Weakness

The skin care market is still in a nascent stage in India

Penetration levels for both the urban and rural market are

low.

High duty structure and market complexities (such as

investment rules)

20% global brands on an average in local markets among

skin care.

Possible brand dilution.

Price Sensitivity of customers in competitive markets.

SWOT Analysis

Opportunities

India represents one of the fastest growing beauty markets globally, growing at 13% annually, and valued at $6.3 billion.

According to Kline & Co: Skin care accounts for approximately $180 million.

Current market for male grooming products in India $185 million.

Exponential growth in 2008. Changing socio-economic status of the Indian consumersIndians are increasingly becoming very brand conscious

and buy designer brands as a status symbol.Inherent brand visibility : Loads yet to be explored.

SWOT Analysis

Threats

Regional brands appeal by using local models and

targeted advertising.

Private Label.

Competition from regional distribution

Many consumers prefer to use home-made and

traditional products to cure the skin problems

Diesel: growing so much can damage their

reputation as a non mainstream brand

SWOT Analysis

OPPORTUNITIES FOR DIESEL

Positioning and image Business performance Products (packaging design, range

composition) Market share The mix (price, promotions, etc.)ConsumersCommunication strategy focused on public

awareness

Brand Positioning Model for

Diesel

OPPORTUNITIES FOR DIESEL

Specialists benefit from the booming emerging markets.

Direct selling (internet) are set to benefit by the recession.

Luxury is no longer a premium price tag, but more of a lifestyle status.

OPPORTUNITIES FOR DIESEL

Masstige –a winning formula.

Men’s beauty masstige items can become affordable luxuries in a tough economic climate.

Presence across the whole beauty product spectrum.

Successful marketing strategies by better interaction with consumers and clear communication of product efficacy.

Personalized approach to marketing.

Innovative Strategy

OPPORTUNITIES FOR DIESEL

Big Opportunity in Mass Luxury.

Opportunity in Skin careOPPORTUNITIES FOR DIESEL

Communicating its Image

The message is important - a common way of seeing things.

Non Product oriented advertising.The target is urban daydreaming and

lusciously loving nature as an quirk ecological impulse.

Association with the consumers: Youth, vitality, happiness, hedonism, sex, worry-less.

OPPORTUNITIES FOR DIESEL

Communication ApproachesRich Customer Interaction Potential

Target the customer psyche, concentrate on the message and use the ambiguity of the brand to win potential customers.

Cultural connection and personal expression value Addendum to a cultural component, hedonism and symbol of

constructing rebellion

Interesting positive news The innovation appears on all the lines, from watches to

clothing and users are always expecting edgy and fresh stuff .

OPPORTUNITIES FOR DIESEL

Communication Approaches

Underlying differentiation from competitors

A premium niche

Inherent brand visibility

Easy-to-reach audiences

OPPORTUNITIES FOR DIESEL

Communication Mode

Media CommunicationDiesel ads will never be seen in mainstream media.CampaignsCosmetics MagazinesHoardings

OPPORTUNITIES FOR DIESEL

Non Media Communication – Unconventional Methods

Product placement amongst actors, musicians and other celebrities

Movies Internet (www.diesel.com, one of the first clothing

website)Diesel built The Pelican Hotel in South beach,

MiamiVideo games for play station.

STRATEGIC APPROACH

Segmenting Consumer Markets

GEOGRAPHICRegion : Asia-Pacific,Western Europe,North

America,Latin AmericaCity : Tier 1 .

DEMOGRAPHICAge : 20-35 yearsFamily Size : Young,Single;

Young,Married,No Children; Young,Married,Youngest child under 6;

Gender : MaleIncome : High (above Rs 160,000 p.a)

Indian consumer socio-economic classification.

TARGET

STRATEGIC APPROACH

Socio-Economic Classification Grid

STRATEGIC APPROACH

PSYCHOGRAPHICSocio-economic : A1,A2Personality : Rebel, Young, Urban,

Hedonistic, Sensuality.

BEHAVIORALOccasion RegularBenefits : Cleansing, FreshnessUsage Rate : Light.Loyalty Status : StrongReadiness : Aware, Informed ,Interested,

Desirous, Intending to buyAttitude toward

product : Enthusiastic, Positive.

STRATEGIC APPROACH

Market Targeting

Need Based Segmentation:Men exposed to heat,travel,dust and

exertion.Segment Identification:

Luxury Segment.Segment Attractiveness:

Market Growth, Competitive Intensity and Market Access.

Segment Profitability:Niche market , High profit margins

Segment Positioning:Brand Icon,Brand Personality.

Marketing Mix Strategy:Product,Price,Promotion,Place.

STRATEGIC APPROACH