Diesel Marketing Mix Essay

IntroductionThis render on Marketing inter meld is worth 30% of my Marketing module, I am going to build up a report to analyze the selling mix of a companionship. The familiarity that I chose to do is diesel, They argon an multi bailiwick habilitate go with ranging from womens wear, mens wear to accessories, and I am going to look at carrefour, Price, hind end and Promotion piece of euphony doing this project I am going to research the diesel motor society using the Internet, I am going to look at websites much(prenominal) as www.diesel.com, www.wikipedia.com and any early(a) sites I come across that result help me with information on the c wholeer. I leave al adept and then construct the essay using Google docs and Microsoft word.Company backgroundBeginning as a keep company foc expenditured on making quality c cumulushing, diesel motor has bend part of the y turn outh culture worldwide. diesel engine is an innovative international frame company, produci ng a wide-ranging collection of jeans, clothing and accessories. diesel motor is a attraction in pi iering new-fangled-made styles, fabrics, manufacturing methods and quality control to guarantee an outstanding harvest-time. The company is present in over 80 countries with over 5,000 points of sale and more than 300 mono instigator stores (200 of which atomic number 18 company- holded and the rest in alliance with local distri thators). When Renzo Rosso founded the company in 1978, he wanted it to be a leader, a company thattook chances and carved out a niche for itself in its field. He encircled himself with creative, talented people innovators who, like him, rejected the slavish trend sideline typical of the fashion industry.He wanted to create the most self-propelling and imaginative ingathering amicable anyw present he gave his open tending(p) design team broad stylistic freedom, and their mission was to create an raiment line perfect for independent people who fol little their own odd path in living and for those style- egressrs who express their individuality by the air they dress. From the very beginning, diesel engines design team, headed by Creative managing director Wilbert Das, turned their backs on the style-dictators and consumer forecasters of the fashion establishment and let their own individual(prenominal) tastes lead them. The company views the world as a single, border-less macro-culture, and the diesel provide reflects this a cosmopolitan team that creates an unpredictable, dynamic vitality and energy at heart the company. Diesel people and their working methods atomic number 18 so unconventional, albeit overlapive, that they concord been profiled in countless media, and have been studied by international consulting organizations and universities.www.diesel.comMarketing mixThe Marketing Mix is one of the most famous business tools in selling. The Marketing mix has four elements c completelyed the four Ps which a re Product, Price, gear up and Promotion and is often crucial when determining a result or smirchs ridiculous selling point Some commentators impart attach the commercializeing mix to the five Ps, to include people. Others will increase the mix to S blush Ps, to include physical testify (such(prenominal)(prenominal) as uniforms, facilities, or livery) and process (i.e. the whole customer flummox eg a visit to Disney World). The term merchandise mix was coined in 1953 by Neil Borden in his Ameri provide Marketing Association presidential summateress. However, this was actually a reformulation of an precedent idea by his associate, James Culliton, who in 1948 described the role of the marketing manager as a mixer of ingredients. The term became popular in the article pen by Neil Borden called The Concept of the Marketing Mix. He started informthe term aft(prenominal) he acquire round it with an associateProductSince 1575, the word ware has referred to anything produ ced since 1695 the word has referred to thing or things produced. In marketing, a reaping is anything that nookie be offered to a market that might re patch up a want or need. This includes physical objects, services, people, places, organizations and ideas. Products should meet the needs of the marketProducts have 4 levels1. Core level2. Actual3. Augmented product level4. Potential product levelProduct ClassificationI would put the mail Diesel under the product classification unchanging Goods. Diesel Goods are a bit more expensive than other stigmatizes scarce are designed to last longer.Product life calendar method of birth controlThe peaks that products go through and through from development to withdrawal from the market.Stages in the Product smellCycleProducts tend to go through five stages1. New product development stage2. Market opening stage3. Growth stage4. Mature stage5. Decline or Stability stageI would say most of the collections at Diesel are at the outgrowt h or Maturity Stage They are ever so trying to book on top and introduce new lines often. Diesel Introduced the line saturnine and Gold in February 2008 at new York fashion week Since the brand comes from Italy, the owners thought that a great extension for a clothing brand would be wine. The problem is that wine drinkers are very particular virtually the wine that they drink, and many wine enthusiasts look skeptically at a clothing company releasing its own brand of wine.The wine could be the best in the world, but beca physical exercise of the label link to it and the feeling that anything but a world-class winery will do, it is doomed to fail. While an Italian company going into wine is non that out of the ordinary, a clothing company starting to sell liquor is. Deisel overly wanted to join into musket ball wear to be on par with the likes of Ralph Lauren but after years of being a casual durable brand formal wear just didnt kick off.http//faculty.insead.edu/chandon/pers onal_page/Documents/Case_Diesel%202007_corrected-w.pdfBranding translation The marketing practice of creating a cause, symbol or design that identifies and assortediates a product from other products Branding is the process involved in creating a unique name and image for a product inthe consumers mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a strong and unlikeiated presence in the market that attracts and retains loyal customers. Before the introduction of StyleLab in 1998, the brand portfolio of Diesel SpA consisted of three main product lines D-Diesel (including licenses), Diesel Kids and 55DSL (The brands and some of their logos are shown in Exhibit 6). most of its production was outsourced to keen and medium-sized companies, whereas design and marketing remained in-ho mapping.Brand IdentityDiesels management team emphasized that D-Diesel and StyleLab should have distinct brand identities but with some common roots. Both bran ds shared values such as freedom, global outlook, creativity and thoughtfulness. Nevertheless, whereas D-Diesel stood for irony and irreverence, StyleLab stood for sophistication and mystery. Of course, the products themselves were quite different Diesel focusing on denim while StyleLab experimented with a categorisation of innovative fabrics.PackagingDiesel Keep their packaging simple enough, for their change state they are wrapped in a clear plastic radical with the word deisel in Black written on it, and then they are put into a mostly white parer bag with again the brand written in Black Block letters, For Deisel fragrances they are everlastingly very nearly case in a nice rap and al appearances have some kind of accessories free with them, usually attached to the bottle (like seen below in the image) .Usually their wallets and other sunglasses are packaged in a cream coloured box, With Diesel Logo written in light Brown on the box, with tissue paper inside. Their produc ts al focussings have a brown cardboard tag attached.Price translation of Price scathe is an integral part of a marketing system as it is the only one of the 4 Ps that generates tax revenue for the firm. Price is commonly absorbd as a strategic apparatus between competitors and plays an important role in shapingcustomers perceptions of the products value and quality. Pricing will be determined by other elements in the marketing mix Price should be consistent with other elements.Diesel uses grant determine because the price needs to reflect the value of the life-style experience of the brand. The people at Diesel are in tune with that lifestyle and promote what Diesel represents.Pricing StrategiesPricing strategy refers to method companies use to price their products or services. Almost all companies, large or small, institution the price of their products and services on production, labor and advertising expenses and then add on a certain percentage so they can extend to a profit. There are several different pricing strategies, such as penetration pricing, price skimming, discount pricing, product life speech rhythm pricing and even competitive pricing.Diesel uses a model ground on premium pricing.You do not pay a premium price for Diesel jeans because they are a premium quality, that is taken for granted, You pay a premium price because the jeans and the brand fit in with and even encourage a premium, dynamic lifestyle built for successful living(a), as Diesel would say. This allows the company to price those products in a way which complements and neatly fits into that lifestyle. A strategy such as penetration pricing used by businesses making high-volume, relatively low-margin products would be inappropriate as it would undermine the quality association thus devaluing the brand and experience.From researching the price discrepancies of the Diesel brand I have found a few dissimilaritys in pricing online, Firstly I looked at the Diesel online shopping website www.store.diesel.com and then compared the prices to other online sites that sell Diesel clothing, such as www.mandmdirect.com and www.asos.com . The first difference I found was at asos.com they were selling a Mens Diesel island of Jersey for 55.00, the exact same T-shirt was on sale at the Diesel website for 60.00 making it 5 more expensive.The second website I looked at was mandmdirect.com, here I found huge differences in price as you can see from my print screens below, the same Mens T-shirt was selling for 45.00 at the diesel website and 24.99 on the mandmdirect.com, making the T-shirt 20 cheaper at mandmdirect.com. I in like manner looked at womens clothes on mandmdirect.com and found the same jeans for 34.99 on mandm and sellinf for 135.00 at Diesel, thus making the jeans 100 less at mandmdirect.com. to a fault I tool a look at some americian websites(www.blufly.com & www.revolveclothing.com ) to determine suffer it is cheaper to buy Diesel Jeans in the usa and by using the currentnessconverter on goolge, it appears that there would be no difference in the price of a pair of Diesel jeans here or abroad.55 asos 60 diesel.comPricing MethodsI think Diesel would use sensed value pricing which means They price their items found on the perception of the buyer of value. Competition from other brands such as levis my affect the way Diesel price their items. As you can see from the section price in comparison to competitors most of Levis garments are cheaper than Diesels.PlaceDefinition of Place* Decisions about where to sell the product* Or concerns about where the customers are, and how to get to them* Also includes the channel of dispersion meaning, all the different middlemen you use to get the product out to the customer Channels of distributionIndirect and direct subprogram 1 is a direct channel of distribution as the product would be going straight from the manufacture to the consumer. 2,3 and 4 are all indirect.Ever since the beginning, Renzo Rosso believed in addressing the world with one product and one language, and one of his first steps was building a solid and vast distribution platform stretching across all 5 continents. Most of Diesels current production is outsourced, to small and medium-sized companies. Production of denim jeans is based exclusively in Italy. All international logistics operations (wholesale and retail) are centrally managed and carefully controlled.IntermediariesOften Diesel would work with different intermediaries for example they would use agents to help when sourcing different suppliers and advertising also Diesel might use overseas offices. However these can be very expensive to the company so Diesel would also look at new humble risk methods of market entry.Physical distributionDiesels sexual climax to distribution can be seen as a mix of exclusive and selective distribution over intensive distribution. Exclusive distribution involves limiting distribution to single out lets such as the Diesel flagship stores. Selective distribution involves using a small number of retail outlets and partners to maintain the quality of presentation and conference to the customer. Intensive distribution, on the other hand, is commonly used to distribute low price or impulse goods such as sweets.When distributing their goods Diesel would have to think about warehousing, transport, packaging, Stock / inventory levels and customer service.PromotionDefinition of promotionThe human raceisation of a product, organization, or venture so as to increase sales or public awareness it refers to the different promotional options available to the marketer such as Brand advertisingCo-operative advertising incorporate advertisingSteps in the marketing communication process1. designation of target audience2. Determine of communication objectives3. Design of message4. alternative of communication channel5. Setting and storage allocation of communication budget6. survival of pro motional mixEvaluation of resultsIdentification of target customer* rhetorical men and women ages of 20-35 years* Independent entrepreneur or innovator who follows their own unique path in life* This eccentric man or women is largely unaffected by fashion fads and spends a significant get along of money on quality fashion- forward clothingCommunication objectives* lumber* Edgy* Unique* EccentricDesign of messageDiesel Advertisements are always Edgy, stylish and sometimes controversial, they continually develop searing hot ad campaigns and innovative editorials. They have recently started a new campaign called be lumpen The tagline Be Stupid declares Diesels new philosophical system that its way more interesting to be ill-judged and gave play than be smart and live a boring life. It encourages people to take risks and move beyond the smart and sensible track for life. The campaign, developed at global advertising agency Anomaly, includes online, press and outdoor advertisement s featuring stupid acts, a digital recruitment campaign for the Diesel music telecasting/2010 catalogue, and viralactivity outlining the companys Stupid philosophy.Diesel Stupid philosophyLike balloons, we are filled with hopes and dreams. But. Over time a single sentence creeps into our lives. Dont be stupid. Its the crusher of possibility. Its the worlds greatest deflator. The world is full of smart people. Doing all kind of smart things Thats smart. Well, were with stupid. Stupid is the relentless avocation of a regret free life. reinvigorated may have the brains but stupid has the balls. The smart might recognize things for how they are. The stupid see things for how they could be. Smart critiques. Stupid creates.The fact is if we didnt have stupid thoughts we have no interesting thoughts at all. Smart may have the plans but stupid has the stories. Smart may have the authority but stupid has one hell of a hangover. Its not smart to take risks Its stupid. To be stupid is to b e brave. The stupid isnt afraid to fail. The stupid know there are worse things than failure like not even trying. Smart had one good idea, and that idea was stupid. You cant outsmart stupid. So dont even try. Remember only stupid can be truly brilliant. So, BE STUPIDwww.diesel.com alternative of communication channelDiesel would Use non-personal channels including Mass Media = national press, radio, TV, etc and Local Media = local press, trade or specialist publications.Setting and allocation of communication budgetThree basic choices hereThe sacrificeable approachAfter the firm has paid its expenses then decide what you can afford The objective and task approachDetermine what needs to be make (objectives) and allocate resourcesappropriatelyThe percentage-of-sales methodFrom January to September 2008, Diesel spent $5.8 one million million on U.S. advertising, according to TNS Media IntelligenceYou spend a percentage of your yearly sales on communicationsI think Diesel would use the The Objective and task approach as their communication channel of choice. plectron of promotional mixThis refers to the different promotional options available to the marketer, There are five elements in the Promotional Mix* Advertising,* sales promotions,* personal selling,* public relations* sponsorshipAll elements of Diesels promotion aim to engage the customer with the lifestyle. If they like the lifestyle, they might like the products. For example, the Diesel team saw music as an inseparable part of that lifestyle and realised that exploring new music and new artists was all part of trying something different and experimenting with the unusual. 10 years later, DieselUMusic is a global music support collaborative, giving unsigned bands a place where they can be heard and an opportunity to have their talent recognized. Its not about selling, its about giving people something they will enjoy and interact with. Diesel were the first brand to advertise their clothes through vid eo games, normally they would Promote products mainly online, www.diesel.com and in high-end magazines such asElle panacheDiesel also advertise through billboards which catch a lot of solicitudeOTHER WAYS OF ADVERTISING ARE THROUGH MAGAZINES ADS such AS BAZAARCelebrity endorsement and sponsorshipLOreal and Diesel plungeed can for Life (for him and for her) in the fall of 2007. A mini-collection for Adidas was launched in 2008 called Adidas Originals Denim by Diesel. The underwear license is held by the US company Mast Industries Inc.,who also make lingerie for Victorias Secret. A new quislingism with AGV has seen the launch of a Helmet. Recently Diesel sept, thanks to collaborations with Moroso and Foscarini has been launched in the market. The Diesel company has acquired stakes in the brands Viktor & Rolf, Maison Martin Margiela and DSquared2. In recent years, the company has driven its attention to endorsing young creativity by sponsoring several projects such as the Diesel-U -Music Contest.Diesel has been the founding partner of International Talent Support in its heterogeneous forms. Diesel has also offered sponsorship and creative contribution to the 2006 edition of Viennas Life Ball AIDS charity, as well as the Sundance film Festival. In December 2008, Diesel announced a marketing partnership with Sony Computer Entertainment Europe, to sell their designs in Sonys virtual world, Playstation Home with the majority of the proceeds going to the OTBF Only The Brave Foundation (Diesels charitable arm).ConclusionHere are some of the main points learned from researching the marketing mix for Diesel Brand * By addressing the 4Ps of the marketing mix Diesel has been able to establish a new product range, strike the most effective approach to price, place it so that it is easily accessible and promote the range to customers. * Diesel is a global household name for premium clothing but it all started from one man lacking(p) to do something unusual, something stupid. This has created a lifestyle a whole new way to see abrand.* By comprising an area on price in comparison I have found that other well known brands are offering the same quality jeans at cheaper prices * By looking at th Diesel brand product life cycle, it was hard to find a product of theres that did not work, and was in thee spurn stage of the cycle. * Diesel have been very successful in their collaborations with loreal and also Adidas * There continues to be huge interest in the diesel brand and it doesnt loke like that would change anytime soon.RecommendationsDiesel seem to be doing a lot right with the company as you can see with the go on profits in their sales, however I could still recommend a few points * Diesel could look at cut downing their prices a small fraction as there is a lot of competition out there from the likes of Levis, Seven for all mankind, Tommy Hilfiger etc. * They could look at different ways of distribution to lower costs * They could do mor e collaboration with other big name brands because they have worked well in the past. * Diesel could also look into choosing different communication channels again to lower costs in advertising especially as From January to September 2008, Diesel spent $5.8 million on U.S. advertising, according to TNS Media IntelligenceBibliographywww.diesel.comwww.wikipedia.comwww.thetimes.co.ukhttp//businesscasestudies.co.uk/diesel/live-breathe-and-wear-passion/conclusion.html www.thetimes100.co.uk/downloads/_15_summary.pdfwww.marketingmagazine.co.uk/ news show/54124/www.freewebs.com/busecon/_15_full.pdfen.wikipedia.org/wiki/Diesel_(brand)aesessex.regulus.titaninternet.co.uk//KS4_Applied_Diesel_marketin www.peachtreeridge.org/pages/ybell/_15_lp14.pdwww.managementparadise.comclass notes