brand equity ucb

BRAND EQUITY UNITED COLORS OF

BENETTON

Table of Contents

Particulars Particulars Particulars Particulars Page No.Page No.Page No.Page No.

� About Benetton 1

� Introduction 4

� Research Methodology 5

� Analysis of Responses 7

o Price Premium

o Brand Awareness

o Satisfaction

o Perceived Quality

o Leadership / Popularity

o Differentiation

o Brand Personality association

� Recommendations 21

� Annexure 22

o Questionnaire


BENETTON

About Benetton Company

The Benetton Group is present in 120 countries around the world. Its core business is

fashion apparel: a group with a strong Italian character whose style, quality and passion

are clearly seen in its brands, the casual United Colors of Benetton, the glamour

oriented Sisley, and Playlife American college style. The Group produces over 150

million garments every year. Its network of over 6,200 contemporary stores around the

world offers high quality customer services and generates a total turnover of over 2

billion euro.

The development of Benetton's commercial network, characterised by prestigious

locations in historic and commercial centres and by the high level of customer services

offered, has been supported by a major programme of investment worldwide. The

Benetton stores carry complete collections, as well as a wide selection of accessories,

offering a full range of Benetton style and quality. As in the case of the commercial

network, special attention is given to innovation in production, where all systems and

equipment are totally renewed every five years.

Benetton's philosophy of quality, knowledge and teamwork are the key values of

its long tradition and history and milestones for the next future.


BENETTON

Growth:

1960s The idea of color.

1965s The Benetton Group is established.

1970s A business model making the difference: unique, flexible and innovative.

1980s Benetton communication campaigns: known all over the world.

1990s A global company present in 120 countries.

2000s Benetton grows with the market: over 150 million garments produced every

year and distributed in around 6,000 contemporary stores.

BENETTON

(Parent

Company)

United Colors of

Benetton

Playlife SisleyUndercolors

of BenettonKillerloop


BENETTON

STRATEGIC STATEMENTS

Core purpose: Color the World

Mission: “To allow families and individuals an easy access to relevant world class

fashion products for every occasion of their life in an inspiring retail environment”

Vision: “Benetton in Every Wardrobe”

Core Values:

� Passion

� Execution

� Entrepreneurial Spirit

� Value for people

� Collaboration

Benetton’s core business is fashion apparel: a group with a strong Italian character

whose style, quality and passion are clearly seen in its brands, the casual United Colors

of Benetton, the glamour oriented Sisley, the leisurewear brand Playlife.


BENETTON

Introduction

A brand is a name, symbol, logo which

helps to identify and recognise a

particular product or a service. The brand

can add a significant value when it has

positive associations in the mind of the

customer. This concept is referred to as

Brand Equity. Brand Equity is a set of

positive associations which helps in

earning greater margins which otherwise wouldn’t have been possible. Apart from that

it also gives a strong competitive advantage to the company.

A brand doesn’t get build in a short period of time. It takes a lot of activities over a

period of time for a brand to establish itself in the minds of the customers. However,

Brand Equity is not always positive. Some brands acquire a bad reputation which

results in Negative Brand Equity.

We have chosen Brand Equity model on Brand Equity Ten which was

explained as follows:

8

Th e Bra n d Equ ity Ten

1. Loyalty Measures

2. Perceived Quality /

Leadership Measures

3. Associations /

Differentiation

Measures

4. Awareness Measure

5. Market Behavior

Measures

1. Price Premium

2. Satisfaction

3. Perceived Quality

4. Leadership / Popularity

5. Differentiation

6. Brand Personality association

7. Organizational Associations

8. Brand Awareness

9. Market Share

10. Market Price &

Distribution Coverage


BENETTON

Research Methodology

Brand equity refers to the marketing effects or outcomes that accrue to a product

with its brand name compared with those that would accrue if the same product did

not have the brand name. In this model, used to measure brand equity and

components those needs to be considered are:

� Price Premium

� Satisfaction

� Perceived Quality

� Leadership / Popularity

� Differentiation

� Brand Personality association

� Brand Awareness

The research methodology used to collect data and develop a model was:

Research design Descriptive

Sampling technique Simple random sampling

Sample size 30 respondents

Method of data collection Primary and Secondary data collection method

Instrument of data collection Questionnaire

Findings

a) Brand Loyalty: In our findings UCB emerged out as the most loyal

brand. Price attacks and non-availability did not deter the respondents

from buying UCB.


BENETTON

b) Brand Awareness: In the identification of the logo question UCB did not

fare well and it stood fourth. This shows that visibility is less and it is not

properly communicated to the consumers. In the recall question, UCB did

well in some segments like t-shirt and casual shirts but fared poorly in

jeans. This shows that awareness about all the product line of UCB is not

so high.

c) Perceived Quality: UCB and Levis competed neck to neck on this parameter.

When all the respondents were asked to rate the brand on the basis of

quality (Superior, Good, Acceptable and Poor). The total score was 99 for

both Levis and UCB after assigning weight age. In another question on the

recall factor which was quality oriented Levis was the leader.

d) Brand Association: In association with the brand Levis came out as a leader.

The reason why people want to be associated with Levis is because of the

comfort factor. UCB finished a close second and the reason was variety in

offerings.

A

The first question was relat

name a brand which comes

Shirts.

The results were as follows:

BRAND EQUITY

Analysis of Responses

ted to the recall factor. The respondents

omes to their mind when we talk of Jeans, T-s

The results were as follows:

UNITED COLORS OF

BENETTON

were asked to

shirts and Casual

From the above graphs w

and casual shirts as comp

the clear leader with 60%

also but none of the res

are not equally competen

product line is low.

BRAND EQUITY

we can infer that UCB has high brand rec

pared to other brands but in the jeans c

% of the respondents recalling it. UCB

spondents were able to recall this. This

nt in all the segments and knowledge ab

UNITED COLORS OF

BENETTON

call in the T-shirts

category, Levis is

B has denim line

shows that they

bout its complete

To know the brand aw

logo/picture of the brands.

The awareness was the

respondents were able to

close second. The awaren

other brands probably beca

BRAND EQUITY

wareness the respondents were asked

s. The following were the results:

e highest in case of Pepe Jeans (alm

o identify the Pepe Jeans logo). Levis

ness of UCB is a bit less (almost 67%)

ecause of the visibility factor.

UNITED COLORS OF

BENETTON

ed to identify the

almost 87% of the

& Reebok stood a

when compared to

On the basis of the response that we received from the respondents for our next

question to rate the given brands, we have made the following charts:

27%

33%

33%

7%

LevisUnaffordable

Expensive

but

affordable

Value for

Money

Inexpensive

5%

30%

40%

25%

Spykar

22%

BRAND EQUITY



Unaffordable

Expensive

but

affordable

Value for

Money

Inexpensive

20%

40%

25%

15%

Pepe

Unaffordable

Expensive but

affordable

Value for

Money

Inexpensive

25%

40%

28%7%

Reebok

20%

50%

22%

8%

UCB

Unaffordable

Expensive but

affordable

Value for

Money

Inexpensive

UNITED COLORS OF

BENETTON



20%

PepeUnaffordable

Expensive

but

affordable

Value for

Money

Inexpensive

ReebokUnaffordabl

e

Expensive

but

affordable

Value for

Money

Inexpensive


BENETTON

When asked about price premium we found out that:

Majority of people (50%) perceive United Colors of Benetton as an expensive but

affordable brand, only 8 % of the respondents though that UCB is an inexpensive

brand, 20 % thinks that it is unaffordable and for 22 % people UCB is a value for

money brand.

This shows that UCB is considered to be an expensive brand but this high price

is justified by the quality, the designs they offer and the variety they offer.

Close competitors of UCB in terms of price are Pepe Jeans and Reebok.

They are also perceived as expensive but affordable by 40 % of the

respondents.

Levis also enjoys premium position in customers’ minds with very few (7%)

people thinking that Levis is an inexpensive brand. Also majority of respondents

(33%) thinks that even though Levis is expensive but it’s a value for money

brand.

According to our respondents, Spykar is a value for money brand. 40 % of our

respondents support this statement. It is an inexpensive brand as per 25% of

respondents.

Thus we can conclude that UCB and Reebok are the brands which are

considered expensive by majority (50% and 40% respectively) of respondents

and are considered inexpensive by least (8% and 7%) number of people.

Brand Loyalty is a function

the brand they trust the mo

Most of the respondents’

UCB stood second with 1

all the other brands which

UCB is the leader in the

most loyal brand among all

To check the brand loyalt

given by other brands i.e.

Reebok and Spykar are givi

you still buy? The results w

BRAND EQUITY

on of trust. So, we asked the respondent

ost. The results are as follows:

s’ considered Levis as the most truste

17% respondents supporting it. Others c

h scored approx 33%. If we summarize th

2 out of 3 questions. Thus, we can infer

all the 5 brands.

ty of UCB, we asked a question pertainin

i.e. if other brands, apart from UCB, Levis,

are giving discounts which of the above ment

were as follows:

UNITED COLORS OF

BENETTON

ts as to which is

ed brand (27%).

category included

the Loyalty factor,

er that UCB is the

ning to the discounts

Levis, Pepe Jeans,

ioned brands would

The objective of this ques

changes in prices, i.e. is

was that even if the other

out of 30). The second was Levis

The next question to ch

Here, we asked the respo

unavailability. If yes, then

0

2

4

6

8

10

12

14

16

18

UCB

Delaying the purchase in case of Non

17

BRAND EQUITY

estion was to know how a consumer

he/she price sensitive. In this case, the

r brands lower their prices, they would s

as Levis with 9 respondents out of 30 sup

heck the Brand Loyalty was with regar

ondents whether they would delay their p

by how long? The results were as follows:

Spykar Levis Reebok Pepe

Delaying the purchase in case of Non - availability

0

13

3

1

UNITED COLORS OF

BENETTON

would react to the

e respondents’ view

till stick to UCB (12

pporting it.

rds to Availability.

purchase in case of

s:


BENETTON

The results show that maximum no. of respondents were willing to delay their

purchase in case of UCB (17 out of 30; 57%). Levis stood second with 13 out of 30

respondents (43%).

The average delay that a respondent would take, in case of non – availability is 15.2

days. Separate days for each brand are given below:

Average delay

Brands No of days

UCB

Spykar

Levis

Reebok

14.11

NA

19

14.66

Levis here is the clear leader in terms of loyalty pertaining to the Availability factor.

All the other brands have scored below the average delay period with very low

variance. None of the respondents are likely to delay their purchase for Spykar.

When asked about how United colors of Benetton is different from other brands,

30% of the respondents said that it is the variety which differentiates UCB from

other brands.

Another important point of differentiation is Design. 25% of the respondents think

that UCB is different from its competitors because of designs it offers.

20% and 15% think that price and quality differentiates UCB from its competitors.

Only 10% of the respondents think that UCB is not at all different from its

competitors.

From the above chart we can conclude that UCB enjoys substantial amount of

brand differentiation in minds of its customer in the sense that 90% of the

respondents think that UCB is different from other brands in some or the other

way.

0

Quality

Design

Variety

Price

No difference

BRAND EQUITY





and 15% think that price and quality differentiates UCB from its competitors.



rentiation in minds of its customer in the sense that 90% of the


5 10 15 20 25

15

25

20

10

Differentiation

UNITED COLORS OF

BENETTON





and 15% think that price and quality differentiates UCB from its competitors.



rentiation in minds of its customer in the sense that 90% of the


30

30


BENETTON

Perceived Quality:

The extent to which a brand is considered to provide good quality products is known as

Perceived Quality. Perceived quality is high when the quality offered by the product/

brand is a reason to buy it.

We also asked the respondents to rate the brands on a four point scale – Superior,

Good, Acceptable and Poor. These four criteria were given the weightage of 4, 3, 2 &1

respectively. Thus, a total quality score was arrived at. The following graph shows the

results:

This graph shows that UCB & Levis scored the highest in terms of Perceived Quality

(Score –99). This was followed by Reebok with a score of 93 and then Pepe Jeans and

Spykar with scores of 89 and 78 respectively.

30% of the respondents are highly satisfied with their experience with UCB. Also,

30% of the respondents are satisfied, 10% of the respondents are delighted with

the UCB experience.

On the other hand, 20% of the respondents are dissatisfied and 10% are highly

dissatisfied with the experience.

Reasons for satisfaction were good quality, good in

exclusive designs.

Thus, we can conclude th

experience whereas 30% of the respondents are dissatisfied.

20%

BRAND EQUITY



the UCB experience.


dissatisfied with the experience.

Reasons for satisfaction were good quality, good in – store experience, variety,

Thus, we can conclude that 70% of the respondents are satisfied with their UCB


10%

30%

30%

10%

Satisfaction

Delighted

Satisfied

Highly Satisfied

Dissatisfied

Highly Dissatisfied

UNITED COLORS OF

BENETTON




store experience, variety,

at 70% of the respondents are satisfied with their UCB


Highly Satisfied

Dissatisfied

Highly Dissatisfied

To know the Brand Associa

would they prefer to be associ

From the above graph w

associated with Levis. UC

associated with it. This was

7% & 3% respectively.

BRAND EQUITY

Association we asked the respondents’

associated with. The results were as follow

we can see that 40% of the respond

CB stood second with 37% respondent

as followed by Reebok, Pepe Jeans and

UNITED COLORS OF

BENETTON

that which brand

ws:

dents want to be

nts wanting to be

d Spykar with 13%,

When asked about the re

replied as:

The reasons the respond

and was perceived to be

Comfort and variety as the

Classy

27%

Comfort

18%

Premium

segment

9%

Reasons for being associated with UCB

BRAND EQUITY

eason for such association, the respon

ndents chose UCB was majorly becau

e classy. On the other hand Levis was c

e top two reasons.

Premium

segment

Trust

9%

variety

37%

Other

46%


UNITED COLORS OF

BENETTON

ndents

use it had Variety

chosen because of

variety

37%


We also asked respondents that which brand they would recommend to their family.

This shows their level of association with the brand. The results are as follows:

Here Levis again was th

recommend the brand to f

The most sought after re

looking at both the above

for a person willing to associa

reason for recommendation

that Brand Association of

BRAND EQUITY



the leader with 11 out of 30 respond

family and friends. UCB stands second here

eason for recommending a brand was

ove questions in conjunction, we find that t

o associate himself/herself with UCB is

ion to friends and family is also Variety. T

a consumer is high in case of UCB.

UNITED COLORS OF

BENETTON



ndents willing to

ere (8 out of 30).

as Variety. When

the main reason

Variety and the

Thus, we can say


BENETTON

RECOMMENDATIONS

UCB needs to work in the advertisement segment and the way they want to

communicate with the potential customers. This would help it to bring in new

consumers. It needs to increase its visibility as it fared poorly on that parameter. The

people who know about the brand and are using it are very loyal to the brand. They

have trust in the quality of the product and they want to be associated with it. They

should focus more on creating awareness and try to bring in new set of consumers

who could then be converted into loyal ones. Perhaps, their advertising strategy is too

sophisticated for the Indian consumers and in order to connect with the masses they

need to give second thought on it.

Resilience:

It is the ability of a brand to survive competition based on price attacks, margin attacks

and other moves by the competitors. The magnitude of resilience is related to the

degree of loyalty for a particular brand. Our question on the purchase delay due to the

availability factor conveys that UCB is the most resilient brand because 57% of the

respondents were willing to delay their purchase if UCB is not available.

Other question which was related to resilience and loyalty was related to

consumer stickiness to a particular brand if other were offering discount. In this

parameter UCB was again the leader with 40% of the respondents were willing to stick

to UCB even though other brands were coming out with promotional schemes in the

form of discount.


BENETTON

ANNEXURE

QUESTIONNAIRE

1. Name a brand which comes to your mind when we talk of

a) Jeans.....................................................

b) T-shirts..................................................

c) Casual Shirts.........................................

2. Identify the following logos:

3. How would you rate these brands on following grounds?

Characteristics Levis Pepe Jeans Spykar Reebok UCB

Unaffordable

Expensive but affordable

Value for money

Inexpensive

4. Which of the following brand you trust the most?

a) Levis d) Spykar

b) Pepe jeans e) UCB

c) Reebok f) Others

5. If other apparel brands are offering discount, which of these brands would you still

buy?

a) Pepe Jeans d) United colors of Benetton

b) Levis e) Reebok

c) Spykar


BENETTON

6. If the merchandise in the following brand is not available, would you shift to another

brand?

(Yes or No)

If YES

a) Pepe Jeans

b) Levis

c) Spykar

d) UCB

e) Reebok

If NO

a) Wait, and for how many days……….

b) Will drop the purchase plan

7. How is UCB different from other casual clothing brands?

a) Quality d) Price

b) Designs e) It is not different

c) Variety

8. Rate the brands on a four point scale on the basis of the quality of the products

offered by the brand – Superior, Good, Acceptable and Poor.

a) UCB

b) Spykar

c) Levis

d) Reebok

e) Pepe Jeans

9. Are you satisfied with your experience with UCB?

a) Delighted d) Dissatisfied

b) Satisfied e) Highly Dissatisfied

c) Highly Satisfied

10. Which brand would they prefer to be associated with?

a) UCB d) Reebok

b) Spykar e) Pepe Jeans

c) Levis

What is the reason for association with that brand?

...................................................................................................................................

11. Which brand would you recommend to friends and family?

a) UCB

b) Spykar

c) Levis

d) Reebok

e) Pepe Jeans

What is the reason for recommending that brand?

..................................................................................................................................

brand equity ucb

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