Pepsicola in Pakistan Case

Prepared by:
Yash Shah (MB045)

Dhruv Patel (MB032)
Girish Chandwani (MB009)
 Benetton, the Italian retailer was engaged in the manufacturing and
distribution of clothing, undergarments, shoes, cosmetics and accessories.
 Benetton also licensed its brand name to various manufacturers of
sunglasses, stationery, cosmetics, linens, watches, toys, steering wheels,
golf equipment.
 Benetton was well known for its colorful and provocative advertisements
(Benetton termed its advertising and marketing activities as
Communication Strategy).
 The company employed unusual, controversial advertising techniques and
themes that used “shock value” and the power of photography to grab
viewers’ attention.
 The Benetton family (consisting of three brothers and a sister) established
the Benetton chain in a small Italian town in 1955.
 To support his family, Luciano Benetton (born in 1935), dropped out of
school to sell apparel.
 The first store, opened in 1969, was an immediate success.
 During the late 1960s and the early 1970s, Benetton rapidly expanded by
setting retail outlets in France, West Germany, Britain, Switzerland, and the
Scandinavian countries.
 By 1975, Benetton had become a major player in Italy with about 200
shops (not all of them carrying the Benetton name).
 In 1994, Benetton set up Fabrica, a communications research center.
 Until the 1980s, Benetton advertisements had largely focused on its
products and logo (stylized knot of yarn with word Benetton printed under
it, contained within a dark green rectangle).
 Toscani’s first theme featured teenagers and kids from culturally diverse
nations.
 Colorfully dressed in Benetton attire, the kids engaged in a variety of
playful acts (as shown in figure).
 By linking the varying colors in the Benetton collection to the diverse
“colors” of its world customers, Toscani portrayed a picture of racial
harmony and world peace.
 In 1989, Benetton decided to cancel its agreement with outside advertising
agencies and develop campaigns in house. Toscani’s photos were discussed
by the advertising team and then shown to Luciano for final approval.
 Since Benetton’s clothing was sold in various markets with different style
preferences, Toscani turned his focus to photos that stimulated thinking.
 Benetton also launched an advertisement with a series of masculine and
feminine genitals, of different ages and of different colors with the label
“United Colors of Benetton.”
 In September 2001, Benetton launched a campaign called International Year
of Volunteers, in collaboration with the United Nations (UN). “Volunteers”
was Benetton’s first campaign after Toscani’s exit and was developed by
new Creative Director James Mollison.
 Toscani believed that the industry as a whole had to change the way
advertisements were used as consumer-spending patterns had changed
over the years.
 Toscani saw himself not as an advertiser, but as a reporter-
photographer. He believed in communicating to the world in a less
traditional way.
 Due to his radical campaigns, many people in the advertising industry
hated Toscani. But Toscani believed he had achieved his objective.
 Since he had joined Benetton, the company’s sales had grown more than
twenty times.
 From 2001, Benetton’s advertisements started featuring conventional
images- teenagers in colorful Benetton clothing.
 Benetton, however, maintained that the company would still continue

with its “socially responsible” status by focusing on non-controversial
themes like racial discrimination, poverty, child labor, AIDS awareness,
etc.
 To that effect, in early 2003, Benetton in association with UN’s World
Food Programme, launched a year- long $16 million communication
campaign, called Food for Life.
 This campaign covered around 30 countries and the stories and photos
taken from these countries were used in Colors, under the title “Hunger.”
The images in this campaign showed crisis and poverty.
◦ Realizing that many computer users were taking their laptops on the road,
but not getting the optimal performance they expected, Intel designed and
launched a new platform called Centrino in early 2003.
◦ Centrino was Intel’s first brand to stand for a combination of products.
There were three significant changes to Intel’s new brand strategy.
 First, the company reorganized its business divisions into four strategic key
markets: Mobile, Digital Home, Enterprise and Health.
 Second, Intel launched a new platform called Intel Viiv (rhymes with five)
technology that targeted home entertainment buffs.
 A PC with a Viiv platform allowed consumers to download and send
movies to televisions around the house.
 Intel also launched two new PC chips code named Merom and Conroe.
Finally, Intel revamped its brand image with a new logo and slogan, to help
create the impression of a “warm and fuzzy consumer company.”
 It is possible to keep the same brand name and logo and focus on a new
positioning strategy without abandoning the existing branding.
 What Intel did was unnecessary and just a waste of money and time.
 It could give them a hard time to develop another brand that is suitable for
the products and the positioning they want to portray.
 The former branding became successful. 37 years of the former brand was
an investment and they could just develop it, enhance it and add
supplementary ideas to it.

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Prepared by:

Yash Shah (MB045)

 Benetton, however, maintained that the company would still continue

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