Professional Documents
Culture Documents
4.Pestel –
5.The international environment -
-Market Scope and Trends
-Competitors Analysis & Porters Fives models
forces
-Consumer
-Media distribution
8.Marketing Mix –
-4P
-Target communication
-Communication Plan
-Kpis
9.Sustainability Strategy –
-Current sustainable challenges
-Improvement
10.Conclusion –
11.Appendix –
12. Bibliography –
INTRODUCTION
Current situation and desired future Nevertheless, since the 2000s, Benetton is currently in a backward position com-
pared to its competitors.The brand is not responding to the needs of consumers
and the evolving fashion scene.The brand has not adapted to the current times and
Benetton is a global group, which manufactures its own the changing global situation the world is going through.
clothing collections. It is a company founded in 1965 by As a result, Benetton has lost its popularity and the leadership that built the brand
the Benetton family. Of Italian origin, the group is based in
identity to the benefit of its competitors: the new big fast fashion brands such as
Italy and nowadays it is a worldwide company operating in
120 countries .The brand has now more than 5000 stores H&M and Zara. Therefore, Benetton needs to regain the leadership that made the
around the world and firstly became known for its sweat- brand one of the major players in the fashion market in the 90s by establishing a
ers. unique strategy to develop its business.
(Britannica 2020)
in 2019 and was ranked 52 out of 180 countries (Transparency International’s Corruption
Perception Index 2021).In addition, Italy holds a special relationship between politicians and
the media, a legacy of the Silvio Berlusconi era,where journalism and politics have always
been in harmony.
Economie
In terms of economy, Italy is one of the coun-
tries with the strongest economy in the world, it Italians are still accustomed to traditional media such as television, with 136 minutes per
is the 8th largest economy in the world and the day in front of the television. Moreover, Italians are very satisfied with their family relation-
third-largest national economy in the European ships, friendships and health. Women also play a role in society outside the home, such as
Union with a GDP of 1,886 billion USD (World increased participation in higher education and the professions. Soccer is the most followed
economic Forum 2020). Italy is above the aver- sport by Italians, with a competitive national team and a world-renowned championship,
age economic level and this is reflected in the soccer for Italians is more of a religion than a sport.
average salary which is 2600 euros per month,
as opposed to 2200 euros per month for the
European average (OECD 2021) . The country’s
VAT is 22%. Technology
However, Italy has a high unemployment rate
of 9,2% (Trading Economics 2021) and measures
Italy represents one of the top Europe countries (along with Germany. Uk and Poland)
have been taken by politicians to counter the
corona virus crisis by imposing a ban on layoffs concerning the digital evolution. The country is currently advancing and introducing
for large companies (OECD 2020). Geograph- new digital tools.Italy is following the digitalization trend. Internet penetration in Italy
ically, the Italian economy is characterised by stood at 83.7% in January 2021 and has more than 50.54 million Internet users (Digi-
important regional contrasts between the highly talReport 2021). Also, the development of 5G is also gradually taking hold in the Italian
developed north, which has the lowest unem- landscape where today 5G is offered in nine cities including Rome, Turin. Florence and
ployment rate in the country, industrialised and Naples. Finally, Italy has more than 105,000 high-tech companies in all sectors and is
dynamic and the more rural south, which suffers the market leader in robotics in Europe.
from a high unemployment rate .
(Trading Economics 2021)
Environmental Regarde trade regularization, there are 3 types of agreements:
-Customs unions (elimination of customs duties in bilateral trade and introduction of
In matters of environment, Italy follows the environmental restrictions of the Euro-
a common customs tariff for foreign importers),
pean Union and is a signatory of the Paris agreement aimed at reducing their green-
-Association agreements, free trade agreements and economic partnership agree-
house gas emissions, it is a legal international treaty on climate change its objective
ments (elimination or reduction of customs duties in bilateral trade),
is to limit global warming to a level well below 2 ° C. Regarding to the population,
-Partnership and Cooperation Agreements (provide a general framework for bilateral
sustainability is important, based on the The Istituto Piepoli survey, sustainability is
economic relations and do not modify tariffs).
no longer a niche for Italians and they are attentive to their actions (Enelgreenpower
2019). Indeed, Italy was the first country to incorporate climate change sustainable
Italy also has economic legislation that includes provisions on copyright. Intellectual
development into its academic programs.
property includes works of art and original works protected by copyright ( 50 years),
and scientific/technical inventions protected by patent (20 years).
LEGAL
Italia follows the legal rule of the European Union which include : anti-trust law,
discrimination law, Consumer protection and e-commerce, Employment law, Health
and safety law, Data Protection and trade Agreements. Moreover the government
in Italy encourages foreign direct investment by offering incentives subsidised loans,
cash grants and tax credits. Setting up a business by the locals or foreign investors is
relatively easy.
-Italy
(PwC 2020)
Market scope and trends
Brand image building ,In the sportswear industry brand image is one of the major assets
brand, and to have the trust of consumers can take years to create values and identity.
Capital requirements, It takes a significant amount of financial and human capital to devel-
op products, manufacture them with quality and affordability.
Specialized industry : The sportswear industry use several textile technology and patent
in order to be the most competitive possible .
Low switching cost for consumer : Clothing is a fundamental element that is always in de-
mand. As global interest in sport continues to grow demand for sports apparel and acces-
sories is expected to grow.
Analysis Style and fashion trends also play a significant role in the industry. While the functionali-
ty may be the only factor a professional athlete considers, the everyday consumer cares a
When it comes to buying sportswear or running gear, the first options are definitely Adidas lot more about looks and style.
or Nike. These brands are the most important in the world in the field of sports, accompa-
nying many elite athletes in all their sporting events. Nike and Adidas are two brands that
are not only for athletes, but are also useful in the consumer’s daily life. 3-Buyer power : Risk High
Nike promotes its products and a genuine lifestyle through its great advertising campaign
and sponsorship. The brand associates its name by creating successful collaborations with Wide choices : Customers have a wide range of choices when it comes to shopping for
the world’s greatest athletes such as Michael Jordan. clothing and accessories for their favorite sports article. Moreover, with online shopping
customers can quickly and easily buy at the lowest price for a similar product. Certain
Adidas distinguishes itself by being at the forefront of the world’s biggest sporting events. companies such as Decathlon ensures that all sports equipment is available at affordable pric-
Also, Adidas is more innovative on its products by aiming a maximum of technical progress es .
on its clothes and shoes. It offers a variety of products that NIKE puts in place for all sports
disciplines, but Adidas follows the sportswear communication of Nike by providing a philos-
ophy of life more than a product. 4-Supplier Power: Risk Weak
Secondly, Decathlon adopts a different strategy from these marketing and advertising giants. Companies dominate suppliers : Sportswear suppliers often sell materials to compet-
Decathlon’s mission is to make sports accessible to everyone around the world, and has 20 ing companies. Larger buyers get cheaper prices from these suppliers by ordering larger
trademarks. By offering several products under different brands, Decathlon ensures that all quantities than smaller companies.
sports equipment is available at affordable prices while offering quality products. Decathlon
also focuses on all items for less popular sports such as archery, setting itself apart from the 5-Competitive rivalry : Risk high
competition.
High corporate aggressiveness : There is a high number of sportswear brand in italy,
Finally Kappa is a historical Italian sportswear brand and appears as the 5th competitor moreover established companies such as Nike, Adidas makes the competitive environ-
on the Italian market, the brand has adopted a positioning for several years. Its sponsor- ment quite intense. Finnaly it exists a price wars on a large number of products.
ing strategy is mainly aimed at the rugby and soccer market. Combining sport and lifestyle
it follows the footsteps of NIke and Adidas and brings a more streetwear side, the brand
launches collaborations with athletes and artists adding design to their product range.
Consumers
Media Distribution
(Statista 2020)
(LifestyleMonitor 2017)
STRENGHTS WEAKNESSES Additionally, in the era of apparel brand collaborations, the two ompanies will com-
bine their resources and creativity to create a more powerful brand experience. This
-Italian Heritage collaboration between two great Italian brands with a powerful Italian heritage will be
-Countries presence (high number of -Shocking Ads an opportunity to share Kappa’s target audience which rely on teenagers and young
stores) -No well-target consumer adults, a target more environmentally aware and conscious. Aligning the values of the
-High number of Factories -No up to date with trends companies while promoting diversity and sustainability, will also boost the recognition
-Recognition: colours and quality -Homogenous stores ( no experience of both brands with the desire of consumers to buy their new unique collections.
-Innovative communication no adaptation to different locations)
-Strong supply chain : vertical integra- -Not enough entertainment : physical Finally, another benefit of this collaboration will be the use of Kappa’s supply chain
tion of suppliers and online by Benetton, as the production process of sportswear clothing and footwear uses
-Modern Tech : Reduce production -Few endorsements and collaborations specific patents, technologies and materials such as polyester, elastane, polyamide,
cost and accelerate production -Not responding to consumers request membratex, dryclim. This is a whole new field to which Benetton must adapt for the
-Sustainability and ethical considera- production of these products. Thus, with the help of the production combined with
tion the use of Kappa’s supply chain, Benetton will save a considerable amount of time and
money in order to be as competitive as possible in the sportswear market.
OPPORTUNITIES THREATS
-Growth of Sportswear market : con- -High competitive presence
sumer willing to have a healthiern eth- -Counterfeit product in sportswear
ical lifestyle -High choice from consumer
-Generation Z and Millenials -Research and Development: Innova-
-Quality, Sustainability and ethical pro- tive materials, Patent sector
duction -Sportswear is the most polluting in-
-Athleisure, running trend dustry inside the fashion market
-Traditional Media channel : High Tele- -Industry largely dominated by brand
vision watch rate by italian people image
-Sports team sponsorship and collab-
oration
Objectives
tions include students and young workers whose increased
health awareness and changing workplace culture have
Target raised the comfort level of wearing sneakers and sweat-
pants to work. In addition, with the trend toward maintain-
& ing a healthier lifestyle and sustainability, these are the two
most environmentally conscious targets but also the top
category of sportswear purchasers.
Pricing Strategy To promote the Benetton “Life” line aimed at 15-24 year
olds, Benetton will develop an advertising campaign with
posts and live-streaming on their social networks. Also, a new
Playing on its brand image and collaboration with Kappa, Ben- series of Youtube videos will appear retracing the behind the
etton will adopt a value pricing strategy. Building on the quality,
scene of the collaboration with Kappa. In addition,in order to
sustainability and durability of its products to differentiate itself
from its competitors, the perceived value to the consumer will be target its core audience, Benetton will relie on influencer. Moreo-
reflected in each product of the new collaboration with Kappa, and the ver Benetton will sponsor an e-sports team. Twitch streaming live and
consumer will be willing to pay more to embrace the new experience and E-sport is a fast growing sport that attracts a large number of young peo-
brand image offered by Benetton.Therefore,the new collections will range to a ple and is online channel that complement the values of diversity and self-im-
middle-high price compared to competitors. provement that Benetton wants to promote.
Finally, to promote the Benetton “sports” line aimed at the 25-40 age group, an ad-
vertising campaign on Instagram and Facebook will be set up, as well as an advertising
campaign on a more traditional channel : television, as the Italians are still a televi-
sion-consuming country. Integrating sustainability will be an asset to raise awareness
and for the brand message that we want to convey to this category of consumer, Ben-
etton products will showcase functional and emotional benefits for self-improvement
in sports, but also as an ethical and sustainable product.
Communication Target
Communication Plan
2- Improvement
SUSTAINABILITY STRATEGY
APPENDIX
also boost the recognition of both brands with the desire of consumers to buy their
new unique collections. Consequently playing on its brand image and collaboration
with Kappa, Benetton will adopt a value pricing strategy positioning itself as an ethi-
cal sports brand. Finally, the sportswear being a very polluting sector, Benetton will
set up a customization system on these products in order to reduce to the maximum
the waste of clothing. As a result, the brand will produce these garments in a more
sustainable way by using recycled materials and by collaborating with Aquafil, a com-
pany specialized in nylon recycling. Moreover the brand will communicate and edu-
cate consumers on the environmental benefits of these products on social networks
and by setting up different pop up stores in major Italian cities.
(Mckynsey 2021)
(Statista 2017)
(Statista 2018)
(McKinsey 2020v)
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