Since 1950s, Jeans have become and continue to be a staple item of clothing in people’s wardrobes as a medium representing stylish identity and identification (Kramer, KR, 2006). People wear jeans for a range of occasions, from staying at home to going outside at a cinema, restaurant or even a working place. As a report from Mintel states, during the year 2006 and 2010, the percentage of adults who bought jeans had remained relatively stable with over half of them ( 51%) purchasing at least one pair in 2010 (Mintel 2010). At a time when the number of brands offering jeans has risen rapidly, Diesel, which has built an entire existence of passion, originality and creativity, emerges as a strong competitor towards the market leader Levi’s, with its daring and provocative style and cuts.
Founded in 1978 by Renzo Rosso in Braganza, Northern Italy, the company, Diesel S.p.A, remarkable as an innovative international design company producing a wide-ranging collection of jeans, clothing and accessories with full of originality. Diesel is a leader in pioneering new styles, fabrics, manufacturing methods and quality control to guarantee an outstanding product (Diesel.com). It sales its products in over 80 countries now and employs more than 2000 employers with more than 300 mono-brand stores with more than 5000 outlets available all over the world.
However, this list of numbers are way less attractive than the conception that Diesel and its founder persist through last 30 years. The comment from Don Henshall that ‘‘Diesel’s about being an individual, it’s about having a laugh, not taking yourself too seriously, looking at girls and thinking ‘Yeah, I’d love to get in there’’ (marketingmagazine.co.uk, 1996) has perfectly reflected its unique mindset which puts sales and profit secondly to building something special, something “cool” and something that can change the world through fashion. The slogan of Diesel, ‘Be stupid’, advocates that to be open to novelty and be honest with people themselves. This state of mind makes the brand famous among jeans-purchasing consumers as a sign of high fashion and luxury.
The purpose of this essay aims to understand and critically analyse the 4P(product, price, place, promotion) & STP (segmentation, targeting & positioning) strategies that Diesel S.p.A has conducted before, hence make possible recommendations in respect to the marketing mix of the company.
2. The marketing mix
Marketing mix is a marketing toolbox that is commonly implemented in order to determine the prior approach to presenting a good or service for consumer’s consideration (Solomon, 2009). It’s defined as the set of controllable tactical marketing tools that the firm blends to produce the response it wants in the target market (Philip Kotler, et.al, 2001) and it consists of all sectors that the company are able to determine for the purpose of influencing the demand for its product. Four groups of variables are...