Group

DM16137
DM16232
DM16132
DM16214

Rishi Reejhsingh
Nitish Nijhawan
Rajat Vij
Deepthi Sarvabh

Diesel for Successful Living:

Branding Strategies for an Up-market Line
Extension in the Fashion Industry

Background
Founded by
Goldsmith and
Rosso in 1978
Rosso recognizes
the opportunity
of global fashion
industry in 1985.
Successful Living
set on fire Cannes
Festival in 1998.
https://www.youtube.com/watch?v=sqX7ZRSGUNI

Industry Trend
Increasing Age of
customers
Increasing
Segmentation
Higher
disposition to pay
more for casual
clothing
Up-market trend
High Casual wear
:- Style Lab

Style Lab Objectives

Creating a lab in which designers can experiment
Exploit luxury segment (high casual wear)
Counteract mainstream Diesel image and
diffusion of D-Denim
- Possible communization functional ad campaign
- Diluted identity through horizontal expansion
- Suffer from success too diffused/ not
unconventional
Fuel designer creativity
- Research trips
- Narrow focus unleash creativity
- Experiment with styles and fabrics

Brand Portfolio
D-Diesel - Core Businessmen, men and
women, Wide range of denim and
leisure, very high quality and durability
and Diesel license for accessories.

Diesel Kids - Kids from affluent

families that dont want to be treated as
kids, Gutsy clothing with modern trends.

55DSL - Sportswear collection,

adventure and freedom ,extreme sports
fanatics

Customer Profile (DDiesel vs. Style Lab)

D-Diesel
16-25 years
Upper/Medium
Income
Students, young
professionals
Trend Follower
Neo-Hedonist
High Media
Exposure

Style Lab
25-34 years
Medium-High
Income
Managers,
Professionals
Fashion-Perceptive
Independent
Curious

Sub branding
Pros :
Clear association
Can attach more premium and upgrade other sub
brands such as D Diesel
Will have more advantage of the already
established brand equity
Potential synergies
Cons :
4 Ps not compatible so positioning maybe confused
Overstretching
Potential Negative Spill over

Endorsement
Pros :
More freedom for style lab to build unique brand
having its roots in diesel but a different perspective
May help to gain back detracted customers of D
Diesel
Positive spill over and premium association having a
rebellious feel possible to maintain
Cons :
Not entirely independent hence would have to have
a similar line of communication as Diesel
The high end image may suffer
Potential higher cost than sub branding

Independence
Pros :
Unique positioning
Can attract new target group thereby
increasing customer base
Lesser risk of negative spill over
Cons :
Will have to create an entirely new brand which
could be time consuming and costly
The Advantage of Diesel brand equity is less
received
Positive spill over would be lesser

Our opinion

Endorsement Strategy
Diesel benefits from the spill over of the prestige and
premium nature of style lab
Style Lab gets an easier market penetration at lower costs
due to developed diesel brand equity
The risk of negative spill over is lowered as both brands
can distinguish their positioning due to different 4 Ps
whereas the possibility of positive synergy is maintained
as both have the same parent association
Objectives of style lab full filled:
New market entry
Creativity with new cuts and fabrics can be show cased

Has diesel remained true to its brand

identity

Yes as they have maintained an

edgy image going against the set
standards and rules in their
communications as well the kind
of products .

Research needed

Yes the research is needed would

help to talk to customers as well
as detracted old customers as well
as the to the people having a
profile of the target group also in
order to find out the chances of
spill over

What basis to judge the

success
The image would be a measure to
judge as the objective of style lab
was to create a prestigious image
of diesel though quantitatively
revenue can be seen

Long term for the Brand?

Diesel can maintain its rebellious

image having sub brands catering
to different needs o different
target customers thereby
becoming a mass brand having
some legacy and edge of being a
Cult brand