Diesel

Deanna Dewitt Caitlin Zimbrick Lauren Stewart

Diesel

…you buy the brand not the jean

International Brand
Diesel - prêt-a-porter male and female seasonal collection, mainly focused on denim 55DSL- sportswear DieselStyleLab-limited edition pieces Diesel Kids- babies, kids, teens; bright colors & modern gutsy lines

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Licensed products: Diesel shades, shoes, time frames, fragrances and cosmetics, writing tools, and jewelry

History-“ The Haute Couture of Casual ”
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1978-creation of Diesel brand name 1985-Renzo Rosso complete acquisition of the company 1990-inception of the global marketing strategy 1995-one of first clothing companies on the internet 1996-Diesel’s first flagship store on New York City’s Lexington Avenue 1998-”Advertiser of the Year” award 1999-Diesel’s product lines;  Diesel Kids  55DSL 2003-ranked no. 15 among worldwide luxury brands Leader in pioneering new styles, fabrics, manufacturing methods and quality control

Growth
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Over 80 Countries Over 5500 points of sale 300 mono-brand stores
(200 are company-owned and the others are partnered with local distributors)

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Throughout all 5 continents Headquarters: Molvena, North Eastern Italy Employs 3,400 employees worldwide Renzo Rosso- Ranked no.5 -most influential people in the retail industry

Target Customer
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Stylistic men and women: ages of 20-35 years Annual income: $50,000-$100,000 Large, urban cities; U.S. & 80 other countries Bridge/ better price zone Independent entrepreneur or innovator who follows their own unique path in life This eccentric man or women is largely unaffected by fashion fads and spends a significant amount of money on quality fashionforward clothing

Its in the brand…

http://www.diesel.com/#/home/

Diesel’s Marketing Mix

product

price place promotion

Products

Marketing mix

Several different apparel lines: ~DieselStylelab (upscale) ~55-DSL (sportswear) ~Dieselkids License name for: ~Accessories including eyewear ~Footwear ~Luggage ~Perfume/cosmetics STAPLE PRODUCT: Diesel is best known as one of Europe’s top manufacturers of designer jeans

Marketing Mix
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Price
Diesel Jeans range from $100 to $300 a pair

Place
Diesel products are available in more than 5,500 chain and department stores in 80 countries worldwide In the U.S., Nordstrom, Urban Outfitters, Bloomingdales, Barney’s New York By 2003 there were 200 company owned and operated Diesel Stores worldwide ~Feature jeans and DieselStylelab line

Location near you…
Portland Store: The Cellar Building Phone: 503-241-1355 30 NW 12th Street Portland, OR 97209

Marketing Mix

Promotion
www.diesel.com

~Promote products mainly online www.diesel.com and in high-end magazines such as: Elle Vogue Current Campaign: Global Warming Ready They are known for their socially and politically racy ad campaigns

Competition

Primary competitors for denim
Earl Jeans Seven for all Mankind True Religion Chip and Pepper Paper Denim & Cloth

Other Competitors include:
Giorgio Armani, Benetton Group, Calvin Klein, Donna Karan, etc.

Diesel
Strengths Weaknesses Opportunities Threats

Strengths

Diesel Website
One of the 1st clothing companies to have major presence on the internet, opening it’s site in 1995. Contains information about all diesel product lines with a complete archive of diesel advertisements. Advanced flash media player and interactive 3-D graphics.

Interactive Diesel experience

Strengths

Individuality

Prides itself in quality, uniqueness and design  Buttons, embroidery, washes 40 different styles and 50 washes every year Exclusively made in Italy which allows incredible attention to detail and design

Strengths

Exclusiveness

Exclusive distribution strategy. Shrunk from 10,000 retail outlets to only 5,500-Intentionally!

Exclusivity of brand

Not “mainstream”

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Greater control over merchandise and marketing Increased revenue

2001 revenue increased by 40%

Strengths

Advertisement
Advertise clothes very differently than anyone else Create stories around pictures Choose quirky, unusual topics that can be perceived in many ways

Weaknesses

Expensive  Diesel jeans sell from $100- $300  Only a select group can purchase their merchandise Cannot purchase merchandise on the website  Loss of sales

Opportunities “Global Warming Ready”

First thing you see on the diesel website is: “Global Warming Ready?” Global warming report video, a link to StopGlobalWarming.org, and a list of the top 10 things you can do to help global warming. Responding to consumer concern and also reach the ecofriendly market

Opportunities

Diesel and L’Oreal
Teaming up with L’Oreal to create a fragrance line Launch a line of fragrance aimed at the youth market Attract possible new customers Offer customers a wider variety of merchandise Increase sales

Opportunities other ventures…

The pelican Hotel-A fifties’ Art Deco hotel in South beach. The Diesel Farmproduction center for wine and olive oil.

Brand awareness

Threats

Competitors  Energie, G-star, Seven for all Mankind, True Religion, Citizen of Humanity Trade Barriers Changing Trends  Majority of sales comes from designer jeans. If designer jeans go out of style diesel could see a very large drop in sales

Bibliography
Web Sites Apparel Search.com. (2006, January). Search directory: Diesel Jeans. Retrieved February 15, 2007, from http://www.apparelsearch.com /definitions/Fashion /Brands /Diesel.htm. Diesel SPA-Affino. (2007, January 20). Diesel Propaganda: Press Pack. Retrieved January 20, 2007, from http://www.dieselpropaganda.com. Pitman, S (2006, January 6). L’Oreal to make fragrance for Diesel fashion house. Retrieved February 28, 2007, from Cosmetic Design Web site: http://www.cosmeticsdesign .com/news/ng.asp. True-Religion.com (2006). True religion apparel adds to Expanding branded store base. Retrieved February 28, 2007, from http://phx.corporate-ir.net/phoenix.zhtml. Internet article based on a print source Edmondson, G (2003, January 20). International-European Business: Diesel is Smokin’ [Electronic version]. BusinessWeekOnline Europe News (2007, February, 26). Waiting for a relapse. [Electronic version] The Economist Simpson, G (2007, February 20). Case study: L’Oreal’s software makeover [Electronic version]. BuisnessWeekOniline The Environment (2007, February, 22). Green sums [Electronic version]. The Economist

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