Company Analysis: United Colors of Benetton
Company Analysis: United Colors of Benetton
1. Briefly summarize the main features of Benetton’s international strategy.
Benetton’s Philosophy : To bring the network of the Benetton image- a global brand with a distinctly Italian personality- to the most prestigious shopping zones in major world capitals. Benetton believes that in this saturated market the customers already have everything they need and they have to be tempted by design, atmosphere, and by the quality of in-store customer services. A group that strongly believes that customers should have an inspiration for their purchase.
Benetton’s International strategy is based on the above philosophy and it can be broadly classified in four different parts.
1. Innovativeness on the distribution front ➢ International showcase of Benetton’s style and image by opening megastores in the historic and shopping centers of the world’s great cities ➢ Provision of welcoming bar inside stores to relax customers (Hamburg store) ➢ Special recreation area for the young ones(Rome megastore) ➢ Benetton’s entry into the world of net-shopping through www.theex.it ➢ Innovative multicultural environment focussing on creativity, free thought and culture(Bologna mega store) ➢ Opening a megastore where different cultures and traditions meet(Lisbon store)
2. Existing Product Improvement/Responding to the Market Change ➢ Continuous up gradation of the existing products and responding quickly to the changing market has been a key to the success of Benetton. ➢ New products( Benetton’s research wing has been very successful in bringing up innovativeness in their products, as a result 20-25 patents filled per year during 2000-02 period. ➢ Playlife- A brand slogan for the whole sports division meant that Benetton could be a one stop shop for all the sports wear. ➢ Benetton USA( Incorporated current trends into affordable fashions ➢ Hip Site( It was aimed
1. Briefly summarize the main features of Benetton’s international strategy.
Benetton’s Philosophy : To bring the network of the Benetton image- a global brand with a distinctly Italian personality- to the most prestigious shopping zones in major world capitals. Benetton believes that in this saturated market the customers already have everything they need and they have to be tempted by design, atmosphere, and by the quality of in-store customer services. A group that strongly believes that customers should have an inspiration for their purchase.
Benetton’s International strategy is based on the above philosophy and it can be broadly classified in four different parts.
1. Innovativeness on the distribution front ➢ International showcase of Benetton’s style and image by opening megastores in the historic and shopping centers of the world’s great cities ➢ Provision of welcoming bar inside stores to relax customers (Hamburg store) ➢ Special recreation area for the young ones(Rome megastore) ➢ Benetton’s entry into the world of net-shopping through www.theex.it ➢ Innovative multicultural environment focussing on creativity, free thought and culture(Bologna mega store) ➢ Opening a megastore where different cultures and traditions meet(Lisbon store)
2. Existing Product Improvement/Responding to the Market Change ➢ Continuous up gradation of the existing products and responding quickly to the changing market has been a key to the success of Benetton. ➢ New products( Benetton’s research wing has been very successful in bringing up innovativeness in their products, as a result 20-25 patents filled per year during 2000-02 period. ➢ Playlife- A brand slogan for the whole sports division meant that Benetton could be a one stop shop for all the sports wear. ➢ Benetton USA( Incorporated current trends into affordable fashions ➢ Hip Site( It was aimed
References: 1. http://www.benettongroup.com/investors/ 2. Analyst Report: GOLDMAN SACHS by Richard Chamberlain 14.09.2006 3. Analyst Report: DEUTSCHE BANK Francesca Di Pasquantonio by 12.10.2006 4. Analyst Report: MEDIOBANCA by Chiara Rotelli 09.10.2006 [pic] 5. Analyst Report ABAXBANK by Elena Sottanella 18.09.2006 6. http://www.franchise.org.au/content/?id=186