Benetton Case

BENETTON claims to make a regular effort to understand the needs and wants of their customers, and learning to respond onto these. This strategy has helped them tailor their products and services to changing consumer needs, such as an increasing concern for health, a growing number of working mothers, etc. They are able to do this by having annual forums which they call “Customer Question Time”. Twelve thousand customers attend these yearly meetings and give their comments and views on BENETTON’s products, services, pricing, and quality. Also, they have a customer service help line that consumers can call for important matters.

Everyone in the industry strives to be a cash cow but most of the companies fail to become due to high percentage of losing customers. In other words it could be said that to become a cash cow customer loyalty becomes an integral component. According to Dixon & Freeman (2010), most customers are likely to encounter loyalty eroding problems whilst their engagement with customer service. Loyalty among customers is generated by finding solutions to their problems in an easy and quick way. This is done by many retailing companies which are current cash cows in the market.

Retail business should be considered as the cash cow as it had been distribution quality from past so many years constantly along with extra services for its customers. The companies operating in the market has always come equipped with new and innovative products and services for its customers. Following the same streak Tesco, Wal-Mart and Carrefour could also be considered as a star as it had put in a lot of efforts for increasing the level of awareness of its customers and providing them the benefits of e-commerce and retailing.

As discussed above how Benetton allowed people to rest in their western style stores for generating perspective customers list. Benetton used a mix of low cost and differentiation strategies as a part of its hybrid strategy. They used innovative means for attracting customers and people who can become there prospective customers in near future. The company tried to create differentiation in the retailing industry it operated in. Similarly retailing