Diesel is an Italian lifestyle brand founded in 1978 that is known for its denim clothing. It targets young, fun-loving consumers and uses premium pricing and provocative marketing campaigns centered around themes of rebellion and individuality. While denim sales remain strong, the brand faces competition from other casual fashion brands and risks losing relevance if it does not consistently engage customers through new campaigns.
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 make
his own clothes after graduating from textile
school. 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 with
accessories and children's wear (Diesel Kid).
Production of their denim is mainly based in
Italy.
The biggest store is located in Milan, Italy.
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. 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‟s
At the bottom of
jeans, dresses,
the pyramid are luggage.
their mass
market
products, such
as
accessories, belt
s, umbrellas, key
chains etc.
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. Target Audience
Young adult audience, teenagers - 22 year
olds.
The brand targets predominately males as
when 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/young
adults 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. 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 Diesel's 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. Marketing and Campaign Strategy
Diesel 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 to
a 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 encourage
the portrayed lifestyle of fun-loving carefree
etc.
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. 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. 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 regarded
more as a urban fashion brand. Early in the 90s Diesel made an
statement 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. SWOT
Strengths Weaknesses Opportunities Threats
Diesel Diesel leaves An They have
understands 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.
