46668235 Final Document Benetton

7/30/2019 46668235 Final Document Benetton

1/28

1

AIM

An analysis on market opportunity for Benetton for coming up with a

separate fashion accessories brand called BENETTON BLING

Objectives:

y To briefly study the Benetton group

y To analyze the factors influencing consumer preferences in regard to accessorypurchase in India.

y To suggest recommendations to facilitate success of Benetton bling

OVERVIEW OF THE APPAREL INDUSTRY

The Indian apparel industry is one of the major sectors of the Indian economy due to the

huge amount of investment, earning of revenues, generation of employment and trade.

The numberof apparel and fashion manufacturing units in India are approximately 30,000

and this sector has around 3 million people working under it. It is also a major earnerof

foreign exchange for the economy. The major features of the Indian apparel industry are a

huge product variety, short product lifecycle, unpredictable demand and a long supply

process. In recent years, the industry has seen a considerable consolidation in retail and an

increased use of e-commerce. The important segments that come under the apparel

industry include clothing for men, women and kids, wedding wear for brides and grooms

and intimate apparel.

There is also a vast apparel wholesale distribution network in India. The major channels

of distribution for apparel include brick and mortar, catalogue and internet. The market

shares of the different channels are:

CategorySales $Billion

Market Share(%)

Brick and

Mortar169.256 92.9

Catalog 7.177 3.9


2/28

2

Online/

Internet5,873 3.2

Total 182.306 100.00

The global textile and apparel industry in total stood at $550 billion in 2007, out of which,

the Indian textile and apparel industry stood at $52.5 billion in 2007. The industry is

expected to grow to $805 billion by 2015. In India, about $32 billion is used in the

domestic market and the rest $20.5 billion is used for exports. About seven markets

account for 75% of the textile and apparel export, the US market being the largest at 32%

of the 75%.

Since 2008, recession and the global economic slow down have been effecting the Indian

apparel industry. The exports have also seen a decline due to this. However, it will soon

emerge from this down turn.

http://www.eworldtradefair.com/indian-apparel-industry-a56.html

http://www.fashionproducts.com/fashion-apparel-overview.html#io

http://www.business-standard.com/india/news/kit-indias-textileapparel-industry/345936/

BENETTON GROUP

TypePublic (NYSE: BNG)

Founded Treviso, Italy (1965)

Headquarters Villa Minelli, Ponzano


3/28

3

Key people

Luciano Benetton, Chairman

Giuliana Benetton, Director

Gilberto Benetton, Director

Carlo Benetton, Deputy Chairman

Industry Clothing

Products Complete list of benetton brands

Revenue 1,8 billion (2005)

Employees 7,987 (2005)

Website www.benettongroup.com

Benetton Group is a global fashion brand, based in Treviso, Italy. The namecomes from the Benetton family who founded the company in 1965. BenettonGroup is listed in Milan. Benetton has a networkof around 6,000 stores in 120countries. The stores are managed by independent partners and generate a total

Around 6,000 stores worldwide:

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.

DESIGN:


4/28

4

A staffof 300 designers from all over the world creates the collections for the casual United

Colors of Benetton, the glamouroriented Sisley, the leisurewear brand Playlife. The design team

is also engaged in researching new materials and creating new lines for different targets from

children, men and women to expectant mothers, offering them not only practical and modern

styles but also maximum comfort.

The result is the latest trends in design and a rich output of many models a year which are

realized with computer assisted design systems fully integrated with the rest of the company's

production phases.

PRODUCTION:

Consistently high quality is one of the fundamental characteristics of the Benetton

production process from the raw materials to the finished garment.

A constant commitment to innovation, a crucial factor for development, has always

characterized the Groups business organization, from communication to IT, from research into

new materials to integrated logistics. Special attention is given to innovation in production,

where all systems and equipment are constantly renewed.

The Benetton production system, co-ordinated by a high-tech facility at Castrette (Italy)

is capable of turning out over 150 million garments every year.

LOGISTICS:

Benetton has direct control of the logistics phase for both own manufactured and sourced

pro

ducts, and has invested in mo

delling,o

rganizatio

n, and auto

matio

no

f lo

gistic pro

cesses inorder to completely integrate the entire production cycle, from client orders, to packing anddelivery.

Automated Sorting System

The state-of-the-art logistics operation at Castrette (Italy) has a fullyautomated innovative sorting system, whose propulsion is based on electromagnetic fields,capable of handling individual orders for around 6,000 Benetton shops worldwide.

Folded and hanging garments are automatically sorted, packed

into boxes and sent through a one-kilometer tunnel to theAutomated Distribution Center.

automated distribution centerThe Automated Distribution Center covers an area of 30,000square meters, with a total capacity of 800,000 boxes, and is ableto handle 120,000 incoming/outgoing boxes daily with a


5/28

5

workforce ofonly 28.

The finished product is sent directly to the Group's around 6,000retail outlets in 120 countries worldwide.

BRANDS:

United Colors of Benetton:

A global brand, and one of the most well known in the world, United Colors of Benetton

has an international style that combines color, quality and fashion. Each season the womenswear,

menswear, childrenswear and underwear collections offer a total look for everyday, for work and

for leisure, in the city and outdoors. The Benetton Baby label is a new product line dedicated to

the prenatal and the under-fives world.

The brand is present in many other sectors, from the elegant accessories to the eyewear

lines and perfumes, from the home collection to baby products. The above products are available

in selected specialized shops worldwide.

Undercolors of Benetton :

This is an extension of the Benetton brand, featuring underwear, beachwear and

sleepwear collections, as well as accessories for women, men and children.

A wide selection of recurring basic colors is enriched every season with the latest trends.

Undercolors is available in its own chain of stores which now has more than 500 locations in

thirty countries and in selected Benetton Shops.

Sisley:

This is the Group's most fashion forward brand. Sisley presents elegant and seductive

collections, with special attention given to the choice of design, fabrics and new shapes. Its

creative artists and independent sales teams concentrate their efforts on its image and on strong-

impact advertising campaigns. The brand has created the very fashionable Sisley Young line for

children from 8 to 12 years old.


6/28

6

MERCHANDISE MIX:

The breadth and depth of the products carried by retailers is called as merchandise mix.

This is also known as Product Assortment.

United Colors Of Benetton: Merchandise Assortment

ADULT :

Woman And Man:

United Colors of Benetton chooses a keyword for the Autumn/Winter 2010-11 collection:freedom, a clear and simple word with many meanings. In this case, the freedom we allowourselves when choosing our look every-day.

United Colors of Benetton has always followed this principle and offers even greater

freedom of choice for the new winter season.

Accessories:


7/28

7

The Autumn/Winter 2010-11 United Colors of Benetton accessories and footwearcollection explores new frontiers of in terms of shape, material and colour.

KID:

Mamma:

Future mums will enjoy an A/W collection from United Colors of Benetton thats big oncomfort and full of the new seasons trends.

Baby (0-1 year):

United Colors of Benetton chooses a romantic, natural mood for the new borns of theA/W 2010-11 season. Soft fabrics and light, pastel colours combine with prints and drawings towarm the winter days.

Toddler (1-5 years):

In A/W 2010-11 United Colors of Benetton takes the smallest children by the hand andaccompanies them in their new adventures and earliest discoveries.


8/28

8

Kid And Tween (6-12 years):

For the girls, United Colors of Benetton have created an imaginary tour around the world,proposing places and moods that evoke the new looks of the A/W 2010-11 season. For the boys,its all about the American way of life.

UNDERCOLORS:

Strong Appeal: A touch of provocative sensuality lets us play with lace, sheer fabrics,

transparencies and softness. Silk and cotton bring sophistication to homewear ideas.

Underwear:

The Undercolors of Benetton winter season opens with a cosy, supremely comfortablecollection and a skilful use of every kind of cotton. New features include a greater numberof

organic cotton jersey articles; a special focus on the brands DNA (with a logo print motif inbright colours); and a new bra designed especially for teens.

Basic:

Undercolors of Benetton always dedicates special attention to its underwear proposals,even those that are commonly defined as basic, but whose simplicity, clean lines and colourpalette make them indispensable. In fact, in a colour palette limited to white, black and fleshtone, a small world of bras, panties, culottes, brassieres, tops and slips has been created.

FACTORS AFFECTING COSTS


9/28

9

The BENETTON Group has grown massively in the past years. The company has incurred

many costs to achieve this position in the apparel industry. Some of the factors affecting its

costs are as follows:

GROWTH AND EXPANSION - The growth and expansion strategy is one of the

major reasons for the increase in fixed and operation costs for BENETTON. To increase

the market share and to strengthen its image, BENETTON has made huge investments to

open up retail stores to sell its products through directly-owned retail stores rather than

the traditional method of franchise stores that the group used. The Group operates more

than 280 wholly-owned shops in different locations which have led to an increase in the

costs. With this respect, the increasing property rental costs are also applicable. Also

these investments expose Benetton to an additional risk that some of the chosen locations

may turn out to be inadequate because of changes in the areas demand scenario, its

demographic profile or the location of shopping districts.

http://sec.edgar-online.com/benetton-group-spa/20-f-annual-and-transition-report-foreign-private-issuer/2004/06/30/section7.aspx

COSTS OF RAW MATERIAL - Raw material is one of the major components that

add to the costs ofThe Benetton Group. With the fluctuations in prices of raw materials

like fabric, threads, buttons, zips etc, the costs also fluctuate.

QUALITY CONTROL SYSTEM - Due to strict quality checks, lot of wastage such

as rejection of apparel due to non-accurate colours, unused bulkorders etc takes place.

This wastage adds on to the costs to a great extent.

INFLATION - Inflation and increasing prices of basic amenities used in the factory

such as gas, water, electricity and other basic expenses such as transportation costs,

labour costs, upgradation of technology which is required at short intervals in this techno

savvy world etc contribute to the increase in costs of benetton. Due to shortage of labour

and increase in work load, the employees ask for more salaries and incentives which lead

to increased costs for the company.

FOREIGN EXCHANGE RATE FLUCTUATIONS - Sales and operating income

of benetton may be influenced by foreign exchange rate, appreciation of euro, interest

rate fluctuations, foreign exchange rate fluctuations in the sale currencies, which in turn

causes an impact on the prices of products sold, the cost of sales, and operating income.


10/28

10

Foreign currency exchange rate variations against the euro may have a negative effect on

sales, operating results, and the international competitiveness of the production facilities

of various business units. Since benetton makes use of hedging in order to manage

currency exposure, the strategies adopted may not be sufficient to protect income from

the negative effects of future fluctuations. It also holds assets and liabilities which are

sensitive to interest rate variations and are necessary in managing liquidity and financial

needs. These assets and liabilities are exposed to interest rate risk, which is, at times,

managed through the use of derivative financial instruments.

http://sec.edgar-online.com/benetton -group-spa/20-f-annual-and-transition-report-foreign-private-issuer/2004/06/30/section7.aspx

OTHER FACTOTRS- Other financial expenses such as loans and interest payable,

and a few political decisions of any increase in tax etc., leads to an automatic increase in

the indirect costs of the company.

http://www.coursework.info/AS_and_A_Level/Business_Studies/Marketing___Research/

Factors_affecting_Supply_and_Demand_L46386.html

MANUFACTURING

Benetton entered India with a 50:50 joint venture with the DCM Group in the year 1991-92, and

now since the past 5 years, it operates as a wholly owned subsidiary of the Benetton Group, Italy.

Besides retailing,Benetton India has also started a manufacturing unit in Gurgaon where almost

50% of the garments required in India are manufactured. The remaining products required for the

Indian market are outsourced from other parts of India like Ludhiana, Delhi, Bangalore, Chennai,

and Nepal and Benetton International through contract manufacturing. The designs manufactured

are selected from the global collection create by the product design and development team based

in Italy.

Manufacturing in India has given Benetton many benefits such as low cost labour, lower

production costs from suppliers which led to a cut in prices of benetton products by almost 20%.

Also Asian fabrics are cheaper and thus, reduce the cost of apparel manufactured in India.

Another benefit is that India made products will attract lower tariffs.


11/28

11

Therefore, there is an increased emphasis on making India an outsourcing hub for Benetton

globally, along with China. Production plans for India were in excess of 6 million units by 2007

which have exceeded now.

OPERATIONS

Supply Flexibility

Benetton's industrial set-up is based on a double supply chain, which is a better measured and

more efficient one, based on a logical sequence of activities for minimizing costs. It is a more

rapid system with better response capabilities as its an integrated planning system that optimizes

in parallel the activities of R&D, product design, production and sales.

A balance between the twin tracks of activities makes the supply system flexible and provides

the required support for the large expected growth in production from the current level of around

150 million items that Benetton may face soon.

The major functions of the dual supply system like design, planning, coordination and

programming are maintained in Italy. It focuses on rapid response to the market, while looking

outside Italy for a proper combination of product quality, efficiency, and the necessary cost

control.

The Production Planning Office prepares forecasts of market dynamics, and makes it possible to

anticipate and decrease production times in order to respond to the needs of the target market in a

timely manner.

http://investors.benettongroup.com/phoenix.zhtml?c=114079&p=irol-

VCOperationsSupplyFlexibility

Integrated Planning: The Dual Supply Chain

Industrial Flexibility

The production system of Benetton operates in Italy, Eastern Europe, the Mediterranean region,

and transitional Asian markets, such as India and China.

During the past few years, most of the investments were allocated towards the managerial

independence of production centers in Croatia, Tunisia, and Hungary, which operate complete


12/28

12

production cycles (from raw materials to finished product), and on quality control systems to

meet the strict benetton Group quality standards.

The operational work of the benetton Group relies on the outsourcing of the labor-intensive

phases of production, such as tailoring, finishing, and ironing, to small and midsize enterprises

(SMEs) which is directly controlled by the Italian and foreign production sites. Whereas, the

strategic activities and operations that require heavy automations like dyeing, weaving etc, and

quality controls are done in-house.

http://investors.benettongroup.com/phoenix.zhtml?c=114079&p=irol-

VCOperationsIndustrialFlexibility

Benetton on the stock market

Most of the trading in Benetton ordinary shares during 2009 took place on the Italian Stock

Exchange, run by Borsa Italiana S.p.A.; Benetton also quotes and trades its American Depositary

Receipts (ADR) in the international OTCQX system, allowing American investors to have

constant access to the Group's latest news and information.

The Group capitalized at Euro 1.075 billion at December 31, 2009.

Between the end of 2008 and end of 2009, the Benetton stock had an average price of Euro 6.12,

reporting a high of Euro 7.55 on October 8 and a low of Euro 4.42 on March 5.

An average of approximately 280,000 shares were traded each day.

The Group's Investor Relations office ensured that the financial markets were kept constantly

and promptly informed over the course of 2009; IR activities were structured in an organized,

proactive fashion that fostered understanding of the business's dynamics and interaction with the

markets concerned.

The channels of communication with the Group's shareholders and investors were kept

constantly open, through conference calls, video conference calls, face-to-face presentations,

participation in roadshows, presentations at broker conferences, company visits, presentation of

the collections and in-store visits.

Communication activities involved not only shareholders and investors on the major financial

markets, but also potential new investors with investment profiles matching the Group's

structural characteristics and strategic outlook.

The Investor Relations website, which publishes details of Benettons latest share price on the

Milan market and the presentations of the Group's quarterly results, was updated in 2009, with


13/28

13

particular attention to revising the section on brands in order to communicate transparently the

changes in the identity of the Group's brands both in product style and image.

The descriptions contained in the Operations, Commercial and Communications sections were

also updated to reflect the Group's constant policy of renewal in the face of market change.

Additional services and information are available at www.benettongroup.com/investors.

2005-2009 dividend per share performance (euro)

BENETTON : SWOT ANALYSIS

Strengths:

y Benetton Group is a world leader in the design, manufacture and marketing of distinctive

casual apparel for men, women, and children.

y Benetton is well known around the world; it has a good image and a good reputation

through the 120 countries they are selling in. The Group's commercial networkof 7,000

retail outlets around the world is increasingly focused on large floor-space mega stores

offering high quality customer services.

y Benetton is traditionally known for knitwear and casual clothing in a wide array of

colors, featuring fashionable Italian design and projecting a youthful image.

y Benetton clothes are high quality products usually made of wool.

y Benetton is active in the sportswear and sports equipment sector with brands such as

Prince, Rollerblade, Nordica, Kstle, Killer Loop and Ektelon.

y Benetton licenses its trademarks for products manufactured and sold by others, including

fragrances and cosmetics, watches, sunglasses and other fashion accessories, which

complement its product lines.


14/28

14

y After competing for more than 10 years in the Formula One championship, Benetton

decided to pull out in March of a sport now dominated by the large car manufacturers.

Benetton had entered the costly Formula One sport to promote its clothes in the world

market. But it felt the costs of competing in Formula One were no longer justified in

terms of the marketing value for the group. Benetton made a net gain of $82.4 million

that represents a 147 percent rise in first-half net profits.

y Benetton has its own communication research and development center: Fabrica.

It has a pluralistic view on things that is guaranteed by the mixof young people

from countries with different languages, cultures, and attitudes. They workon

projects that include fashion, interiors, industrial design, and cinema.

y Colors is a bimonthly magazine that talks to young people all around the world, and is in

50 co

untries.T

hey have seven editio

ns published in eight languages, and a Internet sitethat has won a record numberof hits and critical acclaim.

Weaknesses:

y Because of its controversial way to advertise, Benetton retailers may terminate their

contract anytime because they dont want to lose customers.

y In the United States, Benetton is only retailed by Sears who is not very well know for the

quality of its products, so people associate Benetton with low quality products.

y

In Europe, Benetton products are expensive which gives opportunities to manycompetitors who provide lower prices for the same quality.

y Benetton, as its spread all over the world, doesnt have a new geographical market to get

in, except the United States.

Opportunities:

y Benetton does not have a lot of market shares in the United States, so it can improve its

position in that market.

y As Benetton is diversifying, it allows the company to compete on several markets and it

makes Benetton less sensitive in regards of the fluctuating economy.

Threats:


15/28

15

y The clothing market is getting saturated and the competition is getting tougher and

tougher (GAP, Old Navy, Ralph Lauren, Tommy Hillfiger, Calvin Klein, Nautica,

Abercrombie).

COMPETITOR ANALYSIS

y Benetton mainly operates in the apparel sector, which is a highly competitive

industry with respect to production, distribution and sales. There is a lot of

diversity in competition ranging from local, national and global department stores,

specialized retailers, independent retailers and manufacturing companies. In India,

the major competitors of Benetton include Mango, FCUK, Guess,

Promod, Westside, etc. The company faces a lot of competition internationally as

well from brands like Gap, H&M etc. The competition in the industry has

increased in the last few years, owing to the entry of foreign brands into the

Indian market, and thus low cost production plays a key role. Apart from

competition for sales, the companies also compete for significant store

locations. The intensity of competition also puts a price pressure onto theoperating companies in the industry or could lead to a loss in market share.

y http://www.slideshare.net/haughtynarcissist/consumer-research-for-united-colors-of-

benetton

MANGO

Mango clothing company is a worldwide famous manufacturer and distributor, specializing in

wo

men's and men's apparel and accesso

ries. Mango

clo

thing brand MNG was fo

unded in 1984and has become one of the leaders in retail sales. Mango retail stores are based in big city

shopping malls and on shopping streets. Mango (MNG) is a Spanish company which is based in

Barcelona but which has expanded toover 92 countries with more than 1000 shops; and with

further expansion planned.

http://www.modernights.com/shop/mango/


16/28

16

GUESS

Guess? Inc. The Group's principal activities are to design, market, distribute and license lifestyle

collections of casual apparel and accessories for men, women and children that reflect the

American lifestyle and European fashion. The Group operates through the following divisions:

Retail, European, Wholesale and Licensing. The Group also grants licenses to manufacture and

distribute products, which complement its apparel lines. Its products include collections of denim

and cotton clothing, including jeans, pants, overalls, skirts, dresses, shorts, blouses, shirts,

jackets, and knitwear. The company also grants licenses to manufacture and distribute various

pro

ducts, including eyewear, watches, handbags, foo

twear, kids and infants apparel, leatherapparel, swimwear, fragrance, jewelry, and other fashion accessories. It sells its products through

its own stores, a networkof wholesale accounts, and the Internet.

http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_401617105http://www.linkedin.com/companies/guess

GAP

The Gap, Inc is American clothing and accessories retailer based in San Francisco California,

and fo

unded in1969.T

he co

mpany has five primary brands: the namesake Gap banner, BananaRepublic, Old Navy, Piperlime and Athleta. Gap, Inc. remains the largest specialty apparel

retailer in U.S., though it has recently been surpassed by the Spanish-based Inditex Group as the

worlds largest apparel retailer. Gap Inc. is one of the worlds largest specialty apparel retailers,

with more than 3,100 stores and fiscal 2008 revenues of $14.5 billion.

http://www.gapinc.com/public/About/about.shtml

http://en.wikipedia.org/wiki/Gap_(clothing_retailer)

ESPRIT

Esprit is an international youthful lifestyle brand offering smart, affordable luxury and bringing

newness and style to life. The Group offers 12 product lines encompassing womens wear, mens

wear, kids wear, edc youth as well as shoes and accessories through over 640 directly managed


17/28

17

retail stores and over 12,000 wholesale points-of-sale worldwide, occupying over 817,000 square

metres directly managed retail space in more than 40 countries.

http://www.esprit.com/index.php?command=Display&navi_id=50

INDIA FASHION ACCESSORIES INDUSTRY

India is world-renowned for exquisitely designed fashion accessories that are available in avariety of modern and traditional styles. Most models feature a distinct flavor that is unique tothe country.

The industry constitutes roughly 6,000 enterprises that benefit from a plentiful supply of rawmaterials sourced from numerous cities and states nationwide. This key advantage has propelledIndia to become a leading manufacturing hub for different types of fashion accessories.

This report focuses on the main types of fashion accessories exported from India jewelry,fashion bags, wallets, head and neckwear, and belts.

This India Sourcing Report is part of the Developing Country Sourcing Report series designed toprovide buyers with information on new products from export manufacturers in Southeast Asiathat specialize in hand-made merchandise.

What you'll get In-depth profiles of 18 major suppliers with a comprehensive look at their product and pricingstrategy, manufacturing and export capability, verified contact details, and more thisinformation is not available anywhere else 159 full-color images that depict popular garment export models, complete with productdescriptions, prices, minimum order requirements and delivery times Verified supplier contact details of an additional 9 exporters, including names, e-mails,telephone numbers, websites and key products Supplier information in tabular format to help you compare suppliers at a glance Results of the custom-designed supplier survey, which forecasts industry trends for the next 12months An extensive overview of the industry discussing the main challenges facing suppliers An in-depth examination of the supplier base highlighting key characteristics of the different

types of companies Details of the primary production centers An update of the latest trends in design, R&D, materials and components A review of the key factors that influence the price and quality of low-end, midrange and high-end products Comprehensive pricing tables featuring export price ranges


18/28

18

INDUSTRY ANALYSIS

MERITS OF FASHION ACCESSORIES BEING OFFERED BY BRANDED

RETAILERS

Name and reputation

Reputed stores comply with ethical regulations


19/28

19

Quality assurance

ACCESSORIZE , MISS JO , ALDO ACCESSORIES ARE FEW OF THE

EXISTING COMPETITORS

BENETTON BLING MERCHANDIZE MIX CONSISTING OF

y Fashion jewellery (women)

y Scarves and stoles

y Bags n wallets

y Time wear

y Eye wear

RESEARCH METHODOLOGY

REASEARCH DESIGN

- Exploratory and analytical research

SAMPLING TECHNIQUE

- judgmental sampling

SAMPLE SIZE

- 90

DATA COLLECTION

- Primary data : QUESTIONNAIRE


20/28

20

QUESTIONNAIRE

We are the students of Pearl Academy of Fashion. This survey is being conducted as a part of

our curriculum. Your support will be highly appreciated.

QI.Are you brand conscious while buying fashion accessories?

Yes No

QII.How often do you buy a fashion accessory (fashion

jewellery,bags,wallet,eyewear,watch,scarves,stoles)? (please tick the most suitable

option)

a)Monthly

b)Quarterly

c)Semi annually/during sale

d)Yearly

QIII.Which brands/stores do you prefer for shopping for yourself?

(Rate on the scale 1st

,2nd

,3rd,

4th,

5th

)

a) Miss Jo

b) Aldo Accessories

c) Accesorize

d) BENETTON (ucb/sisley)

e) Any other(please specify) _______________________

QIV.Rate as per your preference while purchasing. ( Rate on the scale of 1st

, 2nd

, 3rd

)

a) Brand name

b) Functionality

c) Color

d) Quality

e) Price

f) Style

QV.What are the colors that you mostly prefer? ( Rate on the scale of 1st

, 2nd

, 3rd

)

a) Pastel shades

b) metallic


21/28

21

c) Bright

d) Black & white

QVI. How much would you spend on a single piece of fashion accessory?

a) Rs. 200-500

b) Rs. 501-1000

c) Rs. 1001-2000

d) Rs.2001 and above

QVII. Would you like to have an introduction of above mentioned bags under the Benetton

group with the brand name as BENETTON BLING?

Yes No

QVIII. . Do you like to experiment with your lookor style?

Yes No

QIX. How would you describe your style?a) Stylish

b) Casual

c) Classic

d) Comfortable

e) Smart

f) Experimental

QX. What is your personal monthly disposable income?

a) Rs. 20,000 - 40,000

b) Rs. 41,000 60,000

c) Rs. 61,000 and above

QXI. What is your family structure?

a) Nuclear family

b) Joint family

Q XII. Age

15-19 20-23

24-27 28-30

QXIII. Occupation

Student Employed


22/28

22

Homemaker

Personal details:

a) Name: _______________________

b) Location: _______________________

c) Hobbies: _______________________

Questionnaire Analysis

QI.Are you brand conscious while fashion accessories?

Findings: 55% of the sample unit agreed to be brand conscious, whereas 35 % of them

disagreed. Remaining 10% were unsure.

QII.How often do you buy a fashion accessory?

Findings: majority of the interviewees buy fashion accessories on monthly basis. Out of the rest,

30% buy on quarterly basis, 20% purchase it semi yearly and the remaining 5% buy accessories

yearly.

55%35%

10%

brand consciousness

yes

no

not sure

45%

30%

20%

5%

buying behaviour

monthly

quarterly

semi annually

yearly


23/28

23

QIII.Which brands/stores do you prefer for shopping for yourself?

Findings: Accessorize is most preferred amongst all at 40%, followed by Miss Jo with 25%,

Benetton with 20% and Aldo accessories with 15%.

QIV.Rate as per your preference while purchasing. ( Rate on the scale of 1st, 2nd, 3rd)

Findings: While purchasing, 30% of the sample unit give preference to style of an accessory,

price comes 2nd

at 24 %, 17% give preference to the functionality, 14% prefer the brand name,

10% prefer the color and 5 % give importance to the quality of an accessory.

QV.What are the colors that you mostly prefer?

25%

15%40%

20%

brand preference

miss jo

aldo accessories

accessorize

benetton (ucb/sisley)

14%17%

24%

30%

10%5%

purchasing preferences

brand name

functionality

price

style

color


24/28


25/28

25

Findings: majority consisting of girls go in for a stylish look. 25% consider themselves to be

smart, 20% feel that they are experimental and 10% describe their casual as comfortable or

casual. Just 5% of them claim to be classic.

Demographics

Age Group 15-30years

Monthly Income Rs. 61000 and above

Occupation Students

Family Stucture Nuclear

Gender female

Findings: the interviewees were mostly ranging between 15-30 years of age, pre-dominantlyfemales, consisting of youth belonging to nuclear families with monthly income above Rs.60,000 on an average.

RECOMMENDATIONS

y PRICING

- Benetton bling should price the product moderately. fashion jewelery can bepriced between 500-1500.other products can be priced between 1000-2500.

30%

10%

5%

10%

25%

20%

target customer style

stylish

casual

classic

comfortable

smart

experimental


26/28

26

y LOCATION

55% prefer going to branded showrooms hence Benetton bling has immense scope andshould open its store in any posh up market area, preferably a mall.

y IMPORTANCE OF ADVERTISING

- trends, television , word of mouth play a very important role in buildingawaresness hence Benetton should should work more on promotion through adsin magazines and bill boards

y BRAND OVER PREFERENCE

- Benetton bling should emphasis on building good brand image, along withenriching product with value and quality..and vice versa.

-

Also

Stro

ng design team sho

uld be fo

rmulated,as in the end it is the pro

ducts thatstrenghten efforts to build brand image

CONCLUSION

Fashion accessories industry has emerged as on of the most promising industry It has compensated for the declining garments sector Consumers are welcoming this industry Branded accessories have shown a promising response and holds a bright future. BENETTON has little scope of growth left in the apparel sector so

Benetton bling has immense potential


27/28

27

References

y http://www.eworldtradefair.com/indian-apparel-industry-a56.html

y http://www.fashionproducts.com/fashion-apparel-overview.html#io

y http://www.business-standard.com/india/news/kit-indias-textileapparel-industry/345936/

y http://sec.edgar-online.com/benetton-group-spa/20-f-annual-and-transition-report-foreign-private-issuer/2004/06/30/section7.aspx

y http://www.coursework.info/AS_andALevel/BusinessStudies/MarketinResearch/FactorsaffectingSupplyan

dDemandL46386.html

y http://sec.edgar-online.com/benetton -group-spa/20-f-annual-and-transition-report-

foreign-private-issuer/2004/06/30/section7.aspxy http://investors.benettongroup.com/phoenix.zhtml?c=114079&p=irol-

VCOperationsSupplyFlexibility

y http://www.slideshare.net/haughtynarcissist/consumer-research-for-united-colors-of-

benetton


28/28

y http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_401617105y http://www.linkedin.com/companies/guess

y http://www.modernights.com/shop/mango/

y http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_401617105y http://www.linkedin.com/companies/guess

y http://www.gapinc.com/public/About/about.shtml

46668235 Final Document Benetton

Documents

Transcript of 46668235 Final Document Benetton