Diesel for Successful Living – Group 6 Case Analysis
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physically. If StyleLab with no reference to Diesel is recommended they should use the following distribution channels: • Specialized fashion stores, boutiques and high-end department stores • Independent StyleLab stores • Separate website that does not refer to Diesel StyleLab stores would be found in high fashion cities, such as London, New York, and Paris. This restricted availability will make the brand appear more limited and thus more desirable. Product Positioning StyleLab vs. Diesel: StyleLab should not be directly compared with Diesel, because they are in different marketing segments and do not compete with each other directly. The brands share some values, but have different target audience, distribution channels and pricing strategies. StyleLab vs. other brands: Same quality of the product, but with StyleLab comes a new brand. This new brand will compete with other high-end casual wear companies such as Miu Miu, Prada Sport, CP Company, D&G. Scenario analysis Success: Success for StyleLab would be defined as awareness, earned media, influencers/endorsements, and appropriate level of sales without losing exclusive appeal, and production of a truly unique fashion line. StyleLab’s success should not affect Diesel. However, establishing a connection between StyleLab and Diesel after the success of StyleLab may increase Diesel’s reputation and bring it back to its former status. Failure: Failure could be defined as no differentiation from Diesel despite the increased cost, no buzz at Fashion Shows, no endorsements, too much commercial success resulting in loss of edge and coolness of brand (like what happened with Diesel), and not enough creativity and style in the design. Failure of StyleLab would not hurt the Diesel brand, aside from causing financial losses for the company as a whole. Pros: • Maximum separation allows for unique positioning opportunities. • Less risk of negative spillover from D-Diesel. • Because they are extending up-market, they may want to dissociate from the original Diesel brands in order to develop a greater sense of value and exclusivity around the brand. • Diesel was number two in the jeans industry in Europe, so it is probably beneficial to dissociate from them because a “jeans brand” doesn’t give off a sense of “luxury” clothing line. • Can create anything from scratch and can do anything they want without any connection or restrictions from an association with D-Diesel. • When a company lengthens its current product line up-market, the company seeks to achieve more growth, realize higher margins, or position themselves as a full-line