Benetton was founded in Italy in 1965, by brother Luciano Benetton and sister Guiliana to distribute home-made sweaters to retailers.

Luciano had wholesaling experience and his sister design skills. The first Benetton store was started in 1968. 1978 there were 1000 and 1988 over 5000 franchised outlets worldwide. Benetton route had to worldwide leadership in the design production and distribution of clothing accessories and footwear for men woman and children.

Benetton is well established in the US and Canada and growing in Japan and the Pacific Rim. Benetton has also diversified into related goods such as shirts, jeans, gloves, shoes, and perfume. Benetton aims to provide the additional stocks more quickly than its competitors and also Benetton aims to replenish its shops including production,

Benetton is an international company with a global brand image. united colors of Benetton. Benetton comes in new and different every time. Benetton franchised retailers offer a high level of customer service with the responsive and helpful employes.

strength : strength Benetton Group is a world leader in the design, manufacture and marketing of distinctive casual apparel for men, women, and children. Benetton has its own communication research and development center: Fabrica. Benetton clothes are high quality products usually made of wool. Benetton is traditionally known for knitwear and casual clothing in a wide array of colors, featuring fashionable Italian design and projecting a youthful image.

WEAKNESS : WEAKNESS Because of its controversial way to advertise, Benetton retailers may terminate their contract anytime because they don t want to lose customers. Benetton, as it s spread all over the world, doesn t have a new geographical market to get in, except the United States. In Europe, Benetton products are expensive which gives opportunities to many competitors who provide lower prices for the same quality.

OPPORTUNITIES : OPPORTUNITIES Benetton does not have a lot of market shares in the United States, so it can improve its position in that market. As Benetton is diversifying, it allows the company to compete on several markets and it makes Benetton less sensitive in regards of the fluctuating economy.

THREATS : THREATS The clothing market is getting saturated and the competition is getting tougher and tougher (GAP, Old Navy, Ralph Lauren, Tommy Hillfiger,CalvinKlein,Nautica,Abercrombie ).

Mission : Mission To satisfy people needs with young, colourful,comfortable and easy to wear products, make a brand image in youngster s mind and also to provide unique color and product, supply the product at expected time to increase the availability of stocks. Vision : Vision To make a way of leadership and lead the design that are fashionable in market to create a global brand image.

Value chain of benetton groups : Value chain of benetton groups 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, and PlaylifeAmerican college style. The Group produces over 150 million garments every year. It networks over 6,300 contemporary stores around the world, offers high quality customer services and generates a total turnover of over 2 billion euro.

Strategy/Tactics Benetton Group's advertising campaigns are not only a means of communication but an expression of our time. Through their universal impact, they have succeeded in attracting the attention of the public and in standing out amid the current clutter of images. The campaigns have gathered awards and acclaim worldwide; by the same token, they have aroused strong reactions - at times ferocious, at times simply curious, confirming once again that they are always a focal point of discussion and of confrontation of ideas. Communication should never be commissioned from outside the company, but conceived from within its heart Luciano Benetton

Target Audience & The Process Target Audience Actual consumption is repositioned within the overall context of life. By entering the universe of values, the brand frees the product from the world of merchandise and manufacturing and makes it a social being of its own. By addressing an individual rather than a customer, the brand can identify its target on the basis not of age or income, but of a shared vision of what is important, starting from a set of common values

Social Responsibility-Campaigns Benetton has been always committed to ethical values, with a multi-ethnic and multi-racial approach, respect for minorities and for the environment, support of human rights. Through its communications campaigns and tangible actions, the Group has realized many initiatives in cooperation with internationally renown institutions and organizations: World Food Programme United Nations FAO SOS Racism Ethics Benetton has been always committed to ethical values Respect minorities and for the environment Supports human rights Cooperates with internationally renowned institutions and organizations Alessandro Benetton is carrying on his family s decades-long commitment to social activism and responsibility with a cutting- edge program in the developing world

Advertising Oliviero Toscani, "Advertising is the richest and most powerful form of communication in the world. We need to have images that will make people think and discuss Luciano Benetton, adds: "Advertising has a habit of portraying only the rich, beautiful and blonde. We need images of normal people, to help us see the world differently" The company positions on the role of marketing has received mixed reaction; from very positive, to ferocious attacks of others Emotional Arousing Ads The company's controversial ads have won awards and United Colors of Benetton has become the third most recognized brand in the world-following Coca-Cola and McDonald's On the other hand, the company has faced a lot of problems tied to its marketing practices (legal suits form retailers who claim that company's advertising is sabotaging their sales).

Benetton s Foundations Promotes initiatives on both international and local levels The aim of safeguarding and raising awareness of natural heritage. The main field of scientific activity concerns the knowledge, study and management of landscape. The Foundation organizes seminars, short courses, study trips and experimental workshops The Foundation collaborates to the construction of a new-concept European university Offer its help in creating a children's centre Its purpose is to provide an essential service which will improve the quality of life and work of the Group employees, and give support to the community

REASONS FOR WHY COMPANY S ADS UNETHICAL Most of the advertising is irrelevant to the products/services sold by the company The ads evoke strong emotions that sometimes cannot be control or that are unwelcome by viewers They can be perceived as psychoactive ("Death Row" campaign) "The 'united colors' of Benetton are turning to blood red," says PETA Europe Campaign Coordinator Andrew Butler. "If Benetton wants to wipe the blood of millions of sheep off its hands, it must refuse to sell clothes made from Australian wool.