Name: Group 5

Syeda Maryam Zehra

Abdullah Mughal

Maneeha Qasim

Abuzar Ali

Course Code: BUSN 484 - A

Submission Date: 27th April 2023

Diesel for successful living

Case Study
 Introduction
The Italian fashion company Diesel was established in 1978. It has come to be identified with a
young, fashion-conscious aesthetic that is rebellious, edgy, and unorthodox. Through the use of
creative marketing and branding techniques, the brand has been successful in developing a
distinctive personality and setting itself apart from its rivals. Diesel has used this tactic, among
others, by launching a new line extension named Diesel for Successful Living.

Problem Statement
how to effectively introduce an upscale range expansion for the clothing company Diesel without
compromising the brand's identity and essential principles. The difficulty is in determining the
target market, developing a branding strategy, and coming up with a communication strategy that
would successfully sell the new line while upholding the integrity and attractiveness of the
existing brand. The case study also examines the competitive environment and market trends in
the fashion sector, as well as the possible advantages and disadvantages of such a line extension.

SWOT analysis
Strengths:

 An established fashion sector brand Strong market position and a devoted clientele
 Unique and cutting-edge designs that distinguish the brand
 A vast distribution network that is present in several different nations Manufacturing of
denim knowledge

Weaknesses:

 The high price point in comparison to market rivals

 little expertise in the upscale fashion market
 fewer resources than more substantial fashion firms

Opportunities:

 Increasing desire for designer clothing items

 Possibility of growth into new markets
 Possibilities for cooperation with more luxury fashion labels increasing attention on
ethical and sustainable fashion methods

Threats:

 Competition from well-known luxury fashion labels

 Consumer spending is impacted by economic downturns.
 Consumer preferences and fashion trends change quickly.
  Negative effects of unethical fashion industry practice on the brand

Recommendation and Opinion

Recommendation:

• Diversify their product offerings to appeal to a broader customer base.

• Invest in sustainable and ethical fashion practices to appeal to socially conscious consumers.

• Expand their distribution network to reach new markets.

• Focus on innovative designs to keep pace with changing fashion trends.

Opinion:

If Diesel wants to introduce a new product line using a separate name and logo, there are several
branding strategies that they could consider. One potential strategy is independence, which
involves creating a new brand identity that is completely separate from the Diesel brand. This
would give the new product line the freedom to establish its own unique identity and build its
own consumer base. However, this could also make it more difficult for the new product line to
gain recognition and credibility in a competitive market.

Another potential strategy is endorsement, which involves using both the Diesel brand and the
new product line together, but giving more prominence to the new line. This approach could help
to create a unique identity for the new line while still leveraging the strong brand equity and
consumer loyalty of the Diesel brand. This would be particularly effective if the new product line
is complementary to the existing Diesel products, such as accessories or a lifestyle line.

Alternatively, Diesel could consider a sub-branding strategy, where they create a new product
line closely linked to the Diesel brand, but with a unique identity. This would allow the new
product line to leverage the brand equity and consumer loyalty of the Diesel brand, while still
having its own unique identity. However, this strategy could also limit the new product line's
ability to establish its own identity and differentiate itself from the Diesel brand.

In addition to the branding strategy, other factors that Diesel should consider while introducing
the StyleLab product line include the target audience, market trends, and competition. It is
important to conduct thorough market research and analysis to ensure that the new product line
meets the needs and preferences of its target audience and stands out in a crowded market. Diesel
should also consider the pricing strategy, product design, marketing, and distribution channels to
ensure a successful launch.

Regarding the StyleLab logo, Diesel should aim to create a unique and memorable logo that is
easily recognizable and communicates the values and identity of the new product line. The logo
should also be versatile enough to work across various marketing channels, such as social media,
print ads, and packaging.
In summary, Diesel has several branding strategies to consider while introducing the StyleLab
product line. The chosen strategy will depend on the specific goals, target audience, and
competitive landscape. Along with the branding strategy, Diesel should also consider other
factors such as market trends, competition, pricing, product design, marketing, and distribution
channels to ensure a successful launch.

Has Diesel remained true to its original identity despite its growth? If yes, how did it do so?
If no, what has changed?

Diesel has always been known for its edgy, trendy and rebellious identity, which oozes to a
younger, more casual audience. This identity has been reflected in the company's advertising
campaigns, store design, and clothing designs. Despite its growth, Diesel has remained true to
this identity by continuing to produce clothing that is edgy and unique. The company has also
continued to use provocative advertising campaigns that challenge the traditional norms and push
the boundaries of risk.

However, Diesel has also expanded its product offerings and targeted new segments of the
market. The company has launched several sub-brands and line extensions, such as D-Diesel, D-
Diesel Licenses and Diesel Kid, to appeal to different consumer segments. In addition, Diesel
has launched several collaborations with other brands and designers,

On what criteria would you judge the success of the new line? StyleLab's awareness, image,
or revenues? Diesel's awareness, image, or revenues?

The criteria for judging the success of the new line; StyleLab’s success would be its own
awareness and image in correspondence to that of Diesel itself. As it is evident from what we
have gone through in the case thus far that, Diesel has established an image of being trendy,
rebellious and durable while the intended image of StyleLab is luxury casual wear.

The main judging criteria for the success of the new line is that how well StyleLab will be able to
fill in the gap between the irreverent image communicated by the advertising and the image
reflected by the somewhat conservative, 35-year old, BMW-driving professionals wearing Diesel
jeans and make up its image for being a more luxurious casual counterpart for Diesel while
taking advantage of the Parent brands image of being trendy and durable.

How closely should D-Diesel and StyleLab be associated in the mind of the consumer?

Diesel and StyleLab are currently debating the nature of the relationship between the two brands
and considering three main branding strategies: 'sub-branding', 'endorsement', and
'independence'. The final decision on the branding strategy will determine how closely associated
D-Diesel and StyleLab should be in the mind of the consumer.

If Diesel chooses a sub-branding strategy, it would ensure a very close link between the two
brands and a prominent position for the Diesel brand name in the new line. This would mean that
consumers would likely associate StyleLab with Diesel, which could be beneficial if Diesel's
brand image is strong and well-regarded. However, it could also limit StyleLab's ability to
establish its own unique identity.

On the other hand, if Diesel chooses an independence strategy, it would offer maximum
separation between the two brands. This could allow StyleLab to establish its own unique
identity without being overshadowed by Diesel's brand image. However, this could also make it
more difficult for StyleLab to gain recognition and credibility in a highly competitive market.

An endorsement strategy falls somewhere in between sub-branding and independence. It would

involve using both brands together but giving more prominence to one over the other. This could
help to leverage Diesel's existing brand equity while still allowing StyleLab to establish its own
identity.

What branding strategy should they choose for StyleLab? What should be the StyleLab
LOGO

If Diesel for Successful Living aims to leverage the strong brand equity of the Diesel brand to
create a new product line, sub-branding could be an effective strategy. By using sub-branding,
the new line would be closely linked with the Diesel brand, which could be beneficial if Diesel's
brand image is strong and well-regarded. The sub-branding strategy would also allow the new
line to leverage the brand equity and consumer loyalty of the Diesel brand, potentially making it
easier to gain recognition and market share.

As for the StyleLab logo, it should be unique, memorable, and easily recognizable. The logo
should communicate the values and identity of the new product line and be versatile enough to
work across various marketing channels. The logo could incorporate elements that represent the
unique identity of StyleLab, such as a specific color scheme or imagery. It should also be
distinctive enough to differentiate StyleLab from other brands in the market.

On what basis should the branding decision be made? Would market research be useful?
Would it help to talk to consumers?

The target demographic, the competitors, the brand identity, the price strategy, and the marketing
channels should all be taken into consideration when making a choice on branding.
Understanding customer behavior, preferences, and market trends can be assisted by market
research. Speaking with customers can provide useful information about how they view the
business and how they behave while making purchases. In order to make wise branding
decisions, it is therefore beneficial to consider both market research and consumer feedback.

Can Diesel continue to remain at the cutting edge of fashion? How long will the brand last?
What can they do now?

The target demographic, the competitors, the brand identity, the price strategy, and the marketing
channels should all be taken into consideration when making a choice on branding.
Understanding customer behavior, preferences, and market trends can be assisted by market
research. Speaking with customers can provide useful information about how they view the
business and how they behave while making purchases. In order to make wise branding
decisions, it is therefore beneficial to consider both market research and consumer feedback.

Yes, If they continue to innovate and adapt to stay ahead of the competition. By identifying new
market opportunities and staying true to their brand identity, Diesel can continue to remain at the
cutting edge of fashion. Only time will tell how long the brand will last, but with its history of
innovation and adaptation, Diesel is poised for continued success. Finally, what they can do now
is to focus on building a strong brand identity and creating unique products that appeal to their
target audience.

Conclusion
A sub-branding strategy for Diesel's new upscale product line has both advantages and
disadvantages. One advantage is that the new product line can leverage the brand equity and
consumer loyalty of the Diesel brand while still having its own unique identity. This could help
the new product line gain recognition and credibility in a competitive market. Another advantage
is that the sub-branding strategy allows the new product line to differentiate itself from the
existing Diesel products while still maintaining some association with the brand.

However, a sub-branding strategy could also limit the new product line's ability to establish its
own identity and may confuse customers about the relationship between the new product line and
the existing Diesel products. It is also important to note that if the new product line does not live
up to the standards set by the Diesel brand, it could negatively impact the overall brand image
and credibility. Additionally, if the new product line is not priced competitively, it may fail to
appeal to the target market and hurt the sales of both the new product line and the existing Diesel
products.