techniques and themes that
used “shock value” and the power of photography to grab
viewers’ attention. Unlike most advertisements which centered
around a company’s product or image, Benetton’s advertising
campaigns focused on social and political issues like racial
integration, AIDS awareness, war, poverty, child labor, death,
pollution etc. The advertisements initially succeeded in raising
the brand's profile, but eventually began to cause dissatisfaction
among customers, retailers, government bodies and various
international non-profit organizations.
Some of Benetton’s most memorable advertisements were a
priest and a nun kissing, a just born baby with uncut umbilical
cord, a black stallion and a white mare mating, a colorful mix of
condoms, a black woman breast- feeding a white baby, the
photo of an AIDS victim and his family taken moments before
his death, the bloody uniform of a dead Bosnian soldier (See
Exhibit: II for Benetton’s advertisements).
Following the controversy surrounding a particularly
provocative campaign called “We, On Death Row,” Oliviero
Toscani, Benetton’s Creative Director and Photographer,
resigned from the company in May 2000. Benetton realized that
it had crossed even the boundaries of unconventional
advertising. Various surveys suggested that some loyal
customers had been put off by this campaign. One industry
expert commented about Toscani3:
“He has left a famous brand badly besmirched. Many of the
things done in that name have encountered a great deal of public

resentment, hostility and boycott. It can be overcome, but not
easily.”
Following Toscani’s departure, 28-year-old Fabrica (Benetton’s
Communication department) student James Mollison took over
as Benetton’s Creative Director. Under Mollison, it seemed
Benetton was reverting to a more traditional advertising
strategy.
Background Note
The Benetton family (consisting of three brothers and a sister)
established the Benetton chain in a small Italian town in 1955.
To support his family, Luciano Benetton (born in 1935),
dropped out of school to sell apparel. His sister Guiliana
(b.1937) worked as a knitter in a local factory. Recognizing the
potential for a new business, Luciano and Guiliana decided to
start their own apparel company. With thirty thousand lire,
Guiliana bought a knitting machine and put together a collection
of 18 brightly colored sweaters. These sweaters were
immediately sold to the local stores. As the business grew, the
remaining two brothers joined the company. Each of the four
siblings took responsibility for one aspect of the business.
Luciano concentrated on marketing. Guiliana directed the
design department. Gilberto (b.1941) handled administration
and finance. Carlo (b.1943) managed production. Benetton was
formally incorporated in 1965 as “Maglificio di Ponzano Veneto
dei Fratelli Benetton.”
The Benetton family initially sold their apparel through leading
Italian department stores. But as the business picked up, the
company entered into an agreement to open an exclusive store
for marketing the apparel. The first store, opened in 1969, was
an immediate success. Shortly thereafter, Benetton opened a
similar store in Paris. Unlike most small producers, who opted
for the widest possible distribution, the Benetton family decided
to create a network of exclusive distributors, and used sub-
contractors. By 1975, Benetton had become a major player in

Italy with about 200 shops (not all of them carrying the
Benetton name). To appeal to different segments of population,
Benetton opened stores under different brand names, which
included Sisley, Tomato, Merceria and 012. Over a period of
time, these brand names were rolled into the Benetton name.
During the late 1960s and the early 1970s, Benetton rapidly
expanded by setting retail outlets in France, West Germany,
Britain, Switzerland, and the Scandinavian countries. By the
mid- 1980s, the chain had built a significant presence in the
major US cities and in Japan. Benetton’s popularity grew with a
impressive list of clientele- Princess Caroline of Monaco and
Princess Diana of Wales. In addition to setting up retail outlets
across the world, Benetton also set up manufacturing facilities
in France, Scotland, Spain and the US. In 1986, Benetton went
public by offering 15.6 million common shares (10% of the
company). Employees were also offered shares.
During the 1990s, Benetton went on an acquisition spree and
purchased companies such as Rollerblade (inline skates), Prince
Tennis (racquets), Nordica ski boots, Nordica skis (originally
Kästle), racquetball-racquet maker Ektelon and snowboard
brand Killer Loop. However, these brands performed poorly and
Benetton decided to divest all of them. In January 2003,
Benetton sold Nordica to skiwear firm Tecnica for €38 million.
Two months later, Benetton announced that it would also sell
Rollerblade to Tecnica for around €20 million. Benetton also
reached an agreement with Lincolnshire Management Inc., a US
private equity fund for the sale of Prince and Ektelon brands for
about €36.5 million.
In 1994, Benetton set up Fabrica, a communications research
center. Fabrica (from the latin word meaning workshop)
concentrated on communication projects ranging from cinema to
graphics, from industrial design to music, from publishing to
new media to photography. The research center housed several

film, video and music labs, art, photo and design studios.
Luciano described Fabrica as: “a bridge between a visionary
dream: between utopia and the reality a world facing changes
that would have been unimaginable only a few years ago.”
Fabrica invited students from different countries, with creative
talents, offering them year- long fellowships. Among Fabrica’s
successful projects were the film “Blackboards,” which won a
special award at the Cannes Film Festival in 2000, the film
“Dayereh,” which won a Golden Lion at the Venice Film
Festival in 2000 and the film “No Man’s Land, co-produced by
Fabrica, which won the Oscar for the Best Foreign Film in
2002.
Exhibit: I
Benetton: Geographic revenue distribution by business segment
Business Sectors /Geographic Area
Euro
The Americas
Asia
Other Areas
9 Months 2002
9 Months 2001
Casual Wear
849.9
66.2
109.2
144.6
1169.9
1162.1
Sportswear and Equipment
75.5
85.0
20.6
21.1
202.2
245.8

Manufacturing and Others
69.1
0.8
2.3
17.0
89.2
110.2
Total 9 months- 2002
994.5
152
132.1
182.7
1461.3
1518.1
Total 9 months- 2001
1033
164.8
143.8
175.8
1518.1
*Figures in € Million
**Business Sectors are as follows:
1. Casual Wear, representing the Benetton brands (United
Colors of Benetton, Undercolors and Sisley)
2. Sportswear and Equipment: Playlife, Nordica, Prince,
Rollerblade and Killer Loop brands.
3. Manufacturing and Others: Sales of raw materials, semi-
finished products, industrial services and revenues and expenses
from real estate activity.Source: www.benetton.comExhibit: II
Benetton: Eight-Year Financial Highlights

Year
2002
2001
2000
1999
1998
1997
1996
Revenues (million euro)
1992
2098
2018
1982
1980
1878
1483
Net Income (million euro)
128
163
174
166
151
150
127
Source: www.benetton.comCommunication Strategy
From the early 1980s, Benetton believed in pursuing an
unconventional communication strategy. As one company
document put it4:
“Benetton believes that it is important for companies to take a
stance in the real world instead of using their advertising budget
to perpetuate the myth that they can make consumers happy
through the mere purchase of their product. The company has
opted for a communication strategy in which issues and not
clothes, play the lead part. The company has decided to devote

some of its advertising budget to communicate on themes
relevant to young and old people worldwide.”
Until the 1980s, Benetton advertisements had largely focused on
its products and logo (stylized knot of yarn with word Benetton
printed under it, contained within a dark green rectangle). In
1982, Luciano hired Oliviero Toscani, a prominent fashion and
advertisements photographer to head Benetton’s advertising
department. Toscani’s initial advertisements were conventional.
They showed groups of young people wearing Benetton
clothing. But Luciano and Toscani soon realized that Benetton
advertisements had to stand apart from the rest of the
competition. They decided to promote Benetton as a life style
brand.
Toscani’s first theme featured teenagers and kids from
culturally diverse nations. Colorfully dressed in Benetton
attire, the kids engaged in a variety of playful acts (see figure:
(i)). By linking the varying colors in the Benetton collection to
the diverse “colors” of its world customers, Toscani portrayed a
picture of racial harmony and world peace. It was from these
advertisements that the trademark “United Colors of Benetton”
emerged.
Figure (i)
Source: www.benetton.com
In 1984, Benetton launched a similar campaign titled “All the
colors in the World,” showing groups of teenagers and kids
from different countries and ethnic groups dressed in Benetton
clothing, with the company logo in the corner. While the
company received several letters of praise for company’s
message on racial integration, it evoked negative sentiments
especially in South Africa, England and the US.

In 1985, Benetton’s advertisements included two black boys
kissing each other (see figure: (ii)), with little US and USSR
flags in their hair and painted on their cheeks with the tagline
“United Colors of Benetton.” In 1986, the two little black boys
appeared again, united by a globe and a chain with the peace
symbol. The globe became a symbol of unification, and
appeared on all the posters that year. Themed advertisements
were launched for countries engaged in political battles with
each other: England and Argentina, Israel and Germany, Iran
and Iraq, Israelis and Arabs, etc. The message read: “All colors
are equal, just as all men are equal.”
Figure (ii)
In 1988, Benetton started blending culture and legends. New
advertisements featured Adam and Eve, Joan of Arc and
Marilyn Monroe (see figure: (iii)), Leonardo de Vinci and Julius
Caesar, all captioned with the slogan: “United Superstars of
Benetton.” Similar campaigns featured animals- a wolf and a
lamb (see figure: (iv)) with the tagline: “United Friends of
Benetton.”
Figure (iii)
Figure (iv)
In 1989, Benetton decided to cancel its agreement with outside

advertising agencies and develop campaigns in house. Toscani’s
photos were discussed by the advertising team and then shown
to Luciano for final approval. With less than ten people
managing the entire process, Benetton could produce
advertisements, at about one-third the cost of its competitors.
Since Benetton’s clothing was sold in various markets with
different style preferences, Toscani turned his focus to photos
that stimulated thinking. His new advertisements neither showed
the products nor the logo. The knot logo was replaced with a
small green rectangle with the tagline “United Colors of
Benetton.” Luciano explained this decision5:
“Using these images in this unconventional way is an effort by
Benetton to break through the complacency that exists in our
society due to the constant flow of even the most horrendous
realities communicated through conventional media such as the
evening news or the morning paper. By removing these images
from their familiar contexts and putting them in a new context
they are more likely to be noticed and given the attention they
deserve as the viewer becomes involved in the process of
answering the questions: What does this image mean? Why does
this image appear with a Benetton logo? How do I feel about the
subject of the image? What can I do?”
Famous advertisements during the late 1980s included a black
hand and a white hand linked by a handcuff and a black woman
breast-feeding a white baby. The black woman- white baby
advertisement was severely criticized by many who thought that
Benetton was reminding blacks of the days of slavery when
black women breast-fed white babies. However, Benetton
maintained that such photos symbolized universal brotherhood.
Other advertisements with a similar message included a white
wolf and a black sheep nose to nose, a black child sleeping
among a pile of white teddy-bears, a little black hand on a big
white hand, a piano duo showing little white hands being helped

by big black hands, two children (one black, the other white)
facing each other sitting on their potties (see figure: (v)), tubes
of personality tests, miners and bakers united by the black of
the soot or coal and the white of the flour.
Figure (v)
In 1991, Toscani introduced a number of advertisements that
attempted to draw public attention to important social problems.
The advertisements included a cemetery (signifying war deaths),
many different brightly colored condoms and a baby with an
umbilical cord (see figure: (vi)). One advertisement featuring a
priest and nun kissing offended the religious sentiments of
many, including the Pope. The image of the baby with the
umbilical cord evoked mixed responses. In the company’s view,
the advertisement simply conveyed the beauty of new life and
the universal idea of love. The photo triggered off a huge
controversy throughout Europe. Many wanted it to be banned.
But some liked it. For example, the image was exhibited in a
Flemish museum as part of a show celebrating the images of
motherhood.
Figure (vi)
In 1992, Toscani introduced political themes in Benetton’s
advertisements. He selected various photojournalistic images
related to the AIDS crisis, environmental disaster, political
violence, war, exile, etc. These appeared in various journals and
magazines as well as on billboards without written text except
for the conspicuous insertion of the green and white Benetton
logo. Toscani explained the company’s strategy6:

“Unlike traditional adverts, our images usually have no copy
and no product, only our logo. They do not show you a
fictitious reality in which you will be irresistible if you make
use of our products. They do not tell anyone to buy our clothes,
they do not even imply it. All they attempt to do is promote a
discussion about issues which people would normally glide over
if they approached them from other channels, issues we feel
should be more widely discussed.”
In spite of the controversy his advertisements had generated,
Toscani went one step further by embracing “reality
advertising.” Advertisements included: a dying AIDS victim
with his family at his bedside, an African guerrilla holding a
Kalashnikov and a human leg bone (see figure: (vii)), a boat
overcrowded with Albanians, a group of African refugees, a car
in flames after a Mafia bombing, a family weeping before the
bloodied corpse of a Mafioso and two Indians caught in a flood
in Calcutta.
Figure (vii)
Benetton also launched an advertisement with a series of
masculine and feminine genitals, of different ages and of
different colors with the label “United Colors of Benetton.” A
more shocking advertisement showed close-ups of various parts
of the human body (pubis, arms, stomach, bottom) tattooed with
the English abbreviation “HIV Positive.” The tattoo mark was
similar to the numbers tattooed by Nazis on concentration camp
prisoners. Some advertisements also promoted homosexuality:
two smiling men cheek to cheek, two women- one white and the
other black, holding an Asian baby, wrapped in the same
blanket, etc. Other controversial advertisements included a
black stallion mounting a white mare, three identical human
hearts, with stickers announcing different ethnic groups “white,
black, yellow” (see figure: (viii)). The hearts portrayed that all

were same inside, no matter what the outside skin color was.
Figure (viii)
In January 2000, Benetton launched a year- long $15 million
global advertising campaign called “We, on Death Row.” This
campaign, which featured 26 US prisoners who had been
sentenced to death (see figure: (ix)) appeared on billboards and
in major publications in Europe, America and Asia and on its
website. Toscani developed the campaign after spending more
than two years visiting death row prisoners in several American
prisons.
The advertisements featured full color faces of death-row
inmates, printing their names and dates of execution. A special
booklet and video was also released that projected the reality
and futility of capital punishment. The booklet included photos
of the inmates and interviews about their life and the
punishment. The booklet also contained carefully selected
quotes from the Dalai Lama and the Pope, challenging the right
of the state to execute its citizens. Benetton believed that if the
public saw these inmates as “people,” then they would be less
inclined to see them executed.
Figure (ix)
The campaign resulted in widespread protests from individuals
and governments. The families of the victims and prisoners
objected strongly to the campaign and accused Benetton of
glamorizing murderers while ignoring the crimes they had
committed. Many resented that the campaigns did not mention
how the prisoners felt about the serious crimes they had
committed. One website called Pro-death penalty.com wrote7:

“While Benetton tries to improve their market share in the US,
they are causing unnecessary pain and distress to the families of
the innocent people killed by the men the campaign intends to
humanize.”
Responding to such allegations, Mark Major, Director of
Communications for Benetton US in New York defended the
campaign8:
“We don’t develop contrived marketing campaigns that are
merely designed to sell products. When we talk about death row
or AIDS or war or peace, it’s not a contrived topic. It’s
definitely something that people at Benetton feel very strongly
about. We don’t apologize for the fact that dual purposes can be
achieved. We can raise brand awareness that we are a company
that cares about capital punishment and we can get people
engaged in the topic.”
The state of Missouri (US) where the inmates in question were
imprisoned filed a suit against Benetton, arguing that it had
been misled regarding the use of the photos. This lawsuit was
settled in June 2001 when Benetton agreed to write letters of
apology to the four Missouri families whose relatives were
murdered by the inmates featured in the ads and to donate
$50,000 to the Missouri Crime Victims Compensation Fund. In
the US, retailer Sears canceled an exclusive $100 million
contract to sell a line of Benetton clothes, calling the death row
images “terribly insensitive.” Sears ended its contract even
after Benetton agreed to allow the retailer to preview future ads.
Toscani had hoped that this campaign would have a positive
impact in the US where about 98 inmates had been executed in
1999. Toscani believed that the sharp criticism in the US was
not justified as Europe had more or less banned the death
penalty. But, due to the increasing furor, Toscani resigned in
May 2000.

In September 2001, Benetton launched a campaign called
International Year of Volunteers (see figure: (x)), in
collaboration with the United Nations (UN). “Volunteers” was
Benetton’s first campaign after Toscani’s exit and was
developed by new Creative Director James Mollison. The
campaign emphasized that devoting one’s time and energy to
others led the way to self-improvement and a better quality of
life. A special issue of Colors Magazine was published for the
campaign, devoted entirely to voluntary effort. Collaboration
with the UN was an ongoing effort for Benetton. The company
and the UN first worked together in 1996 for the World Food
Summit organized by the FAO (Food and Agriculture
Organization of the UN) to discuss the problem of hunger in
developing countries. The following year Benetton and the UN
came together again for a worldwide campaign celebrating the
50th anniversary of the Declaration of Human Rights. In 1999,
Benetton organized a fund raising campaign for Kosovo with
the collaboration of UNHCR (United Nations High Commission
for Refugees). Such campaigns were shown throughout the
world in newspapers, weekly magazines, women’s and lifestyle
magazines and also on billboards located in major cities.
Figure (x)
Other campaigns following Toscani’s exit suggested that
Benetton was changing its communication strategy. The
company started showcasing advertisements featuring exuberant
models frolicking in colorful knitwear against a white
background (see figure: (xi)). The models used in the campaign
were not professionals. One model was a poet who performed at
local coffee houses. Others were discovered on the street in bars
or riding the subway. Developed with a budget of $10 million
dollars, this campaign was available in print, catalog and TV
media.

Figure (xi)
An important aspect of Benetton’s communication strategy was
its Colors magazine. Launched in 1991, Colors targeted young
people across the world. The magazine was launched in four
bilingual languages: English-Italian, English-German, English-
Spanish and English-French, in an attempt to break the barriers
of language and culture throughout the world. By 2002, the
magazine was sold in eighty countries. Each edition of the
magazine took an issue- war, religion, race, birth, immigration,
ecology, travel, slavery, (see figure: (xii)), etc. “The Race
Issue”, which featured a computer-generated picture of the
Queen, changing her race to Indian, created a huge furor in the
English press, but brought Benetton massive publicity. Over the
years, the magazine had featured more than 5000 models,
including Wodaabe warriors in Nigeria, Colombian soldiers,
boy scouts in Oman, etc. In May 2003, Benetton launched the
56th volume of Colors, which featured “Violence” as the central
issue.
Figure (xii)
Apart from advertisements for billboards and magazines,
Benetton also created a number of catalogs titled “People and
Places.” Catalog themes included Young People in Tokyo,
Ponzano (Italy), Corleone (Italy), China, India, etc. Another
theme was Sunflowers, which featured children suffering from
Down’s Syndrome (a disease caused by chromosomal
abnormalities). In 1998, Benetton used images of Arabs and
Jews living and working together in Israel. Titled “Enemies,”
the cover showed a 24-year-old Israeli student kissing her 22-
year-old Bedouin boyfriend. The catalog included photos of an
Arab grocer and a Jewish customer, Jewish and Arab youth

leaders, a mixed kindergarten of Jewish and Arab kids (see
figure: (xiii)) and a music band consisting of Jews and Arabs.
Figure (xiii)
Over the years, many newspapers in various countries had
refused to accept Benetton advertisements. In 1995, government
authorities in Germany banned some Benetton advertisements,
which featured child labor, the human body stamped “HIV
Positive,” and a bird stuck in an oil slick. The advertisement
featuring the newborn baby with the uncut umbilical cord was
withdrawn from the media in Italy, France and the UK. The
photo showing a priest and a nun kissing was promptly banned
by the Italian Advertising Authority (The Vatican took a stern
view but in England, this advertisement won the Eurobest
Award). Benetton was also sued by many retail outlets, which
believed the provocative advertisements drove away customers.
But the more the company’s advertisements were banned, the
more publicity Benetton seemed to get.
Oliviero Toscani’s Advertising Philosophy
Toscani believed that the industry as a whole had to change the
way advertisements were used as consumer-spending patterns
had changed over the years. He emphasized the need for
creativity9:
“To capture their (consumer’s) attention, advertising must
become an artistic product in itself, like a play or a film. That
has never happened because the only things that condition the
industry are money and marketing managers, who are idiots. All
they know how to do is repeat what’s already been done.”

Toscani explained his role in Benetton10:
“Nobody ever told me my job was to sell anything. I’m
responsible for the company’s communications; I’m not
responsible for its economics. Mr. Benetton has given me
incredible freedom to propose issues that should be
communicated. To be really contemporary, an up-to-date
company, we must take our communication in another direction.
Not the one usually followed by most companies, in the apparel
business, at least- when there’s an obvious connection between
product, model and merchandising. I’m aware that, having a
relatively big budget, it would be like throwing money away if
we only explained that our product is better than the
competition’s. Advertising should give something more... That’s
my work, to report something that exists. We can’t be like
ostriches who put their head in the sand.”
Toscani saw himself not as an advertiser, but as a reporter-
photographer. He believed in communicating to the world in a
less traditional way. Toscani identified a number of drawbacks
in traditional advertising11:
“There is a crisis in advertising. The industry is lagging behind
social trends, but it’s so rich and powerful that it’s very
difficult for it to change. In the early twentieth century
advertising focused on a company’s buildings and machines.
After that it started presenting products. Then, since all
products started looking alike, they could no longer be at the
heart of the message. So in the 1960s advertisers started
showing leggy models to sell cars. The long legs offered added
value. The product took a back seat and what was sold was a
symbol. The problem with this technique is that the message is
always based on consumers’ shortcomings and makes them feel
guilty. It tells them, ‘if you haven’t got this product, you’re out
of it. On the other hand, if you buy a certain brand of sports
shoes you can play like Ronaldo even if you can’t kick a ball.”

Due to his radical campaigns, many people in the advertising
industry hated Toscani. But Toscani believed he had achieved
his objective. Since he had joined Benetton, the company’s
sales had grown more than twenty times. As he once
remarked12:
“Most good ads are forgotten after six months, but who still
remembers the Benetton ad with the priest kissing the nun? Ten
years later and people remember! That’s immortality!”
Looking Ahead
One leading business school publication summarized Benetton’s
advertisements13:
“They seem to take the virtuous stand for the betterment of
humanity and thus create a sense of power in the viewer who
agrees with the safe, politically correct message, even if the
message is made with shocking images. By empowering the
viewer, the consumer, the company associates itself with
engineered feelings of empowerment and righteousness.
Through the use of such images Benetton as a company has
become an icon for this kind of protest in advertising which
tries to claim the ability for social change. In reality Benetton
creates an empowered viewer who will buy their product
through shock value, empowerment, and memorability.”
Following Toscani’s exit, Benetton announced it would revert to
a more conventional advertising strategy. The company’s
website highlighted its advertising strategy for the future:
“We need to have models wearing our clothes by UCB in our
advertisements. We need to show consumers that we are an
actual clothing line, and not a political or governmental
company. By picturing our stylish clothes, we will attract more
business. Consumers want to buy our clothes because they are
attractive and have a high quality reputation. People who
respect our clothing line are the only ones that actually buy it,
despite the political issues that we represent. If we can undo the

damage that we have already caused in the minds of many
consumers by ceasing to offend them, our sales will greatly
increase. Let’s show the world that we make great clothing, not
that we have controversial opinions on various subjects.”
From 2001, Benetton’s advertisements started featuring
conventional images- teenagers in colorful Benetton clothing.
Benetton, however, maintained that the company would still
continue with its “socially responsible” status by focusing on
non-controversial themes like racial discrimination, poverty,
child labor, AIDS awareness, etc. To that effect, in early 2003,
Benetton in association with UN’s World Food Programme,
launched a year- long $16 million communication campaign,
called Food for Life. This campaign covered around 30
countries and the stories and photos taken from these countries
were used in Colors, under the title “Hunger.” The images in
this campaign showed crisis and poverty.
When questioned about Benetton’s new strategy of using models
and products to advertise, Toscani just commented: “It’s a
waste of money.” However, he was supportive of the company’s
decision not to move away from highlighting social causes. As
2003 got underway, Benetton management, advertising gurus
and customers alike wondered the impact the new philosophy of
product- based advertisements would have on Benetton’s brand
building efforts and sales.
Exhibit: II
Benetton’s famous advertisements

Source: www.benetton.comBibliography
Magazines/Journals/Newspapers
1. Carlos Jarillo and Jon Martinez, “Benetton S.p.A.,” Harvard
Business School Publishing, 19th January 1989.
2. Sergio Signorelli and James Heskett, “Benetton (A),”
Harvard Business School Publishing, 6th February 1989.
3. “Through the lenses of gender and ethnicity,” Maclean’s,
27th May 1991.
4. “More controversy, please, we’re Italian,” The Economist,
1st February 1992.
5. Gabriele Di Mateo, “The notorious campaign of Luciano
Benetton,” Print, November/December 1993.
6. Henry Giroux, “Benetton: buying social change,” Business &
Society Review (1974), Spring 1994.
7. Olivia Snaije, “Benetton’s jarring campaign altered
advertising’s landscape,” Christian Science Monitor, 31st May
1995.
8. Joshua Levine, “Even when you fail, you learn a lot,” Forbes,
11th March 1996.
9. Serra A Tinic, “United Colors and untied meanings:
Benetton and the commodification of social issues,” Journal of
Communication, Summer 1997.
10. Melanie Wells, “Benetton puts fresh face on advertising
campaign,” USA Today, 17th June 1997.
11. Andy Beckett, “Benetton’s new babies..,” The Guardian,
28th July 1997.

12. Tim Rich, “Toscani and his critics,” Print, March/April
1998.
13. “The United Colors of..,” Middle East, April 1998.
14. John O’Reilly, “Advertising or exploitation,” The Guardian,
21st September 1998.
15. Silvia Sansoni, “The odd couple,” Forbes, 19th October
1998.
16. Sophie Boukhari, “The art of advertising,” The Unesco
Courier, December 1998.
17. Malcolm Clark, “Benetton on death row,” New Statesman,
24th January 2000.
18. Hank Stuever, “Radical chic: Benetton takes on the death
penalty,” Washington Post, 25th January 2000.
19. Ann-Christine Diaz, “A shock to the system,” Advertising
Age’s Creativity, February 2000.
20. Rance Crain, “Jerry and Oliviero duke it out over what’s
vital in advertising,” Advertising Age, 10th April 2000.
21. Debra Ollivier, “The colorful dissenter of Benetton,”
www.salon.com, 17th April 2000.
22. Mercedes Cardona, Alice Cuneo and Eric Lyman, “Benetton
ad shift expected in the wake of Toscani exit,” Advertising Age,
8th May 2000.
23. Kevin Michael Grace, “Shock-Talk,” Report/Newsmagazine
(Alberta Edition), 8th May 2000.
24. Peter Gwin, “United colors of the condemned,” Europe,
November 2000.
25. Andrew Clark, “Interview: Luciano Benetton, Chairman,

Benetton,” The Guardian, 16th December 2000.
26. John Lloyd, “Come on: look at me,” New Statesman, 29th
January 2001.
27. Charles Davis, “A killer campaign,” Columbia Journalism
Review, Jan/Feb 2001.
28. “Benetton’s advertisements acquitted in Germany,”
Managing Intellectual Property, February 2001.
29. Sandra Dolbow, “Benetton bounces back,” Brandweek, 12th
February 2001.
30. Leigh Gallagher, “About face,’ Forbes, 19th March 2001.
31. Arnaldo Camuffo, Pietro Romano and Andrea Vinelli, “Back
to the future: Benetton transforms its global network,” MIT
Sloan Management Review, Fall 2001.
32. Eric Lyman, “The true colors of Toscani,” Ad Age Global,
September 2001.
33. Ann-Christine Diaz, “Photography,” Creativity, November
2001.
34. “United Colors of Benetton,” Warsaw Business Journal,
25th February 2002.
35. Paul Hochman, “The brand killer,” FSB: Fortune Small
Business, May 2002.
36. Stephen Armstrong, “Altered images,” The Guardian, 27th
May 2002.
37. Jamie Ivey, “Benetton gambles on colour of the future,”
Corporate Finance, June 2002.
38. Michele Lee, “Benetton offers internships at design
institute,” Media Asia, 1st November 2002.
39. Allison Fass, Robert Lenzner and Bernard Condon, “Follow-

Through,” Forbes, 3rd February 2003.
40. “Arresting images/ Benetton ads take a sober look at world
hunger,” San Francisco Chronicle, 8th March 2003.
41. Atifa Hargrave-Silk, “Benetton uses ad budget on UN
Humanitarian campaign,” Media Asia, 4th April 2003.Websites
1. www.benetton.com
2. www.businessweek.com
3. www.cnnfn.com
4. www.economist.com
5. www.fortune.com
�
Picture 4
Black and White Hand (1990)
� EMBED PBrush ��
Picture 5
An � HYPERLINK
"http://www.athabascau.ca/courses/cmns/301/icons/angeldevil.j
pg" �angelic-looking white child embracing a black one�
whose hair shaped into devil's horns created a lot of
consternation among Black groups in the US (1991)

� INCLUDEPICTURE "D:case studiesbenettonOliviero
Toscani-BENETTON_filesbenet16.jpg" *
MERGEFORMATINET ��
Picture 12
A man (David Kirby) dying of AIDS surrounded by his family
members (1992)
� INCLUDEPICTURE
"http://www.ciadvertising.org/studies/student/98_fall/theory/blo
uin/toscani/tongues.jpg" * MERGEFORMATINET ��
Picture 7
Tongues (1991). In the Middle East, this image was considered
pornographic.
Picture 10

Killing in Kosovo (1992)
� INCLUDEPICTURE "D:case studiesbenettonThe
Benetton Company is known world-wide for their unusual
advertising techniques_filesship.jpg" *
Picture 11
A boat overcrowded with Albanians (1992)
�
Picture 8
Girl with Doll (1992)
� INCLUDEPICTURE "D:case studiesbenettontoscani and
his critics_files177n1.jpg" * MERGEFORMATINET ��
Picture 13

An empty electric chair for execution (1992)
Picture 3
A black hand and a white hand linked by handcuff (1989)
�
Picture 14
Bosnia Soldier (1994)
Picture 9
A bird stuck in an oil slick (1992)

�
Picture 17
Food for Peace (2003). Morno, 60, and Rose, 22 fought on
opposite sides of the Civil war in Sierra Leone Food aid
encouraged the disarmament process and they and other ex-
combatants, now receive rations while retraining as tailors.
� INCLUDEPICTURE
"http://www.benetton.com/img/aidsfaces.jpg" *
Picture 15
Faces of AIDS (1994)
�INCLUDEPICTURE "http://highered.mcgraw-
hill.com/../../Dump/case%20studies/benetton/benetton/Oliviero
%20Toscani-BENETTON_files/benet4.jpg" *
MERGEFORMAT ��

Picture 6
War Cemetery (1991)
� INCLUDEPICTURE
"http://www.benetton.com/img/arabjew.jpg" *
Picture 2
Israeli and Arab (1987)
� INCLUDEPICTURE
"http://www.benetton.com/img/globe3.jpg" *
Picture 1
Globe Campaign (1986)
�
Picture 18

Food For Work (2003). Bagmina, 15, is now free to find work in
Kabul, Food aid supports her while she looks for a job.
�
Picture 16
Food for Life (2003)
1 www.benetton.com
2 Debra Ollivier, “The colorful dissenter of Benetton,”
www.salon.com, 17th April 2000
* Benetton Group was controlled by Edizione Holding, a
holding company, which owned businesses in garment making,
catering (Autogrill), telecommunications (Telecom Italia and
Blu), services (Host Marriott Services) and highways
(Autostrade). Edizione owned 71% of Benetton Group, while
the Benetton family owned 100% of Edizione Holding.
3 Mercedex Cardona, Alice Cuneo and Eric Lyman, “Benetton
ad shift expected in the wake of Toscani exit,” Advertising Age,
May 8, 2000.

4 www.benetton.com
5 Oliviero Toscani’s Advertising Philosophy, The Center for
Interactive Advertising, www.ciadvertising.org.
6 Oliviero Toscani’s Advertising Philosophy, The Center for
Interactive Advertising, www.ciadvertising.org.
7 Deborah Feyerick, “Victim’s rights advocates denounce
Benetton’s death row ads,” www.cnn.com, January 18, 2000.
8 Evantheia Schibsted, “Shock It to You,” Business 2.0, May
2000.
9 Sophie Boukhari, “The art of advertising,” The Unesco
Courier, Paris, December 1998.
10 Oliviero Toscani’s Advertising Philosphy, The Center for
Interactive Advertising, www.ciadvertising.org
11 Sophie Boukhari, “The art of advertising,” The Unesco
Courier, Paris, December 1998.
12 Eric Lyman, “The True Colors of Toscani,” Ad Age Global,
September 2001, Volume 2, Issue 1.

13 http://www.ecit.emory.edu/ (Emory Center for Interactive
Teaching)
PAGE
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