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Home » SWOT » SWOT analysis of UCB – United Colors of Benetton

SWOT analysis of UCB – United Colors of Benetton

February 15, 2019 By Hitesh Bhasin Tagged With: SWOT

UCB is a global fashion brand, based in Ponzano Veneto, Italy. The name comes from the Benetton family who founded the company in 1965. Benetton has a network of about 5,000 stores in the main international markets. Here is the SWOT Analysis of UCB

Table of Contents

  • Strengths in the SWOT analysis of UCB :
  • Weaknesses in the SWOT analysis of UCB :
  • Opportunities for the SWOT analysis of UCB :
  • Threats in the SWOT analysis of UCB :

Strengths in the SWOT analysis of UCB :

1) Acknowledged as an International Brand – UCB is a well-accepted brand worldwide which talks volumes about its brand strength.

2) Famous for their good quality fabric and clothing – Over the years UCB has earned the image of selling world class clothes with good quality fabric and variety. These features of their clothes make it a strengthened brand in itself.

3) Strong brand awareness and recall through sponsoring international sporting events – They have also strengthened their brand by sponsoring events like Formula 1 and volleyball events and making sure that people remember the brand for a long time.

SWOT analysis of UCB 1

4) Visible marketing campaigns – UCB has been famous for its visible and clear marketing campaigns which have restored its brand image as caring for social issues. Who can forget the ‘Unhate` campaign that had a lot of limelight?

5) Existing distribution and selling channels – UCB has been able to develop the effective chain of distribution channels and selling stores in all the geographies. This is strengthening the brand from the ground level.

6) High growth rate – Consistent high growth rate has been a strength for UCB for a long time. They are always developing, improving, and innovating in their product portfolio gives the brand a way to continuously improving their growth rate.

Weaknesses in the SWOT analysis of UCB :

1) Market share growth is limited due to intense competition – Fashion is one such industry which is known for stiff competition. No matter what segment we are looking at there is umpteen number of players selling their products.

2) Highly priced clothes – The UCB clothes have always been priced comparatively high than its competitors which puts it on the back seat when compared to other similar brands.

3) Controversial ad campaigns – Campaigns like ‘unhate’ and others brought a lot of negative attention. Sometimes being too bold brings adverse effects to a brand which is what happened with UCB as well.

Opportunities for the SWOT analysis of UCB :

1) Online presence – Growing demand for products to be available online is a to be explored territory for UCB. This is definitely a worthy opportunity which UCB should try to hit upon.

2) Tap the unexplored markets – UCB is an international brand and therefore missing out on any feasible geography is a direct loss for the brand. The next course of action should include some strategies of penetrating new global markets.

3) Growing economy – This is a good factor to look at. Economies are growing at a fast pace which is a major reason for growing demand in all parts of the country. Being a fashion brand, UCB will be looking at plans which can right fit to meet this growing demand.

4) Endorsements by celebrities – Fashion industry walks with celebrities and UCB can also look for endorsing their brand with some celebrities. People want to follow what their favorite celebrities wear and that is where the celebrity endorsement comes into the picture.

 

SWOT analysis of UCB 2

Threats in the SWOT analysis of UCB :

1) Low switching cost for customers – There is no switching cost for customers which makes it very important to keep the customers happy every time to ensure they remain loyal to the brand.

2) Competitors in similar segments – There is umpteen number of competitors targeting the same set of customers which makes it a price war industry at this level.

3) Increasing taxes and interest rates – Profitability becomes a concern when there is a continuous surge in taxes and interest rates. At the same time, competitors force to reduce the prices. These situations become really tricky to handle.

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About Hitesh Bhasin

I love writing about the latest in marketing & advertising. I am a serial entrepreneur & I created Marketing91 because I wanted my readers to stay ahead in this hectic business world.

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