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Executive
Insights:
Sweaters to Success:
United Colors of Benetton?From
An Examination
of the Triumphs and Controversies
of a Multinational
Clothing Company
as a leader
Often
regarded
United
dustry,
marketing
lenge of effectively
and religious
borders.
Changes
demands
have required
manufacturer
tive
in the
issue-themed
have
paigns
retail
and
growing
continues
to redevelop
its
to remain
in order
processes
market.
Renowned
competi
social
using
for
cam
its brand, Benetton's
ethical
and
concerns,
legal
to promote
in increasing
pictures
resulted
ABSTRACT
in
marketing
to face
the chal
across
clothes
cultural,
racial,
in market
trends and consumer
in the multinational
of Benetton
Colors
and world courts have now been asked to define further the line
artistic
between
cusses
The
and exploitation.
expression
action
taken against Benetton
the legal
politics
dis
author
own
by its
retail
have resulted in
consumer
to
responses
in global
to changes
suggestions
can better
to how
reach
Benetton's
unique
strategies
advertising
market.
the modern
shops.
new
to France,
Italy
headquarters
soon
company
and
Germany,
in Treviso,
from
in
the world
largest
family-owned
success
has been and
of
Benetton's
Much
2002).
(Ivey
ues to be credited
to several
First are Benetton's
factors.
vative
postponing
cisions
about
garment dyeing
colors
is the network
large network
is the network
Third
tories.
in which
distributes
which
The
Benetton,
its products
is responsible
does
company
censing
reflect
market
for manufacturing.
organization
that supply
of subcontractors
process
can better
agreements
not
with
contin
inno
involve
which
techniques,
operation-management
so that de
trends.
This
Second
includes
Benetton's
for distribution,
organization
a franchisor,
as
sells
acting
through
is
Colors of Benetton
businesses
regional
agents,
fac
a
and
each of
a certain
area.
for developing
market
own the stores but rather arranges
li
agents
that
then
J. Barela
later, with
Decades
Belgium.
Italy, United
the
among
its market
expanded
Mark
sell Benetton
prod
Submitted
Accepted
February 2003
June 2003
? Journal of International
Marketing
Vol. 11, No. 4, 2003, pp. 113-128
ISSN 1069-031X
113
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to investors
licenses
an
unique
equally
around
has
introduced
created
peace,
that
photographs
sex organs
dia.
feature
continue
Benetton
as
such
reality,
and AIDS
lives;
Toscani's
controversial,
as human
images
suffering
the attention
of the world
such
to grasp
to marketing
approach
customers
societies
wide-open"
an
with
from
has
approach
of the many
to continent.
been
met
awareness
The
issues
that
This
"eyes
emotions,
extreme
with
the Benetton
techniques
idea
continent
and
me
its products,
to provide
the
considered
this unique
By using
plague
are
often
advertisements
Toscani.
quarterly
publication,
aware
and provoked
on themes
focusing
and
humanities,
cultures,
to a se
the world
by Oliviero
issues,
and war;
to com
strategy
marketing
in Benetton's
photographs
have
conscience
stirred human
Colors,
ness
of critical
Benetton
which
marketing
approach,
ries of advertising
campaigns
Toscani's
the world,
ad
to por
multiethnic
Toscani
desired
global
in
creation
form
of
the
has
taken
tray
advertisements
that depict
different
cultures,
religions,
and
from
the
row
death
campaign
punishment
policy,
a U.S.
law
cruited
for inmate
prisons
ness,
legal,
and
between
professor
interviews.
have
and
This
ramifications
ethical
advertising
a company
and
tracting,
As
Colors of
A Global
Success
objective
he may
Although
discussion
gone
Toscani
that
and
presented
U.S.
capital
far when
he re
about
too
to solicit
state
journalist
the busi
article discusses
of Benetton's
ments
Unique
Benetton:
inmates.
as an
advertise
the boundaries
exploitation.
is based
on
subcon
outsourcing,
a
com
between
developed
large
relationships
and
and
small
several
distributors,
pany
producers
an
success
Benetton's
for multinational
has become
example
largely
businesses
around the world
(Camuffo, Pietro, and Vinelli
to
maximize
Benetton's
2001).
profit and tominimize
ability
a
in
its
role
foundation and is dis
has
expenses
large
played
relationship, in which
tinctly visible in its licensor-licensee
the retail market is not served directly by the company but by
investors
their
who
stores.
114 Mark
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items
manufac
J. Barela
in
to request
customers
requires
2002).
(Ivey
refunds
and
Similarly,
focus
name
re
and
policy,
exchanges
the original
on
an
creating
to each
using pictures
Benetton's
the world,
intimate
the
through
of social
issues
advertisements
connection
with
all
appear
consumers,
or culture,
ethnic
language,
background,
a medium
that transcends
national
distribution
Benetton
method,
advertisements.
company
company's
family
the
family,
communication
to develop
teams,
macy
management
Because
supports).
of the Benetton
by members
their various
by organizing
or
To better
"families."
classes,
that is achieved
the
increasing
constructed
to understand
company
trolled by seven
mercial
director,
number
attempt
into
departments
unique
the
of independent
of 83 agents,
inti
marketing
the benefits
between
relationship
a network
intimate
understand
Benetton's
through
the close,
internal
through
its
and
retailers.
pany
serve
a sense
can more
sustain
the
company
easily
U.S.
network
that many
companies
To
through
its
does
to incorporate
strongly
is largely managed
of their
regardless
strives
an
to establish
by speaking
As
boundaries.
By
throughout
gained
the
com
the
retailers,
are con
which
area managers
com
who
report to Benetton's
on
in turn offers
who
guidance
product
stores
to
and the location
of new
merchandising,
selection,
owners
store
lowed
and
(Pinson
and
and
labor
ensures
that
Tibrewala
Benetton's
are
policies
fol
resources
1996).
By focusing
talent on product
and dis
company
design,
production,
Benetton
took advantage
of economies
of scale and
tribution,
even
economic
maintained
worldwide
strong growth,
during
manu
structure
recessions.
This
has helped
lower Benetton's
and
facturing
costs
and
thereby
has
reduced
company
of publicity
tablished
sorship
creased
United
by
experimenting
and diversifying
nonclothing
As Benetton
targeted
support
began
its products
with
new
methods
by purchasing
es
companies.
to grow, it developed
new market
For
new products
and
Benetton's
spon
segments.
example,
1 race car, which
has since been
sold, in
In addition,
the
worldwide
company's
visibility.
of a Formula
the
Colors
of Benetton
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All use subject to JSTOR Terms and Conditions
of companies
such as Playlife, Killer Loop,
acquisition
Rollerblade, Prince, and N?rdica helped Benetton achieve its
goal of being more than just a clothing company. Although the
Benetton clothing line accounted for the majority
(74%) of
revenue,
into new
expansion
markets
has
redefine
helped
company's
Benetton's
Although
itwas
the
2001).
diversification
soon
apparent
to remain
to meet
campaign
the needs
of modern
markets.
new movement
toward warehouse
industry's
as Wal-Mart,
consumer
such
expectations
now
demand
that stores
and consumers
the
Following
retailers,
style
have
changed,
be
mothers,
streamlined
and
its brands
and
Pietro,
Vinelli
2001).
all
without
its gar
streamlining
efficiently on developing
in the design and produc
a need
and it further
created
products,
to promote
Benetton
the remaining
of fewer
vertisements
effectively
The
sold
detrimentally
for ad
items
the drastic
disclosing
in product
the prod
For example,
before
changes
offerings.
a wide
va
a Benetton
uct changes,
have
shown
catalog might
a
after the product
cuts,
riety of items, whereas
catalog might
a
a re
cause
sense
of
or,
worse,
appear
empty
unfamiliarity,
focus on consumer
and
company's
To maintain
its strong customer
perception
diversity.
product
to
outsource
Benetton
of superior
continued
only
quality,
of production
and trusted
labor-intensive
any strate
phases
sult
gic
to the
contradictory
activities
and
that
operations
required
heavy
investment
in maintaining
rectly
operated
tion strategy
relies
to
closer
consumers;
tion
of traditional
continuing
additional
world.
is its movement
into
di
new
Benetton's
competi
the
company
parent
becoming
largely
this involves
the dissolu
specifically,
on
investor-owned
To achieve
channels.
retail
Because
the expense
involved
in such
a project
Mark
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All use subject to JSTOR Terms and Conditions
is no
J. Barela
it was unlikely
ton decided
move
from
deviation
sharp
role and
licensor
investors
that individual
the necessary
so Benet
capital,
marked
tional
out
to provide
be willing
the
tradi
company's
required
significant
changes
through
to its consumer
As
including
marketing.
to
internal
infrastructure
the
began
change,
to coordinate
brand needed
the transformations
the
company,
Benetton's
entire
well-known
into
its advertising
of the company
The
and
properly
could
practicality
ton's ability
photographer
as his media,
style. Toscani
clothing
advertising
into
from
recognition
decision
advertising
because
ad
television
Benetton
budgets,
Ad Campaigns
have
historically
Controversial
hired Oliviero
chose
less-than-ordinary
In addition,
company.
vertisements
their
earned
had
shirts
Toscani's
an
company
sought
the rules of traditional
of art
and
color,
style,
Luciano
Benet
out
signifiers,"
who
respected
integration
the
(DiMateo
marketing
Toscani,
a meshing
of
expressed.
Maintaining
to transform
"sweaters
into messages,
jeans
an advertiser
not
cam
multiethnic
worldwide,
be
into
and
signs,
artist,
distinctive
component
the others.
a forum in which
strategy required
Benetton's
that each
complemented
of a proposed
achievement
paign
to ensure
campaigns
to pro
refused
initially
often
posters
placed
no
showed
on
more
a street
(DiMateo
strategy
was
what
basic
often
he
of Benetton
of car engines
the noise
with
a series
than
and
1993).
and marketing
advertising
to as a "communications
referred
theme
into
"news,"
teo
1993).
the
world,
kets
peal
costs,
high
Benetton's
Toscani
share
humans
Benetton,
wide
social
were
clothes
company
Toscani's
to bring
attempted
a
advertisement
single
many
clothing
issues.
United
to current
advertising
events
(Di Ma
sold around
the
to specific
reduce
To
the world's
mar
that would
ap
by using
The
and
races,
cultures,
lifestyles.
religions,
to reach people's
to invoke
of con
discussion
souls,
to the awareness
all societies
and to bring
topics,
together
to many
was
goal
troversial
that
paying
Because
to transform
chose
attention
to tailor campaigns
incurred
expenses
enormous.
markets
would
have
been
national
these
Toscani
close
used
ability
Colors
concerns
similar
can
company,
considered
offer
support
that
even
to world
humanitarian
and
to present
devastating
of Benetton
117
to
and
itself,
promote
events
in
critical
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as
such
ways,
unprecedented
an
photographing
organized
to arousing
consciousness
public
it is difficult
views,
to determine
the
that
brand.
contentious
Benetton
purchasing
the unique
advertisements
However
obscure
equality.
sive
20
have
consumers
deterred
others
have
them
praised
of racial
that
messages
promote
the world's
view
is of the
when
Toscani
times
re
mixed
Some
have
images
but
products,
from
advertisements,
sales were
pany's
received
the Benetton
affected
retrospectively
have
stated
has
left Benetton,
than they were
greater
exclu
the
com
when
he
The World's
Toscani's
Response
Advertisements
to
Toscani
responses
even
ments
tailers
and
to present
continued
varied
consumers'
campaigns,
to
The
advertise
country.
country
re
Benetton's
of
among
feelings
hostility
the advertisements
sales
had decreased
created
that believed
that
"Mr. Benetton
claimed
and Tibrewala
spired
him
values
by
(Diaz
to reach consumers
attempted
that are often
disregarded
about
discussion
stimulating
included
campaigns
newborn
woman
scenes
such
a white
breast-feeding
advertisements
extreme
issues.
death
These
indiscreetness.
Benetton
adverse
retailers
that
accused
in consumers
reaction
inmates,
and a black
images
and
Toscani's
row
cord attached,
infant.
the
by challenging
in retail
as U.S.
its umbilical
baby with
(Pinson
he stated
that the is
products,
advertisements
in
genuinely
consumer
the
audience,
capture
To
2000).
to nobody"
listens
to promote
for using
politics
sues he chose
for the Benetton
Toscani
his
from
quickly
the ad
were
the protestors
Among
the company
of "provoking
a con
their
ads, with
through
and Tibrewala
1996, p. 558).
in sales"
(Pinson
sequent
drop
These
from
the world
market
also spurred
responses
negative
to
the establishment
in
of pro-Benetton
groups
Germany
retailers"
the
for acceptable
advertisements
vary
guidelines
were
in
the
Benetton's
world,
throughout
campaigns
praised
some countries
a
in others.
and damned
For example,
photo
perceptions
in global
of these
consumer
photographs
markets.
The
in one
is acceptable
society
may
created
diverse
traditional
not
be
re
notion
acceptable
and
disliked
market
by
others.
controversy,
Even
though
Toscani's
some
attempt
campaigns
to integrate
118 Mark
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J. Barela
art also
into his
concepts
in the art industry,
which
world
ever
spiring
thing
on universal
focus
and
cultures,
able standards,
regarded
p. 8). Benetton's
different
races,
2002,
(Buonaguidi
that
campaigns
lifestyles,
has become
recognition
as "the most
in
his work
seen"
represent
to accept
in direct
opposition
a concept
that
used by companies
often
a common,
to maintain
choose
Benetton
earned
worldwide
exam
For
image.
images of scantily
ple, today formerly culturally unacceptable
dressed models line the walls of airports and billboards in so
countries
conservative
cially
a center
munication
designed
many
aspects
subject matter
he achieves
the way
"explicit
to grab attention
in part
range
advertisements.
opposed
promote
Benetton
its clothes.
further
declaring
sales" but
use
become
have
Much
ability
an
consumers
and
of Toscani's
his ability
of
only
hearts
issues
qualify
disapproval,
its advertise
to "increase
to the
and
of the Benetton
been
faced by many
problems
the
through
extreme
to conjure
human
of creativity
recognized
worldwide.
has
to
suffering
as a "science
icon
success
strongly
speak
states
emotional
campaign
to merge
are
images
to consumer
people's
such
because
in
to the
reactions
consumers
to reach
provided
focused
on,
is evidenced
local
the purpose
emphasized
not
that its intent was
also
issues
of human
of
In response
and
of advertising;
a
of
representation
through
the photos
should
automatically
advertisements'
this method,
have
which
of national,
regional,
For example,
many
to Benetton's
public
scenes,
of the
perception
cultural
differences,
on
also
advertisements
in consumer
the vast
creativity
his
do not
advertisements
controversial
variations
ments,
sweater
to develop
a subject;
set
they simply
and confront
consider
people
and make
based
The
his message.
about
statements
Toscani's
specifically
com
the
with
news
to accompany
editorials
by including
one of
focus
reflects
This
editorial-advertising
the
It
not
is
of Benetton's
merely
promotions:
on
but also
focus
advertisements
that Toscani's
the pictures.
out
of
the establishment
he continued
goals of Benetton,
advertisements
make
to deal
Iran.
and
Turkey
As Toscani
Fabrica,
as
such
emotions,
mar
by
attributed
people
to
into a
be
for his messages
The forum
recognizable
package.
single,
a
came Colors,
that addresses
magazine
publication
quarterly
is a company-sponsored
issues.
Colors
humanitarian
medium
as AIDS,
Universal
Colors
of Benetton
such
worldwide
and discusses
that presents
issues,
use
of dif
of models
Toscani's
and hunger.
poverty,
also
exist
to dissolve
in the
the economic,
Colors
lives
of Benetton
of others.
political,
This
and
method
at
religious
bar
the world.
119
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Benetton's
or
universality,
can be
problems
to depict
scenes
an
and
to have
advertisements
Israeli,
appear
environment
an
localized.
common
assertive
The
a type
achieved
in which
of
global
uses
Toscani
imagery
of recognizable
such as a German
"enemies,"
a Greek
a
an
and
and a
and
Turk,
Argentine
audi
Briton, has further captured the attention of worldwide
ences (Pinson and Tibrewala 1996). Benetton's campaigns did
not
include
models
advertisements
the
wearing
rather,
they
the
issues
cent
showed
that people
attractive"
"carefree,
garments;
bright-colored
a sense of
for the
ownership
company's
to invoke
attempted
social problems
that
are of a
or a
re
context,
religious
political
Benetton's
advertisements
reflect
blatantly
reviewed
or historical,
subsequent
used models
on
impact
such
presenting
method
appears
"shocking"
hold
of the problems
who
people
has been
able
to avoid
or two
uniform
Although
of consumers
the world
in its promotions.
groups
ad campaigns
a certain
Benetton
images
its
achieved
this
by avoiding
product,
the world,
the
a result, Benetton
retailer
stereotype
As
face-to-face.
in grasping
and bringing
the all-too-common
ethnic
using
focus of unifying
ring debate
them
confront
one
of using
around
Toscani's
troubles,
essential
widespread
to have been
that
same
standard
au
Toscani's
approach.
of management's
thority to work independently
controlling
eye enabled him to break away from the secure democracy of
establishments
organizational
credible"
need
for management
and what
disregarded
on pure
ity based
to "produce
and
of the
were
productions
a raw vision
of human
traditional
approval,
remained
emotion
in
something
the elimination
was
and
instinct.
The
commonness
Although
advertisements
have
received
positive
recent
the world,
social
more
to become
sensitive
may
problems
to the unique
the company
require
a more
to develop
of market
characteristics
cultures
and
For example,
advertisements
presentation.
culture-friendly
current
and/or
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All use subject to JSTOR Terms and Conditions
who
in
might
view
Mark
J. Barela
the
as direct
advertisements
cause
cultural
criticism.
market
includes
consumer
Benetton's
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and
religious
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eth
is an example
of how
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segment.
can
company
clothing
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to realize
multinational
companies
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on
will
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issues. Many
humanitarian
expressed
people
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serious
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as
work
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viewers
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meanings.
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culturally
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2002, p. 5). Although
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to promote
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company might
health
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largely on how
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me
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and Toscani
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approach
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and instinctive
processes
spontaneous
create
Benetton
chanically,
developments
United
the world
Benetton
Colors
of Benetton
121
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spirit appears
and at
genuine
to people,
and societies
cultures,
are
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retail
market
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Unethical
Colors of
Benetton: A Marketing
Strategy
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Challenges
Toscani's
tension
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advertisements
to result
continued
in increased
to face
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consumers,
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ethical
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to sell
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re
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clothes.
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the Italian
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the
of
regarding
on death
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row"
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inmates
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row inmates
to death
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General
2000). To gain access
Death
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writer
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interview
submitted
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Shulman
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prisons,
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used
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essay"
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row
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ing appeared
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capital
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punishment"
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develop
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determine whether
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udicially
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cloth
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effort
2001, p. 9). Toscani's
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line
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tinguishable
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of Colors,
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themselves
others
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provide
their
respectfully;
to a different
receive
their
advertisements
prej
in
consumers
with
122 Mark
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All use subject to JSTOR Terms and Conditions
criticism
have exceeded
false
J. Barela
In Benetton's
formation.
can
defendants
convince
the
p.
doctrines
legal
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specific
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its retailers.
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ferent
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Benetton
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multinational
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expression
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9). In addition,
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... is whether
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ques
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re
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from
Benetton
aimed
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ments,
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the controversy
in lost sales.
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ethical
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re
supplies
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in the advertisements
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decisions,
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retailers
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stated
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relationship
and the independent
retail stores
the advertisements
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for the
to retailers
unusual
inmaking
risky decisions"
Furthermore,
United
Colors
because
it was
to believe
1997, p. iii).
that Benet
of Benetton
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All use subject to JSTOR Terms and Conditions
ton's
economic
in selling
interest
the same
was
its products
as
case
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of a court's
to question
in general
is
choices.
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1997). For
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quire
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ton, will
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ops
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kets.
benefit
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of its campaigns.
its new
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to have
to develop
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risks;
the best
innovative
methods
of
its
of
label.
124 Mark
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All use subject to JSTOR Terms and Conditions
it bar
J. Barela
to a retailer
transformation
from a producer
repre
a basic
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its development
network
from
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diverse.
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of quick
integration
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sents
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mental
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tional
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of multina
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tional
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ments,
clothing
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methods,
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industry.
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into an international
name
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consumers,
distributors,
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the company
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culture
unique
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col
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intimate
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to establish
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for
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producing
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multina
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communication
channels,
line
distinctive
share,
among
the Benetton
family.
new
from developing
to production,
and advertising,
there
distribution,
approaches
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remains
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maturity.
Benetton's
to revolutionize
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way
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every
companies
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successfully
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to redesign
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require Benetton
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in changes
evidenced
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and
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Benetton
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changes
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pany
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and
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the
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such
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of Benetton
establish
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small
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der
demands
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example,
as
and marketing.
Thus
sales,
far, Benetton
to promote
used
issues
its brand;
social
in communication
markets
and advances
of production,
pect
has
in
for
itself
Expansion
for the com
and
style.
centers,
as a foreign competitor
as
Gap.
Store
the world's
appearance
among
openings
If
it
to
in
larger cities
the
trend
125
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Past,
Present,
brands.
setting
combination
company's
Because
mainstream
unique
the
sale
cient
methods
treme
changes
loss.
identity
campaigns
exposure,
the
associated
closely
as a result,
to promote
clothes;
to continue
should
it is im
social
on
effi
company
maintaining
ex
of production
and distribution;
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in
in the company's
overall
result
image might
the past
changes
focus
decade,
Benetton
in its production
it has maintained
but
processes,
company's
During
enced many
to
company
as
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in
changes
its consumer
media
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portant
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its clothes,
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require
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Benetton's
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and distribution
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teraction
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and
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ments
tween
use
Benetton's
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the globe
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resulted
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success
and
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methods
around
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troubles.
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to promote
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of unity
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of controversy
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in transportation,
and tech
communication,
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races.
and
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languages,
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that
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comprise
effort to appeal
in traditional
marketing
developments
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continue
Benetton's
purpose:
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promotion
this through
do
so
mean
become
that Benetton's
of
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around
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aware
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the advertisements
it must
it
however,
resources
to use marketing
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the
company's
goal
campaign.
require
changes
does not necessarily
paigns will
of clothes.
methods;
attempt
in each
uniformity,
sales
and
the company
a conscious
world
be
relationship
that
campaigns
versity
ones
a long-term
to support
and the brand.
is essential
the consumer
that market
them.
social-issue
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cam
they are
in current
must
the changes
consider
politics,
presented
consumer
that tra
Toscani
has proved
and
laws,
perceptions.
means
are
not
the
ditional
of promotion
methods
only
by
a brand
can
innova
and
which
creativity
gain recognition;
of a brand,
in continuing
the development
tion are essential
but it is crucial
world
markets
the most
effective
the changes
results.
MarkJ.
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All use subject to JSTOR Terms and Conditions
Barela
in
In
move
Benetton's
addition,
away
a distribution
from
ued
secure
is to maintain
new
dures
ways
and Toscani
to make
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proce
the sales
taught
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creation
step of operations.
brand
has
proved
interna
The
successful
of such relationships.
Benetton's
method
of reaching
unorthodox
Finally,
although
consumers
has resulted
in success
for the company,
there are
a
in which
extreme
situations
tactics may
such
devastate
history
is filled with
the
introduction
of unique
and adver
ideas,
clothes,
"foreign"
a
has become
tisements.
Because
of this, the brand
familiar,
consumers
use
to
that
such obscure
pro
image
global
permit
a new
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cedures.
campaigns,
Benetton
is an
as the home
ing
Italian
to world
culture
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it has probably
fashion,
consumers
from
scrutiny
fashion
to use
that attempts
similar
be
In
different.
because
addition,
may
in a country
often
company,
regarded
company
the results
who
have
come
received
to trust
less
Italian
the
it for setting
and develop
trends
as at
A U.S.
company
perceived
respect
the
clothing
industry.
and leaders might
races,
cultures,
traditions,
foreign
tacking
as racist or
mix
Benetton's
be viewed
of
unique
derogatory.
new
a
it create
has helped
and refinement
fashion,
style,
to be one of few competitors.
Out
in which
it appears
niche
industry, organizations
Benetton's
be
might
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social
acknowledgment
approach
deal with
the issues
that directly
presented.
a national
choose
hunger
organization
might
ple,
in
of
advertisements
malnourished
children
tographs
those
funds
less
for
its cause.
them.
exploitative
Whatever
seems
that
it received
the
from
Buonaguidi,
Review,
The
because
the
advertisements
did
company
clothing
concerns
are of Benetton's
company
around
Dave
(2002),
22 (June), 8.
has
also
earned
pho
to raise
be viewed
might
to use
not
as
sponsor
critics,
the positive
it
support
the world.
"This Book Will
Inspire
You,"
Creative
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J. Barela