United Colors Of Benetton : Multinational Marketing Concepts And Strategies

1644 Words May 12th, 2016 7 Pages
St. Thomas University

BUS 672 - Multinational Marketing Concepts and Strategies

Instructor: Dr. Justin Peart

Case Analysis – United Colors of Benetton

Submitted By Gillian Fisher

St. Thomas University

1. What are the explanations for the global success of Benetton? The strongest element in the global success is definitely its communication strategy. It is one of the world 's most visible and controversial, provoking reactions of outrage or praise or even both. Benetton 's communication strategy provokes debate on world 's social issues: AIDS, racism, poverty and war. They have been criticized for using world 's social issues for advertising many times, but still it was very smart from them to use this strategy, because they spent far less money for brand name being published in media as they would if they used non provocative strategy and they had to pay every time when the brand name would be mentioned in media. Besides, the provocative strategy was far more effective than any other would be. By 1995, they spent only 4% of turnover for their communication. The other element that contributed to this success is the complex system that they are using for operating. Benetton is actually operating through over 500 subcontractors and some joint ventures that are specialized in design, cutting, assembling, ironing or packaging. Besides that, they also use thousands of independent retail outlets. The largest attribution here was in Benetton…
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