Case Study: Benetton
Case Study: United Colors of Benetton
1. Benetton’s business in Italy is reaching market maturity.
Benetton’s revenues (billings) from Italy had levelled out due to market saturation, increasing competition, growing amount of imported merchandise and a stagnant economy. It should be noted that majority of the Company’s revenue is generated from Italy. In fact, out of $78 million sales generated by the Company in 1978, 98% of which were from Italy. Time is of the essence, the Management should immediately address this problem otherwise Benetton’s future viability and success will be compromised.
2. Objectives to solve the problem ( one sentence each)
a. Benetton should undertake to maintain its current market position and/or secure its current market share in the Italian market through product and system wide innovations as well as aggressive marketing promotions.
b. Benetton had already established a good reputation in the European market; hence it should undertake to increase its market penetration and work on consolidating the said market. c. Benetton should capitalize on the growing popularity of Italian Fashion by developing other markets like USA and Japan with ultimate goal of becoming the market leader on a global scale.
3. SWOT Analysis
a. Strengths
Benetton dominated the Italian market and had established a good image and reputation in the European Market.
Benetton Group is a world leader in the design, manufacture and marketing of distinctive casual apparel. They are known for their good quality fabric and designs. Their clothes have international style that combines energy, colour and practicality. Branding and marketing campaigns have always generated to a lot of visibility.
Manufacturing innovations
Benetton, had over the years been an innovator in the production of knitted overwear products. For example, 10 years before the development of machinery for making hard and rough wool soft and pliable, Luciano
1. Benetton’s business in Italy is reaching market maturity.
Benetton’s revenues (billings) from Italy had levelled out due to market saturation, increasing competition, growing amount of imported merchandise and a stagnant economy. It should be noted that majority of the Company’s revenue is generated from Italy. In fact, out of $78 million sales generated by the Company in 1978, 98% of which were from Italy. Time is of the essence, the Management should immediately address this problem otherwise Benetton’s future viability and success will be compromised.
2. Objectives to solve the problem ( one sentence each)
a. Benetton should undertake to maintain its current market position and/or secure its current market share in the Italian market through product and system wide innovations as well as aggressive marketing promotions.
b. Benetton had already established a good reputation in the European market; hence it should undertake to increase its market penetration and work on consolidating the said market. c. Benetton should capitalize on the growing popularity of Italian Fashion by developing other markets like USA and Japan with ultimate goal of becoming the market leader on a global scale.
3. SWOT Analysis
a. Strengths
Benetton dominated the Italian market and had established a good image and reputation in the European Market.
Benetton Group is a world leader in the design, manufacture and marketing of distinctive casual apparel. They are known for their good quality fabric and designs. Their clothes have international style that combines energy, colour and practicality. Branding and marketing campaigns have always generated to a lot of visibility.
Manufacturing innovations
Benetton, had over the years been an innovator in the production of knitted overwear products. For example, 10 years before the development of machinery for making hard and rough wool soft and pliable, Luciano