Ucb Presentation

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 2,128 2085 1911 1765 1704

(million euro)
Net Income 155 145 125 112 109
(million euro)
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 its
earlier positioning (colors) along with
youth 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

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Contents

A brand is a name or trademark connected with a product or

The art of creating and maintaining a brand is called brand

 The brand is present in many other sectors, from the elegant

 1965 = The Benetton Group is established.

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

 1990 = A global company present in 120 countries.

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

United Colors of Benetton built strong brand awareness by creating a

United Colors of Benetton has an international style that combines

The slogan United Colors of Benetton seems to perfectly capture its

 Judgment (customer’s personal opinions and evaluations with regard to

Financial Highlights of UCB

year 2008 2007 2006 2005 2004

Revenues 2,128 2085 1911 1765 1704

 Feelings (customer’s emotional responses and reactions with respect

United Colors of Benetton has implemented various campaigns, and

 Resonance (ultimate relationship and the level of identification that

The United Colors of Benetton brand hasn’t performed better at this

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

 However in the 1980’s addressing to controversial social issues it’s ad

 As United Colors of Benetton is lacking at this step of the model, hence

 Benetton Group entered Formula One as a sponsor of Tyrrell in 1983,

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

 In 1982 the company bought its local basketball team, Pallacanestro

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

 Advertising and Branding, The Economic Times.

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

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