DIESEL

Brand Upscale
Strategy

Kanwal Kapil

First Step Before you identify which Branding Strategy Need to know your Brand Well Personality, Identity, Key Attributes At which Stage Brand is Whether its Brand Extension will be
successful or Not. ?

Recommendation
Which Branding Strategy

Fashion Industry Insight The nature of fashion is that it changes each year as new labels push last seasons brands to the back of the closet. Thats why firms in the fashion industry must constantly reinvent themselves and teeter on the cutting edge while remaining firmly positioned as a strong brand with staying power.

DIESEL - Brand

DIESEL as a Brand
Famous for its CULT Diesel Jeans Fastest growing Fashion company First clothing company on the Internet Core Values
Tangible Values

Durability, High Quality, Innovative,

Gusty Clothing, Soft Fabric Exclusive, Worn-Out Style Intangible Values Love of Humor, Creativity, Sense of Adventure, Freedom Irreverence towards established rules Unconventional Image

DIESEL as a Brand
Advertising
Though Controversial but Won awards

Fashion Brand of the Year, Advertiser of the Year

Media Campaigns

Artistic, Colorful, Sexy

Differentiated by Themes, Complexity, Radical irony Established DIESEL as counter point to established norms and traditions Confusing but Exclusive Required wit and involvement to be deciphered Non Media Campaign Product placement among actors, celebrities, featured in movies

DIESEL as a Brand
Brand Portfolio Very Rich and Diversified
Product Lines

D-Diesel, D-Diesel Licenses, Diesel Kids

Different Logos/Slogans Fashion Products beyond clothing

Shades for Eyewear, Spare parts for Luggage

Fragrances, Footwear, Underwear Timeframe, Writing Tools Other

Hotel Pelican, Production of Video Games

Customer
Wealthy teenagers looking to stand out in Crowd

Core Identity

DIESEL: Brand Anatomy

Urban Street wear Stylish Quality Design Fashion

Exclusivity

Tough Durability Luxury

Successful Living

Brand Identities DDenim

Thoughtfulness Freedom Irony Affordable Quality Denim Global outlook Tough Durable Irreverence Creativity Conventional Mystery

StyleLab
Thoughtfulness Freedom Exclusive Cutting Expensive Edge style Innovative Refined fabrics Durable Creativity Global outlook Sophistication

Marketing Mix

Brand Strategies must be engineered into the Marketing Mix

Product
D-Diesel StyleLab

Street look Exclusive Denim Expensive Innovative approach

Surprising style More Exclusive Innovative fabrics/materials More Expensive Independent Innovative approach

&

Positioning
D-Diesel
Upper end of leisure clothes Competitors Armani Levis Mustang Calvin Klein
denim &

StyleLab
Lower end of high casual wear Competitors Miu Miu Prada Sport CP Company D&G

Positioning Pyramid

Distribution
Designer Store

Market Segments Christian Dior Prada Miu-Miu StyleLab Armani D-Diesel

Houte Couture

Fashion Boutique

Designer Fashion

Multi Brand Casual Stores

High Casual Wear

Low end Dept Stores and Super Stores

Gap Wrangler

Denim & Casual Wear

Mass Market

Positioning
D-Diesel
Wider Target segment Age 16-25 High school/ College Students/ Young Professionals HIP Generation Middle Class Customer having passion for teenage spirited lifestyle

StyleLab
Narrow Target segment Age25-34 Professionals, Managers Generation X Upper Middle Customer who feel that they have outgrown D-Diesel Brand Customer looking for cutting edge style Design conscious

Price
D-Diesel StyleLab

Blue Jeans
67 (EU) $100 (US)

Blue Jeans
125 (EU) $150 (US)

Jacket
72 (EU) $139 (US)

Jacket
335 (EU) $415 (US)

Place
D-Diesel StyleLab

Multibrand Stores Flagship Stores Mail order Internet

Specialized Fashion Stores Boutiques High End Dept. Stores

Promotion
D-Diesel
Print ads: Magazines UK: Face, Elle, FHM, Loaded US: Marie, Claire, Rolling Stone, Wired Japan: Sesame, Fine Boys, Warp Advertising on TV, Cinemas Aim was to support both brand and product in equal proportion Social and political ad campaigns POP material Aim: To boost sales Simple themes with cute models and product features

StyleLab
Print Ads: Exclusive Fashion magazines Flaunt, Vogue Wallpaper, Dutch ID, Mixte Max Internet Advertising Aim was to build Brand Story telling to communicate its difference from D-Diesel POP material Aim: To develop brands image Creative ideas from corresponding ad campaign

Key Question

Which Branding Strategy to Choose ?

Branding Strategy Options .

1. Sub Branding : DieselStyleLab 2. Endorsement: StyleLab by Diesel 3. Independence: No reference to Diesel

StyleLab

Why StyleLab? - Key Objectives

To exploit growth opportunities in the emerging luxury segment of casual wear market
Increasing Market Segmentation

To counterbalance the increased diffusion of DDiesel denim products

To prevent any commoditization of brand Fashion Brands need to evolve continuously else they will became victim of own success and look conventional

To create an aura of prestige & fashion around the D-Diesel Brand

To be Trendy Dynamic, Lively, Mobile and Casual

To allow cherished designers to express creativity by experimenting with new cuts & fabrics

Key Insights

Branding Extension - Type of Brand and Ability to Extend Further

Branding Strategy - Branding Relationship Spectrum

Brand Relationship Spectrum

Branded House

Sub Brands

Endorsed Brands

House of Brands

Same Identity

Different Identity

Master Brand as Driver

Co Drivers

Strong Endorsement

Linked Name

Token Endorsement

Shadow Endorser

Not Connected

Branding Strategy - Selection Criteria

Toward House
a Branded

Toward Brands

House

of

Does Master Brand contribute to offer by adding

Is there a compelling need for a separate brand because it will

Association enhance the value proposition Credibility with organizational associations Visibility Communication efficiencies

Create and Own a association for newly introduced product class Representing a new, different offering Deal with channel conflict

Strategic Points When Moving up the Market

Make the Vertical Leap Reasonable
Brands accessing Premium market do better when they are positioned at the lower end of the segment

Differentiate the Upscale Entry

To command Price Premium Current customers wont get uncomfortable

Redefine success by assigning the upscale brand a silver bullet role Reposition the Upscale entry
By having upscale associations to command price premium

User Image, Brand Personality, Perceived Quality

Unleashing Recommendatio n

Recommendation Branding Strategy for Extension

Endorsement Strategy
Diesel serves as Organization Brand , whereas StyleLab serves as Product Brand

Diesel Brand is much more prominent than StyleLab

Brand Clear Differentiation between D-Diesel Master Brand and StyleLab Brand But StyleLab still Leveraging common linkage of Diesels Core identity

Diesel Brand provides Credibility, Visibility and

Substance to the offering

Recommendation Branding Strategy for Extension

Inline with Branding Principles
StyleLab represents different offering for Upscale Market Different Channel Distribution Less cost compared to Independence but

more cost compared to Sub-Brand Strategy

Different Customer Base for both D-Diesel and StyleLab brands