Diesel  For  Successful  Living  Case  Analysis  

ADV  388K  
Integrated  Communication  Management  
Group  4  
 
 
Abigail  Klein  (AMK3766)  
Natalia  Lara  (NTL397)  
Sophia  Liu  (YL25797)  
Monica  Sherry  (MBS2773)  
Jiahuan  Yan  (JY8892)  
 
The  University  of  Texas  at  Austin
  
Situation  Analysis  
 
Demographic  Environment  
The  demographic  environment  differs  between  D-­‐Diesel  and  StyleLab.  D-­‐Diesel  focuses  on  
high  school  students,  college  students,  young  professionals  and  people  in  the  HIP  
generation.  Many  of  these  people  are  in  the  middle  or  upper-­‐middle  class  and  their  ages  
range  between  16-­‐25  years  of  age.  StyleLab  focuses  on  members  of  Generation  X,  ages  25-­‐
34.  Many  people  in  Generation  X  are  professionals  or  managers  in  the  upper-­‐middle  and  
lower-­‐upper  social  class.    
 
The  clothing  industry  in  the  mid  to  late  1990’s  experienced  an  increase  in  market  
segmentation.  Some  consumers  began  spending  large  sums  of  money  on  casual  wear  for  
leisure  and  others  for  the  workplace.  Additionally,  being  trendy  started  to  mean  being  
dynamic,  lively,  mobile  and  casual.  
 
Economic  Environment    
People  with  medium  to  medium-­‐high  incomes  tend  to  purchase  D-­‐Diesel  products  while    
StyleLab  is  aimed  to  attract  consumers  with  medium-­‐high  income.  In  1997,  Diesel’s  
consolidated  annual  turnover  amounted  to  503  billion  lire,  85  percent  of  which  was  
generated  outside  Italy.  
 
Sociocultural  Environment  
D-­‐Diesel  tends  to  target  people  with  a  teenage-­‐spirited  lifestyle,  such  as  a  shopaholic,  neo  
hedonist,  tribe  member  and  trend  followers.  D-­‐Diesel  customers  tended  to  be  open-­‐minded  
as  well  as  innovation  receptive.  In  contrast,  StyleLab  targets  travelers  and  worldly  
consumers  who  are  visually  educated,  fashion  perspective  and  culturally  aware.  Customers  
of  StyleLab  either  like  the  D-­‐Diesel  brand  and  feel  it  has  become  too  mainstream  or  they  
value  the  possibility  of  creating  their  own  style.  
 
Additionally,  once  the  consumer  has  taken  the  time  to  think  about  D-­‐Diesel’s  
advertisements,  they  can  pick  up  on  a  hidden  order  behind  the  work,  a  meaning  that  is  less  
shocking  and  more  a  balanced  observation  of  the  realities  of  the  world  we  share.  As  
shocking  as  D-­‐Diesel  advertisements  can  be,  they  more  often  than  not  manage  to  rise  above  
a  purely  attention-­‐getting  level  either  by  containing  a  serious  point  of  social  concern  or,  
simply  but  effectively,  by  causing  us  to  ponder  the  meaning  of  life.  No  other  clothing  
company  would  appear  to  offer  such  philosophical  discourse.  
 
Competitive  Environment  
Diesel  was  ranked  number  two  in  the  jeans  industry  in  Europe  and  they  had  high  
expectations  for  StyleLab.  D-­‐Diesel  (denim  leisure  clothes)  competes  with  Armani  Jeans,  
Levi’s  Mustang  and  Calvin  Klein  Jeans  and  sold  garments  comparable  to  GAP  at  a  much  
higher  price  point.  Comparatively,  StyleLab  (high  casual  wear)  will  compete  with  Miu  Miu,  
Prada  Sport,  CP  Company,  and  D&G.  One  key  factor  in  the  competitive  environment  is  price.  
Within  Diesel,  prices  are  even  different.  For  example,  D-­‐Diesel  jeans  sold  for  $100  USD  and  
a  jacket  at  $139  USD  while  StyleLab  sold  pants  at  $150  USD  and  jackets  at  $415  USD.  
2
  
Product  Environment  
Originally,  Diesel  was  a  typical  young  design  company  focused  on  launching  new  products.  
Beginning  in  1991,  they  started  to  develop  a  global  branding  campaign  –  “Diesel  for  
successful  living.”  In  1998,  before  the  launch  of  StyleLab,  the  brand’s  portfolio  of  Diesel  Spa  
consisted  of  three  main  product  lines:  D-­‐Diesel,  Diesel  Kids  and  55DSL.  D-­‐Diesel  was  the  
core  business  line,  focusing  on  denim  jeans  and  skirts.  Their  products  were  characterized  
by  very  high  durability  and  quality.  The  Diesel  Kids  line  was  targeted  at  kids  who  did  not  
want  to  be  treated  like  kids.  The  55DSL  line  was  aimed  at  extreme  action  sports  fantasy,  
which  was  full  of  a  surprisingly  fresh  color  combination.  
 
Under  the  current  circumstances,  some  consumers  are  willing  to  spend  a  large  amount  of  
money  on  casual  wear  for  the  workplace  and  leisure.  Because  of  this,  there  was  a  new  
market  opportunity  in  high  casual  wear.  
 
According  to  Diesel,  D-­‐Diesel  and  StyleLab  should  have  distinct  brand  identities  but  with  
some  common  roots:  freedom,  global  outlook,  creativity  and  thoughtfulness.  D-­‐Diesel  
stands  for  irony  and  irreverence  while  StyleLab  stands  for  sophistication  and  mystery.  
Diesel  focuses  on  denim  while  StyleLab  experiments  with  a  variety  of  innovative  fabrics.  
StyleLab  is  more  exclusive,  refined,  expensive  and  more  innovative  in  its  use  of  design  and  
materials  when  compared  to  D-­‐Diesel.  It  also  offers  less  of  a  street  look  than  D-­‐Diesel  and  
targets  consumers  who  are  design  conscious.  
 
Company  Analysis  
Overall,  Diesel  is  a  strong  company.  They  focused  heavily  on  developing  the  Diesel  style.  
Diesel  garments  were  featured  in  many  popular  and  independent  movies  as  well  as  
participating  in  video  game  production.  Additionally,  Diesel  was  one  of  the  first  clothing  
companies  on  the  Internet  in  1995.  Diesel  also  has  different  media  teams  and  different  
goals  for  advertising  StyleLab  and  D-­‐Diesel.  For  StyleLab,  this  consists  of  a  distribution  plan  
unique  to  their  products.    
 
Historically  speaking,  Diesel  transferred  from  a  simple  jean  label  into  a  major  fashion  
brand  in  1985.  Its  products  were  available  in  more  than  50  countries  through  10,000  
independent  retailers  and  40  company  owned  stores,  including  flagship  outlets  in  New  
York  and  London.  In  1997,  its  consolidated  annual  turnover  amounted  to  503  billion  lire,  
85  percent  of  which  was  generated  outside  Italy.  
 
   
SWOT  Analysis  
 
Strengths   Weaknesses  
• Successful  Brand:     • StyleLab:    
o Diesel  is  a  strong  brand.  It   o The  profitable  market  in  high  
went  from  only  a  jean  brand   casual  wear  is  uncertain.    
to  major  fashion  label.       • Potential  Dilution:  

3
 o In  1997  Diesel’s  consolidated   o Multiple  horizontal  
turnover  amounted  to  503   extensions  of  Diesel  could  
billion  lire;  85  percent  of   dilute  its  identity  therefore  
which  was  generated  outside   Diesel  could  suffer  from  its  
of  Italy.     own  success.    
• Promotion:     • Advertising:  
o Diesel  pays  great  attention  to   o Diesel's  ironic  and  tacky  
product  placement  among   advertising  caused  
actors,  musicians  and   resentment  among  the  
celebrities  without  paying   general  public  and  triggered  
the  stars  or  giving  anything   a  response.  
away.     o Diesel  has  no  precise  
o Diesel’s  design,  advertising   definition  of  the  target  for  
and  management  style   StyleLab.  
embodied  a  love  of  humor,   o Diesel's  vision  of  consumer  
creativity  and  irrelevance   paradise  was  to  be  
towards  established  rules.     interpreted  ironically.    
o Advertising  campaigns  were   o Diesel  ads  were  too  highly  
artistic,  colorful  and  sexy.     involved  and  often  confusing  
o Diesel  is  an  Innovative  brand.   to  consumers.  They  required  
They  were  one  of  the  first   wit  and  involvement  to  be  
clothing  companies  on  the   deciphered.    
Internet.   o The  Diesel  for  successful  
o Diesel  created  a  hotel  that   living  campaign  resulted  in  
envisioned  the  brand’s   sarcasm  directed  at  Diesel  
philosophy.  The  hotel  was  a   themselves.  
success  among  big  
influencers  like  people  such    
as  Cindy  Crawford,  Grace    
Jones,  Yoko  Ono  and  JFK.  
• Products:    
o Diesel  offers  a  wide  variety  of  
products.  For  example  only  
about  30  percent  of  the  D-­‐
Diesel  collection  was  denim.    
o D-­‐Diesel’s  products  are  high  
quality  and  durable.    
o Diesel  has  been  able  to  
expand  to  include  a  wide  
variety  of  successful  product  
lines.  
• StyleLab:  
o They  offer  wearable  clothing  
from  a  “  laboratory  of  
surprising  style”  for  
4
 customers.  It  is  more  
exclusive,  refined,  expensive  
and  more  innovative  in  its  
use  of  designs  and  materials.  
 

Opportunities   Threats  
• Market:   • Perception:    
o There  is  an  opportunity  for  a   o The  perception  that  casual  
high-­‐end  casual  wear  line  in   wear  should  not  be  
the  market.       expensive.    
• Attitude  towards  attire  changes:   • Competition:  
o The  clothing  industry  in  the   o StyleLab  was  positioned  at  
mid  and  late  1990’s   the  lower  end  of  high  casual  
experienced  increasing   wear,  competing  with  Miu  
market  segmentation.  In   Miu,  Prada  Sports,  CP  
particular,  some  consumers   Company  and  D&G.  
were  now  willing  to  spend   o Other  companies  could  begin  
large  money  not  only  on   using  new  styles  and  fabrics  
smart  clothes  but  also  on   to  compete,  taking  a  portion  
casual  wear,  both  in   of  the  original  market.  
workplace  and  for  leisure.     • StyleLab:  
o Being  trendy  started  to  mean   o It  is  hard  for  many  
dynamic,  lively,  mobile  and   consumers  to  justify  
casual.     spending  $150  on  a  pair  of  
• Designers:   jeans.  
o StyleLab  would  help  manage    
Diesel's  most  important  
assets,  their  designers.  In  
doing  so  designers  are  free  to  
experiment  with  new  fabrics  
and  cuts.  
• Target  Customers:  
o StyleLab  could  focus  on  
previous  D-­‐Diesel  customers  
who  still  like  the  brand  and  
its  values  but  felt  D-­‐Diesel  
had  become  too  mainstream.    
o StyleLab  could  appeal  to  
people  who  are  looking  for  
cutting  edge  style  and  who  
value  the  possibility  of  
creating  their  own  style.  
 
 
5
 Problem  Statement  
 
How  does  Diesel  associate  both  D-­‐Diesel  and  StyleLab  while  maintaining  separate  
identities  by  determining  the  branding  strategy  of  their  new  line,  StyleLab?  
 
Critical  Factors  
 
 
1. Distinct  brand  identities,  but  while  sharing  some  common  roots    
 
D-­‐Diesel  and  StyleLab  should  have  distinct  brand  identities  but  with  some  common  
roots:  freedom,  global  outlook,  creativity  and  thoughtfulness.  D-­‐Diesel  stands  for  
irony  and  irreverence  while  StyleLab  stands  for  sophistication  and  mystery.  From  a  
product  perspective,  Diesel  focuses  on  denim  while  StyleLab  experiments  with  a  
variety  of  innovative  fabrics.  Additionally,  StyleLab  offered  less  of  a  street  look  and  
is  more  exclusive,  refined,  expensive  and  innovative  in  its  use  of  design  and  
materials  compared  to  D-­‐Diesel.  Another  common  root  is  their  target  market.  D-­‐
Diesel  targets  people  who  are  18-­‐25  years  old  while  StyleLab  targets  past  buyers  of  
D-­‐Diesel  who  liked  the  brand  but  had  outgrown  it.  This  is  a  critical  factor  because  if  
the  brands  do  not  share  common  roots,  it  is  difficult  for  the  brands  to  be  linked  in  
any  way.    
 
2. StyleLab’s  main  focus  is  to  build  the  image  of  the  brand    
 
Since  D-­‐Diesel  is  already  an  established  brand  it  has  different  marketing  goals,  such  
as  supporting  the  brand  and  products  equally.  Like  any  new  brand,  StyleLab’s  focus  
has  to  be  on  building  brand  image  because  without  establishing  a  strong,  
independent  image  apart  from  D-­‐Diesel,  StyleLab  will  only  achieve  low  awareness  
with  consumers.  Additionally  they  will  not  be  able  to  develop  a  strong  platform  in  
the  market.  
 
3. Diesel  management  was  concerned  that  D-­‐Diesel  would  suffer  from  success  of  
itself  because  of  brand  dilution  
 
One  of  the  objectives  assigned  to  StyleLab  was  to  counterbalance  the  increased  
diffusion  of  D-­‐Diesel  products  and  to  prevent  any  possible  commoditization  of  the  
brand.  There  was  a  concern  that  the  multiple  horizontal  extensions  of  D-­‐Diesel  
could  dilute  its  identity  and  that  D-­‐Diesel  would  suffer  from  its  success.  More  
importantly,  too  high  a  diffusion  would  erode  the  exclusive  and  unconventional  
image  of  the  brand.  An  example  of  this  is  with  Germany  and  how  there  were  already  
concerns  about  D-­‐Diesel  losing  its  edgy,  rebellious  appeal  because  of  its  success  
with  older  consumers.  This  only  made  the  growing  gap  between  the  irrelevant  
image  communicated  in  advertising  and  the  image  reflected  by  their  conservative,  
35  year  old,  BMW  driving  professionals  wearing  Diesel  Jeans.  
   
 
6
 4. StyleLab’s  exclusivity  in  distribution  vs.  D-­‐Diesel  being  widely  accessible    
 
Initially,  D-­‐Diesel  was  distributed  only  through  multi-­‐brand  teen-­‐oriented  stores  
and  department  stores.  Since  the  1990’s,  they  began  using  flagship  stores  in  New  
York,  Chicago,  London,  San  Francisco  and  Rome  as  vehicles  to  bring  the  D-­‐Diesel  
brand  identity  to  its  entirety.  D-­‐Diesel  was  also  distributed  by  mail  order  or  through  
the  Internet.  StyleLab’s  products  were  to  be  distributed  only  through  specialized  
fashion  stores,  boutiques  and  high-­‐end  department  store  such  as  Joyce  in  Hong  
Kong,  Barneys  in  New  York  as  well  as  Selfridges  and  Harrods  in  London.  
Additionally  the  customer  service  guidelines  for  StyleLab  retailers  indicated  that  the  
staff  should  look  more  mature  than  those  of  a  typical  D-­‐Diesel  store.  
 
5. StyleLab  was  positioned  at  the  lower  end  of  the  high  casual  wear  segment    
 
This  is  a  critical  factor  because  without  knowing  where  StyleLab  is  positioned,  it  is  
difficult  to  determine  a  branding  strategy.  At  the  lower  end  of  high  casual  wear,  
StyleLab’s  competitors  are  Miu  Miu,  Prada  Sports,  CP  company  and  D&G.  Diesel  
executives  believe  that  this  is  an  untapped  market  and  that  they  can  be  successful  in  
this  market.    
 
 
Solution  1    
Umbrella  Brand    
 
For  Solution  1,  we  proposed  Diesel  uses  an  umbrella  brand.  An  umbrella  brand  is  stated  as  
“both  D-­‐Diesel  and  StyleLab  becoming  sub-­‐brands  of  a  new  corporate  umbrella  brand  (e.g.  
Diesel  Planet)”.  Diesel  Planet  would  be  used  as  Diesel’s  marketing  campaign  involving  the  
use  of  a  single  brand  name  for  the  sale  of  two  or  more  related  products  underneath  a  
distinguishable  brand  name.  The  umbrella  brand  provides  a  potential  solution  for  Diesel  as  
Diesel  Planet,  which  has  structured  itself  as  a  brand  hierarchy  already  in  a  blueprint  
strategy  (Exhibit  6).  Diesel’s  management  team  has  emphasized  that  D-­‐Diesel  and  StyleLab  
have  distinct  brand  identities,  but  do  share  common  roots.  The  management  was  initially  
concerned  with  the  dilution  of  the  brand  itself,  but  by  emphasizing  the  shared  values,  we  
believe  that  Diesel  could  grow.  Both  brands  share  values  such  as  freedom,  global  outlook,  
creativity  and  thoughtfulness.  By  implementing  the  umbrella  strategy,  Diesel  will  be  able  to  
maintain  both  target  consumers  for  the  two  brands  of  D-­‐Diesel  and  StyleLab  under  one  
umbrella  brand,  Diesel  Planet.  D-­‐Diesel  targets  people  with  a  teenage-­‐spirited  lifestyle,  
while  StyleLab  is  targeting  the  trendiest  D-­‐Diesel  customers  concerned  that  the  brand  has  
become  too  mainstream  and  potentially  lost  its  underground  cachet.  By  implementing  an  
umbrella  brand,  Diesel  Planet  would  oversee  the  distribution  of  products  and  make  sure  
they  are  maintaining  separate  identities  of  their  brands.  Finally,  by  maintaining  both  of  
these  target  audiences,  Diesel  could  participate  in  continuous  growth  because  the  brand  
extensions  require  a  delicately  balanced  relationship  between  D-­‐Diesel  (teenage-­‐spirited  
consumers),  StyleLab  (lower  end  of  the  high  casual  wear  segment)  and  the  consumers.  
 
 
7
Pros:     Cons:    
• Practice  of  umbrella  branding  does   • Diesel  Planet  may  dilute  the  original  
not  disallow  a  firm  to  implement   identity  of  Diesel  itself.    
different  branding  approaches  for   • Moving  forward  if  StyleLab  is  very  
different  product  lines  (i.e.  D-­‐Diesel   successful,  it  will  be  hard  for  it  to  be  
could  have  one  branding  strategy   under  the  umbrella  of  the  Diesel  
that  is  distinguishably  different  that   brand  because  it  will  not  be  able  to  
StyleLab’s).   separate  itself  if  ever  necessary.    
• Provide  uniformity  to  certain   • The  consumer’s  experience  with  one  
product  lines  by  grouping  them   umbrella  branded  product  may  affect  
under  a  single  brand  name.   their  perception  of  the  specific  
• Easily  identifiable  and  enhance  their   branded  products  (StyleLab  or  D-­‐
marketability.   Diesel)  and  services  falling  under  the  
• Reduces  Diesel’s  marketing  costs  due   same  corporate  umbrella  as  well  as  
to  the  consumer-­‐brand  association   the  brand  itself.  
through  which  consumers  already   • If  one  umbrella  branded  product  
recognize  the  brand,  making  new   does  not  satisfy  the  consumer's  
products  from  StyleLab  more  easily   expectations,  the  other  products  sold  
identifiable  to  consumers.   under  the  same  brand  are  also  likely  
• The  success  of  one  umbrella  branded   to  suffer.  
product  (D-­‐Diesel)  may  translate  to   • Umbrella  branding  is  only  beneficial  
other  products  under  the  same   when  promoting  relatable  products  
corporate  umbrella  due  to  the   through  which  consumers  could  
positive  brand  equity.   recognize  the  brand.  

 
 
Solution  2  
Token  Endorsement  
 
For  Solution  2,  we  proposed  that  Diesel  implement  the  branding  strategy  of  token  
endorsement,  which  is  defined  as  “the  endorsement  is  mentioned  in  the  communication  in  
plain  text,  with  small  fonts  and  relatively  far  from  the  StyleLab  logo”.  Using  this  approach,  
enough  distance  will  be  created  in  the  potential  customer’s  mind  between  D-­‐Diesel  and  
StyleLab,  while  still  artfully  referencing  the  shared  common  link  and  association  between  
the  two  brands.  This  approach  of  subtle  referencing  to  the  shared  association  between  the  
two  brands  will  allow  D-­‐Diesel’s  past  customers  who  are  attracted  to  the  brand  and  its  
values  but  have  outgrown  its  style  to  more  easily  transition  and  convert  to  StyleLab.  
Specifically,  majority  of  D-­‐Diesel’s  past  customers  who  are  transitioning  out  of  the  16-­‐25  
age  group  with  medium  to  medium-­‐high  income  and  high  school/college  students  
occupation  profile  can  be  easily  directed  towards  StyleLab  as  it  targets  those  of  25-­‐34  age  
group  with  medium  high  income  and  professional  or  managerial  occupations.  Furthermore,  
as  token  endorsement  can  adequately  establish  the  shared  common  link  and  association  
between  D-­‐Diesel  and  StyleLab,  D-­‐Diesel’s  customers  who  may  be  concerned  of  D-­‐Diesel  
becoming  too  mainstream  and  losing  its  edge  can  be  directed  to  consider  a  favorable  

8
alternative  in  StyleLab  clothing.  On  the  other  hand,  by  allowing  enough  distance  between  
the  two  brands,  it  affords  StyleLab  more  freedom  and  opportunity  in  the  marketplace  to  
attract  new  customers  who  do  not  feel  related  to  Diesel’s  focus  on  denim  but  are  attracted  
to  StyleLab’s  experimentation  with  innovative  fabrics.  Finally,  the  adequate  differentiation  
in  token  endorsement  between  the  two  brands  will  also  allow  StyleLab  to  not  appear  as  
just  another  extension  within  the  D-­‐Diesel  brand,  which  Diesel  feared  would  dilute  the  
brand’s  identity.    
 
 
Pros:     Cons:    
• Token  endorsement  will  allow  for  a   • May  cause  confusion  in  the  minds  of  
clear  differentiation  between  D-­‐ potential  customers,  and  not  strong  
Diesel  and  StyleLab,  while  still   enough  to  offer  and  establish  the  
referencing  the  shared  common  link   “common  link”  reference.    
between  the  two.     • May  run  the  risk  of  deterring  D-­‐
• Will  better  appeal  to  the  past  buyers   Diesel’s  loyal  customers  into  
of  D-­‐Diesel  who  still  like  the  D-­‐Diesel   speculating  that  Diesel  is  no  longer  
brand  and  its  values  but  have   remaining  true  to  its  original  identity  
outgrown  it.   but  is  now  focusing  on  brand  growth  
• Will  better  appeal  to  D-­‐Diesel   and  merging  into  mainstream  
customers  who  are  concerned  of  D-­‐ fashion.    
Diesel’s  style  becoming  too  
mainstream  and  are  looking  for    
something  more  “exclusive  and  
innovative”.    
• Allows  StyleLab  more  room  to  
develop  its  brand  identity  and  more  
opportunity  to  grow  in  the  market.    
• Since  StyleLab’s  target  customers  are  
of  the  upper-­‐middle  and  lower-­‐upper  
social  class,  as  well  as  professionals  
and  managers,  this  approach  will  
provide  a  better  brand  positioning  
for  StyleLab  to  attract  new  customers  
within  its  target  market.    
• Place  less  emphasis  on  StyleLab  as  
another  extension  within  the  D-­‐
Diesel  brand,  thereby  not  diluting  D-­‐
Diesel’s  brand  identity.    
• Will  allow  for  a  more  focused  launch  
campaign  emphasizing  on  building  
StyleLab  brand  awareness.    
• More  reasonably  justifies  StyleLab’s  
strategy  on  pricing  and  distribution  
plan.    

9
 Solution  3  
Acknowledged  Ownership  
 
Solution  3,  acknowledged  ownership,  is  “where  StyleLab  and  Diesel  are  not  linked  visually,  
but  consumers  are  aware  of  the  link  between  brands”.  The  reasoning  behind  using  
acknowledged  ownership  is  that  StyleLab  would  be  free  to  create  their  own  identity,  
without  being  immediately  associated  with  the  Diesel  line.  StyleLab’s  goal  is  to  be  
perceived  at  the  lower  end  of  the  “high  casual  wear”  segment,  along  with  brands  like  Miu  
Miu,  Prada  Sport  and  D&G.  Acknowledged  ownership  would  allow  StyleLab  to  create  their  
own  identity  and  status  appeal  without  being  immediately  associated  with  D-­‐Diesel,  which  
is  a  mid-­‐level  brand.  With  this  in  mind,  StyleLab  has  chosen  to  make  the  line  available  in  
select  fashion  stores  that  are  known  for  carrying  luxury  brands,  such  as  Barney’s  New  York,  
Joyce  in  Hong  Kong,  and  Harrods  in  London.  However,  D-­‐Diesel  does  not  have  the  
immediate  association  of  being  a  luxury  brand  and  is  available  in  retail  stores  that  do  not  
specifically  cater  to  a  “high  casual  wear”  market  segment.  Because  of  this,  we  believe  that  
StyleLab  could  benefit  from  the  distance  acknowledged  ownership  would  allow  them,  
while  also  still  having  the  ability  to  piggyback  off  of  the  established  Diesel  name,  if  needed.  
Although,  due  to  this  distance  created,  this  approach  runs  the  risk  of  consumers  being  
unaware  of  the  link  between  StyleLab,  D-­‐Diesel  and  Diesel  all  together.  For  example,  
Toyota’s  Lexus  uses  acknowledged  ownership  approach.  Lexus  is  a  part  of  Toyota’s  luxury  
vehicle  line.  However,  when  advertising  Lexus,  Toyota  allows  Lexus  to  stand  on  its  own  and  
choses  to  not  make  the  link  obvious.  Some  consumers  find  the  relationship  between  Toyota  
and  Lexus  to  be  common  knowledge,  however  there  are  some  consumers  who  do  not  know  
of  this  link  at  all.  If  this  happens  with  StyleLab,  the  ability  to  gain  consumers  who  have  
outgrown  D-­‐Diesel  could  be  lost.  To  circumvent  this  risk,  StyleLab  would  need  to  ensure  
that  the  common  roots  with  D-­‐Diesel  remain  somewhat  clear.  Those  shared  common  roots  
are  freedom,  global  outlook,  creativity  and  thoughtfulness.  These  commonalities  are  subtle  
enough  that  StyleLab  would  continue  with  the  freedom  of  establishing  its  own  brand  
identity,  but  the  look  and  feel  of  the  company  would  remain  similar  to  D-­‐Diesel  in  a  more  
subtle  way.  Keeping  this  commonality  is  important  to  Diesel,  and  in  order  for  StyleLab  to  
take  advantage  of  the  being  a  part  of  an  already  established,  successful  company,  they  need  
to  ensure  that  this  link  is  not  lost.    
 
Pros:   Cons:    
• Due  to  the  loose  affiliation  with   • Using  the  acknowledged  ownership  
Diesel,  StyleLab  would  be  able  to   approach  risks  losing  the  association  
attract  new  customers  who  may  not   with  D-­‐Diesel  all  together  in  the  
identify  with  Diesel  specifically,  but   minds  of  consumers.  Losing  this  link  
like  the  StyleLab  brand  and  designs.     between  brands  may  prevent  
• StyleLab  will  have  some  freedom  to   StyleLab  from  retaining  the  core  
grow  independently  in  the  future  and   identity  with  Diesel,  which  is  
create  their  own  identity  as  the   something  StyleLab  wants  to  
brand  gains  traction  in  the  target   maintain.      
market  segment.     • The  shared  common  root  with  D-­‐
• Acknowledged  ownership  would  still   Diesel  is  not  clearly  outlined,  thus  

10
 appeal  to  customers  who  like  the  D-­‐ can  be  easily  missed  by  customers  
Diesel  brand,  but  feel  they  have   who  are  not  informed  of  the  common  
outgrown  the  style.  StyleLab  could   root  between  brands.  This  creates  
position  itself  as  the  natural   disassociation  with  consumers  and  is  
maturation  of  D-­‐Diesel  and  gain   a  disadvantage  for  StyleLab  to  reach  
those  customers.   customers  of  the  D-­‐Diesel  brand.  
• StyleLab  is  a  luxury  brand  and  this   • Acknowledged  ownership  disallows  
approach  allows  them  to  present   StyleLab  the  ability  to  take  advantage  
themselves  in  that  way  without  the   of  D-­‐Diesel’s  successes  due  to  a  less  
immediate  association  to  a  casual   obvious  association  with  the  Diesel  
line.   brand.    
• D-­‐Diesel  is  already  an  established  
brand  name  within  the  fashion    
industry.  Introducing  StyleLab  with  
only  acknowledged  ownership  from  
Diesel  would  allow  StyleLab  to  come  
up  as  its  own  brand,  rather  than  
being  diluted  by  the  D-­‐Diesel  brand  
name  within  the  market.  
 
 
Recommendation  
 
After  reviewing  the  three  possible  solutions,  we  recommend  Diesel  uses  Solution  2  and  
implement  a  token  endorsement  as  StyleLab’s  branding  strategy.  This  solution  is  
recommended  because  we  believe  it  most  adequately  addresses  Renzo  Rosso  and  his  
team’s  concerns  related  to  StyleLab  branding.  By  having  the  endorsement  brand,  Diesel  
being  mentioned  in  the  communication  in  plain  text,  with  small  fonts  that’s  relatively  far  
from  the  StyleLab  logo,  enough  distance  can  be  established  between  the  two  brands  for  
clear  differentiation  while  still  retaining  a  common  link  and  association  with  Diesel’s  core  
identity.  The  clearly  established  differentiation  between  the  two  is  also  beneficial  in  that  
StyleLab  would  not  be  perceived  as  another  horizontal  extension  of  D-­‐Diesel,  which  runs  
the  risk  of  diluting  Diesel’s  brand  identity.  Not  only  so,  by  establishing  enough  distance  
between  the  two  brands,  it  will  allow  StyleLab’s  branding  team  to  develop  advertising  
campaigns  that  are  exclusively  focused  on  building  the  image  of  the  brand,  which  is  a  
critical  part  of  StyleLab’s  success.    
 
Furthermore,  the  token  endorsement  branding  strategy  will  afford  enough  distance  
between  the  two  brands  in  the  minds  of  the  consumers  while  providing  sufficient  
referencing  to  their  shared  common  link  and  association.  Such  balance  between  the  two  
brands  is  important  and  beneficial  because  it  will  allow  D-­‐Diesel’s  past  customers  who  are  
attracted  to  the  brand  and  its  values  but  have  outgrown  its  style  to  easily  transition  to  and  
favor  StyleLab.  In  this  way,  Diesel  will  be  able  to  retain  and  not  lose  its  past  D-­‐Diesel  
customers  within  its  own  market  via  StyleLab.    
 

11
As  StyleLab  will  be  positioned  at  the  lower  end  of  the  high  casual  wear  segment,  D-­‐Diesel’s  
past  customers  who  have  transitioned  to  a  more  sophisticated  and  high  end  style  but  are  
still  looking  for  similar  brand  identity  as  D-­‐Diesel  will  be  able  to  continue  buying  Diesel  
products  via  StyleLab  in  the  high  casual  wear  segment.  Specifically,  as  shown  in  Exhibit  11,  
D-­‐Diesel’s  past  customers  who  have  transitioned  out  from  the  16-­‐24  age  group  into  the  25-­‐
34  age  group,  as  well  as  from  high  school/college  students/young  professionals  to  
professionals/managers,  will  likely  find  themselves  purchasing  products  in  the  lower  
end/upper  end  of  the  high  casual  wear  segment.  Therefore,  by  skillfully  referencing  the  
shared  common  link  between  the  two  brands,  it  cleverly  directs  D-­‐Diesel’s  past  loyal  
customers  to  continue  supporting  the  Diesel  way  through  StyleLab.    
 
In  addition  to  being  able  to  retain  the  more  loyal  segment  of  D-­‐Diesel’s  past  customers  
through  StyleLab,  by  appropriately  differentiating  the  two  brands  using  token  
endorsement  brand  strategy,  it  offers  the  segment  of  D-­‐Diesel’s  customers  who  are  
concerned  and  wary  of  the  brand  becoming  too  mainstream  and  losing  its  edge  a  favorable  
alternative  that  shares  the  same  core  identity  as  D-­‐Diesel.    
 
For  the  new  brand’s  distribution  plan,  StyleLab  were  to  be  distributed  exclusively  through  
specialized  fashion  stores,  boutiques  and  high-­‐end  department  stores;  which  is  in  contrast  
to  D-­‐Diesel’s  widely  accessible  distribution  plan  ranging  from  flagship  stores,  department  
stores  to  mail  order  or  the  internet.  Correspondingly,  StyleLab  aims  to  reach  target  
consumers  in  the  medium-­‐high  income  level.  With  both  factors  in  view,  utilizing  token  
endorsement  branding  to  thus  establish  a  clear  differentiation  and  distance  between  the  
two  brands  makes  more  sense  in  the  customer's’  mind,  as  well  as  better  justifies  StyleLab’s  
decision  on  pricing.  Specifically,  because  StyleLab  will  be  an  up-­‐extension  brand,  its  style  
and  quality  does  not  need  to  resonate  that  of  D-­‐Diesel.  Rather,  StyleLab  should  act  as  a  
representative  of  Diesel’s  core  brand  identity  within  the  high-­‐end  market.  With  all  the  
above  considerations  in  mind,  we  believe  StyleLab  could  more  effectively  enter  into  the  
new  market  of  high  casual  wear  and  further  create  an  aura  of  prestige  and  fashion  around  
the  D-­‐Diesel  brand  through  token  endorsement  branding  strategy.    
 
In  conclusion,  token  endorsement  affords  enough  distance  between  the  two  brands  in  the  
customer’s  mind  to  offer  more  freedom  and  opportunity  for  StyleLab  to  develop  and  grow  
in  its  high  casual  wear  marketplace,  whose  focus  is  on  innovative  experiment  rather  than  
just  denim  as  D-­‐Diesel  is.      
 

12
 Appendix  
 
Exhibit  6  –  Diesel  Brand  Portfolio  
 

 
 
 
 
 
 
 
 
 
 
 
 
 
13
Exhibit  11  –  Target  Customers  of  D-­‐Diesel  and  StyleLab  Brands  
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

14
Exhibit  15  –  Three  Branding  Strategies  for  the  StyleLab  Brand  and  their  Variants    
 
 

 
 

15