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Diesel Swot Analysis

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  • April 2012
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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:
Product
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...