Diesel

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Diesel

  1. 1. Diesel Deanna Dewitt Caitlin Zimbrick Lauren Stewart
  2. 2. Diesel …you buy the brand not the jean <ul><li>International Brand </li></ul><ul><ul><li>Diesel - prêt-a-porter male and female seasonal collection, mainly focused on denim </li></ul></ul><ul><ul><li>55DSL - sportswear </li></ul></ul><ul><ul><li>DieselStyleLab -limited edition pieces </li></ul></ul><ul><ul><li>Diesel Kids- babies, kids, teens; bright colors & modern gutsy lines </li></ul></ul><ul><li>Licensed products: Diesel shades, shoes, time frames, fragrances and cosmetics, writing tools, and jewelry </li></ul>
  3. 3. History-“ The Haute Couture of Casual ” <ul><li>1978-creation of Diesel brand name </li></ul><ul><li>1985-Renzo Rosso complete acquisition of the company </li></ul><ul><li>1990-inception of the global marketing strategy </li></ul><ul><li>1995-one of first clothing companies on the internet </li></ul><ul><li>1996-Diesel’s first flagship store on New York City’s Lexington Avenue </li></ul><ul><li>1998-”Advertiser of the Year” award </li></ul><ul><li>1999-Diesel’s product lines; </li></ul><ul><ul><ul><li>Diesel Kids </li></ul></ul></ul><ul><ul><ul><li>55DSL </li></ul></ul></ul><ul><li>2003-ranked no. 15 among worldwide luxury brands </li></ul><ul><li>Leader in pioneering new styles, fabrics, manufacturing methods and quality control </li></ul>
  4. 4. Growth <ul><li>Over 80 Countries </li></ul><ul><li>Over 5500 points of sale </li></ul><ul><li>300 mono-brand stores </li></ul><ul><ul><li>(200 are company-owned and the others are partnered with local distributors) </li></ul></ul><ul><li>Throughout all 5 continents </li></ul><ul><li>Headquarters: Molvena, North Eastern Italy </li></ul><ul><li>Employs 3,400 employees worldwide </li></ul><ul><li>Renzo Rosso- Ranked no.5 -most influential people in the retail industry </li></ul>
  5. 5. Target Customer <ul><li>Stylistic men and women: ages of 20-35 years </li></ul><ul><li>Annual income: $50,000-$100,000 </li></ul><ul><li>Large, urban cities; U.S. & 80 other countries </li></ul><ul><li>Bridge/ better price zone </li></ul><ul><li>Independent entrepreneur or innovator who follows their own unique path in life </li></ul><ul><li>This eccentric man or women is largely unaffected by fashion fads and spends a significant amount of money on quality fashion-forward clothing </li></ul>
  6. 6. Its in the brand… <ul><li>http:// www.diesel.com /#/home/ </li></ul>
  7. 7. Diesel’s Marketing Mix product price place promotion
  8. 8. Marketing mix <ul><li>Products </li></ul><ul><li>Several different apparel lines: </li></ul><ul><li>~DieselStylelab (upscale) </li></ul><ul><li>~55-DSL (sportswear) </li></ul><ul><li>~Dieselkids </li></ul><ul><li>License name for: </li></ul><ul><li>~Accessories including eyewear </li></ul><ul><li>~Footwear </li></ul><ul><li>~Luggage </li></ul><ul><li>~Perfume/cosmetics </li></ul><ul><li>STAPLE PRODUCT : Diesel is best known as one of Europe’s top manufacturers of designer jeans </li></ul>
  9. 9. Marketing Mix <ul><li>Price </li></ul><ul><li>Diesel Jeans range from $100 to $300 a pair </li></ul><ul><li>Place </li></ul><ul><li>Diesel products are available in more than 5,500 chain and department stores in 80 countries worldwide </li></ul><ul><li>In the U.S., Nordstrom, Urban Outfitters, Bloomingdales, </li></ul><ul><li>Barney’s New York </li></ul><ul><li>By 2003 there were 200 company owned and operated Diesel Stores worldwide </li></ul><ul><li>~Feature jeans and DieselStylelab line </li></ul>
  10. 10. Location near you… <ul><li>Portland Store : </li></ul><ul><li>The Cellar Building </li></ul><ul><li>Phone: 503-241-1355 </li></ul><ul><li>30 NW 12 th Street </li></ul><ul><li>Portland, OR 97209 </li></ul>
  11. 11. Marketing Mix <ul><li>Promotion </li></ul><ul><li>~Promote products mainly online www.diesel.com </li></ul><ul><li>and in high-end magazines such as: </li></ul><ul><li>Elle </li></ul><ul><li>Vogue </li></ul><ul><li>Current Campaign: Global Warming Ready </li></ul><ul><li>They are known for their socially and politically </li></ul><ul><li>racy ad campaigns </li></ul>www.diesel.com
  12. 12. Competition <ul><li>Primary competitors for denim </li></ul><ul><li>Earl Jeans </li></ul><ul><li>Seven for all Mankind </li></ul><ul><li>True Religion Chip and Pepper </li></ul><ul><li>Paper Denim & Cloth </li></ul><ul><li>Other Competitors include: </li></ul><ul><li>Giorgio Armani, Benetton Group, Calvin Klein, Donna Karan, etc. </li></ul>
  13. 13. Diesel Strengths Weaknesses Opportunities Threats
  14. 14. Strengths Diesel Website <ul><li>One of the 1 st clothing companies to have major presence on the internet, opening it’s site in 1995. </li></ul><ul><li>Contains information about all diesel product lines with a complete archive of diesel advertisements. </li></ul><ul><li>Advanced flash media player and interactive 3-D graphics. </li></ul><ul><ul><li>Interactive Diesel experience </li></ul></ul>
  15. 15. Strengths Individuality <ul><li>Prides itself in quality, uniqueness and design </li></ul><ul><ul><li>Buttons, embroidery, washes </li></ul></ul><ul><li>40 different styles and 50 washes every year </li></ul><ul><li>Exclusively made in Italy which allows incredible attention to detail and design </li></ul>
  16. 16. S trengths Exclusiveness <ul><li>Exclusive distribution strategy. Shrunk from 10,000 retail outlets to only 5,500-Intentionally! </li></ul><ul><li>Exclusivity of brand </li></ul><ul><ul><li>Not “mainstream” </li></ul></ul><ul><li>Greater control over merchandise and marketing </li></ul><ul><li>Increased revenue </li></ul><ul><ul><li>2001 revenue increased by 40% </li></ul></ul>
  17. 17. Strengths Advertisement <ul><li>Advertise clothes very differently than anyone else </li></ul><ul><li>Create stories around pictures </li></ul><ul><li>Choose quirky, unusual topics that can be perceived in many ways </li></ul>
  18. 18. Weaknesses <ul><li>Expensive </li></ul><ul><ul><li>Diesel jeans sell from $100- $300 </li></ul></ul><ul><ul><li>Only a select group can purchase their merchandise </li></ul></ul><ul><li>Cannot purchase merchandise on the website </li></ul><ul><ul><li>Loss of sales </li></ul></ul>
  19. 19. Opportunities “ Global Warming Ready ” <ul><li>First thing you see on the diesel website is: “Global Warming Ready?” </li></ul><ul><li>Global warming report video, a link to StopGlobalWarming.org, and a list of the top 10 things you can do to help global warming. </li></ul><ul><li>Responding to consumer concern and also reach the eco-friendly market </li></ul>
  20. 20. Opportunities Diesel and L’Oreal <ul><li>Teaming up with L’Oreal to create a fragrance line </li></ul><ul><li>Launch a line of fragrance aimed at the youth market </li></ul><ul><li>Attract possible new customers </li></ul><ul><li>Offer customers a wider variety of merchandise </li></ul><ul><li>Increase sales </li></ul>
  21. 21. Opportunities other ventures… <ul><li>The pelican Hotel-A fifties’ Art Deco hotel in South beach. </li></ul><ul><li>The Diesel Farm-production center for wine and olive oil. </li></ul><ul><li>Brand awareness </li></ul>
  22. 22. Threats <ul><li>Competitors </li></ul><ul><ul><li>Energie, G-star, Seven for all Mankind, True Religion, Citizen of Humanity </li></ul></ul><ul><li>Trade Barriers </li></ul><ul><li>Changing Trends </li></ul><ul><ul><li>Majority of sales comes from designer jeans. If designer jeans go out of style diesel could see a very large drop in sales </li></ul></ul>
  23. 23. Bibliography <ul><li>Web Sites </li></ul><ul><li>Apparel Search.com. (2006, January). Search directory: Diesel Jeans. Retrieved </li></ul><ul><li>February 15, 2007, from http:// www.apparelsearch.com /definitions/Fashion /Brands /Diesel.htm. </li></ul><ul><li>Diesel SPA-Affino. (2007, January 20). Diesel Propaganda: Press Pack. Retrieved January 20, 2007, </li></ul><ul><li>from http://www.dieselpropaganda.com . </li></ul><ul><li>Pitman, S (2006, January 6). L’Oreal to make fragrance for Diesel fashion house. Retrieved </li></ul><ul><li>February 28, 2007, from Cosmetic Design Web site: http:// www.cosmeticsdesign .com/news/ng.asp. </li></ul><ul><li>True-Religion.com (2006). True religion apparel adds to Expanding branded store base. Retrieved </li></ul><ul><li>February 28, 2007, from http://phx.corporate-ir.net/phoenix.zhtml . </li></ul><ul><li>Internet article based on a print source </li></ul><ul><li>Edmondson, G (2003, January 20). International-European Business: Diesel is Smokin’ </li></ul><ul><li>[Electronic version]. BusinessWeekOnline </li></ul><ul><li>Europe News (2007, February, 26). Waiting for a relapse. [Electronic version] The Economist </li></ul><ul><li>Simpson, G (2007, February 20). Case study: L’Oreal’s software makeover [Electronic version]. </li></ul><ul><li>BuisnessWeekOniline </li></ul><ul><li>The Environment (2007, February, 22). Green sums [Electronic version]. The Economist </li></ul>

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