Benetton Group

1. Preface

The main reason for writing this report is the knowledge that can be attained and the practice in report writing for the future. Another reason is personal; the interest in Benetton Group that I have, is fulfilled. My research for this report has been mainly secondary. I found a lot of information about Benetton Group through the Internet.

2. Table of contents Page

1. Preface 1

2. Table of contents 1

3. Executive summary 2

4. Introduction 2

5. Methodology 3

6. Results/findings

6.1. 4 P's information 4

6.2. Financial Statement 5

7. Conclusion 6

8. References 7

3. Executive summary

Benetton was established in 1965 as a partnership by the Benetton family in Ponzano

Veneto, Italy. It was reorganized as a limited liability company in 1978. The Company

adopted the name Benetton Group S.p.A. in a corporate reorganization effective in

December 1985. Prior to June 1986, the Company was wholly owned by the

Benetton family. In June 1986, shareholders affiliated with the Benetton family sold

shares representing approximately 11% of the Ordinary Shares to the public in Europe.

The Benetton family initiated the public offering of such Ordinary Shares in order to

establish a liquid public market for the Company's Ordinary Shares and to facilitate the

Company's access to the international capital markets, with the listing on the Frankfurt

Stock Exchange in October 1988.

In June 1989, Benetton made a public offering of 7,000,000 American Depositary

Shares ("ADS"), each representing the right to receive two Ordinary Shares and listed

the ADSs on the New York Stock Exchange. A public offer of 11,000,000 newly issued

shares was made in a 1994 global offering.

4. Introduction

Luciano, Giuliana, Gilberto and Carlo Benetton, launched the activities of the Benetton

Group in 1965. The company is today present in 120 countries around the world. Its

core business is clothing: a group with a strong Italian character whose style, quality

and passion are clearly seen in its brands, the casual United Colors of Benetton, fashion

oriented Sisley, Playlife leisurewear and Killer Loop streetwear. The Group produces

around 150 million garments every year. Its retail network of 5,000 contemporary

stores around the world, which As of the end of fiscal year 2006 Benetton Group

employees counted 8,894 people of which: 95 are manager, 4,788 white collars, 2,386

workers and 1,625 part-time. offers high quality customer services and generates a

total turnover of over 1.9 billion euro. The development of Benetton's commercial

organization has been supported by a major program of investment in megastores,

some of which are directly managed by the Group. These stores are characterized by

their large dimensions, their prestigious locations in historic and commercial centers

and by the high level of customer services they offer. The new Benetton megastores

carry complete casual womenswear, menswear, childrenswear and underwear

collections, as well as a wide selection of accessories, offering a full range of Benetton

style and quality.

As in the case of the commercial network, 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 totally renewed every five years. Benetton production

system is coordinated by a high-tech facility in Castrette (Treviso), which is one of the

most advanced clothing-manufacturing complexes in the world.

5. Methodology

The information that I have collected for this report is secondary information. It was

quite easy to gain information about the Benetton Group. The Benetton website has

an investor relations department, where financial information is broadcasted. Therefore

there was no need to gather more information through questionnaires or interviews.

6. Results/Findings

6.1. 4 P's information

Product: Consistently high quality is one of the fundamental characteristics of the

Benetton production process from the raw materials to the finished garment.