Posted: February 15th, 2022

UNDERSTANDING THE DIESEL COMPANY

In today’s competitive business environment, every company is vying for a small slice of the pie. Therefore, most companies have established tactics that ensure that they remain valuable and thrive in the market. In this regard, Diesel is no different from the rest. 4Ps marketing plan is devised to position itself in the highly competitive clothes and apparel industry. The Diesel Company’s marketing strategy includes the brand and the integrated marketing framework. Including Product, Place, Promotion, and Price, the 4Ps are covered. Many more marketing methods are employed, such as innovation, price strategy, and strategic planning. These business approaches are based on the Diesel Company marketing strategy and help the brand prosper. The Diesel marketing strategy aids the brand or company gain a competitive edge and achieving its long-term goals. Even though this firm offers a wide variety of apparel items, this marketing mix focuses mainly on Diesel jeans and how the business markets the product to maintain competitiveness and improve business continuity.

Company overview

In addition to jeans, apparel, and other accessories, Diesel also sells various other items, such as watches, shoes, and jewelry. Breganze, Italy’s Veneto region, is home to the company’s headquarters. Renzo Rosso founded the Diesel brand in 1978. It is a name that’s easy to recall, and he talks the same way over the world. The fact that Diesel was an alternate fuel at the time lent credence to this fashion statement. From denim pioneer to premium casual wear brand, Diesel has grown into a genuine alternative to the premium brands market over the past decade. Passion, individualism, and self-expression are core values of Diesel. Diesel is a forward-thinking company that is always looking for new ways to improve its offerings. In each season, it generates about 3000 new goods. Authentic denim is at the heart of the company’s mission. A QR code is heat-printed onto the jeans, as well as any QR scanner on a mobile phone may be used to verify the denim. As part of Diesel’s D: Code loyalty program, customers can receive customized anniversary and birthday gifts, sneak peeks at upcoming sales, first looks at upcoming collections, and invitations to exclusive international parties. Using the four essential marketing mixes as a framework, this study examines the company’s success.

How Diesel manages the marketing mix for the jeans

Product positioning

Product is the first component of the marketing mix and Diesel Company’s marketing strategy. Diesel is a well-known apparel company with a presence all over the world. The brand’s marketing mix includes a wide variety of products for men, females, and children. Apparel, cosmetics, and footwear are all a part of the company’s line of products. Diesel Black Gold and Diesel are the two brands it uses. Diesel also produces a Diesel Kid range of children’s clothes. L’Oreal owns and markets the brand’s fragrance line. Diesel jeans are among the company’s offerings. Diesel jeans come with a QR code that customers may scan to verify that the pants are authentic and avoid counterfeits from competitors. Diesel’s best-known product line is jeans. They are available in various designs, colors, and washes for both sexes. Jeans are a specific sort of denim pants at this company. There are several product groups for jeans and various types of trousers at Diesel because of their prominence.

In addition, the company employs product differentiation tactics to ensure that its jeans brand is of the highest quality and is always distinct from its competitors. There are a lot of exciting designs and raw looks in Diesel’s jeans. Every day, the products innovation team is hard at work coming up with fresh designs that will stand out among the sea of clothing options now available. They attempt to sell a way of life by making a fashion statement. Diesel’s jeans can be identified by a few distinct characteristics from other brands. It has a D-logo waist button and a D-logo back patch; the fifth pocket for a watch or coin; and “Diesel” embossed pocket rivets, as well as “Diesel” embossed pocket buttons. Denim’s white weft thread core is exposed beneath the dyed surface due to abrasion during wear, causing the fabric’s color to fade. This gives worn denim jeans a one-of-a-kind appearance. For example, a simple stone-washing method can achieve a worn-in look and more complete treatments for Blue Eye-cons jeans. As a result, the business stands out in the marketplace and the industry.

Pricing positioning 

The pricing strategy for Diesel’s jeans brand is the second component of the company’s marketing strategy and marketing mix. Diesel also takes into account the cost of its products. In order to indicate the quality of a product at the time of sale, a corporation might use the price of its product. In a well-executed marketing campaign, pricing confirms the quality of the product or service being offered, which in turn draws in the intended audience. There must be a price for Diesel’s jeans that reflects their quality and value. Diesel is a luxury brand aimed at the upper crust of society in highly populated urban areas to target market and pricing. Brand culture and the Diesel way of life have been established, and the company charges a premium for some of its high-quality, unique items. The same category of Diesel items cannot be compared to another because there are so many variations. From $100 to $2000 is the price range for Diesel jeans. The high cost of the wristwatch and shoes is reflected in the prices. Customers are forced to pay a hefty premium for the brand’s name recognition because of the company’s uncompetitive pricing approach.

3.9 billion Euros in revenue was reported by Diesel after the fiscal year 2021. Known for its elegant and rare merchandise, it is a comprehensive lifestyle brand with many products. The brand is aimed towards upper and upper-middle-class members of society who live in urban areas and are concerned with fashion, image, and brand awareness. They seek to associate their names with a well-known brand to boost their social standing in society. Diesel is a high-end brand with a high-end price structure for all of its items, which reflects this. It is directed towards the wealthy and powerful classes, the least concerned with financial concerns. Diesel prides itself on offering distinctive and high-quality products, and it claims that none of its products can be found in any other collection, making all of its products unique. It is also unafraid of its competitors, and as a result, it pays little heed to the product pricing established by rival brands, which is another advantage. Diesel has been fortunate in that it has developed a pricing strategy that has enabled it to generate more additional revenue and get greater recognition among consumers.

Place positioning

For example, Diesel Company uses its jeans brand’s place or location strategy as a marketing tool to gain a sizable slice of the market share. Diesel oversees the operations of roughly 20 companies located in Europe, America, and Asia under its direction. It can be found in over 80 different nations. There are about 5,000 points and 500 different subcategories—diesel brand stores exist in Hyderabad, Mangaluru, Mumbai, and Bengaluru. Additionally, Diesel stores can be found throughout the country’s major malls. Italy’s Breganze, where Diesel’s headquarters are, is a global fashion company. It began operations in Molvena, Italy, and has since successfully expanded to other countries. We now have products on the shelves of New York, Rome, London, and Paris, and Barcelona. StyleLabs is the name of Diesel’s flagship store. Only a few outsourced manufacturers in Italy produce the company’s denim items.

Diesel has now become a brand that runs its operations through five thousand selling locations located in eighty countries, with the assistance of twenty subsidiary firms. Diesel is a global brand with a presence in more than 100 countries. The outlets are strategically placed in strategic, central, and desirable areas such as large malls to attract the most significant number of customers. Diesel started an online fashion retail site in 1995, showcasing photos from each of its collections. The site was a huge success. The first commodities to be purchased online were in Sweden and Finland in 1997. The company later created an e-commerce platform that allowed customers to order products to their homes to expand its consumer base. Diesel publishes graphic catalogs for each of its retail lines. In addition to the Diesel Online Store, the company offers its products through additional e-commerce portals.

Promotion and advertisement positioning

Thanks to its fantastic advertising campaigns, which featured strange imagery, Diesel has made waves in the industry. Societal consciousness, humorous plays on global crises, and anti-establishment slogans have all been utilized in the highly successful ads to significant effect (Rigoni, 2017). Each of these ground-breaking commercials was created in partnership with renowned photographers. Its commercials are full of provocative, sarcasm, and sex appeal, and they elicit reactions such as incredulity, laughter, astonishment, and, of course, recognition from the audience. Its most well-known advertising campaigns are Be Stupid and Go with the smooth flow, and its most well-known tagline is For Successful Living. Because the brand realized the tremendous impact of celebrity endorsements, it signed on Winnie Harlow to appear in different advertisements for the company in 2015, respectively. Fashion publications, billboards, and social networking sites are used to display advertisements.

D: Code, Diesel’s customer loyalty program, provides D: Code members unique benefits. Gifts for birthdays and anniversaries are personalized, invitations to international parties, early access to new collections, and behind-the-scenes peek. As of 1992, the company sponsored the World Superbike Racing Circuit as title sponsor; more recently, the company sponsored the music contest Diesel-U-Music in 2007. Since 1997, Diesel has been awarded The Grand Prix Award at the Cannes Lions International Advertising Festival. The corporation established the Only the Brave Foundation in 2008 as a non-profit entity to carry out its CSR operations.

It aims to eliminate social inequalities. Diesel has won numerous honors throughout the years, including Bocconi Institute’s Best Italian Company of the Year in 1996 and Wall Street Journal’s Label of the Moment in 1998. Diesel’s Creative Team has worked with many photographers and art directors, from up-and-comers to established names, to produce ground-breaking commercials. Ads for Diesel’s products have been the subject of astonishment, hilarity, and a slew of accolades. Diesel’s commercials were rife with wit, sarcasm, provocative imagery, and catchy melodies. One of the most well-known Diesel brand campaigns is “Be Stupid.” Stupidity in this context does not mean what most people think it does. It indicates that the company is not afraid to take risks, be creative, and be unorthodox. Diesel’s essential values are encapsulated in these core concepts. “Go with the Flaw” is an advertising campaign that demonstrates the brand’s unconventional thinking and how its design quirks enhance the aesthetics and allure of its products. It is clear from the photography and editing that the creative team has put much effort into these ads. They embody the Diesel brand’s values of excellence, innovation, and defiance of the status quo.

Conclusion

In summation, it is vital to recap that Diesel Company is renowned both in Italy and around the globe. The company specializes in the sale of accessories and apparel, with diesel denim jeans being the most famous ad reputable brand. Through its marketing strategies and marketing mix, this company tries as much as possible to outshine its competitors in the market and have a significant portion of the market share. From the many locations to the best promotional strategies, this company ensures that it targets a wealthy and affluent market segment that can buy the most luxurious and unique jeans from the market. It uses its premium pricing strategy to target the upper and the upper-middle-class, which defines its huge profit margin. This analysis clarifies that Diesel Company is among the best in the clothing industry both locally in Italy and globally. 

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