Evolution of Communication Strategy Essay Example

and provocative advertisements (referred to as Communication Strategy by the company).

The company utilized unconventional and controversial advertising techniques and themes that focused on "shock value" and the power of photography to capture viewers' attention. Rather than emphasizing its product or image, Benetton's advertising campaigns centered around social and political issues such as racial integration, AIDS awareness, war, poverty, child labor, death, and pollution. While these advertisements initially boosted the brand's visibility, they eventually generated dissatisfaction among customers, retailers, government bodies, and international non-profit organizations. Numerous impactful ads included a kissing priest and nun, a newborn with an uncut umbilical cord, a mating black stallion and white mare, a colorful display of condoms, a black woman breastfeeding a white baby, a photo capturing an AIDS victim and his family moments before his death, and the bloody uniform of a deceased Bosnian soldier (refer to Exhibit: II for Benetton's advertisements). In the wake of the controversy surrounding a particularly provocative campaign titled "We, On Death Row," Oliviero Toscani, Benetton's Creative Director and Photographer, resigned from the company in May 2000. Benetton acknowledged that it had exceeded the limits of unconventional advertising.

According to some surveys, this campaign had a negative impact on loyal customers, which was criticized by an industry expert for causing significant harm to a well-known brand. The brand faced public anger, hostility, and boycotts due to various actions carried out in its name. While overcoming these challenges will be difficult, it is not impossible. After Toscani's departure, James Mollison took over as Benetton's Creative Director while being a 28-year-old student in the Communication department. Under Mollison's leadership, Benetton seemed to be reverting back to a

more conventional advertising strategy.

The Benetton chain was founded in Italy in 1955 by the Benetton family, consisting of three brothers and a sister. Luciano Benetton (born in 1935) chose to forego his education to provide for his family through clothing sales. His sister Guiliana (b. 1937) worked as a knitter at a factory closeby.

Luciano and Guiliana recognized the potential for a new apparel business, and decided to start their own company. Using thirty thousand lire, Guiliana purchased a knitting machine and created a collection of 18 vibrant sweaters. These sweaters were quickly sold to local stores. As the business expanded, the other two brothers joined the company, with each sibling taking on a specific role. Luciano focused on marketing, while Guiliana oversaw the design department.

Gilberto, born in 1941, was responsible for administration and finance, while Carlo, born in 1943, oversaw production.

Benetton was officially established in 1965 under the name "Maglificio di Ponzano Veneto dei Fratelli Benetton." Initially, the Benetton family sold their clothing in top Italian department stores. However, as the business grew, they decided to open their own exclusive store to promote their apparel. In 1969, the first store was launched and achieved instant success. Soon after, Benetton opened another store in Paris.

Contrary to the majority of small producers, the choice made by the Benetton family was to establish a network of exclusive distributors and utilize sub-contractors. By 1975, Benetton achieved significant success in Italy, boasting around 200 shops (although not all of them were branded as Benetton). In order to cater to different demographics, Benetton introduced various store names, such as Sisley, Tomato, Merceria, and 012. Eventually, these brands were consolidated

into the overall Benetton label.

Benetton experienced significant expansion during the late 1960s and early 1970s, with the opening of retail outlets in various countries including France, West Germany, Britain, Switzerland, and the Scandinavian countries. By the mid-1980s, they had also established a strong presence in major US cities and Japan. The brand's growing popularity was boosted by prestigious clients such as Princess Caroline of Monaco and Princess Diana of Wales. In order to support their growth strategy, Benetton strategically established manufacturing facilities in France, Scotland, Spain, and the US. As part of this strategy in 1986, they decided to go public by offering investors 15.6 million common shares (10% ownership).

Benetton offered employees the chance to own shares. During the 1990s, they went on a buying spree and purchased various companies such as Rollerblade, which produces inline skates, Prince Tennis for racquets, Nordica ski boots and skis (originally called Kastle), Ektelon for racquetball racquets, and Killer Loop for snowboards. However, these brands did not perform well, leading Benetton to decide to sell them all off. In January 2003, Benetton sold Nordica to Tecnica, a skiwear company, for ˆ38 million.

Two months later, Benetton made another announcement regarding the sale of Rollerblade to Tecnica for approximately ˆ20 million. Additionally, an agreement was reached with Lincolnshire Management Inc., a US private equity fund, for the sale of Prince and Ektelon brands for about ˆ36.5 million.

In 1994, Benetton established Fabrica, a center for communications research. Fabrica, derived from the Latin term for "workshop," focused on various communication projects including cinema, graphics, industrial design, music, publishing, new media, and photography. Within the research center, there were multiple film, video, and music

labs along with art, photo, and design studios. Luciano referred to Fabrica as a connection between a visionary dream - encompassing utopia and the reality of a rapidly changing world. He believed these changes would have been unimaginable just a few years prior. Fabrica welcomed talented and creative students from different countries who were awarded year-long fellowships.

Fabrica had several successful projects, including the film “Blackboards,” which won a special award at the Cannes Film Festival in 2000, the film “Dayereh,” which won a Golden Lion at the Venice Film Festival in 2000, and the film “No Man’s Land, co-produced by Fabrica, which won the Oscar for Best Foreign Film in 2002. Exhibit: I Benetton: Geographic revenue distribution by business segment Business Sectors /Geographic AreaEuroThe AmericasAsiaOther Areas9 Months 20029 Months 2001 Casual Wear849. 966. 2109. 2144.

61169. 91162. 1 Sportswear and Equipment75. 585.

020. 621. 1202. 2245. 8 Manufacturing and Others69. 10.

The total for 9 months is 2,002,994, with individual amounts of 82, 317, 089, and 2,110.The textual content enclosed in the

and

is: "5152132. 1182. 71461. 31518."

1 Total 9 months - 20011033164. 8143. 8175. 81518.

1 *Figures in ˆ Million
**Business Sectors are as follows:
1. Casual Wear, representing the Benetton brands (United Colors of Benetton, Undercolors and Sisley)
2. Sportswear and Equipment: Playlife, Nordica, Prince, Rollerblade and Killer Loop brands.
3. Manufacturing and Others: Sales of raw materials, semi-finished products, industrial services and revenues and expenses from real estate activity.

Source: www.benetton.com

Exhibit: II Benetton: Eight-Year Financial Highlights

Year Revenues (million euro) Net Income (million euro)

2002 1992

128

2001 1098 163

2000 2018 174

1999 1982 166

1998 1980 151

1997 1878 150

1996 1483 127

Source: www.benetton.com

Benetton has always had an unconventional approach to communication, starting in the early 1980s. Instead of relying only on advertising to promote product consumption and create happiness, the company believes in taking a stance in the real world. Consequently, Benetton dedicates part of its advertising budget to addressing globally significant topics that resonate with people of all ages. In the past, Benetton ads mainly focused on showcasing their products and logo - a stylized knot of yarn with the word Benetton below it - contained within a dark green rectangle.

In 1982, Luciano hired Oliviero Toscani, a well-known fashion and advertising photographer, to lead Benetton's advertising department. Initially, Toscani's ads were traditional, showcasing groups of young individuals wearing Benetton apparel. However, Luciano and

Toscani eventually recognized the need for Benetton ads to be distinctive among competitors. They opted to position Benetton as a lifestyle brand and introduced the theme of culturally diverse teenagers and children in Toscani's first advertisements.

Colorfully dressed in Benetton attire, the kids participated in various playful acts (see figure: (i)). Through connecting the different colors in the Benetton collection with the diverse "colors" of its global customers, Toscani depicted an image of racial unity and global harmony. These advertisements ultimately gave rise to the well-known brand, "United Colors of Benetton". Figure (i) Source: www. enetton.

Back in 1984, Benetton initiated a similar campaign called "All the colors in the World". This campaign featured various groups of teenagers and children from diverse countries and ethnic backgrounds donning Benetton clothing, accompanied by the company logo in the corner. While the company received numerous letters commending their message promoting racial integration, it elicited negative reactions, particularly in South Africa, England, and the US. The following year, Benetton's advertisements showcased two black boys engaging in a kiss (refer to figure: (ii)), adorned with little US and USSR flags in their hair and painted on their cheeks. The accompanying tagline read "United Colors of Benetton." Then, in 1986, these two little black boys reappeared, symbolically connected by a globe and a chain featuring the peace symbol.

The globe became a symbol of unity, appearing on all posters that year. Themed advertisements were created for countries involved in political conflicts, such as England and Argentina, Israel and Germany, Iran and Iraq, Israelis and Arabs, among others. The message conveyed was: "All colors are equal, just as all men are equal." (Figure (ii) Source:

www.benetton.com). In 1988, Benetton began incorporating culture and legends into its advertisements. New ads showcased figures like Adam and Eve, Joan of Arc and Marilyn Monroe (see figure: (iii)), Leonardo de Vinci and Julius Caesar, all accompanied by the slogan: "United Superstars of Benetton."

"Similar campaigns showcased animals, including a wolf and a lamb, with the tagline: 'United Friends of Benetton.'"

Figure (iii) Source: www.benetton.com

Figure (iv) Source: www.benetton.

In 1989, Benetton made the decision to terminate its agreement with outside advertising agencies and instead develop campaigns internally. The photographs taken by Toscani were reviewed by the advertising team and then presented to Luciano for final approval. With a team of fewer than ten people overseeing the entire process, Benetton was able to create advertisements at a cost significantly lower than its competitors. Given that Benetton's clothing was sold in various markets with different style preferences, Toscani shifted his focus towards photos that provoked thought. Instead of showcasing the products or logo, the knot logo was replaced with a small green rectangle featuring the tagline "United Colors of Benetton." Luciano explained this decision, stating that "By utilizing these images in an unconventional manner, Benetton aims to challenge the complacency ingrained in our society as a result of the constant exposure to even the most distressing realities through traditional media channels such as the evening news or morning paper."

By placing these images in a new context, they are more likely to gain attention and provoke viewers to ask questions such as: What is the meaning of this image? Why is it associated with a Benetton logo? How do I feel about the subject? What actions can I take?

In

the late 1980s, famous advertisements featured provocative images such as a black hand and a white hand connected by a handcuff, and a black woman breastfeeding a white baby. The latter advertisement received significant criticism, as it was seen by some as a reminder of the days of slavery when black women nursed white infants. Benetton, however, defended these photos as symbols of universal brotherhood.

Other advertisements conveyed similar messages, such as a white wolf and a black sheep face-to-face, a black child sleeping amidst a pile of white teddy bears, and a small black hand held by a larger white hand. There were also depictions of a piano duo with little white hands being aided by big black hands, two children sitting on their potties (one white, one black) facing each other, personality test tubes, and miners and bakers united by the contrast of black soot or coal and white flour. (See figure: (v))

Source: www.

benetton. comIn 1991, Toscani launched a series of advertisements aiming to raise awareness about significant social issues. These ads included images such as a cemetery symbolizing war casualties, various vividly colored condoms, and an infant with its umbilical cord (see figure: (vi)). However, one advertisement depicting a priest and nun kissing caused offense among numerous individuals, including the Pope, due to its religious insensitivity.

The image of the baby with the umbilical cord caused different opinions. According to the company, the ad represented the beauty of new life and the concept of love that applies universally. Nevertheless, the photo sparked extensive controversy in Europe, with some advocating for its prohibition while others admired it. Notably, the Flemish museum showcased the image

as part of an exhibition honoring depictions of motherhood.

Figure (vi) Source: www.benetton.com In 1992, Benetton's advertisements began incorporating political themes. Photographer Toscani chose photojournalistic images depicting the AIDS crisis, environmental disaster, political violence, war, exile, and more. These images were featured in journals, magazines, and billboards, accompanied only by the prominent green and white Benetton logo. This advertising strategy aimed to forgo traditional ads by excluding text and product information.

They do not promote a false reality where you will become irresistible by using our products. They do not urge anyone to purchase our clothing, not even imply it. Their sole intention is to spark a discussion about important issues that tend to be avoided when approached through other means. Despite the controversy surrounding his advertisements, Toscani took it a step further by advocating for "reality advertising." These advertisements featured a dying AIDS patient surrounded by his family, an African guerrilla holding a Kalashnikov and a human leg bone (as depicted in figure: (vii)), an overcrowded boat of Albanian refugees, a group of African refugees, a car engulfed in flames after a Mafia bombing, a mourning family beside the bloodied body of a Mafioso, and two Indians trapped in a flood in Calcutta.

Figure (vii) Source: www.

On benetton.com, Benetton introduced an advertisement featuring genitals of various genders, ages, and colors, all with the label "United Colors of Benetton." Another striking ad displayed close-up shots of body parts such as the pubis, arms, stomach, and bottom, all tattooed with the English abbreviation "HIV Positive." This tattoo resembled the numbers tattooed on concentration camp prisoners by Nazis.

Some advertisements also featured homosexuality, such as two smiling men hugging, and

two women - one white and one black - holding an Asian baby, all wrapped in the same blanket. Other controversial ads depicted a black stallion mating with a white mare, and three identical human hearts labeled with stickers representing different ethnicities ("white, black, yellow"). These hearts aimed to convey that despite different skin colors, everyone is the same on the inside. (See Figure (viii) Source: www.benetton.com) In January 2000, Benetton initiated a year-long global advertising campaign titled "We, on Death Row" worth $15 million.

This campaign, which was created by Toscani, aimed to raise awareness about capital punishment and featured 26 US prisoners who had been sentenced to death. It was displayed on billboards, in major publications in Europe, America, and Asia, as well as on its website. Toscani developed the campaign after spending over two years visiting death row prisoners in multiple American prisons. The advertisements showcased full-color images of the death-row inmates, along with their names and execution dates. A booklet and video were also released to further illustrate the reality and futility of capital punishment. The booklet included photographs of the inmates, interviews about their lives and punishments, as well as carefully chosen quotes from the Dalai Lama and the Pope, challenging the state's authority to execute its citizens. Benetton believed that by presenting these inmates as "people," the public would be less likely to support their executions. (Source: www.)

benetton. com The campaign sparked widespread protests from individuals and governments, drawing strong objections from the families of the victims and prisoners. They accused Benetton of glamorizing murderers and overlooking the crimes they had committed. Critics expressed resentment towards the campaigns for failing

to acknowledge the emotions of the prisoners regarding their serious offenses. One website, Pro-death penalty, also voiced their discontent.

com wrote7: Benetton's attempt to increase their market share in the US has resulted in causing unnecessary pain and distress to the families of the innocent victims. Mark Major, the Director of Communications for Benetton US in New York, has defended the campaign8 by stating that their marketing campaigns are not created solely for selling products. Topics such as death row, AIDS, war, and peace are important issues for Benetton, and they aim to raise brand awareness while engaging people in these topics.

The state of Missouri (US) where the inmates in question were imprisoned filed a suit against Benetton, arguing that it had been misled regarding the use of the photos. This lawsuit was settled in June 2001 when Benetton agreed to write letters of apology to the four Missouri families whose relatives were murdered by the inmates featured in the ads and to donate $50,000 to the Missouri Crime Victims Compensation Fund. In the US, retailer Sears canceled an exclusive $100 million contract to sell a line of Benetton clothes, calling the death row images “terribly insensitive." Sears ended its contract even after Benetton agreed to allow the retailer to preview future ads. Toscani had hoped that this campaign would have a positive impact in the US where about 98 inmates had been executed in 1999. Toscani believed that the sharp criticism in the US was not justified as Europe had more or less banned the death penalty. But, due to the increasing furor, Toscani resigned in May 2000.In September 2001, Benetton launched a campaign

called International Year of Volunteers (see figure: (x)), in collaboration with the United Nations (UN).

"Volunteers" was the first campaign created by Benetton after the departure of Toscani. Under the guidance of new Creative Director James Mollison, the campaign aimed to highlight the benefits of dedicating oneself to others, resulting in self-improvement and a better quality of life. To support the campaign, a special edition of Colors Magazine was released, focusing solely on voluntary efforts. Benetton's collaboration with the UN became an ongoing initiative, starting in 1996 when they joined forces for the World Food Summit organized by the FAO (Food and Agriculture Organization of the UN) to address hunger in developing nations. The following year, Benetton and the UN partnered once again for a global campaign commemorating the 50th anniversary of the Declaration of Human Rights.

In 1999, Benetton teamed up with UNHCR (United Nations High Commission for Refugees) to organize a fundraising campaign for Kosovo. These campaigns were displayed in newspapers, weekly magazines, women's and lifestyle magazines, as well as billboards in major cities. Source: www.benetton.com. Subsequent campaigns after Toscani's departure indicated a shift in Benetton's communication strategy. The company began featuring vibrant models having fun in colorful knitwear against a white background in their advertisements (see figure: (xi)).

Non-professional models were used in the campaign, including a poet who performed at local coffee houses as well as individuals discovered on the street in bars or riding the subway. This campaign, developed with a budget of $10 million dollars, was available in print, catalog, and TV media (Figure (xi) Source: www.benetton).

Benetton’s communication strategy included Colors magazine, which was launched in 1991 and aimed to reach young

people worldwide. The magazine was published in four bilingual languages (English-Italian, English-German, English-Spanish, and English-French) to overcome language and cultural barriers. By 2002, it was available in eighty countries. Each edition of Colors addressed various topics such as war, religion, race, birth, immigration, ecology, travel, slavery, and more. One particularly controversial issue, titled "The Race Issue," caused a stir in the English press when it featured a computer-generated image of the Queen transformed into an Indian. Nevertheless, this controversy brought Benetton significant publicity. Over the years, Colors magazine showcased over 5000 models from diverse backgrounds, including Wodaabe warriors in Nigeria, Colombian soldiers, and boy scouts in Oman.

In May 2003, Benetton launched the 56th volume of Colors, which focused on the topic of "Violence." (Source: www.benetton.com) Alongside billboards and magazine ads, Benetton also produced catalogs called "People and Places" with various themes, such as Young People in Tokyo, Ponzano (Italy), Corleone (Italy), China, India, and more. One of the themes was Sunflowers, which showcased children affected by Down's Syndrome (a genetic disorder caused by chromosomal abnormalities).

Benetton's 1998 catalog featured photographs depicting Arabs and Jews coexisting harmoniously in Israel. The cover showcased a young Israeli student affectionately kissing her Bedouin partner. Additionally, the catalog showcased images of an Arab grocer serving a Jewish customer, Jewish and Arab youth leaders, a diverse kindergarten with both Jewish and Arab children, and a music band comprised of Jews and Arabs. (See figure: (xiii)) Source: www.

benetton.com has faced widespread rejection of their advertisements over the years. In 1995, the German government banned certain Benetton ads that depicted child labor, a person with HIV, and a bird trapped in an oil slick.

Additionally, the ad featuring a newborn baby with an uncut umbilical cord was withdrawn from media outlets in Italy, France, and the UK. The controversial photo of a priest and a nun kissing was promptly banned by the Italian Advertising Authority, although it won the Eurobest Award in England. Retail outlets also sued Benetton, claiming that their provocative ads drove away customers.

Despite the increasing number of bans on Benetton's advertisements, the company gained more publicity. Oliviero Toscani, the mastermind behind Benetton's advertising philosophy, believed that the advertising industry needed to adapt to changing consumer spending habits. He stressed the importance of creativity, stating that advertisements should be perceived as artistic products, akin to plays or films. However, Toscani criticized the industry's focus on money and marketing managers who lack originality, claiming they only know how to replicate past successes. Regarding his role in Benetton, Toscani asserted that his primary objective was not to sell anything.

I have the responsibility for the company's communications, but not for its economics. Mr. Benetton has granted me great autonomy in suggesting topics that ought to be communicated. In order to remain truly modern and current as a company, we need to steer our communication in a different direction. This differs from the typical approach taken by most apparel businesses, where there is typically a clear link between the product, model, and merchandising.

I understand that with a larger budget, it would be wasteful to simply proclaim that our product is superior to the competition's. Advertising needs to offer something more. It is my job to document what exists rather than burying our heads in the sand like ostriches. Toscani viewed himself

not as an advertiser, but as a reporter-photographer.

Toscani believed in communicating to the world in a less traditional way. He identified a number of drawbacks in traditional advertising: “There is a crisis in advertising. The industry is lagging behind social trends, but it’s so rich and powerful that it’s very difficult for it to change. In the early twentieth century advertising focused on a company’s buildings and machines. After that it started presenting products. Then, since all products started looking alike, they could no longer be at the heart of the message. So in the 1960s advertisers started showing leggy models to sell cars."

The inclusion of long legs added value to the product, which became secondary to the symbolic message being sold. However, this approach of highlighting consumers' deficiencies and inducing guilt may be problematic. It essentially suggests that those without the product are excluded from the desired status.

On the other hand, purchasing a specific brand of sports shoes allows you to play like Ronaldo even if you lack soccer skills. Despite facing backlash from the advertising industry due to his bold campaigns, Toscani believed he had achieved his objective. After he joined Benetton, the company's sales grew over twenty times. As Toscani mentioned, "Most good ads are forgotten after six months, but who still remembers the Benetton ad with the priest kissing the nun? Ten years later and people remember! That's immortality!" Moving forward, a prominent business school publication summarized Benetton's advertisements as follows: "They take a moral stance for humanity's improvement and create a sense of power in the viewer who agrees with the safe, politically correct message, even if it's conveyed through

shocking images. By empowering the viewer and customer, the company aligns itself with feelings of empowerment and righteousness."

Benetton has used powerful images in its advertising campaigns to convey the idea of social change and provoke a strong reaction from viewers. These campaigns have made Benetton a well-known brand associated with protest in advertising. However, critics argue that the intention behind these images is not genuine activism, but rather to shock and engage viewers in order to boost sales. After creative director Oliviero Toscani left the company, Benetton announced that it would move towards a more traditional advertising approach. The company's website emphasized the need to showcase models wearing Benetton clothes and shift the focus away from political or governmental associations.

By showcasing our fashionable garments, we can generate increased business. Customers are drawn to our clothing for its appealing aesthetics and esteemed reputation for quality. Only those individuals who hold our clothing line in high regard are inclined to purchase it, irrespective of the controversial stances we may adopt. If we can rectify the negative associations we have already created among many consumers by ceasing to cause offense, our sales will experience a substantial boost. Let us demonstrate to the world that our focus lies in crafting exceptional apparel rather than expressing divisive viewpoints on diverse matters.

"From 2001 onwards, Benetton’s advertisements began featuring conventional images of teenagers dressed in colorful Benetton clothing. Despite this shift, Benetton maintained its commitment to being a socially responsible company by addressing non-controversial issues such as racial discrimination, poverty, child labor, and AIDS awareness. In early 2003, Benetton partnered with the UN's World Food Programme to launch a $16 million communication

campaign called Food for Life, which lasted for a year. This campaign was implemented in approximately 30 countries and the stories and photographs collected from these countries were featured in Colors magazine under the title "Hunger." The images depicted the crisis and poverty prevalent in these areas."

When asked about Benetton's new advertising strategy using models and products, Toscani simply stated that it was a waste of money. However, he did support the company's decision to continue highlighting social causes. As 2003 began, Benetton management, advertising experts, and customers all questioned how the shift towards product-based advertisements would affect the brand's efforts in building sales. Exhibit: II Benetton's famous advertisements Source: www.benetton.com Bibliography Magazines/Journals/Newspapers 1. Carlos Jarillo and Jon Martinez, "Benetton S."

p. A. ,” Harvard Business School Publishing, 19th January 1989. 2.

The text "Sergio Signorelli and James Heskett, 'Benetton (A),' Harvard Business School Publishing, 6th February 1989. 3. 'Through the lenses of gender and ethnicity,' Maclean’s, 27th Ma" was written by Sergio Signorelli and James Heskett. It was published by Harvard Business School Publishing on 6th February 1989. Another source named "Through the lenses of gender and ethnicity" from Maclean's was also consulted on 27th Ma.