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Benetton Case

In: Business and Management

Submitted By ricomartineziii
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4. Assess Benetton’s efforts to boost sales in the United States. What recommendations would you make to management?

Although Benetton was gaining tremendous success for its advertising campaign in parts of the world such as Europe, the company did not receive as much admiration in other countries such as the United States. Just when Benetton had finally reached an agreement with major US Retailer Company Sears as its distributor, Sears backed out form the arrangement after the state of Missouri filed a lawsuit against Benetton for its misinterpreted death row ad. Seeing the negative publicity brought about by the shocking advertising style of Benetton in certain parts of the globe. The company indeed had to change their advertising campaign for the United States in particular. If the company wants to keep up in business, it would not be advisable to go against the cultural barriers of the host country. It was best that they provided a similar theme for social awareness but in a milder way of expression that would be culturally acceptable in the US. Or they could come up with a different advertising campaign theme for the country. Advertising aside, one key insight to increasing their sales in the United States is to keep par with top competitors within the country in terms of management, quality, and design. The United States is the home of the top fashion apparels in the world some of which include Zara, H&M, and such clothing lines. In entering this market, competitiveness is a vital factor for survival. Instead of focusing too much on their advertising, the company should focus more on being up to date with the latest global fashion trends and designs, efficient cost production, and such aspects in order to keep up with their main competitors. The brand should be able to effectively adjust to these constantly evolving styles and consumer tastes. Moreover, it should able to monitor the demand for its products relative to competition through assessing such standards.

Key Points: * the company did not receive as much admiration for its advertising campaign in other countries specifically the United States * If the company wants to keep up in business, it would not be advisable to go against the cultural barriers of the host country (SRC lesson) * It was best that they provided a similar theme for social awareness but in a milder way of expression that would be culturally acceptable in the US. Or they could come up with a whole new advertising campaign theme for the country. * Advertising aside, one key insight to increasing their sales in the United States is to keep par with top competitors within the country in terms of management, quality, and design * Being up to date with the latest global fashion trends and designs, cost efficient production, and consumer tastes and preference * Effective monitoring and evaluation of demand for products based on such standards (quality, fashion, etc) relative to competitors. May involve putting up their own stores instead of selling their brand through other retailers.…...

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