Diesel for Successful Living PDF

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Diesel for Successful Living...

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Diesel for Successful Living: Branding Strategies for an Up-Market Line Extension in the Fashion Industry Introduction Need of a new branding strategy for the first StyleLab (i.e. new upscale product line of Diesel SpA) catwalk fashion show  cult Diesel jeans and controversial advertising  Diesel nr. 2 in jeans industry in Europe  StyleLab should exploit opportunities in emerging luxury segment of casual wear market and counteract unprecedented diffusion of main denim D-Diesel Line  Experiment with new cuts and fabrics Options of strategy: 1. Sub-branding (DieselSytleLab) 2. Endorsement (StyleLab by Diesel) 3. Independence (StyleLab)

Company Background Renzo Rosso: - Son of farming parents - Studied textiles and manufacturing - Started working for pioneer of Italian casual wear - Goldschmied and Rosso founded Diesel in 1978 (word pronounced same in every language)  single macro culture with one language: English - 1985: winner of multiple advertising industry awards & fashion brand of the year - Office located in tiny village  1000 employees, products in more than 50 countries through 10000 independent retailers, 40 company owned stores The Diesel Way Love of humor, creativity, and irreverence towards established rules 90% of employees personally selected by Renzo Rosso Media Advertising Before 1991: - Focused energy on launching new products - No consistent brand logo Starting in 1991: - Global branding campaign  Products make better living - Diesel for successful living campaign by exaggerating promise of success - Everything a joke - Style of campaigns: o Artistic o Colorful o Sexy o Complex o Radical irony o Counterpart to established norm o Confusing o Highly exclusive o Made fun of own advertising o Spits in eye of good taste with inappropriate messages o Philosophical - Main target: wealthy teenagers that stand out from the crowd Non-Media Communication 1. Product placement among actors, musicians and celebrities 2. Internet presence 3. Hotel 4. Video games

Diesel Brand Portfolio Main product lines: 1. D-Diesel  core business a. Denim b. Bottom c. Tops d. Licenses i. Diesel shades for eyewear ii. Parts for luggage and leather goods iii. Fragrances iv. Footwear v. Underwear vi. Time frame vii. Writing tools e. Only 30% of collection f. High quality and durability g. Diesel for successful living 2. Diesel Kids  targeted at kids who didn’t want to be treated like kids a. Gutsy clothing with bright colors b. Modern 3. 55DSL  strong and independent sports wear inspired by adventure and freedom a. Surprisingly fresh color combinations b. Innovative and contemporary prints Extending Up-Market Objectives of StyleLab: - Market opportunity of increasing market segmentation  customers willing to spend money on casual wear - Counterbalance diffusion of D-Diesel denim products - Prevent commoditization of brand - Prevent dilution of identity through multiple horizontal extensions of D-Diesel - Help manage most important asset: the designer  StyleLab as laboratory for designers Concern: - Suffer from success of StyleLab - Too high diffusion could erode exclusive and unconventional image Main reasons for extending: 1. Enter new and attractive market of high casual wear 2. Create an aura of prestige and fashion around D-Diesel brand 3. Give Diesel designers opportunity to experiment with new fabrics and cuts

StyleLab vs. D-Diesel Upward brand extension. In order to achieve objectives for StyleLab both lines had to be clearly differentiated while retaining common link. Product 1. More innovative 2. More exclusive 3. More refined 4. More expensive 5. Less of a street look Target Customer 1. No precise definition of target market 2. More about lifestyle than age 3. Target: a. Past buyers of D-Diesel b. People who are looking for cutting-edge style 4. More design conscious Brand Identity 1. Both share values of freedom, global outlook, creativity, thoughtfulness 2. Stylelab: sophistication and mystery + focus on innovative fabrics 3. D-Diesel: irony and irreverence + focus on denim Positioning and Pricing StyleLab - Positioned at lower end of high casual wear - Pants = 125€ - Jacket = 335€

D-Diesel - Positioned at upper end of denim and leisure clothes - Blue jeans = 67€ - Jacket = 72€...