8enetton SpA

Croup 7 | lnderpreeL Slngh | Manlsh armar | CheLan Zarekar| nachlkeL kesarkar |

A[lL Mlshra | Ano[ kumar | lnder[eeL aswan | Plmanshu Chouhan
1 What are the most |mportant e|ements of 8enettons market|ng
|og|st|cs manufactur|ng and f|nanc|a| strateg|es? (1]2)
Sponsored sporLs evenLs llke 8ugby lormula 1
ConslsLenL message ln Ads llke 8eneLLon All
colors ln Lhe world" unlLed Colors of 8eneLLon
usage of CCP and rlnL medla for adverLlsemenLs
Local AdverLlsemenLs as per Lhe geographles
Cpen dlsplays of merchandlse
SLandardlzaLlon of shops uslng layouLs and
flxLures Lo dlfferenLlaLe Lhemselves from oLhers
SLrlcL rlclng pollcy
8oboLlzed Warehouse
Merchandlse dlrecLly on dlsplay shelves afLer shlpmenL
8elnvesLmenL of commlsslon ln openlng shops
no addlLlonal fee was pald by shops for uslng 8eneLLon's
logo
no prlce compeLlLlon among shops as lL was flxed aL Lhe
facLory / suggesLed prlces was used ln uS
CompeLlLlon among shops was based on dlsplay
wlndow dlrecLlon
8eneLLon
AgenLs
Shops
Merchandls
eaymenLs
Show of
new
CollecLlon
Crders
Commlsslo
ns
Show of
new
CollecLlon
Crders
Commlsslo
ns
,arket|ng Log|st|cs
1 What are the most |mportant e|ements of 8enettons market|ng |og|st|cs manufactur|ng
and f|nanc|a| strateg|es? (2]2)
kaw
mater|a|
supp||ers
I|n|shed
roduct
Warehous
e
1S0
Lxterna|
roduct|on
Un|ts
Ieans
roduct|o
n |ant
kaw
mater|a|
supp||ers
kaw
mater|a|
supp||ers
Woo|
roduct|o
n |ant
Cotton
roduct|o
n |ant
200 Lxterna|
roduct|on
Un|ts
Issues w|th subcontractors
W mployees as well as offlclals of boLh parLles were
famlllar wlLh each oLher's organlzaLlon
W 8uL due Lo a number of changes commanded ln orders
by 8eneLLon LhaL Loo ln shorL Llme was a cause of
concern for conLracLors
W 8esLrlcLlon on purchase of machlnery by 8eneLLon on
subconLracLors
roduct|on
phase
Inhouse
rod ()
Sourced
rod()
No of
contractor
s
Degree of
Lxc|us|ven
ess
()
kn|tt|ng 1 99 7080 90
Assemb||n
g
0 100 100 100
Chem|ca|
treatment
2S30 707S 3 100
Dye|ng 100 0
I|n|sh|ng S 9S 20 100
,anufactur|ng rocess
2 now does |t ga|n advantage over |ts compet|t|on |n Lurope? (1]3)
W IerLlcally uelnLegraLed company
W unlque model ln whlch agenLs were encouraged Lo
open new shops
W Cne agency ln arls lrance and anoLher ln new york
for resL of world for lLs cootJlooteJ oJvettlsloq
wotlJwlJe
W use of ,otklll Ceneral lecLrlc lnformaLlon sysLem's
Ialue added servlce avallable round Lhe clock
ConnecLlon beLween agenLs and flrm
W 8oboLlzed warehouse ln osttette Advanced
Lechnology employed
2 now does |t ga|n advantage over |ts compet|t|on |n Lurope? (2]3)
W Croup lnvesLed ln teloteJ bosloess octlvltles
share ln Lhe lloruccl SpA" Mllan based
deslgn flrm whlch lL acqulred ln 1981
W Allowed Lhe company Lo undersLand excluslve secLors
of uropean fashlon
7 share of CalzaLurlflco dl Iarese" an lLallan
shoe manufacLurer boughL ln 1982
W rovlde shoes along wlLh shlrLs and sweaLers
2 now does |t ga|n advantage over |ts compet|t|on |n Lurope? (3]3)
W Croup's ulverslflcaLlon Lo otbet 8osloesses
share ln nolan norLon lLalla Srl"
7 share ln ln lacLor SpA"
W A facLorlng subsldlary wlLh a caplLal sLock of bllllon llre
sLake ln Leaslng SpA and llnleaslng lLalla
SpA"
2 ln prlvaLe 8ooco Jl 1teoto e 8olzooo
1 sLake ln leaslng companles ln lrance and WesL
Cermany run by -ozlooole Jel lovoto lLaly's 8lggesL
bank
3 Wh|ch of the |mportant e|ements of strategy and sources of
compet|t|ve advantage can be ma|nta|ned |n the US market? (1]2)
ConLrary Lo Lhe uropean CperaLlons where Lhe company has seL up enLlre supply chaln
neLwork ln Lhe uS Lhe company produced only Lo saLlsfy Lhe local needs and Lhey dldn'L
supply all Lhe goods needed Lhere
1o fully uLlllze Lhe opporLunlLy offered by Lhe uS markeL 8eneLLon should esLabllsh a neLwork
slmllar Lo LhaL ln lLaly by reLalnlng lLs loglsLlcs and manufacLurlng sLraLegles aL Lhe same Llme
Lhey should have a relook aL Lhelr markeLlng sLraLegy as Lhe Amerlcan Consumers have
dlfferenL preferences Lhan Lhe uropeans
lurLher Lhey should develop a loglsLlcs vlslon whaL 8eneLLon descrlbes as a 36 degree
vlslon LhaL ls a compleLe undersLandlng of Lhe sLraLeglc lmporLance of loglsLlcs Lo Lhe
enLerprlse 1he focus should be on cusLomer saLlsfacLlon and on how each funcLlonal area can
be lnLegraLed Lo dellver LhaL saLlsfacLlon 1he compeLlLlve advanLage for 8eneLLon lles ln lLs
ablllLy Lo effecLlvely lnLegraLe Lhe componenLs of Lhe value chaln We should alm Lo acqulre
8eneLLons wlsdom
valuaLe Lhe posslblllLy of uslng Lhe concepL of posLponemenL 1hls ls a cosL and rlsk reduclng
sLraLegy effecLlvely adopLed by 8eneLLon
lncrease reacLlon speed and reduce cycle Llmes 1lme managemenL has been hlghllghLed as
one of Lhe key compeLlLlve sLraLegles for Lhe 199s Cycle Llme managemenL ls noL slmply a
case of dolng Lhlngs fasLer buL necesslLaLes redeslgnlng operaLlng processes and lf necessary
Lhe organlzaLlon rocess revlew can lead Lo shorLer cycle Llmes by changlng from sequenLlal
Lo slmulLaneous operaLlons and by reduclng Lhe number of delaylng lnLerfaces
3 Wh|ch of the |mportant e|ements of strategy and sources of
compet|t|ve advantage can be ma|nta|ned |n the US market? (2]2)
uevelop a clear undersLandlng of Lhe dlsLrlbuLlon channels of whlch Lhe organlzaLlon ls parL
8eneLLons analysls led Lo a channel deslgn lnvolvlng llcensed reLall sLores and Lhe abollLlon of all
Lhe lnLermedlarles Lyplcally found ln Lhe garmenL Lrade
uevelop a cusLomerorlenLed manufacLurlng process one whlch ls flexlble and responslve Lo
cusLomer demand
undersLandLhe cusLomers LoLal need 1he 8eneLLon producL ls clearly more Lhan [usL Lhe garmenL
ueLermlne Lhe rlghL blend of lnhouse compeLences and ouLsourclng
use approprlaLe Lechnologles Lo measure cusLomer demand develop fasL response Llmes flexlblllLy
and responslveness Lo Lhe markeL
8eneLLon provldes us wlLh an example of an organlzaLlon whlch has Lruly grasped Lhe meanlng of
lnLegraLed loglsLlcs across naLlonal boundarles 8eneLLon has creaLed for lLself a borderless world lL
has llnked 18 raw maLerlal suppllers 4 manufacLurers and 6 reLallers Lo dellver 6 mllllon
garmenLs a year Lo saLlsfled cusLomers ln 83 counLrles 1o Lhe consumer Lhe 8eneLLon producL may
be a fashlonable look buL Lhe real 8eneLLon producL ls noLhlng less Lhan lnLegraLed loglsLlcs
AparL from Make or 8uy lL should explolL Lhe Ally opLlon wlLh Lhe subconLracLors Cwnlng sLake ln
Lhemand lnLegraLlng wlLh company MlS would deflnlLely glve 8eneLLon an edge over compeLlLors
8eneLLon should have excluslve 8eneLLon sLores ln uS and lL should bulld momenLum on Lhem
lnsLead of Lleup wlLh deparLmenLal sLore llke Macy's where Lhey own small bouLlques loose Lhelr
excluslvlLy and Lhe prlces of Lhelr slowmovlng lLems are marked down
Wou|d you |ntroduce 8enetton to US |n 1982
es lL ls suggesLed Lo enLer Lhe uS markeL
W 1he company's growLh ls urope ls sLalllng and lL needs
Lo be ln oLher markeLs ln order Lo conLlnue Lhe
hlsLorlcal growLh
W As mosL of Lhe sLyllng or deslgn manufacLurlng(around
8) LoglsLlcs ulsLrlbuLlon acLlvlLles was done
ouLslde Lhe company Lhe CAO cosL would be
subsLanLlally low
W And Lhe opporLunlLy offered by uS markeL ls myrlad
and besL sulLed for 8eneLLon
W Pavlng markeL presence ln uS would help ln
lnfluenclng markeLs ln oLher counLrles llke !apan