Gwen Miller

Passeri Marketing
Colors That Make a Change

United Colors of Benetton is not solely concerned about their contribution to the

fashion world but more their impact on the entire world. They make statements and stir up

conversation with their advertisements and programs through their clothing company. United

Colors of Benetton is dedicated to making change happen for present and future generations.

In 1963 Benetton was founded as a hand-knitted wool sweater company in Treviso,

Italy. They produced sweaters in classic colors until a change in the market caused more youth

to be interested in their products. To adjust to this change the company started to produce

sweaters in a range of colors to be more appealing to the youth. Along with more colors they

changed their name to United Colors of Benetton to show (United Colors of Benetton, 2017).

Throughout the company’s many years of business they’ve had multiple defining

moments. Only four years after opening their first store in Italy they opened a Paris, France

location in 1969. Eleven years after they open a store on another continent in New York City,

New York, USA. They continued to spread over the following years by opening stores in

locations such as Tokyo and Eastern Europe. In 1991 the Group create COLORS magazine, a

quarterly installment on sale in 40 countries and published in four different languages. This

magazine conveys what is happening in the world around us with no mention of the company’s

products. It is often regarded by other magazines and editors because of the up-front nature of

it (Group History, 2017).

By the mid-2000s the company had spread to 120 countries with more than 5,000

stores. Even with their large expansion the Group still stayed true to their Italian roots and
headquarters in Treviso, Italy. During this same time, the Benetton family decided to reduce

their involvement in the company and in turn, give more responsibility to their managers. This

was a big decision since it had been maintained by family for so long but this change brought

about bold campaigns and brought the company to the height of their impact (Group History,

2017). In 2011, a new Chief Merchandising Officer and Creative Director is appointed by the

name You Nguyen. With a new person in this position came a new project titled ‘UNHATE

Campaign’, a worldwide campaign aimed at fighting the culture of hate. The Group was inspired

by the social role of art and self-expression and used the aspects in educate people to be

understanding and involve people that are “at risk” in many different areas of the world (Group

History, 2017).

The meaningful campaigns didn’t stop after the ‘UNHATE Campaign’, but instead moved

forward at full-speed over the next three years. In 2013, United Colors of Benetton started to

make use of many social media platforms with their campaign ‘#sisleylive’. This was a campaign

to celebrate their launch of the Spring/Summer 2013 collection but also share their

commitment to protecting the environment and product safety. The following year the

company debuted two campaigns; one was called “On Canvas” and the other “UN Women”.

“On Canvas” was an in-store concept that focused on the product and not the historic brand.

“UN Women” was to show their support of eliminating violence against women on the United

Nations International Day for the Elimination of Violence Against Women. In 2015, the

company launched the “Benetton Women Empowerment Program,” similar to the 2014

campaign supporting women, this program is showing their long-term commitment to

supporting world-wide women’s rights (Group History, 2017).

 Over the years the structure of the company has evolved. It began as a family company

and now many different people are involved in the important aspects of what needs to be done

for the company. There is a board of directs which consists of a chairman, a deputy chairman,

an executive deputy chairman, a chief executive officer, seven directors and one secretary to

the board. There is also a board of statutory auditors consisting of a chairman, two auditors and

two alternate auditors. The company also has a third party of independent auditors involved in

their company. The company use to have shareholders involved who had a stake in the

company’s stock but in 2012 the company decided to be a private company and left the Italian

stock market. Then, of course, there are store managers, factory managers and employees that

make a difference in the company’s success and customer experience (Benetton Group Annual

Report, 2009).

In 2014, the company created three separate entities to focus on different aspects of

the brand which included – brands, manufacturing and real estate management. They did this

in order to make sure there was enough attention on each aspect that weighs heavily on the

company’s success (Group History, 2017).

The goals and objectives of Benetton has seemed to stay the same throughout their

time. They are committed to making voices heard and bringing societal issues to the attention

of people. Benetton claims to be, “a responsible group that plans for the future and lives in the

present with a watchful eye to the environment, human dignity and to a society in

transformation (Company Vision, 2017).” This is clearly shown through all their campaigns and

topics of societal issues they choose to promote and focus on. Through searching the company

website they have many objectives they target through their clothing brand platform. A few of
these objectives include: support of women’s rights, the fight against hate and discrimination in

all forms, support of unemployment of the younger generations, education and support of AIDS

and fighting homophobia (Social Commitment, 2017).

Overall, the brand always strives to give a voice to those that may not be able to speak

loud enough for people to hear. They want to bring attention to issues that are brooding in all

countries that they are present in to help the current state of the world as well as future

generations. To do this and make their campaigns easily understandable, they use images that

are easy to infer no matter the language. They use images that make an impact and are clearly

in support of a certain topic. Below are some examples of controversial advertisements that

display the goals and objectives of the company, which is to be in tune with the world around,

human dignity and a society transformation.

A part of the UNhate Campaign pertaining to racism.

(Blickwink, 2016)
 An ad used in collaboration with Food for Life about fighting world hunger.
(Blickwink, 2016)

An ad promoting unity, homosexual stereotypes, interracial love and adoption.

(Blickwink, 2016)

Being a company that is always looking forward as well as considering current situations,

they have well developed strategies of business. Benetton places their values at the center of

the company which guides them in staying true to the social responsibility they strive to

achieve by being agents of social change through their clothing brand. The company does their

best to balance corporate activities with human rights, meaning they must find an equilibrium

that works for the advancement of their forward efforts as well as their clothing brand.

On the Benetton website, there are specifics on the company’s strategies for their

products, community relations and in its productive activities and supply chain management.

Their strategy regarding their products focuses on sustainability. The company wants to be sure
that the production process is sustainable as well as being concerned with the safety of their

products for the consumers. Benetton makes their best efforts to remove dangerous

substances from all their product to ensure the best safety standards they can for each of their

products, consumers and employees. In relation to the community they serve, Benetton wants

to grow with and sustain each community they have a presence in while furthering their efforts

in social change. In other words, they don’t want to just have involvement in the community via

their store, they want to go beyond the storefront and make a lasting impression and change

on people. Lastly, in its productive activities and supply chain management, Benetton ensures

that their actions and actions of business relations are directed by the company’s Code of

Conduct. The group always keeps up to date on conditions of their supply chain and its social

and environmental condition making sure safety in the workplace and working conditions are

up to par. A reoccurring theme in their current strategies is the commitment to sustainability

while contributing to social change. The company is dedicated to this aspect so much so that

they created a Sustainability Committee in 2015 which defines and oversees the sustainability

strategy of the entire company (Company Approach, 2017).

The marketing mix of the company, from my observations, is as follows. Benetton’s

products have many characteristics that can affect the choice of the consumer to purchase the

item or not. Some of these characteristics include: clothes for men, women and children, shoes,

accessories, variety of colors, range of sizes, good quality, care/wash instructions, different

fabrics and materials. It is important that Benetton carries the characteristics within their

product. There is an article for men, women and children in varying sizes sure to fit each
person. There are also a variety of materials used such as cotton, wool, organic cotton and

cashmere and a variety of colors to appeal to many different people.

There are three main places Benetton chooses to sell their items – in-store, online and

franchises. With more than 5,000 stores across the globe the brand is accessible in many

different countries. They are even more accessible online through their official website.

United Colors of Benetton has a presence on various social media accounts including

Facebook, Twitter, Instagram, YouTube and Pinterest. They maintain each of these accounts by

providing content frequently and sometimes responding to comments. Other promotion is

done through their website, COLORS magazine, Fabrica and various advertising campaigns.

Each website or social media platform is easy to interact with and navigate for the average

person and could be an influencer to a customer who may or may not be a loyal consumer.

While searching Benetton’s website the prices have a wide range. The most expensive

item I found had a price of $559.50 for a men’s trench coat made of a Merino wool blend. The

cheapest items ranged from $10.99 - $19.99 in both the men’s and women’s sections. The rest

of the items ranged from $20.00 to $200.00 and in some cases higher depending on the item

and material. For an average worker making more than minimum wage or a salary and has a

discretionary income, United Colors of Benetton could qualify as an affordable store for them.

However, in other cases it could be too expensive or not luxury enough, of course, all

depending on the consumer’s preferences.

One of the most influential retail strategies that affects Benetton’s sales volume is that

stores are located in historic town centers and shopping centers. This strategy brings in

attention from people that are visiting towns for other reasons (leisure travelers, business
travelers, etc.) and may bring in more guests if the stores were only located in shopping malls.

The interior of each store is also designed to present the collections, clothing design and color

as the center of attention making each display more enticing and dynamic to customers

(Company Vision, 2017)

In the beginning of United Colors of Benetton’s time they often produced campaign

images that were very controversial. The strategy was to use shocking images that made people

think and talk about the topic but it would also get people talking about the brand. Nowadays,

they don’t produce as severely controversial campaigns photos but they do have

advertisements that get people talking, not only about the topic but also about the brand

(Thomas, 2012).

Benetton is in a market segmentation that provides clothing that combines classic

pieces with bold colors while pushing universal issues. The brand targets both men and women

between the ages of 20 – 35 classified in the middle class or upper middle class market that

tend to be fashion forward and appreciate classic styles. The position they have is the

production of stylish clothes with concern for topics other than fashion.

For communication as a means of advertising Benetton likes to make a splash with their

communication campaigns. Instead of creating multiple variations of advertisements depending

on the country they will be seen in, Benetton uses a single message that can be understood

world-wide no matter the language, background or ethnicity. This is a much different approach

than what brands would normally do – tailoring their advertisements to each country. Another

characteristic of Benetton communication is making advertisements about civil, social and

political issues instead of displaying their products. This is a risky move because it doesn’t draw
direct attention to their clothing, however it does reinforce the company’s goal of wanting to

“cover new ground, look ahead, experiment and anticipate the times (Advertising, 2017).”

To help with their specific way of communicating with the world, United Color of

Benetton has developed a research center specifically for communication research called

Fabrica. At Fabrica, employees and students study how communication relates with other

sectors such as the economy, social sciences and environmental sciences. Through this research

the company finds and becomes aware of changes and trends in the modern world. Having a

department like Fabrica as a part of the company helps Benetton with their goal of making a

change in the world around us. The research is not only relative to the company’s success but

also relative to the changes Benetton is trying to make (Fabrica, 2017).

Also, in terms of communication, Benetton produces a magazine entitled COLORS. This

magazine has less to do with the advertisement of products and more to do with issues around

the world. Oliviero Toscani and Tibor Kalman, the creators of the magazine, had very specific

visions when they began to create the COLORS magazine in 1991. They wanted the magazine to

be real and show first person views of societal issues around the world through photos and

interviews. The magazine is much different from magazine normally found on newsstands.

COLORS is free of celebrities, gossip, news and pop culture. Inside, there are real photos,

inspiring texts and every day heroes that are chosen to highlight happenings around the world.

To this day the magazine follows the original idea of Toscani and Kalman, “…there is much to

discover and see, we just need to keep our eyes and minds wide open (About | COLORS

Magazine, 2017)”.
 Each of these aspects work together to create a strong communication between

Benetton and the world. Benetton does its best effort to communicate their passions and topics

of interest to the rest of the world and give a voice to those that may not have one.

United Colors of Benetton is present on social media outlets such as Instagram,

Facebook, Twitter, YouTube and Pinterest. Each of these accounts advertise the clothing the

brand sells with a mix of their campaigns. On each of these outlets you can find their most

recent campaign ‘United by Half’, a gender equality campaign started in India which supports

the emancipation and legitimacy of women all of the world. Mostly, the accounts are filled with

different pictures advertising their clothes and current collection. The pictures shared show

men, women and children of different ethnicities interacting showing the brand values equality

of all humans with an underlying theme of their current campaign. The content shared is not

controversial or causing chatter but simply showing diversity and support of others.

Also, through social media the brand communicates with its customers. On Facebook,

the brand responds to people that comment. This creates a closer relationship between the

specific person and the brand because of recognition. Benetton also comments back on other

social media accounts but not as frequently as seen on Facebook.

As with all companies that are head-strong about making a change there will always be

backlash. It is hard to please everyone and even harder when bringing controversial, tough

topics into the light. However, Benetton faces the negativity with ease and continues to speak

for issues they believe need to be addressed.

According to the Benetton website, “the firm has taken up the challenge of

globalization, with constant investments and a competent, flexible organization that takes
change in its stride (Company Vision, 2017).” The company seems to be good at realizing

change happens and they know how to predict what may happen for the future and do their

best to plan what they will do.

SWOT ANALYSIS
STRENGTHS WEAKNESSES
 High quality  Campaigns are often controversial
 Generally affordable prices  Projected at certain age range
 Range of products  Market share is limited because of
 A lot of store locations competitors
 Global
 Practical & versatile designs
 Branding & marketing usually
generate a lot of discussion and
visibility
OPPORTUNITIES THREATS
 Celebrity endorsements in ad  Competitors (Zara, Mango, GAP, J.
campaigns Crew)
 Add emphasis on actual product, not  Competitive price range
just ad campaigns  Campaigns may be offensive

In my SWOT analysis, I’ve compiled a list for each topic concerning the brand’s current

situation. Strengths and opportunities outweigh the weaknesses and threats which a positive

aspect for the company. A few opportunities the company should take advantage of are using a

celebrity to endorse their products and focus more campaigns on their products. Benetton does

not have a celebrity that is a face of their brand currently. But if they were to integrate this type

of advertising into their company they may draw in new customers. Often a celebrity that is

highly regarded and trusted can entice people to buy a product. The other suggestion of

focusing a campaign on products alone could help the company too. Often their products are

overshadowed by a campaign concerning an issue in society. The campaign could have an affect

on if someone buys a product or not. Or some may not even realize that the campaign is by a

clothing company. As for threats and weaknesses, most brands face competitors with similar
prices and products, when there are many companies with similar ideas it is bound to happen.

But if United Colors of Benetton positions themselves correctly they can do well and stay

competitive within their market.

In conclusion, United Colors of Benetton has a well thought out business plan and has

given thought to their specific type of advertising. The company is aware of how powerful their

campaign messages and images can be. However, they are also aware that these types of

campaigns get people talking about the brand and the issue. They are a headstrong company

that knows what they stand for, how they want to convey their message and would rather the

image and message be real instead of sugar-coated. All of their advertising is bold and not

typically seen from fashion companies but they use their position in many countries to their

advantage.
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