NATIONAL INSTITUTE OF FASHION TECHNOLOGY, CHENNAI.

MERCHANDISING

Assignment . No : 2

Study a store for its merchandise assortment. Profile the merchandise assortment and come up with a merchandising policy of the particular store.

UNITED COLORS OF BENETTON

Submitted by

A.Keerthana Bhagyalakshmi

A.Nithyakumari

R.Priya

Anju.K.S

Benetton Group is a global fashion brand, based in Treviso, Italy. The name comes from the Benetton family who founded the company in 1965. Benetton Group is listed in Milan.

Benetton has a network of around 6,000 stores in 120 countries. The stores are managed by independent partners and generate a total turnover of over 2 billion euro.

In 1965, Luciano Benetton, the eldest of four children, was a 30-year-old salesman in Treviso. He saw a market for colourful clothes, and sold a younger brother's bicycle in order to buy his first second-hand knitting machine. His initial small collection of sweaters received a positive response in local stores in the Veneto region, and soon after he asked his sister and two younger brothers, Gilberto and Carlo, to join him. In 1965, the entity known as the "Benetton Group" is formed.

In 1966, the Benettons opened their first store in Belluno and three years after in Paris, with Luciano as chairman, his brother Gilberto in charge of administration, their younger brother Carlo running production, and Giuliana as a chief designer.

Today, the Benetton Group is present in 120 countries around the world. Its core business is fashion apparel: a group with a strong Italian character whose style, quality and passion are clearly seen in its brands, the casual United Colors of Benetton, the glamour oriented Sisley, the leisurewear brand Playlife. The Group produces over 150 million garments every year. Its network of around 6,000 contemporary stores around the world, offers high quality customer services and generates a total turnover of over 2 billion euro.

Headquarters:

Benetton Group's Corporate headquarters is located at Villa Minelli in Ponzano, about 30 km from Venice. Villa Minelli is a complex of sixteenth century buildings of great historical and cultural interest.

The villa was acquired by Benetton in 1969 and the task of restoring and remodernising the complex, entrusted to architects Afra and Tobia Scarpa, took over fifteen years.  From the mid 1980s Villa Minelli became the headquarters of the Group and home to all its strategic functions.

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:

A staff of 300 designers from all over the world creates the collections for the casual United Colors of Benetton, the glamour oriented 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 Group’s 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 products, and has invested in modelling, organization, and automation of logistic processes in order to completely integrate the entire production cycle, from client orders, to packing and delivery.

Automated Sorting SystemThe state-of-the-art logistics operation at Castrette (Italy) has a fully automated 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 the Automated Distribution Center.

Automated Distribution CenterThe Automated Distribution Center covers an area of 30,000 square meters, with a total capacity of 800,000 boxes, and is able to handle 120,000 incoming/outgoing boxes daily with a workforce of only 28.

The finished product is sent directly to the Group's around 6,000 retail 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.

Playlife :

This is the Benetton leisurewear brand that redefines a style. With its clean and elegant collections Playlife blends an exclusive exploration of styles and allusions and a strong sense of individuality.

The brand’s new store concept reflects the same values, highlighting their emotional content.

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 allow ourselves 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:

The Autumn/Winter 2010-11 United Colors of Benetton accessories and footwear collection 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 that’s big on comfort and full of the new season’s trends.

Baby (0-1 year):

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

Toddler (1-5 years):

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

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, it’s 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 comfortable collection and a skilful use of every kind of cotton. New features include a greater number of organic cotton jersey articles; a special focus on the brand’s DNA (with a logo print motif in bright 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 colour

palette make them indispensable. In fact, in a colour palette limited to white, black and flesh tone, a small world of bras, panties, culottes, brassieres, tops and slips has been created.

LIFESTYLE:

Lifestyle is a collection of surprises created by Benetton to satisfy everyone's tastes and needs. It concludes exclusive fragrances; sunglasses and eyewear frames for men, women and children; luggage sets for all travel needs; lots of stationery ideas for school; proposals of every kind for our home.

Verde.Rosso.Giallo.Blu.United (fragrances) :

Benetton is colour: colour celebrating the diversity of the world, colour speaking to every culture, colour as a universal means of communication. Colour as passion, as instinct, as something to which we all share the same spontaneous human response.

Like colour, fragrance is a universal language, communicating through intuition, emotion and evocation. Now colour and fragrance come together in a collection of scents inspired by Benetton's legacy – a legacy of creativity, universality and youthfulness, with colour at its heart.

A collection of four perfumes representing an homage to Benetton's history and presence, inspired by the iconic colours and the wool stitch - timeless elements of the brand's DNA.

Adult Eyewear:

Glamour and originality distinguish United Colors of Benetton eyewear. A wide range of frames with all the colour, energy and comfort you would expect from Benetton.

Adult Sunglasses:

The United Colors of Benetton sunglasses are coloured according to tradition: trendy but without going to extremes. It is a collection with wrap-around frames and shaded lenses for unique and unmistakeable proposals.

Kid Eyewear:

The United Colors of Benetton kids eyewear collection is characterized by dazzling combinations of warm tones of red, orange and pink, complimented by colder sparkling shades in white and light blue. Shapes are inspired by both the adult eyewear collection and the Benetton apparel lines. The United Colors of Benetton kids frames are light and comfortable, and the bright colors and decorative detail ensure this eyewear is both fun and practical for kids to wear.

Kid Sunglasses:

The simple and brightly coloured United Colors of Benetton sunglasses maintain the balance between style and health, one of the collection’s strong points, with very high quality lenses and jaunty frames.

Travel Bags:

United Colors of Benetton luggage will make us conveniently travel in comfort and style, accompanied by the latest in technological design wherever we go. They are meant for a traveller, pleasure-seeking tourist or adventurous explorer.They are available in a wide variety ranging from ergonomic handles to smooth wheels and hard-wearing material goes hand in hand with a wide range of colours.

HOME COLLECTION:

Bed Linen:

UCB helps us to experience the fun of choosing from the Benetton Bedlinen Collection and light up our night with colours and cheerful super-softness.

Terrycloth:

UCB has introduced new colour combinations, unique patterns and cloud-soft velour fabrics, the 2010 Benetton Terrycloth Collection which will certainly freshen up the summer.In the bathroom, one can enjoy wrapping him/her in colours and stripes with UCB’s "new sunny" robes, or pamper at the spa with the softness of the "honey whippy" Collection.

Whether soccer fan or simply outdoor sports lover, kids are sure to find their match this year with the "soccer" or "blooming world" towels and robes. Conceived for the most loyal and sophisticated United Colors of Benetton fans, "face2face" and "native" beach towels not only feature attractive colour combinations and innovative prints but also unique weaving techniques.

Garden Cushions:

UCB brings fresh colour to our garden with the new cushion collection .Whether the preference is for stripes, checks or floral prints, this new line is an invitation to enjoy some quality time, relaxing under the clear blue sky.

Table Top:

Featuring the latest trends and cutting edge designs, the new United Colors of Benetton Tabletop melamine collection is a great way to give dinners, parties or picnics a fresh new, carefree touch. Available in multiple colour combinations, the jugs, glasses, mats and trays are perfect for use anywhere from the garden to the kitchen or even the beach.

STATIONERY:

A wide range of colourful items for writing and studying is available.

MERCHANDISING POLICY OF UNITED COLORS OF BENETTON:

Benetton Group (the "Parent Company") and its subsidiary companies primarily manufacture and market fashion apparel in wool, cotton and woven fabrics, as well as leisurewear. The manufacture of finished articles from raw materials is undertaken partly within the Group and partly using subcontractors, whereas selling is carried out through an extensive commercial network both in Italy and abroad, consisting mainly of stores operated and owned by third parties.

Return Policy:

Unworn, full priced merchandise with tags attached and accompanied by the original receipt can be exchanged within 14 days at the store of purchase. There will be no refunds or store credit. All sale merchandise is final sale. For hygenic reasons all sale of underwear and inner garment are final, returns or exchange of these items will not be permitted. Payments made by Credit Card, will receive the applicable amount credited to the card account within 14 working days .

Collections Structure:

Flexible and segmented structure has also been introduced for UCB kids, Sisley and Playlife proposals, adapting the commercial calendar to their specific positioning.

UCB collections, both Spring/Summer and Autumn/Winter, are now more structured and modular, with several proposals to guarantee frequent in-season deliveries to our store network.

Each collection is characterized by different proposals with several themes, offering products sensitive to market trends and fashion moods and maximising stores' attractiveness, in order to satisfy the requirements of the most demanding customers.

The structure also involves a segment of products known as Capsule, capable of presenting fashion-forward garments and accessories at any time during the season.

Moreover UCB offers additional service to the network with Continuative Items, which ensure that collection's core products are restocked as quickly as possible. Orders for these products are entered directly, and as the information systems of the production and logistics units

are linked, the system provides immediate confirmation and guaranteed delivery times (first in, first out).

Latest Promotional Activity : LUCKY YOU

From 30 October 2010, customers purchasing in a single transaction three items from the United Colors of Benetton “Toddler” and “Kid” (from size 74 to XXL) lines among those marked with the special LUCKY YOU sticker will receive the cheapest item free (subject to availability in-store at the moment of purchase).

The promotion will be valid at participating “United Colors of Benetton” stores, displaying the special “United Colors of Benetton. Lucky you” advertising posters.

The UCB’s product merchandising policy is also important in its success because they emphasized a climate of scarcity and opportunity. So, its consumers know that if they like something, they must buy it in this moment and not later. All these characteristics makes UCB a business model difficult to imitate and for this reason its competitive advantages are more sustainable.

In conclusion, Benetton uses knowledge management to balance structure and creativity. They recognize that both creativity and structure is crucial in ensuring the success of the venture.