International marketing - Critically appraise Benetton as a sustainable global brand?

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9817773        International Marketing        08/05/2007

CBS3        IB3880        

International Marketing

IB3880

Benetton Case Study

UID: 9817773

CBS3

18/04/2001


Question 1:  Critically appraise Benetton as a sustainable global brand?

Benetton’s founder, Luciano Benetton, started his business in true entrepreneurial style by exploiting what he considered a niche market at the time.  He noticed that there was very little colour in the majority of clothing that people wore and therefore decided that there was a clear market for more colourful products of a substantial quality.  Benetton’s keen observations proved to be correct and the company grew into the global clothing manufacturer that Benetton now is.

In order to ascertain whether the global brand can be sustained it is necessary first to examine why the brand has become a global brand and what makes it so popular.  One of Benetton’s key aims is to provide clothes of a consistently high quality as well as attempting to provide clothes that appeal to a large portion of the population.  There is no reason why this winning formula could not survive through the ages, in order to stay successful Benetton merely need to ensure that they keep in touch with global demand and continue to keep their brand well known and liked.  This last point may seem like a relatively easy one to achieve but Benetton enjoy exploiting extremely controversial issues as part of their ‘Institutional Campaigns’.  These campaigns aim at publicising the entire company as a whole rather than any one range of clothing.  Through this marketing technique they aim to not only keep public attention for their corporate name, but to associate Benetton with trying to raise awareness about certain issues.  As can be seen from the response to their most recent campaign, pictures of death-row inmates, this does not always generate a favourable response.  Benetton stress the fact that they are not trying to use shock techniques to advertise their products, they continue to insist that they are only raising awareness in the interests of public education.

It appears, in light of the examples given above, that Benetton seem to have a sustainable global brand.  The only aspect that Benetton need to be concerned with is the brand image that consumers develop.  Although their ‘Institutional Campaigns’ appear to have been successful in promoting consumer knowledge about the brand, the image still appears to be comparatively negative.  This then needs to be outweighed by either the quality of the product, or by other product-based advertisements.


Question 2:  To what extent do you believe that Benetton can succeed globally with its current communication strategy and would it be advised to adapt its approach for some markets?  Justify your answer with reference to specific examples and theory.

Benetton’s current communication strategy is diverse.  A large portion of their communication budget is spent on their ‘Institutional Campaigns’.  These campaigns are designed to advertise the company and corporate image rather than specific product lines.  Although they do develop standard product based advertisements, these are on a much smaller scale and generally specifically geared to a certain market rather than promoting the global brand.  The theory behind this is that Benetton prefer to advertise via the number of stores they have in a particular area.  As Luciano Benetton was quoted as saying:

I discovered that, even if the brand was unknown, seeing three or four of our shops in one town would give a feeling of security equivalent to a good advertising campaign…

This means that Benetton feel comfortable that they have enough product advertising and so continue with their current strategy.  In order for this to be successful many would argue that the general public should gain a good impression of Benetton through their advertising.  Benetton decided that the easiest way to achieve this was to bring current issues to public notice, therefore educating the public and increasing awareness about certain controversial issues.  The company has been doing this since 1984 when they started promoting racial equality in all of their advertisements under the slogan ‘United Colors of Benetton’.  This proved to be so successful in the eyes of Luciano Benetton that actual Benetton clothing was dropped from the advertisements in 1990 and by 1991 the issues addressed had extended beyond racial equality.  It was at this point, after a series of billboard posters showing images such as; a nun and priest kissing, a dying AIDS victim lying on his deathbed surrounded by his family, and a military cemetery filled with crosses, that complaints started to be made against Benetton.

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This type of advertising still continues and Benetton routinely receive complaints from the public as well as many activist groups and various standards agencies.  In Benetton’s defence they claim only to be raising public awareness about important issues that should concern everyone as their website claims.

Benetton's campaigns have managed to tear down the wall of indifference contributing at raising the awareness of universal problems among world's citizens.”

Many people would suggest that Benetton change their communications strategy if they intend to use this form of advertising in stricter or more religious markets because the advertisements are even ...

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