Introduction
The Benetton Group is a native Italian company whose core business is clothing. Founded on 1945, Benetton has reached 120 countries with more than 5,000 stores located around the world. With estimated sales around 1.7 billion euros at the end of year 2004, Benetton is still one of the largest retail clothing companies in the world. But as stated in its own company's Website, sales of Benetton products have fallen from 2,098 billion euros in 2001 to 1,686 billion euros in 2004.
In this paper we will analyze, the role that some external influences have taken on the drop on sales for the Benetton Group. We will also try to find a link between Benetton's controversial advertising campaigns around the world and consumers perceptions towards the brand's products.
Benetton's advertising campaigns
In 1989, Benetton became the first company to eliminate pictures of its products from its advertisements. In their place, Benetton uses images of AIDS victims, racism, war, and death row inmates. This campaign strategy and philosophy is the result of the combined efforts of company president Luciano Benetton and photographer Oliviero Toscani.
While trying to convince the public that this advertising strategy is legit and that it is not driven by economic purposes, Luciano Benetton (United Colors of Benetton co-founder) says that he is "only interested in the world and people?I have always been sympathetic to people's problems, to minority rights, birth control, disease, wars, racism, religious intolerance. I cannot offer solutions to these problems, but if I can make people more aware than that is all I offer" (www.b ...