Benetton & Volkswagen

Unit #5 IP

MKT 460

May 27, 2006

Benetton

1. Do you believe Benetton is sincere in its efforts to promote social causes through its advertising?

I do believe that Benetton was making the attempt to promote the social cases that they saw as key contributors to the worlds problems like, power, sex, race, and war. The only thing that really strikes me is that Benetton used pictures without captions so it makes it difficult to see which side they are really on if any. The campaigns showed that Benetton had somewhat of social consciences but the ads themselves it failed to show exactly what it is (AIGA, 2006).

2. Compare and contrast the controversy over the "We, On Death Row" advertising campaign with the controversies generated by earlier campaigns of the 1990s. Do you think Americans would respond differently than Europeans? Why or why not?

The “We, On Death Row” ad campaign was right along the same lines as all their other campaigns whether to raise awareness about AIDS or racism they kept their focus on making controversial subjects that pulls at the consumers moral fibers. With the release of their AIDS campaign consumers refused to shop the stores anymore in Biloxi, Mississippi because they sold products from a “sick” company (Keegan & Green, 2005). With using the pictures of death row inmates in their ads it was a slap in the face to the murder victim’s families.

Since America actually uses the death penalty for convicted criminals and Europeans feel that the death penalty has no place in a democratic society (Book Shop, 2006). The difference in the response would be huge. Europeans would actually be more offended than those in the US since they feel strongly about abolishing the death penalty.

3. There is a saying in the marketing world that "there is no such thing as bad publicity." Does that apply in the Benetton case?

Yes and no, they ads have definitely ticked some people off but as their creative director and chief photographer Oliviero Toscani states “most good ads are forgotten after six months, but who still remembers the Benetton ad with the priest kissing the nun? Ten years later and people remember! That’s immortality!” he said (Keegan & Green, 2005). In the US market I think that the statement doesn’t pull the weight it does around the globe. The US consumers are more sensitive to what is going on with advertising just like the ad with the black mother nursing a white baby was not allowed to enter the US, but at the same time won awards in France and Italy.

The US market seems to be the only market where Benetton is having a hard time really appealing to the consumer. The US only makes up about 11% of Benetton’s total revenue, and with the number of stores declining Benetton has launched a new more conservative ad campaign to attempt to win back the American people.

4. Assess Benetton's efforts to boost sales in the United States. What recommendations would you make to management and why?

Benetton has changed their strategy away from social issues in the US and has focused their new ads on their products similar to Gap, and Old Navy by doing this they should increase market share. Benetton must promote the image to their target market that they have the highest quality products and the largest selection of knitwear, shoes, and cosmetics. By turning away form the social issues that may offend a consumer they should try harder to see exactly what it is that their consumers need and want.