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Sudip Dutta
PGDM Marketing
2010 – 2012
Globsyn Business School
Calcutta
Founder‟s Thought


Luciano Benetton : "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.”


Oliviero Toscani pursues this : "I am not here
to sell pullovers, but to promote an image"...
Benetton's advertising draws public attention
to universal themes like racial integration, the
protection of the environment, Aids...
ADVERTISING PHILOSOPHY
“Communication should not be
 commissioned from outside the
 company, but conceived from within
 its heart.”           - Luciano Benetton
Meaning Of United Colors Of Benetton Logo




Stylized knot of yarn with word Benetton printed
under it, contained within a dark green rectangle
shows that brand deals in apparels and has a
style statement which differentiates it from other
brands. It emphasizes its principal and most
important characteristic - uniqueness.
The Benetton Group
 Present in 120 countries around the world.
 More than 6000 retail stores worldwide.
 Produces around 130 million garments every
  year.
 Offers high quality customer services and
  generates a total turnover of over 2 billion Euro.
 Core business is clothing with a strong Italian
  character whose style, quality and passion are
  clearly seen in its brands.
       The casual United Colors of Benetton
       The fashionable Sisley
       Playlife leisurewear
       Killer Loop street-wear
       Undercolors of Benetton undergarments
India Overview
                  Benetton is in India since
                   1992, through a licensee, but
                   since Dec 2004, they have
                   become a 100% subsidiary of
                   Italy.

                  Avg. growth rate in India
                   since 2004, year on year is
                   56%.

                  Expansion through multi
                   format strategy.

                  UCB has the largest network
                   for a fashion retail brand in
                   the country across 52 cities.

                  Launched Sisley in Oct 2006
                   in India.

                  Launched UnderColors in Oct
                   2007.

                  Launched Playlife in March
                   2008.
India Overview Contd…


  Retail Area – Over 250000 sq. ft.
  Average Store Size – 1500 sq. ft.
  No. of Stores with 20 million Plus
   turnover – 24%.
  130 plus Exclusive Stores.
  Selling more than 2.5 million garments a
   year.
Mumbai UCB
Megastore

   11,000 sq. feet
   2 Floors
   Menswear
   Womenswear
   Childrenswear
   Undercolors
Delhi UCB
Megastore

   7000 sq. feet
   3 Floors
   Menswear
   Womenswear
   Childrenswear
Bengaluru UCB
Megastore

   10000 sq. feet
   3 Floors
   Menswear
   Womenswear
   Childrenswear
Chandigarh UCB
Megastore

   10000 sq. feet
   4 Floors
   Menswear
   Womenswear
   Childrenswear
Stellar Performance in Indian Market
NORTH INDIA
• UCB South Extension is the highest revenue grosser among single
brand retail stores.
• At Rs. 134/sq. ft. UCB Khan market is the highest. It is closely
followed by UCB Defence Colony @ Rs. 116/sq. ft.

WEST INDIA
• UCB Megastore at Linking Road, Mumbai is credited for developing
the high street and the highest turnover.
• UCB Inorbit Malad at Rs. 135 / sq. ft. is amongst the highest sales
per sq. ft. in the fashion apparel category.

SOUTH INDIA
• UCB Forum Bangalore does highest turnover for a single brand in
the mall.

EAST INDIA
• Shillong is the biggest Single brand store in the North East region.
• South City Kolkata does the highest turnover for a single brand.
Entering Core India
Benetton is not just a brand for the metros; they are also
present in Tier II & Tier III Cities.
Lucknow
UCB
Megastore
Recently
launched its 3rd
store in
Lucknow
- area of 3200
sq. ft., with
exciting visual
merchandising
& a wide range
of merchandise
for adults &
kids.
Other Fashion Cities
Mega stores in Tier-2 towns with carpet area in excess of
4000 sq.ft. e.g. Dehradun, Amritsar, Jaipur positioned as
“THE FASHION DESTINATION” in that city.




Mall Road, Amritsar   Tonk Road, Jaipur   Rajpura Road, Dehradun



These stores have shown results 30% above expectation -
shows the customer‟s trust and acceptance of Benetton.
Fashion @ Small Towns
Even towns like
Nasik, Kolhapur, Aurangabad, Mysore, Mangalore
have shown very impressive performances.
Visual Merchandising –treat for the eyes!

• One of the only brands to represent
“merchandise thematically”.
• International standards and look
guides are followed with respect to: -
      – Folding
      – Tabletops
      – Browsers
      – In-store displays
• Coordinated merchandize display
      – Consistency across stores
Visual Merchandising- Window Designs
                  Innovative window display




• In the fashion capitals of the world, the Windows of fashion
brands are kept lit at night, attracting passers by and
reinforcing both visibility and brand recall.

• UCB are also trying to make that happen in India, and the
windows change constantly, with the seasons, with new
merchandise and on special occasions.
Visual Merchandising- In-Store Visuals




 • Larger than life.
 • Theme specific.
 • Endorsement of ordinary people, no
 celebrity involved.
 • United: above racial origin of model.
UCB sells Fashion, not garments!




• Plays a very important role because UCB don‟t believe in
selling „one‟ piece but a complete ensemble.

• In other words, UCB don‟t see themselves as sellers of
clothes but as fashion leaders who strives to uplift the young
and the restless.
Competitors
   International         National
  Victoria‟s secret   Jockey, Hanes
        Gap            Numero Uno
  Tommy Hilfiger      Tommy Hilfiger
     Wrangler           Wrangler
Advertising Idea
 United color of
  Benetton carries
  “A Big Idea” as a
  concept.
 Grab attention by
  shocking images.
 A distinct image.
 Draw people attention
  towards issues like
  racial abuse.
 Position the company
  as a social conscious
  marketer.
Building Value For The Brand

The process of building value for UNITED
COLORS OF BENETTON follows three phases: -



 The cycle of difference.


 The cycle of reality.


 The cycle of free speech and the right to
  express it.
The Cycle Of Difference

 In this cycle, the word “different” became a
  close controversy.
 Benetton learned that attempt to bring
  different individuals together can lead to
  conflict instead of happiness and euphoria.




By acknowledging these differences and
prohibitions, the brand appeared more
involved.
The Cycle Of Reality
 After equality and the exaltation of
  differences, Benetton turned to the reality
  of what is common to all and shared by
  humankind.
                     In 1991, during the Gulf
                     War, this image was created, a
                     photo of a war cemetery.


Benetton answered with a birth, the
famous image of a newborn baby still
attached to the umbilical cord.


                                       Photos of real, high-
                                       drama situations: -
                                       A man dying of AIDS,
                                       A car on fire.
The Cycle of Free Speech and Right
 to Express it
Through its alliance with non-profit associations,
institutions, and large international organizations,
Benetton proved that a “different” use of advertising was
indeed possible and seen as the creation of value and soon
came in fashion catalogues.



                    For the sixth World AIDS Day, on
                    December 1st 1993, an enormous
                    pink condom, 22 meters high and
                    3.5 meters wide, was placed on the
                    obelisk in the Place de la Concorde
                    in Paris.

All the daily and magazine press featured this image
that has become a symbol of the fight against AIDS.
Advertising Campaigns
 2001, Volunteers in Colors:


                              Benetton communication campaign,
                              a special issue of COLORS and a
                              concert, in collaboration with UN
                              Volunteers to celebrate the
                              International Year of Voluntary
                              Work.
                                                  2003, Food For Life:
The campaign highlighted the problem of
hunger, which is still the greatest
humanitarian emergency around the world.

 2004, James & Other Apes:

                       Through this initiative, Benetton
                       continued its exploration of
                       diversity, extending it from the variety of
                       human races to embrace the living beings
                       that are our closest cousins.
2008, Africa Works:
                          Benetton chose to support
                          and promote this important
                          project because, unlike
                          traditional acts of solidarity, it
                          offers tangible support to
                          small local entrepreneurs
                          through the efficient use of
                          micro-credit.




  This project effectively promotes the new
  face of Africa.
Media Selection



  Magazines


  Internet


  Newspaper


  Television
Different Appeals Portrayed




  Emotions
                     Fear



                  Fun
Promotional Tools
RECOMMENDATIONS

 Instead of shock advertising, it should go

  for more consumer friendly advertising.

 More TV Advertisement.

 Self cannibalization.

 Crowd sourcing.
THANK YOU

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United Colors of Benetton

  • 1. By: - Sudip Dutta PGDM Marketing 2010 – 2012 Globsyn Business School Calcutta
  • 2. Founder‟s Thought Luciano Benetton : "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.” Oliviero Toscani pursues this : "I am not here to sell pullovers, but to promote an image"... Benetton's advertising draws public attention to universal themes like racial integration, the protection of the environment, Aids...
  • 3. ADVERTISING PHILOSOPHY “Communication should not be commissioned from outside the company, but conceived from within its heart.” - Luciano Benetton
  • 4. Meaning Of United Colors Of Benetton Logo Stylized knot of yarn with word Benetton printed under it, contained within a dark green rectangle shows that brand deals in apparels and has a style statement which differentiates it from other brands. It emphasizes its principal and most important characteristic - uniqueness.
  • 5. The Benetton Group  Present in 120 countries around the world.  More than 6000 retail stores worldwide.  Produces around 130 million garments every year.  Offers high quality customer services and generates a total turnover of over 2 billion Euro.  Core business is clothing with a strong Italian character whose style, quality and passion are clearly seen in its brands.  The casual United Colors of Benetton  The fashionable Sisley  Playlife leisurewear  Killer Loop street-wear  Undercolors of Benetton undergarments
  • 6.
  • 7. India Overview  Benetton is in India since 1992, through a licensee, but since Dec 2004, they have become a 100% subsidiary of Italy.  Avg. growth rate in India since 2004, year on year is 56%.  Expansion through multi format strategy.  UCB has the largest network for a fashion retail brand in the country across 52 cities.  Launched Sisley in Oct 2006 in India.  Launched UnderColors in Oct 2007.  Launched Playlife in March 2008.
  • 8. India Overview Contd…  Retail Area – Over 250000 sq. ft.  Average Store Size – 1500 sq. ft.  No. of Stores with 20 million Plus turnover – 24%.  130 plus Exclusive Stores.  Selling more than 2.5 million garments a year.
  • 9. Mumbai UCB Megastore  11,000 sq. feet  2 Floors  Menswear  Womenswear  Childrenswear  Undercolors
  • 10. Delhi UCB Megastore  7000 sq. feet  3 Floors  Menswear  Womenswear  Childrenswear
  • 11. Bengaluru UCB Megastore  10000 sq. feet  3 Floors  Menswear  Womenswear  Childrenswear
  • 12. Chandigarh UCB Megastore  10000 sq. feet  4 Floors  Menswear  Womenswear  Childrenswear
  • 13. Stellar Performance in Indian Market NORTH INDIA • UCB South Extension is the highest revenue grosser among single brand retail stores. • At Rs. 134/sq. ft. UCB Khan market is the highest. It is closely followed by UCB Defence Colony @ Rs. 116/sq. ft. WEST INDIA • UCB Megastore at Linking Road, Mumbai is credited for developing the high street and the highest turnover. • UCB Inorbit Malad at Rs. 135 / sq. ft. is amongst the highest sales per sq. ft. in the fashion apparel category. SOUTH INDIA • UCB Forum Bangalore does highest turnover for a single brand in the mall. EAST INDIA • Shillong is the biggest Single brand store in the North East region. • South City Kolkata does the highest turnover for a single brand.
  • 14. Entering Core India Benetton is not just a brand for the metros; they are also present in Tier II & Tier III Cities.
  • 15. Lucknow UCB Megastore Recently launched its 3rd store in Lucknow - area of 3200 sq. ft., with exciting visual merchandising & a wide range of merchandise for adults & kids.
  • 16. Other Fashion Cities Mega stores in Tier-2 towns with carpet area in excess of 4000 sq.ft. e.g. Dehradun, Amritsar, Jaipur positioned as “THE FASHION DESTINATION” in that city. Mall Road, Amritsar Tonk Road, Jaipur Rajpura Road, Dehradun These stores have shown results 30% above expectation - shows the customer‟s trust and acceptance of Benetton.
  • 17. Fashion @ Small Towns Even towns like Nasik, Kolhapur, Aurangabad, Mysore, Mangalore have shown very impressive performances.
  • 18. Visual Merchandising –treat for the eyes! • One of the only brands to represent “merchandise thematically”. • International standards and look guides are followed with respect to: - – Folding – Tabletops – Browsers – In-store displays • Coordinated merchandize display – Consistency across stores
  • 19. Visual Merchandising- Window Designs Innovative window display • In the fashion capitals of the world, the Windows of fashion brands are kept lit at night, attracting passers by and reinforcing both visibility and brand recall. • UCB are also trying to make that happen in India, and the windows change constantly, with the seasons, with new merchandise and on special occasions.
  • 20. Visual Merchandising- In-Store Visuals • Larger than life. • Theme specific. • Endorsement of ordinary people, no celebrity involved. • United: above racial origin of model.
  • 21. UCB sells Fashion, not garments! • Plays a very important role because UCB don‟t believe in selling „one‟ piece but a complete ensemble. • In other words, UCB don‟t see themselves as sellers of clothes but as fashion leaders who strives to uplift the young and the restless.
  • 22. Competitors International National Victoria‟s secret Jockey, Hanes Gap Numero Uno Tommy Hilfiger Tommy Hilfiger Wrangler Wrangler
  • 23. Advertising Idea  United color of Benetton carries “A Big Idea” as a concept.  Grab attention by shocking images.  A distinct image.  Draw people attention towards issues like racial abuse.  Position the company as a social conscious marketer.
  • 24. Building Value For The Brand The process of building value for UNITED COLORS OF BENETTON follows three phases: -  The cycle of difference.  The cycle of reality.  The cycle of free speech and the right to express it.
  • 25. The Cycle Of Difference  In this cycle, the word “different” became a close controversy.  Benetton learned that attempt to bring different individuals together can lead to conflict instead of happiness and euphoria. By acknowledging these differences and prohibitions, the brand appeared more involved.
  • 26. The Cycle Of Reality  After equality and the exaltation of differences, Benetton turned to the reality of what is common to all and shared by humankind. In 1991, during the Gulf War, this image was created, a photo of a war cemetery. Benetton answered with a birth, the famous image of a newborn baby still attached to the umbilical cord. Photos of real, high- drama situations: - A man dying of AIDS, A car on fire.
  • 27. The Cycle of Free Speech and Right to Express it Through its alliance with non-profit associations, institutions, and large international organizations, Benetton proved that a “different” use of advertising was indeed possible and seen as the creation of value and soon came in fashion catalogues. For the sixth World AIDS Day, on December 1st 1993, an enormous pink condom, 22 meters high and 3.5 meters wide, was placed on the obelisk in the Place de la Concorde in Paris. All the daily and magazine press featured this image that has become a symbol of the fight against AIDS.
  • 28. Advertising Campaigns 2001, Volunteers in Colors: Benetton communication campaign, a special issue of COLORS and a concert, in collaboration with UN Volunteers to celebrate the International Year of Voluntary Work. 2003, Food For Life: The campaign highlighted the problem of hunger, which is still the greatest humanitarian emergency around the world. 2004, James & Other Apes: Through this initiative, Benetton continued its exploration of diversity, extending it from the variety of human races to embrace the living beings that are our closest cousins.
  • 29. 2008, Africa Works: Benetton chose to support and promote this important project because, unlike traditional acts of solidarity, it offers tangible support to small local entrepreneurs through the efficient use of micro-credit. This project effectively promotes the new face of Africa.
  • 30. Media Selection  Magazines  Internet  Newspaper  Television
  • 31. Different Appeals Portrayed Emotions Fear Fun
  • 33. RECOMMENDATIONS  Instead of shock advertising, it should go for more consumer friendly advertising.  More TV Advertisement.  Self cannibalization.  Crowd sourcing.

Notas del editor

  1. OS: (opening soon) is the future of retail
  2. Canniblization by other brands of the group