Benetton Marketing Strategies

Marketing Strategies

Product Development and Promotion

Benetton had a unique product basket with brighter, fashionable yet casual clothes. The market was clustered on the basis age and products were retailed under different labels and product names. The company's product list consisted of more than 2000 different item-label combinations. The major product lines of Benetton were 012 Benetton, Jeans West, My Market, Sisley, Tomato and Mercerie

For each trade name, appropriate style of furniture and equipment, color of lighting, type of music, and appropriate sex, age and dress style for salespeople was carefully chosen. The outlets were equipped with open shelves to draw attention to the bright colors. Benetton relied on location and bright, inviting store appearance for its promotional effort.

The company's television spots emphasized the sport and youth image of the Benetton name. Magazine advertising was used for institutional campaigns. More than 2/3 rd of the total advertising budget was spent on magazine advertising. The company also invested in sports events and patronized Italian rugby and handball team and committed $2 million for F-1 racing.

On the whole, Benetton's advertising budget was twice that of its nearest competitor.

Pricing

Prices of the apparels of Benetton were lower as compared to those of its competitors offering clothes of same quality. The median retail price Benetton Garments was about $20. Therefore, price, quality, high fashion content and bright colors were at the core of company's retailing strategies.

Distribution

Benetton