Benetton

Recommendations for Benetton Group Recommendations for Benetton Group Improve Teenager Positioning Up until now, Benetton’s group main customer base has been the young people. The young people comprise of a very large group of people that is seemingly too general. Hence, it is fundamental that the company becomes more specific and focuses on the teenagers. Akcay (2012) notes that the teenage market is a vital consumer niche in world markets. Why should Benetton improve the teenager positioning? The reason being that teenagers take up new products quickly. They also spend a lot more on clothes as opposed to other age groups making up the young people. Their usage of technology and the media is the greatest, bearing in mind that Benetton’s main tool of advertisement is the media; it will be easy to sell the Group’s products to them.
Improve Positioning in Asia and Reduce Expenses in Europe
In order to maintain Benetton’s competitive edge, the company has to make important strategic positioning changes. Europe is Benetton’s biggest market, however, the cost of running business in Europe is quite high, and the profit margins are minimal. Thus, it would be wise to cut the expenses in Europe. The Asian market provides Benetton with a large population to which it can sell its products. In spite of the Asian countries providing varying characteristics and regulations, the market shows expansive development in the retail sector that Benetton can take advantage of and sell more of its products. (Suh & Howard, 2013). The developing aspect of the Asian market presents a favourable offering that Benetton can occupy with the help of the funds it saves from the spending reduction in Europe. Moreover, the competition in Asian markets is not as harsh as that in Europe where Benetton’s competitors have established themselves.
Go Further in Green Strategy through Signing with Recognized Labels
The Benetton Group has to improve its standing with more utilisation of the green strategy. One thing for sure is that it has to develop products that are environmental friendly and show dedication to the green strategy. Thus, it has to remodel the strategy around its products by signing with recognised labels. These labels have to show the company’s eco-friendliness. As noted by Garcia (2015) there number of eco-labels globally stands at 437. Using recognised labels like Energy Star in the U. S. will help Benetton to improve believability to its advertisements especially the benefits its products have on the environment. Especially at such a time when people are more aware of the importance of the environment in their lives with the effects of global warming and climate change.
Improve Online Expenses and Online Customer Experience
With the continued digitalisation of nearly every aspect of day-to-day life, the importance of the online presence of a company cannot be assumed. If Benetton is going to improve its teenager positioning then it has to spend more on its online presence and ensure that customers have their best experience. The trend is that online shopping is growing and the online sales are improving (Diamond, 2008). Benetton has to tap into this virtual market, as it is more accessible to its target population. In fact, the youth who are not conversant with certain products are taking up to researching about them online. Hence, if Benetton spends more on its online presence, the company’s products will appear more in search engines with new and existing customers getting to be influenced by the online experience.
References
Akcay, O., 2012. Marketing to Teenagers: The influence of Color, Ethnicity and Gender. International Journal of Business and Social Science, 3(22), pp. 10-18.
Diamond, S., 2008. Web Marketing for Small Business: 7 Steps to Explosive Business Growth. Naperville: Sourcebooks, Inc.
Garcia, R., 2015. Creating and Marketing New Products and Services. Boca Raton: CRC Press.
Suh, Y.-G. & Howard, E., 2013. Restructuring retailing in Korea: the case of Samsung-Tesco. In: E. Howard, ed. The Changing Face of Retailing in the Asia Pacific. New York: Routledge, pp. 27-37.