Diesel Presentation


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Diesel Presentation

  1. 1. The Case Study Michelle Tompkins
  2. 2. History Of The Brand Diesel is an Italian design company. The company was founded by Renzo Rosso in 1978, beforehand he had begun to makehis own clothes after graduating from textileschool. He had no experience in marketing and advertising, but has stated that they learnt much of their marketing techniques from the US, creativity from Italy, and systems from Germany.Annual sales were approximately 1.2 billion euros in 2005, and 1.3 billion in 2009.They are largely successful with the sales of denim, however are also successful withaccessories and childrens wear (Diesel Kid).Production of their denim is mainly based in Italy. The biggest store is located in Milan, Italy.
  3. 3. Brand Values “For Successful Living” Written on their logo and many campaigns. “Fun” , “Kick-ass” , “Awesome” These are some words used to describe the brand, The language reflects the target audience. Young fun work wear. Make people feel different and provocative. Rebel. Keeping it real. They believe you send a message by wearing their brand.
  4. 4. Clothing Pyramid At the top of the pyramid is Diesel‟s Black Gold brand, seen on celebrities and on the catwalk. In the middle are Diesel‟sAt the bottom of jeans, dresses,the pyramid are luggage. their mass market products, such asaccessories, belts, umbrellas, key chains etc.
  5. 5. Product Life Cycle Diesel is both a clothing and a lifestyle brand. The Diesel Brand is in the Growth/maturity stage of the Product Life Cycle. Their cash cow is almost certainly their jeans & denim sales. The Diesel brand has been acknowledged for a long time now and there are other competitors out there.
  6. 6. Target Audience Young adult audience, teenagers - 22 year olds. The brand targets predominately males aswhen the brand begun it was inspired by the„working class man‟, however in recent times the brand targets both as both males and females are in their current campaigns and ad‟s. In the 80‟s Diesel saw that teenagers/youngadults had more disposable income and that most of their parents had been through the war and wanted them to have the luxuries they never had. The target market are portrayed as fun- loving, young, energetic and somewhat rebellious.
  7. 7. Pricing Strategy Diesel uses a model based on premium pricing. Diesel is far more a lifestyle than a clothing brand. Diesel has 3 sub brands, Diesel Black Gold, priced higher to reflect the quality and brand identity. Diesel Kid is priced substantially cheaper as children‟s clothes have no VAT, however they are somewhat more expensive than unbranded children‟s wear as they are buying into the image and the Diesel Kid label on the clothing. Fifty Five Diesel (55DSL) is moderately priced and looks a lot more like street wear for teens. The price of Diesels products needs to reflect the substance and value of that experience. The pricing varies on the product. The denim jeans are priced quite high to cover the costs of creating them.
  8. 8. Marketing and Campaign StrategyDiesel use a combination of print and TV to launch their campaigns.The “Be Stupid” campaign is one of the most recognised. “Portraits for successful Living” is their latest campaign.“Kids in Italia” is an upcoming campaign for 2012.All strategies aim to introduce customers toa lifestyle of new, experimental experiences. You don‟t pay a premium price for Diesel jeans because they are a premium in quality. You pay a premium price because the campaigns suggest that the jeans and the brand fit in with and even encouragethe portrayed lifestyle of fun-loving carefree etc.
  9. 9. Place/Distribution Diesel is an Italian based company, but distribute worldwide. The biggest store is located in Milan, Italy. You can buy online at store.diesel.com, also available on other sites and stores such as asos.com and TK Maxx. They will be opening 55DSL stores across the globe in 2012.
  10. 10. Success/Failures Diesel is successful because they know the lifestyle of their target audience. The „Be Stupid‟ Campaign was widely successful as it targeted their market in the right way, for example the images used were of that age group doing something that is considered funny among them. All items of Denim clothing are successful, and a recently added product of fragrances have been successful. A failure could be their accessories such as jewelry as sales do not compete with similar stores.
  11. 11. Competition The Jeans and urban clothing industry has many competitors: Levi‟s, Replay, Acupuncture, Wrangler, Lee, Gas, Paul Frank, G-Star Raw, Miss Sixty, Calvin Klein.Denim is worn in every season they are not perceived only as a jeans brand anymore. In this sense now they are regardedmore as a urban fashion brand. Early in the 90s Diesel made anstatement by opening a flagship store in New York right across from a Levi‟s store. All these clothes brands target the casual fashionable youth.
  12. 12. SWOT Strengths Weaknesses Opportunities Threats Diesel Diesel leaves An They haveunderstands long gaps opportunity threats from it‟s target between could be to other well audience. their collaborate known marketing with a denim campaigns, t celebrity who companies his can lead holds their such as the audience iconic image. Levis. to buy into a brand that Create a constantly luxury jewelry raises brand. awareness.