united colors of benetton presented by: jordan carrasco emilie claveille niklas gustavsson alix...
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UNITED COLORS OF UNITED COLORS OF BENETTONBENETTON
Presented by: Presented by: Jordan Carrasco Jordan Carrasco Emilie ClaveilleEmilie ClaveilleNiklas GustavssonNiklas GustavssonAlix ProvansalAlix ProvansalMaria VasileiouMaria Vasileiou
Ethical Perspectives Ethical Perspectives of Business Practicesof Business Practices
OVERVIEWOVERVIEW
HistoryHistory Advertising CampaignsAdvertising Campaigns Franchising policyFranchising policy Implications for the international Implications for the international
marketing managermarketing manager ConclusionConclusion
HISTORYHISTORY
1965: official date of birth of the company Benetton1965: official date of birth of the company Benetton 1969: internationalization of Benetton with the opening of 1969: internationalization of Benetton with the opening of
the first shopthe first shop Late 1980’s: groups of franchisees begun to suffer as a Late 1980’s: groups of franchisees begun to suffer as a
result of Benetton's relentless expansion which brought result of Benetton's relentless expansion which brought strong competition strong competition
From 1982-2000: collaboration with Oliviero Toscani From 1982-2000: collaboration with Oliviero Toscani By 2001: Benetton group operate in 120 countries through By 2001: Benetton group operate in 120 countries through
5,000 franchised Benetton stores5,000 franchised Benetton stores
UNITED COLORSUNITED COLORSOF BENETTONOF BENETTON
““If everyone likes a campaign, no If everyone likes a campaign, no one will talk about it.”one will talk about it.” Luciano BenettonLuciano Benetton
ADVERTISING: ADVERTISING: The cons point of viewThe cons point of view
Exploitation of negative social issues to Exploitation of negative social issues to increase the company’s notoriety & increase the company’s notoriety & profitprofit
Religious feelings infringement & Religious feelings infringement & racism promotionracism promotion
No consideration of cultural No consideration of cultural sensibilities nor historical context of sensibilities nor historical context of targeted countriestargeted countries
Need for competitors to imitate the Need for competitors to imitate the style of the campaignstyle of the campaign
ADVERTISING: ADVERTISING: The cons point of viewThe cons point of view
Negative impact on consumer’s decision Negative impact on consumer’s decision buying processbuying process
Aversion to advertising from the audienceAversion to advertising from the audience
Legal actionsLegal actions
Benetton as a martyr to censorshipBenetton as a martyr to censorship
ADVERTISING: ADVERTISING: The pros point of viewThe pros point of view
Memorability / Brand recognition Memorability / Brand recognition
Innovation in communicationInnovation in communication
Production of images of global concern for global Production of images of global concern for global customerscustomers
Socially responsible businessSocially responsible business
No provocation but awarenessNo provocation but awareness
ADVERTISING: ADVERTISING: The pros point of viewThe pros point of view
Differentiation from misleading campaignDifferentiation from misleading campaign
Challenge stereotypesChallenge stereotypes
Cost effectivenessCost effectiveness
Awards winning and exposure in galleries around the worldAwards winning and exposure in galleries around the world
Exploitation of clothing to raise social issuesExploitation of clothing to raise social issues
CONTROVERSIAL ADVERTISING CONTROVERSIAL ADVERTISING CAMPAIGN: Death RowCAMPAIGN: Death Row
Negative pointsNegative points
No clear impression of Benetton's view on the subject No clear impression of Benetton's view on the subject
Widespread protest from customers as well as government Widespread protest from customers as well as government bodiesbodies
Strong objections from the families of the victims and Strong objections from the families of the victims and prisonersprisoners
Downfall on salesDownfall on sales
Black identity could be connected with criminality and deathBlack identity could be connected with criminality and death
Trivialisation of death penaltyTrivialisation of death penalty
CONTROVERSIAL ADVERTISING CONTROVERSIAL ADVERTISING CAMPAIGN: Death RowCAMPAIGN: Death Row
Positive pointsPositive points
Actual controversial issueActual controversial issue
Arouse people awarenessArouse people awareness
CONTROVERSIAL ADVERTISING CONTROVERSIAL ADVERTISING CAMPAIGN: AidsCAMPAIGN: Aids
Negative pointsNegative points
Exploitation of the victim Exploitation of the victim
Creation of the a debate about the limits of advertisingCreation of the a debate about the limits of advertising
Loss of sales and retailersLoss of sales and retailers
Obscene advertising campaignObscene advertising campaign
CONTROVERSIAL ADVERTISING CONTROVERSIAL ADVERTISING CAMPAIGN: AidsCAMPAIGN: Aids
Positive pointsPositive points
Launch during the AIDS crisis in 1991Launch during the AIDS crisis in 1991
Permission of Kirby's family to use the picture in their advertisingPermission of Kirby's family to use the picture in their advertising
Raising attention of the growing AIDS epidemicRaising attention of the growing AIDS epidemic
Company involvement in AIDS organisations Company involvement in AIDS organisations
Benetton's condom ads provided one solution of the problemBenetton's condom ads provided one solution of the problem
Benetton promoted the use of condomsBenetton promoted the use of condoms
UNITED COLORS OF BENETTON UNITED COLORS OF BENETTON FRANCHISINGFRANCHISING
““Benetton has often been quoted as an Benetton has often been quoted as an
example of a company which has been able to example of a company which has been able to grow extensively and rapidly with minimal grow extensively and rapidly with minimal financial commitment in retail outlets because financial commitment in retail outlets because the individual franchisees have been the individual franchisees have been responsible for their own financing”responsible for their own financing”
(Bruce, 1987; Dunkin, 1988; (Bruce, 1987; Dunkin, 1988;
Dapiran,1992)Dapiran,1992)
UNETHICAL POINTSUNETHICAL POINTS
Exclusive distributionExclusive distribution
Demand of a certain threshold of sales volume Demand of a certain threshold of sales volume
Pre-labellisation of productsPre-labellisation of products
No take back of unsold / defective items No take back of unsold / defective items
Minimum amount of ordersMinimum amount of orders
Heavy control (layout, music, light…)Heavy control (layout, music, light…)
Negative impact of the campaignsNegative impact of the campaigns
ADVANTAGES FOR THE ADVANTAGES FOR THE FRANCHISEEFRANCHISEE
Ease of brand identification Ease of brand identification
Neither fee nor royalty paidNeither fee nor royalty paid
A four-year payoutA four-year payout
Selection of desired clothesSelection of desired clothes
IMPLICATIONS FOR THE INTERNATIONAL IMPLICATIONS FOR THE INTERNATIONAL MARKETING MANAGERMARKETING MANAGER
IMPACT ON THE MARKETING MIXIMPACT ON THE MARKETING MIX
PRODUCTPRODUCT Advertising known more than the productAdvertising known more than the product
Need strong quality to fight negative impactNeed strong quality to fight negative impact
PRICEPRICE Imposed pricesImposed prices
Curb in pricesCurb in prices
PEOPLEPEOPLE Boycott / complaintsBoycott / complaints
PROMOTIONPROMOTION Controversial advertising campaignsControversial advertising campaigns
Refusal of printing Benetton’s adsRefusal of printing Benetton’s ads
Banishment of the ads in several countriesBanishment of the ads in several countries
Absence of the productAbsence of the product
PACKAGINGPACKAGING Benetton bags printed only with facesBenetton bags printed only with faces
IMPLICATIONS FOR THE IMPLICATIONS FOR THE INTERNATIONAL MARKETING MANAGERINTERNATIONAL MARKETING MANAGER
IMPLICATIONS FOR THE INTERNATIONAL IMPLICATIONS FOR THE INTERNATIONAL MARKETING MANAGERMARKETING MANAGER
PARTNERSPARTNERS Loss of sales for franchiseesLoss of sales for franchisees
Legal actionLegal action
PLACEPLACE
Less availability of products due to the closing of shops/franchisesLess availability of products due to the closing of shops/franchises
No shocking images in the storesNo shocking images in the stores
IMPACT OF THE KEY IMPACT OF THE KEY STAKEHOLDERSSTAKEHOLDERS
Customers : BoycottCustomers : Boycott
Suppliers: resentment to offensive adsSuppliers: resentment to offensive ads
Shareholders: End of collaboration Toscani-BenettonShareholders: End of collaboration Toscani-Benetton
Retailers: Legal actionsRetailers: Legal actions
USE AND ROLE OF INTERMEDIARIESUSE AND ROLE OF INTERMEDIARIES
Manipulation of the franchising lawManipulation of the franchising law
Rapid market development at relatively low priceRapid market development at relatively low price
Cannabilization Cannabilization
Exclusive distributionExclusive distribution
REGULATORY AUTHORITIESREGULATORY AUTHORITIES
ASA – Advertising Standards AuthorityASA – Advertising Standards Authority
Statement of the German Supreme CourtStatement of the German Supreme Court
Need for harmonization within EUNeed for harmonization within EU
CONCLUSIONCONCLUSION
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