UNITED COLORS OF BENETTON – COMPANY PROFILE

The Benetton Group was found in 1965 by Luciano, Giuliana, Gilberto and

Carlo, all members of the Italian family Benetton. The first store opened in

1968 in Belluno, Italy, nowadays the company has 5500 stores spread over

120 countries. The Benetton Group works in the business of fashion with five

different brands: United Colors of Benetton (UCB), Undercolors of Benetton,

Sisley, Killer Loop and Playlife.

United Colors of Benetton is the biggest brand, working not only in textile

industry but also with all kinds of merchandise, from accessories, luggage

and perfumes to home products. UCB is also the brand with more sales in to

the company. United Colors of Benetton offer clothes for adults and children,

as well as pre-natal. Under Colors of Benetton is an extension of UCB and

provides underwear, beachwear and sleepwear; it has nearly 500 stores

worldwide, but is also sold in some UCB stores. In May 2005 UCB signed a

contract with Selective Beauty to ensure the distribution of a new product,

United Colors of Benetton perfumes on perfumeries and leading department

stores. Next step for UCB is another extension of the brand on a line of

cosmetics and body care to be distributed worldwide in UCB stores. The

name of the brand: SkinColors of Benetton.

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Up to now, Benetton’s distinctive positioning was essentially based on ads

featuring disturbing images. Benetton’s advertising used to convey the

idea that buying one of its garments would contribute to racial

understanding and the welfare of humanity. Its overall advertising strategy

was composed of two types of campaigns: product-specific and corporate.

Product-specific campaigns highlighted Benetton’s collections and were

hence seasonal. Corporate campaigns were undertaken once in 12-18

months and showcased larger issues affecting the world.

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RESEARCH METHODOLOGY

Analytical research design will be adopted in this study. The purpose of choosing analytical

design is to analyze the behaviour on the basis of primary data.

SURVEY: It is a systematic collection of data from respondents.

SURVEY TECHNIQUE: This research is conducted by getting a questionnaire filled by the

target group or population chosen.

For this research study, the primary data is collected through questionnaire The primary data is

collected by getting the questionnaire filled by that part of the population which have shopped or

are likely to shop from the brand.

The research uses structured – undisguised questionnaire. This questionnaire is framed with a set

of both open end as well as close-ended questions, and also has used several rating scales to elicit

responses with regard to the objective of the study.

SAMPLE FOR RESEARCH: Male and Female members of the population

SAMPLE SIZE: 50

SAMPLE DESIGN: Convenience sampling

Convenience sampling is a non- probability sampling technique that attempts to obtain a sample

of convenient elements. The selection of sampling units is left primarily to the interviewer.

Often, respondents are selected because they happen to be in the right place at the right time.

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SAMPLE QUESTIONNAIRE

As a part of my project, I need to gather information from you. The information provided by

you will be kept confidential and will be used for academic purpose only.

1. Age

a) Below 16 b) 16-25

c) 26-35 d) above 35

2. Gender

a) Male b) Female

3. How often do you purchase/shop for clothes?

a) twice a month

b) once a month

c) once in 2 months

d) once in 3 months

4. How much approximately do you spend on one purchase trip?

a) Less than Rs.1500

b) Rs. 1500- Rs. 3000

c) Rs. 3000- Rs. 4500

d) More than Rs. 4500

5. Do you know about United Colors of Benetton?

a) Yes b) No

6. How do you know about United Colors of Benetton?

a) Internet

b) Word of mouth (relatives, friends)

c) Others (specify)

____________________________

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7. Have you visited a United Colors of Benetton store to shop?

a) Yes b) No

8. What do you prefer buying from United Colors of Benetton?

a) Casual Wear

b) Formal Wear

c) Occasion Wear

9. How do you perceive United Colors of Benetton as a brand?

a) Quality clothing

b) Value for money

c) Hi-fashion clothing

d) Practical clothing

10. Which of the following brands do you consider the closest competitor to United Colors of

Benetton?

a) Esprit

b) Mango

c) Marks and Spencer

d) Tommy Hilfiger

e) Levis

11. Do you compare the prices of United Colors of Benetton with its competitors before

buying?

a) Yes b) No

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12. Since United Colors of Benetton does not advertise itself, do you think it needs to start

advertising?

a) Yes, it needs to advertise to maintain its market share

b) Maybe, since competition is growing

c) No, it can maintain its market share without it

13. Please rate your satisfactory level with United Colors of Benetton based on the following

features. (Highly satisfied-5, Satisfied- 4, Normal-3,Poor- 2,Very poor- 1)

a) Price

b) Quality

c) Availability of sizes and colors

d) Style

e) Comfort

Thank you for your co-operation.

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4%

88%

8%

0%

below 16

16-25

26-35

above 35

42%

58%

male

female

14%

50%

20%

16%

Twice a month

Once a month

Once in 2 months

Once in 3 months

ANALYSIS

1. Age

2. Gender

3. How often do you purchase/shop for clothes?

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18%

46%

26%

10%

Less than Rs.1500

Rs.1500-Rs.3000

Rs.3000-Rs.4500

More than Rs.4500

100%

0%

Yes

No

2%

82%

16% Internet

Word of mouth (relatives,friends)

Others

4. How much approximately do you spend on one purchase trip?

5. Do you know about United Colors of Benetton?

6. How do you know about United Colors of Benetton?

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100%

0%

Yes

No

72%

8%

20%

Casual Wear

Formal Wear

Occasion Wear

42%

8%

46%

4%

Quality clothing

Value for money

Hi-fashion clothing

Practical clothing

7. Have you visited a United Colors of Benetton store to shop?

8. What do you prefer buying from United Colors of Benetton?

9. How do you perceive United Colors of Benetton as a brand?

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48%

2%4%

26%

20% Esprit

Mango

Marks and Spencer

Tommy Hilfiger

Levis

46%

54%

Yes

No

20%

52%

28% Yes

Maybe

No

10. Which of the following brands do you consider the closest competitor to United Colors of

Benetton?

11. Do you compare the prices of United Colors of Benetton with its competitors

before buying?

12. Since United Colors of Benetton does not advertise itself, do you think it needs to start

advertising?

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7%13%

20%

27%

33%

1

2

3

4

5

0% 4%20%

58%

18%1

2

3

4

5

13. Please rate your satisfactory level with United Colors of Benetton based on the following

features. (Highly satisfied-5, Satisfied- 4, Normal-3,Poor- 2,Very poor- 1)

PRICE

QUALITY

AVAILABILITY OF COLORS AND SIZES

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3

0%0% 8%

40%52%

1

2

3

4

5

0%

STYLE

COMFORT

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CONCLUSION OF THE ANALYSIS

The research has clearly shown that the brand “United Colors of Benetton” is a very well

known brand. All the respondents are aware of it and have visited the stores of the brand.

It can also be concluded that the brand is mostly known to the respondents through word of

mouth, i.e., through relatives and friends, blogs. This is appropriate because UCB does not

advertise itself in magazines or through electronic media. Almost three-fourth (72%) of the

sample shops from UCB for casual wear and 46% of the sample perceives it as a hi-fashion

brand while 42% perceives it as a brand providing quality clothing. This helps to derive that

UCB as a brand is perceived by the consumers as a casual wear apparel brand that is up-to

date with fashion as well as provides a good level of quality.

The main competitors to the brand are perceived to be Esprit and Tommy Hilfiger. One of

the reasons of the competition may be the comparative pricing among the brands. Almost

50% of the sample says that they do compare the prices among the brand’s competition

before purchasing anything from it. On the other side, 58% of the sample also says that they

do not compare the prices.

More than half (52%) of the sample says that may be UCB needs to start advertising to gain

new market share and maintain the existing one.

33% of the sample is highly satisfied with the brand’s pricing which means it does provide

value for money. Also UCB is considered a highly stylish brand which provides variety in

terms of sizes and colors as well as comfort.

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BIBLIOGRAPHY

1. http://www.docshare.com/home

2. http://www.benettongroup.com/en/home.htm

3. http://www.benettongroup.com/

4. http://www.google.co.in/imghp?hl=en&tab=wi

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