1.Has Diesel remained true to its original identity despite its growth? If yes how did it do? If no what has changed?
The Diesel brand was born more than 25 years ago and is today an innovative international company.
Diesel experienced a substantial growth since 1985, when Renzo Rosso based his decision concerning up market on gut feeling.
Therefore he succeeded making Diesel a major fashionbrand.
But did Diesel keep its original identity?
In order to check if Diesel remained true despite its growth we will take in consideration all the aspects of the mix marketing.
Renzo Rosso followed his instinct and did not believe on market research only. He focused on a segment of prospect in high casual wear even if it was unsure. The Diesel brand became very successful thanksto his approach.
Originality and creativity are two main values which qualify the brand identity.
In this way, Diesel has always done durable and high quality product.
However, it tends to loose some of its original identity.
Indeed, the brand started to develop its collection to accessories, kids, underwear, fragrances, shades etc. But this range extension conducted to a loss of originalidentity.
Despite Diesel designers have long time to be inspired and to create collections and keep thier quality level, they were losing creativity. The brand did not look single anymore and started to become classic since everyone looked the same.
To face this significant issue, StyleLab brand was created and enabled Diesel to prevent any commoditization of the brand and to get the originalidentity they had at the beginning.
Concerning communication, Diesel continued shocking, confusing, intriguing through all advertising campaigns.
Whatever the collection was, the brand was always communicated the same.
In every advertisement, we recognized these characteristics, originality and creativity which are the Diesel values.
Diesel products were distributedin single-brand stores in large cities all over the world and the brand continues to spread its stores.
Diesel has kept the same distribution policy.
The high casual wear market was unsure. Rosso knew that there will be a long way to convince consumers to spend $150 on a pair of casual pants.
As price is linked to the product, communication and distribution it would be complicated tocut it.
Thanks to all these aspects, Diesel succeeded to catch a wealthy teenager’s target who can afford to spend this amount on a pair of casual pants.
To sum up, despite its growth, Diesel started to loose its values and its original identity but thanks to the new StyleLab launching, the communication, distribution and price which kept the same policy, it found it out.
Therefore we cansay that despite its growth Diesel succeeded to remain true to its original identity.
2. On what criteria would you judge the success of the new line: StyleLab’s awareness, image, or revenues? Diesel’s awareness, image, or revenues?
First of all StyleLab has been created in response of a problem of image for Diesel for its customers. Moreover some old clients harm the image and need anotherbrand. Thereof we cannot judge the success of StyleLab without carrying on Diesel evolution. The profitability of these two brands points out the success or not of the operation. Indeed there is a risk that StyleLab “takes” Diesel’s customers, and so that Diesel’s revenues become negative. It can be considered as normal if Diesel’s sells fall a bit because of StyleLab success, but these two brandsmust not be competitors but complementary. When Diesel’s target is young people between 16 and 25 years, StyleLab focus on 25-34 years old. Moreover Diesel’s prices do not represent more than 60% of StyleLab’s.
But on the other hand the two brands are high positioned and we cannot judge of the long term success of StyleLab’s product only with the revenues of the firm. The images of these...
Lire le document complet
Veuillez vous inscrire pour avoir accès au document.