Benetton Strategy
What lies Ahead?
BENETTON
Situational Analysis
2
Benetton Group: Leader
in knitwear Leaders in dyeing fabric gaining cost advantage Highest share in Italian market Stagnant growth in current market Diversification and international marketing under consideration
Problem Statement
3
To formulate a growth strategy for future sustainment of Benetton
Options
4
To market their existing
products in other countries of Europe To launch new products in the existing markets for same target segment To market their existing products in new markets like USA, Japan etc. To modify their existing product line for the new target segment
Criteria for evaluation
5
Growth and Profitability
of the business Competition from existing players Resources and Capability to pursue the existing option
Evaluation of Options
6
To market their existing products in the other countries of Europe
7
Pros: Can leverage the benefits of brand visibility Existing manufacturing and warehouse infrastructure can support the increased demand High scope of expansion as large untapped market in European countries except Italy and France Low price and low labor cost are their competitive advantage
Cons :
Will miss a chance to
establish a global identity Less acceptability for their products by the people Can face high taxes and import duty from the new countries Competition from competitors targeting the whole family under single brand
To launch new products in the existing markets for same target segment
8
Pros:
Can leverage the benefits
of existing brand image Can improve the stagnant growth (banking on same markets ) Increase in sales and revenue from its loyal customers
Cons : May have insufficient expertise and resources for new product production and marketing New products might fail Missing out other profitable segments like old age people Will miss a chance to establish a
BENETTON
Situational Analysis
2
Benetton Group: Leader
in knitwear Leaders in dyeing fabric gaining cost advantage Highest share in Italian market Stagnant growth in current market Diversification and international marketing under consideration
Problem Statement
3
To formulate a growth strategy for future sustainment of Benetton
Options
4
To market their existing
products in other countries of Europe To launch new products in the existing markets for same target segment To market their existing products in new markets like USA, Japan etc. To modify their existing product line for the new target segment
Criteria for evaluation
5
Growth and Profitability
of the business Competition from existing players Resources and Capability to pursue the existing option
Evaluation of Options
6
To market their existing products in the other countries of Europe
7
Pros: Can leverage the benefits of brand visibility Existing manufacturing and warehouse infrastructure can support the increased demand High scope of expansion as large untapped market in European countries except Italy and France Low price and low labor cost are their competitive advantage
Cons :
Will miss a chance to
establish a global identity Less acceptability for their products by the people Can face high taxes and import duty from the new countries Competition from competitors targeting the whole family under single brand
To launch new products in the existing markets for same target segment
8
Pros:
Can leverage the benefits
of existing brand image Can improve the stagnant growth (banking on same markets ) Increase in sales and revenue from its loyal customers
Cons : May have insufficient expertise and resources for new product production and marketing New products might fail Missing out other profitable segments like old age people Will miss a chance to establish a