Easily accessible Italian design for the masses, Benetton is Armani at Banana Republic prices. The seas of gray T-shirts and V-neck sweaters in brightly-lit Benetton stores have long been staples of the urban wardrobe.
At one time even more visible than Benetton's trademark knitwear, however, were its highly provocative advertising campaigns. With campaigns focusing on war, racism, AIDs and child labor, Benetton's ads showed no sign of the sweaters and polos worn by hipsters worldwide. Today, however, the consumer can forget AIDs victims and death row despair -- Benetton's new campaign suddenly looks more like The Gap. Benetton's current ads feature clean, fun-loving young people frolicking in Benetton clothing. As a company that always has prided itself on a unique approach to marketing, why the sudden change?
Established in 1965 by the Benetton family in Ponzano Veneto, Italy, Benetton today is present in 120 countries around the world. Brands include the well-known United Colors of Benetton, Sisley, and sportswear brands Playlife, Nordica, Prince, Rollerblade and Killer Loop. Focusing on large urban megastores with superior customer service, the company has expanded rapidly across the globe. With a heavy emphasis on creativity, Benetton's reach also includes a quarterly magazine, "Colors," and a communications school, Fabrica.
While the first Benetton campaigns were fairly conventional, 1984 marked the year that former fashion and advertising photographer Oliviero Toscani was hired as creative director and introduced a new ad concept, "All the Colors in the World," which featured teenagers of different races hanging out in Benetton clothing. Benetton became "United Colors of Benetton" after a United Nations official visiting Toscani's studio during a shoot saw a group of models and exclaimed, "This is fantastic, it's the United Colors in here!"
This first campaign received praise worldwide, though some critics spoke out against the intermingling of races. Despite routine protest over the graphic nature of Benetton ads, Toscani spent the next 17 years creating campaigns featuring AIDs victims, child labor and death row inmates, all unlikely subjects for selling knitwear.
Benetton was no stranger to sanctions from the Federal Trade Commission, the same governing body that also has reprimanded advertisers such as Playboy and French Connection for its FCUK campaign.
Toscani responded to sanctions by donating advertising space to charities after Benetton ads were yanked from publication.
From 1984 to 2001, Benetton pushed limits and "gave us a more interesting world," Commerce Prof. William Kehoe said. "We are better for those ads."
Benetton benefited from the eye catching, memorable ads, as "emotions being evoked by the advertisements would transfer to the brand, in this case a cutting edge, provocative brand," Kehoe said.
The fact that Benetton clothing was rarely shown in ads did not seem to hurt profits.
Benetton "absolutely did not do itself a disfavor" in running controversial campaigns for 17 years," Commerce Prof. Jack Lindgren said. The ads "affected attitudes towards the product, which in turn will lead to sales."
This image-based advertising worked especially well for Benetton, as it usually does for higher-priced, discretionary products. Today many companies, including Absolut Vodka and Nike, use imaged-based campaigns that advertise without focusing on product attributes.
Yet not everyone at Benetton felt the campaigns made good business sense. Benetton's increasingly frustrated independent store managers complained that the advertisements never featured any Benetton clothing. Poor sales company-wide and an unimpressive share price plagued the company.
At one time, Benetton had more than 600 stores across the United States, but by 1999 there were fewer than 200 remaining. The company hoped to remedy its situation through a proposed deal with Sears, Roebuck & Co. that would open "Benetton Corners" in 800 Sears stores across the country.
Outrage from victim's rights advocates over Toscani's campaign, "Looking Death in the Face," an anti-death penalty appeal, led Sears to drop the planned $41 million deal. Backed into a corner, Benetton was forced to issue an apology. Three months later, Toscani was gone from his job as creative director.
Since the split with Toscani, Benetton's advertising has taken on a far more conventional edge as it struggles to find its niche within the retail market.
"When the economy is growing, companies have more room to walk on the side of danger," Kehoe said.
Retailers are more cautious and conservative in today's tough market environment. The company said in September that it expects sales this year to be in line with those of 2001, because of negative trends in retail consumption at the international level.
Although 2001 sales of 2.1 billion euros were no small sum, Benetton Chairman Luciano Benetton was forced to let go of his beloved Formula 1 race team, and it is rumored the company plans to sell its sportswear brands and several manufacturing subsidiaries.
To get sales back on track, Benetton must identify where it stands next to cheaper and more stylish competitors. Many consumers are aware that Benetton is a good, colorful brand, but they don't know what the brand's positioning is. The retailer has been experimenting by moving into new markets and expanding its product line, specifically by targeting the teen consumer and beefing up its menswear section.
Benetton's advertising team remains in-house, which gives the company a large amount of freedom in determining its next move. At this point, it can stick with the old, image-based advertising or decide to build on product advertising, which would focus more on product attributes and benefits.
Whatever the decision, Benetton might be more on track with its toned-down campaign in today's negative retail environment.
Don't expect to see Benetton completely lose its edge, however. One recent ad following the departure of Toscani depicted Luciano Benetton standing naked next to a caption reading, "I want my clothes back." In response, 460 tons of clothing were donated and distributed to charities such as the International Red Cross.
Evidently Benetton has not lost the capability to influence and inspire. While many lament the absence of the retailer's traditional campaigns, keep your eyes peeled at billboards and magazine inserts worldwide. For this global marketer, it appears that anything is fair game.
(Maxey Hackworth is a fourth-year
Commerce student).
Read More
Presidential search committee holds first meeting, introduces search firm
By Cecilia Mould | 10 hours agoBoard of Visitors Rector Rachel Sheridan also introduced external search firm Isaacson, Miller, which will assist the committee in their search for the University’s next permanent president.
Archivist Report on Jim Ryan
By Finn Trainer and Clara Franklin | YesterdayArchivists Finn Trainer and Clara Franklin recount Jim Ryan's tenure as the 9th President of the University.
Why did Student Council vote no confidence in the Board of Visitors?
By Lauren Seeliger | 3 days agoUltimately, Dickerson said during the Aug. 8 meeting that the decision to draft this resolution was not easy but was necessary so as to fulfill Student Council’s role.
