Positioning Analysis of Benetton

Positioning Analysis of Benetton

Benetton is an Italian firm built in 1965 by Luciano, Gilberto, Guiliana and Carlo Benetton. Currently, Benetton produces 150000 cloths per year, has 6000 corners, is established in 120 countries and owns 2 billion Euros of turnover.

The aim of this paper is to determine the positioning of Benetton. We are in a first part going to see its positioning in 1994, then its way of communication through the year. In a second part, it is relevant to see the positioning of its competitors, and how they compete in the industry of today. At last, we are going to study how Benetton is perceived in the market and how it fits in the landscape knowing the fierce competition.

In 1994, the textile market in Europe is worth $250 billion, the leader at that time in Europe was Benetton with revenue of $1.74 billion. Knowing that it was the only international brand, their positioning at first was selling colored pullover for everyone. Their competitors at the time were big nationals firms who wanted to expand such as Kookai in France, and GAP in the US. Benetton had an innovative production system: they practically did not intervene in the market but had independent retailers to sell their product. Unfortunately as they went along, Benetton had more difficulties on the American market as prices went up and as they only designed two collections per year, whereas Gap was more and more competitive, succeeding to answer the demand.

Benetton is well known for its way of communication. Fabrica, the communication research center was very innovative, they married culture and industry, using young artists from all over the world and rely on designs, music, cinema, photography, publishing and internet. From 60s to 80s, advertising was conventional, later in 82, the famous photographer Toscani joins them and promotes the brand as a way of life. Theirs ads were turned into the fundamentals and personals values, with indeed the concept of multiracial, which was represented with young of different countries or with different ethnic group on their poster. Back in the late 80s, they refer to the conventional ads and at last in the early 90s they choked their public with provocative ads which extol the racial equality and social problem such as love, war, HIV, condoms, or terrorism.

Benetton figured that their range was too large to promote products, their rather promoted their values which is according to them as important as the product. Those last one, consistently played with diversity colors, the unity of culture, race and with the ethnic diversity. Their communication was a serious asset, which permits them increase their fame, but it was also a problem in some countries as the way of communication was not always appropriate. Besides, it is relevant to say that one of Benetton’s goals was to be present in every country which was competing in the Olympic Games. Benetton wants to be known as a lifestyle and an international brand with “style that combines color, quality and fashion”.

Now days, Benetton is the symbol of ads who wants to choc, furthermore the choking image is emphasize with medias. They also use this reputation to have positive engagement such as “microcredit Africaworks” as they want to be more committed on the international level. Knowing that those kind of provocative ads are considered like fair nearby the young public, we can therefore say that young people are their segment target, as they are the one who share the same values. At last, Benetton’s positioning is officially “a combination of color, energy and practicality” which matches with the idea to touch young people. We generally associate young being energetic and more inclined to wear colors than older people.

Companies, such as Gap, H&M, or Inditex have the same targeting market: young men and woman of roughly 20-35 years. They also see their segment in the same way that Benetton does: by the lifestyle and them rather than the age. Unfortunately in 2000, firms like H&M or ZARA have a very strong fashion culture, which are capable of putting on the market designs inspired by famous designers or creators

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