October 16, 2012
Table of Content
According to Senthil Ganesan with the help of Vamsi Thota, Benetton was well known for its colorful and provocative advertisements. 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 advertisement initially succeeded in raising the bran’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. Following the controversy surrounding a particularly provocative campaign called “We Death Row”. The company had realizes that it crossed even the boundaries of unconventional advertising. Various surveys suggested that some loyal customers had been put off by this campaign.
The company has been facing many controversial shock tactic advertisements, which lead the president of the company to realized that it is now the moment to come up with new marketing strategies. By investing in new marketing campaigns, the company can try to gain its brand name and it loyal customers that were lost from its unconventional advertising.
Benetton Group traces its origin back to 1965 when the Benetton family established and apparel factory in Ponzano Veneto, Italy and created the Benetton Group. The family opened the first store in 1968 in 1968 in Belluno, in Northern Italy to market sweaters. The business grew rapidly and by 1975 Benetton operated over 200 stores. In 1979, the company entered the U.S. market and opened the first store during that year. During the early 1980’s, the company rapidly expanded by opening, on an average, a store ad day and was the first company to make a foray into Eastern Europe; further, the company opened its first store in Madison New York. By 1986 the company was publicly traded and already opened over 600 stores just in the U.S. alone. During year of 1986, the company established its first manufacturing facility in the U.S. in 1991 the company made its first moved into the Indian and the Chinese markets.
In 1996, the company opened it megastore in United Color of /Benetton in Fifth Avenue, New York City, which sold sporting goods, clothing and accessories. Benetton diversified into sporting equipment and apparel in 1998, when it acquired Benetton Sport System from its parent Edizione Holding Group. However in 2000, the deal collapsed as a result of controversial advertisement by Benetton about anti-death penalty. During 2003 the company restricted its business into production and logistics, trademark and commercial activities and IT services and systems, to enhance its competitive edge in the market. The company also divested it sports equipment business during the year. Om 2004, the company’s distribution hub in Hong Kong began operations and coupled with its European Hub was expected to increase its customer service in the Asian region.
During 2005 the company restructured its production process
Target Customer Analysis
Benetton sells women’s and men’s apparel, accessories, shoes and fragrances to clients that are mostly fashion-oriented, such as women and...