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Saturday, November 7, 1998

The changing colours of Benetton 

Manjari Raman  
It's autumn and Benetton is turning over a new leaf--but will its new colours take sales from moody blues to sunny yellows? For a company that hurtled to increase its reach in the last three years--by mid-1999, Benetton aims to have a 100 stores, up from the current 86--Benetton suddenly finds itself in need of a strategic new fit.

The new styles: To promote Benetton as a brand for all age groups. To promote the entire range of Benetton products. And most important of all: Headlong expansion and new-store-led growth is out. Consolidation and increase-in-store-traffic is in. Splashing home the new marketing message is the `Global Warming' ad-campaign launched recently by Benetton's new ad-agency, McCann Erickson, Delhi. Says DCM Benetton India general manager Sundeep Malhotra: ``From being perceived as a T-shirt company we want to move to being perceived as a casual fashion garment company.''

``It had to happen,'' says Equus Advertising CEO Suhel Seth, who handled the Benetton account till a few monthsago. ``They've been following an erroneous strategy. Rather than invest in brand development they have invested in distribution. And with all the money going to distribution, money spent above the line has been squeezed.''

Now the squeeze is pinching: After undertaking dipstick consumer research during the summer months of 1998, Benetton finds sales strapped by the brand's perceptions in the mind of the consumer. For eg: Despite launching two contemporary collections in the country every year, Benetton India consumers are not convinced that they have access to the latest global range from Benetton.

The launch ad titled `Global Warming' therefore deliberately stresses the simultaneous launch of the 1998 autumn/winter collection in the country and worldwide. Says McCann Erickson associate account director Rahul Varshney: ``On the one hand the campaign aims to generate awareness about the latest fall/winter collection in terms of styles and colours. Simultaneously, the campaign endeavours to correct negativeperceptions, thereby widening the consumer base.''

Consider Benetton's areas of concern--and how the new campaign addresses them:n Most people regard Benetton as a T-shirt company--even though T-shirts account for only 20 per cent of the total collection. For this, Benetton can blame its year-old marketing strategy which focused on linking T-shirts to a highly affordable price of Rs 199.

Says Malhotra, ``T-shirts are our entry points. But the objective was that once the consumer used the product, he'd get into more and more styles.'' It didn't happen. Instead, Benetton's challenge now is: How does it get the consumer to recognise that it has 200 styles in stock and not just T-shirts?The new campaign, therefore, highlights Benetton's entire range of knits, woollens, denims and woven fabrics. While the international Benetton faces have been retained, the attempt is to promote a whole `look' generated with Benetton coordinates.

n The brand is perceived as being constantly on sale. Essentially, Benetton ison sale for 30 days in a year--but these are actually two 15-day sales, six months apart, at the end of the spring/summer and autumn/winter collection.

But while the sale is a standard global practice for clearing the shelves and announcing the end of a product cycle, in India it proved counter-productive: The highly visible sale-time advertising stamped Benetton with an image of a brand which holds liquidation-of-stock sales.

Now the new campaign tries to educate the consumer that sales actually mark the starting point of the next product cycle--and the new Benetton collection.n Though the brand focuses on a clear target audience in the 16 to 24 age group, and attracts attributes like `young' and `vibrant', Benetton wants to spread the message that it has products and prices for all age groups. For this, the company will now introduce the Zerotondo and 012 sub-brands in its advertising.

The follow-up print ads have target-specific copy. `Sex no bar' promotes how people of all kinds and age groups canfind something at Benetton. `Age no bar' depicts Benetton as the one line which joins the generation gap.

`Colour no bar' highlights the Benetton colour palette. Further, providing support is an outdoors campaign, which actually calls out to potential Benetton users: uncle, aunty, grandpa, bhaiyya and didi.

n Burdened by the `Rs 199 T-shirt' image, Benetton is also trying to move up the price ladder. As a first step, it has raised its lowest price point: In August 1998, the prices of T-shirts rose from Rs 199 to Rs 299, while the price of the Polo T-shirt rose from Rs 299 to Rs 349.

Now, Benetton is promoting its broad-based price points to lure the premium buyer. One hoarding for example, will only splash Benetton's price-points--without mentioning the lowest price point which attracts the bargain-hunters or the highest price, which might project a too-premium image. ``Instead, we will focus on the width and depth of our price band,'' says Malhotra, ``And establish that we are not an expensive,one-product category brand.''

Interestingly, for economy's sake, Benetton which usually books only magazine double-spreads, has this time, opted for half-page double-spreads. For the outdoors, Benetton is taking up two prime hoardings in 65 cities--though in Bombay and Delhi, the alternative medium could be bus-shelters.

Will Benetton's comeback-campaign work? One issue: will Indian consumers relate to the international advertising? Carps Suhel Seth: ``Benetton has a consistent desire to focus on a pre-set international mind-set. It doesn't work in India. From Colgate to Coke, everyone had to junk international advertising.''

Then again, for the past eighteen months, the company has gone in for breakneck expansion, expanding its retail network by 55 per cent. Now, it urgently needs to consolidate the network and ensure ``equality of experience'' across the stores. Admits Malhotra: ``We want the pace to slow down.'' Finally, of course, with Benetton sorting out the tangled skeins of its brandperceptions--the United Colours might soon be flying high.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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