Contents

Introduction.– Terms– UCB – Benetton group.

Conception.– Time line.

UCB & CBBE model. UCB’s positioning. UCB brand lifecycle. UCB’s marketing & sponsorships. Revitalization strategies. Sugesstions.

Introduction

A brand is a name or trademark connected with a product or producer. Brands have become increasingly important components of culture and the economy, now being described as "cultural accessories and personal philosophies".

The art of creating and maintaining a brand is called brand management.

Brand Equity is the sum total of all the different values that people attach to a brand, and is not constant.

A global brand, and one of the most well known in the world, United Colors of Benetton has an international style that combines color, quality and fashion. Each season the women wear, menswear, children wear and innerwear collections offer a total look for everyday, for work and for leisure, in the city and outdoors. The Benetton Baby label is a new product line dedicated to the prenatal and the under-fives world.

The brand is present in many other sectors, from the elegant accessories to the eyewear lines and perfumes, from the home collection to baby products.

Today, the Benetton Group is present in 120 countries around the world. Its core business is fashion apparel: a group with a strong Italian character whose style, quality and passion are clearly seen in its brands

– the casual United Colors of Benetton.– the glamour oriented Sisley.– the leisurewear brand Playlife.

Conception

In 1955, Luciano Benetton, a 30-year-old salesman in Treviso. He saw a market for colorful clothes, and sold his younger brother's bicycle in order to buy his first second-hand knitting machine. His initial small collection of sweaters received a positive response in local stores in the Veneto region. In 1965, the entity known as the "Benetton Group" came into existence.

In 1966, the Benetton’s opened their first store in Belluno, and three years after in Paris.

Benetton has a network of around 6,200 stores in 120 countries. The stores are managed by independent partners and generate revenue of over €2 billion per year.

Timeline

1960 = The idea of color.

1965 = The Benetton Group is established.

1970 = A business model making the difference: unique, flexible and innovative.

1980 = Benetton communication campaigns: known all over the world.

1990 = A global company present in 120 countries.

2000 = Benetton grows with the market: over 150 million garments produced every year and distributed in around 6,200 contemporary stores.

UCB & CBBE model

UCB & CBBE model

Salience (what basic functions does the brand provide to customers?)

United Colors of Benetton built strong brand awareness by creating a broad range of basic and colorful clothes that appeals to a large number of customers in the market for colorful clothes which Mr. Luciano Benetton had found in 1965.

UCB & CBBE model

Performance (Product reliability, which refers to the consistency of performance over time and from purchase to purchase.)

United Colors of Benetton has an international style that combines color, quality and fashion. Each season the women wear, menswear, children wear and underwear collections offer a total look for everyday, for work and for leisure, in the city and outdoors.

By the year 2000, the group was selling 150 million garments worldwide, annually in 6,200 stores in many countries, out of which Europe represents 82% total revenues (Included Italy), Asia 14 and the Americas 3. The rest of the world generates the remaining 1%. And approximately 72% sales generated in Europe are from loyal customers.

UCB & CBBE model

Imagery (is how people think about a brand abstractly, rather than what they think the brand actually does)

The slogan United Colors of Benetton seems to perfectly capture its desired image and positioning. It embraces both product considerations (the colorful character of the clothes) and user considerations (the diversity reflected by the people who wore the clothes). UCB’s advertisement campaigns reinforced this image by showing people from a variety of different racial backgrounds wearing a range of different colored clothes and products.

UCB & CBBE model

Judgment (customer’s personal opinions and evaluations with regard to the brand.)

Financial Highlights of UCB

year 2008 2007 2006 2005 2004

Revenues (million euro)

2,128 2085 1911 1765 1704

Net Income (million euro)

155 145 125 112 109

UCB & CBBE model

Judgment continues As it evident from the trend of the revenues generated by the company, which are continuously increasing. It suggests that the brand is able to grab the consideration advantage (brand consideration), superiority over competitors, generating a favorable brand attitude and credibility in the minds of the customers. Thereby, adding to the overall equity of the brand.

UCB & CBBE model

Feelings (customer’s emotional responses and reactions with respect to the brand. What feelings are evoked by the marketing program for the brand or by other means?)

United Colors of Benetton has implemented various campaigns, and the various feelings generated about the brand as per these campaigns are as:

UCB & CBBE model

UCB & CBBE model

Resonance (ultimate relationship and the level of identification that the customer has with the brand.)

The United Colors of Benetton brand hasn’t performed better at this stage of the CBBE model, apart from the repeat purchases generated in the Europe, and needs to work on it.

UCB’s current Brand Positioning

Brand positioning is the act of designing the company’s offer and image, so that it occupies a distinct and valued place in the target customers mind.

It’s slogan “United Colors of Benetton” seems to perfectly capture its

desired image and positioning. It embraces both product considerations (the colorful character of the clothes) and user considerations (the diversity reflected by the people who wore the clothes), providing a strong platform for the brand.

UCB’s current Brand Positioning

Before 1980’s Benetton’s ad campaigns reinforced this positioning by showing people from a variety of different racial backgrounds wearing a range of different colored clothes and products.

However in the 1980’s addressing to controversial social issues it’s ad campaigns shifted directions.

From 2000 onwards the brand has shifted back to non-controversial issues in it’s campaigns and focusing back on itsearlier positioning (colors) along withyouth participation.

UCB’s Brand lifecycle

A brand goes through the following stages in its lifecycle:– No brand.– Leaky brand.– Average Joe brands.– Iconic brands.– Cult brands.

The brands which are strong at the Brand Resonance step of the CBBE model turn into Cult brands.

As United Colors of Benetton is lacking at this step of the model, hence cannot be referred as a cult brand, but lower to it, i.e. an “Iconic brand.”

Marketing & sponsorships

Benetton Group entered Formula One as a sponsor of Tyrrell in 1983, then Alfa Romeo in 1984.

In 1979 Benetton first sponsored a local rugby team, A.S. Rugby Treviso.

In 1982 the company bought its local basketball team, Pallacanestro Treviso, now commonly known as Benetton Basket.

Revitalization strategies

1994 was not a good year for German Benetton retailers, as their sales dropped 16 percent or $35 million in 1994. To counteract the negative sales growth in Germany, Benetton began restructuring their sales network to create a network, which would be, more in tune with their guiding principles of business sense, creativity and dynamism. This entailed replacing many of the smaller outlets with bigger multi-product stores as well as recruiting new franchisees.

In the mid 1980s, their largest selling items in Europe were their brightly colored sweaters. When the sweaters were introduced into the United States as the company's signature product, it was a disaster. Subsequently, Benetton had to readjust their shipments and designs to fit North American tastes.

Revitalization strategies

Benetton, which had around 7000 franchisees all over the world, plans to move towards directly operated stores, mainly mega stores with a lot of retail space. The company attributes the need for this change to the changes in consumer behavior, which indicated that customers need more space and color and light in the retail store. Benetton plans to have 300 mega stores around the world by the end of 2004.

Suggestions

UCB should focus on their line extensions like perfumes , wallets , belts.

UCB has always gone in for ‘shock advertising’ or ‘cause

advertising’ that aren’t really understood by the consumers. More over their ads have often been controversial and have witnessed uproars in the recent past. So they should go in for a change in their advertising campaigns.

Avoid self-cannibalization.

References

Strategic Brand Management: Kevin Lane Keller.

www.benetton.com

Advertising and Branding, The Economic Times.

The Ps and Qs of Global Branding, Hindu Business Line, Catalyst.

http://www.brandchannel.com

www.loyaltylogic.com