Diesel Swot Analysis

Topics: Advertising, Branding, Brand Pages: 9 (3134 words) Published: April 24, 2012
Q1. From your knowledge of the case study provided discuss the key benefits of strong branding for both the Diesel Brand and for Diesel consumers. Benefits for Diesel:
Brand extension: Renzo Russo’s creation of a unique and desirable jeans label back in 1978, combined with the forces of a textile manufacturers, lead to birth of the Diesel Jeans and Workwear brand. Russo’s sole takeover of the company in 1985 lead to the beginning of the Diesel brand extension. The solid consumer perception of the brand ethics and quality product offering back then set an immediate competitive advantage around the introduction of the additional items added to the clothing range. The Diesel brand portrays a lifestyle, something for the consumer to buy into rather than just buying a piece of clothing and this is reflected in one of their tag lines to ‘make people feel different and provocative’(Ennic Gilli Fort 2005). They themselves are passionate about the products they create and their commitment to produce quality, comfortable and trendy clothing have undoubtedly helped to build the consumers trust and belief in them and what they stand for. These brand qualities are carried right through their range and the consistent brand promises they emit only add to the success of selling their products. Diesel continues to diversify their collection and since 2000 have launched a premium sunglasses range, popular fragrances, wrist watches and even a hotel chain! The move to extend the brand outside a clothing range has allowed them to widen their target market and acquire customers from segments they may not have with just as a clothing brand. The product extension can also increase the retention of their current customer base by offering even more desirable consumables and in turn build on the consumer’s emotional feeling to want the products. The Brand name itself is carried forward to the new product categories and this can potentially give an immediate competitive advantage in a sometimes overcrowded marketplace. Another benefit for Diesel is the trust created between the customer and the brand through quality consistently in their clothing, the customer knows what to expect from their purchase. This trust can be seen as an emotional attachment which in turn can strengthen consumer loyalty to Diesel. Pricing:

Premium pricing can give the perception that Diesel is a more of an exclusive brand but also, the brand success can allow their products to fall within the premium price range thus only increasing the bottom line through the sales of high margin products. The result of selling high margin products which ultimately leads to a greater cash flow, and this allow Diesel to incorporate above the line marketing campaigns in to their marketing strategy. A healthy budget can be set aside for these mass campaigns only strengthening the brand further. People:

I think undoubtedly the dedication, passion and creativity of Diesel’s workforce shows through in their brand and also makes them a desirable brand to be employed by.

Diesel flagship stores and selective distribution of their products are another benefit for Diesel. The stores embody the core image of the brand and the marketing within these stores is to focus on channelling this image to the customer on entering the store. Promotion:

Diesels strong brand which exudes passion and energy is clearly shown in their marketing strategy. Using a combination of ‘above the line’ and ‘below the line’ marketing techniques, their promotions are always aimed at engaging the customer and creating a two way dialogue. Both methods are beneficial to the brand but in different ways. Through Diesels above the line campaigns, they can reach the mass market and attempt to push the lifestyle aspect they really believe in. This can be seen in their advertising campaigns consistently, where the images used can be thought provoking, sometimes bold and occasionally controversial, the most...

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