Florida Atlantic University: Diesel Branding Strategy Case Study

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This case study examines the Diesel brand, an Italian fashion company founded by Renzo Rosso. It explores Diesel's brand portfolio, including jeans, apparel, and accessories, and its brand strategy framework, which emphasizes radical product design and upmarket branding. The analysis covers media and advertising strategies, positioning and pricing, and market extension procedures. A SWOT analysis highlights Diesel's strengths, weaknesses, opportunities, and threats, comparing it to competitors like Calvin Klein and Wrangler. The study recommends modifications in administrative positioning, aligning business processes with modern needs, and diversifying market opportunities. The case study concludes by emphasizing Diesel's third-degree price discrimination and its impact on brand promotion through media and advertising, while acknowledging competitive threats.
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Case study: Diesel for Successful Living
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Table of contents
Introduction......................................................................................................................................3
Company profile..............................................................................................................................3
Brand portfolio.................................................................................................................................3
Brand strategy framework...............................................................................................................4
Media and advertising......................................................................................................................5
Positioning and pricing....................................................................................................................5
Market extension procedure............................................................................................................5
SWOT analysis of Diesel.................................................................................................................6
Recommendations............................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
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Introduction
The Diesel brand is one of the most prolific fashion brands of modern era. The globalization
syndrome has given birth to this brand under the able hands of Renzo Rosso in Italy. It has a top
scale entrepreneurship segment guided by managerial segments of crude varieties. Its portfolio
includes a lot of perfectly fitting fashionable of products of different shapes and sizes as
demanded by the young, teenage and adults of the world. It is one of the most compatible brand
markets following a dominating competitive pricing strategy with product mix policies being
used in its strongly monitored business. It follows a sound market extension policy based on
product differentiation based monopolistic framework.
Company profile
Diesel is an Italian retail company with versatile business functioning based on manufacture and
diversified sale of denims, footwear and other ancillary fashion products and accessories. Being
founder by Renzo Rosso in Italy, it is the best retail brands in the nation and one of best ones in
the global world dominated by modern fashion based demands. It has a revenue base of €2.9
billion (Diesel Online Store US, 2019).
Brand portfolio
Diesel mainly manufactures branded based superior quality of jeans and the products are
differentiated with respect to prices in true terms. The brand of higher varieties includes casual
wears of various varieties. Types of various apparel, kintwear and fashion wear are manufactured
by Diesel in various varieties. Again innovative collections of inner wears and external outfits
are being manufactured in various varieties by Diesel in superior order or manner. Diesel Black
Gold based apparel which is of the topmost quality is manufactured with higher degree of
precision and accuracy in genuine terms and manners. The wears are available in different
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colours, shapes and sizes in different manners and strategies based productive varieties (Hupp,
Robbins & Fournier, 2018).
Limited edition pieces of jeans and other varieties of denims are manufactured in higher varieties
by Diesel to attract maximum number of teenaged and young person’s to purchase maximum of
its products. Successful creative designs of clothes and apparel are also manufactured by Diesel
Company in genuine manners with extensive diversities. Besides these superior varieties of kids
collection and baby wears are being produced by Diesel in increasing intensities all around the
world. It manufactures many of the varieties of fashion cooled products of most sophisticated
origin in genuine production outlets
Brand strategy framework
Figure 1: Brand strategy framework
(Source: Brand strategist, 2019)
Diesel’s branding strategy based products is the chiefly based on the radical nature of its
products. The higher branding image of its products is chiefly based on the perspectives of
Diesel based company in genuine manners. Diversified by global fashion centres and the
upmarket branding strategy has many facets connected branding propositions of Disesel in true
terms. Higher quality based items are being provided at reasonably higher prices in genuine
manners in true terms (Casagrande, 2018). The passionate apparels of Disesel have serious brand
propositions of various brands which are distributed through various marketing channels in Italy
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and beyond. The targeting and positioning strategy of Diesel is deeply based on the essence of
stronger business catered through various modes of business in genuine manners.
Name Brand Recognition
For a long time in the business environment companies have used their names and goodwill in
order to improve their market reach and influence consumers to good effect. Name brand
recognition is an effective branding strategy that helps most of the renowned organisations to put
value on their names and utilise it effectively to extend the value in their products. Companies
like Diesel do have significant name in the high street fashion retailing segment this largely helps
the organisation to use the name of the company in its products in a way that reaches the
consumers and creates a brand from itself. Along with the name of Diesel its logo and the tagline
also helps the organisation to market its name through the products that makes the organisation
globally renowned (Melo & Seixas, 2018).
Attitude Branding
Attitude branding has been one of the most relevant strategies for branding Diesel’s products.
Based on the target segment of the organisation it has been able to manage its market in the best
possible manner and that has happened with attitude branding. Diesel has been choice of many
young adults and middle aged people which clearly shows that Diesel’s products are like by
mostly the young generation and wearing Diesel apparels naturally elevates the personality,
sense of satisfaction and attitude. Diesel as an organisation has capitalised on this affinity and
enhanced its product range in the best possible manner to reach the target audience in the best
possible manner. This in return has allowed the organisation to gain upper hand in the market.
There are number of organisations in the world who focus on targeting specific age groups and
have succeeded Diesel has its own success story with its attitude branding strategy (Verma,
2017). Bringing diesel bags and belts and jeans have helped the organisation to improve its name
among the young generation.
Media and advertising
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The media and positioning prospects are based on mainly online mode of brand promotion
strategies along with some offline media based brand promoted advertises. The online media
includes several modes of market proposed advertises promoted through media directly and
through e-mails and social media networks in various manners. The other online modes of
advertising are based of tweets and blogs posted in different varieties of websites in genuine
manners. The various prospects of media advertising are based on effective modeling schemes
which are linked with the external business environments. The offline advertising are based on
TV based media promoted advertizes with use of well reputed and famous modeling
personalities (Melo & Seixas, 2018).
Positioning and pricing
The positioning and pricing systems of various origins are seen to be interlinked with the aspects
of segmenting policies of Diesel. The various facets of Diesel is seen to be effectively
functioning with true processes of market positioning and differential pricing systems are
monitored accordingly. The prices are charged with the regime of third –degree pricing
discrimination in genuine manners. The positioning procedure has functioning with the aspects
of genuine discipline management in genuine terms. The supervision over the pricing strategies
are done in accordance with the market segmentation oriented principles of various varieties.
They influence the sales intensity and market distribution intensity of Diesel in positive manners
if based on right orders and principles of business (Vianelli, Pegan & Valta, 2016).
Market extension procedure
The market extension procedure of Diesel is very genuine and firmly based on brand sequencing
based policy implication procedures achieved through holistic business strategies in chief
manners. The market faces several repercussions with sound amounts of business diversities of
every types. The marketing processes of extension is based on the economic principle of third
degree price discrimination based on various marginal revenue based distinctions which are
equal to the marginal cost in genuine terms. The efficiency of market is based on the
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effectiveness of this market extension principle in genuine manners. The diversification of
product is achieved by this very price discrimination procedure in quantitative terms adopted and
used by Diesel (Shafiee, Animah & Simms, 2016).
SWOT analysis of Diesel
Strengths-The merits of Diesel based business can be seen to cropping out from the best
distinguished brand image based positioning system and selective distribution oriented criteria.
Weaknesses- The demerits of Diesel based business can be seen to be cropping out from the
brand dilution criteria and rapidly changing market for jeans and denims based fashion wears
specific criteria.
Opportunities- The major opportunities of business are seen to be sequestered towards the
chances of business fragmentation scopes and its huge growth potentials in terms of business and
product base (Verma, 2017).
Threats- Threats from other foreign competition and threats from illegal cheap imitations are
seen to be hurting the business of Diesel.
Comparison with other brands
The other brands of world fame based fashion jeans like Calvin Kelin and Wrangler act as stiff
competition in the face of Diesel which faces strict challenges because of these similarly
competitive market varieties of products. The similar design if made by these brands
contemporary to Diesel brings a lot of business survival based threats in denim markets of the
company (Egels-Zandén & Hansson, 2016).
Recommendations
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The chief recommendations to be used to produce sound effects in Diesel are based on the
aspects of bringing efficiency in Diesel in various manners. The first process is to bring
modifications in Diesel business by changing its administrative positioning and departmental
facets in genuine manners. The second process is to make the business process compatible with
modern day needs of bringing positiveness in apparel business. The third procedure is to make
market process is diversified with increased chances of business opportunities. This will open up
the scope of denim business. Other improvements should be made in the business infrastructure
with utmost versatility.
Conclusion
The above case study is based on business analysis of Disesel fashions limited headquartered in
Italy. The main processes of business are based on third degree price discrimination oriented
business in Diesel with varieties of market functionings. The crucial aspects of Diesel business is
chiefly seen to be impacting the brand promotion based activities of Diesel promoted via
superior media and advertising technological processes. The plans and procedures of business
are based on effective business diversities of various origins in Diesel with true significance. The
chief merit of Diesel business is its wider scopes of production segments and varieties of
business propositions though being threatened by business competitors.
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References
Brand strategist. (2019). Brand Strategy Framework | I ♥ Branding! | Brand strategy template,
Brand management,. Retrieved on 1 October 2019. Retrieved from
https://www.pinterest.com/pin/222294931586979217/
Casagrande, C. (2018). Digital marketing strategies in the china fashion market: the diesel brand
case study. Retrieved on 1 October 2019. Retrieved from
http://tesi.cab.unipd.it/59608/1/CASAGRANDE_CRISTINA.pdf.
Diesel Online Store US. (2019). Mens Clothing: jeans, jackets, shoes .Retrieved on 1 October
2019. Retrieved from https://shop.diesel.com/en/man/
Egels-Zandén, N., & Hansson, N. (2016). Supply chain transparency as a consumer or corporate
tool: The case of Nudie Jeans Co. Journal of Consumer Policy, 39(4), 377-395. Retrieved
on 1 October 2019. Retrieved from https://www.researchgate.net/profile/Niklas_Egels-
Zanden/publication/
276342494_Supply_Chain_Transparency_as_a_Consumer_or_Corporate_Tool_The_Cas
e_of_Nudie_Jeans_Co/links/55a778f008aea2222c74576d.pdf.
Hupp, O., Robbins, D., & Fournier, S. (2018). At-Risk Brand Relationships and Threats to the
Bottom Line. GfK Marketing Intelligence Review, 10(1), 58-63. Retrieved on 1 October
2019. Retrieved from https://www.degruyter.com/downloadpdf/j/gfkmir.2018.10.issue-
1/gfkmir-2018-0010/gfkmir-2018-0010.pdf.
Leppäaho, T., Plakoyiannaki, E., & Dimitratos, P. (2016). The case study in family business: An
analysis of current research practices and recommendations. Family Business
Review, 29(2), 159-173. Retrieved on 1 October 2019. Retrieved from
http://eprints.whiterose.ac.uk/91097/5/PlakoyiannakiTheCaseStudyinFamilyBusiness.p.
Melo, D., & Seixas, A. G. (2018). Advertising as a platform for consumer-citizen participation
and citizenship. Retrieved on 1 October 2019. Retrieved from
https://www.google.com/search?
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Shafiee, M., Animah, I., & Simms, N. (2016). Development of a techno-economic framework for
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Verma, S. (2017). Women’s wear competition in denim jeans and consumer analysis. NIFt-
Mumbai. Retrieved on 1 October 2019. Retrieved from
http://14.139.111.26/jspui/bitstream/1/642/1/Snehal%20Varma%20GP.pdf.
Vianelli, D., Pegan, G., & Valta, M. (2016). Diesel: An Unconventional, Innovative,
International-Lifestyle, Italian Company. In Fashion Brand Internationalization (pp. 65-
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