Diesel Fashion and the Most Effective Strategies - Research Paper Example

Report Evaluating the Various Marketing Management Issues & Strategic Options Available To a Diesel Fashion Retailer in the Current Economic Climate (Name) (University) (Course) (Tutor) (Date) Introduction The fashion retail industry is one such business sector that has been fully flooded and room for growth or expansion is very minimal. Even fashion giants still find it hard to move an inch and have therefore, maintained their status quo as far as market share is concerned or have drastically declined due to fierce competition. Diesel fashion retailer is one company in the fashion industry that has operated for long. Its application of various marketing practices seems to have sustained it in business but there are still a lot of things it can do to handle these issues and apply strategic options which could be very effective in helping it acquire competitive edge against such competitors as Marks & Spencer. These marketing management issues are not unique to Diesel and therefore, it is important that it also borrows from success stories of other industries since products might be different but application of strategies might still take a similar course (Hooley, et al., 2007, pp.89-95). However, there are issues that are unique to each industry that still need to be addressed. One sure way of dealing with this challenge has emerged to be a thorough formulation and application of marketing plans and strategies that have the capacity to meet the objectives and vision of these businesses (Hooley, et al., 2007, pp.89-95). Bogged with many issues in marketing, marketing managers seem to have few workable solutions on their table because of widespread knowledge and strife by all businesses in each and every industry to apply competitive strategies that would set them apart from the rest. Just as the businesses are flooded in the marketplace, so are they in the strategic options and this make their effectiveness slimmer each day (Kotler & Kevin, 2006, pp.56-63). This paper takes a thorough look at the marketing management issues facing Diesel Fashions Retailer and tries to formulate strategic options that could spur it into attracting more consumers. One important thing to put in mind before long is the fact that there is no sure perfect way of dealing with issues affecting firms. Understanding the current economic environment, competitors, and the available options would be the best way to work. The discussion will critically analyse the marketing management issues that Diesel is undergoing and then seek appropriate strategies that could be applied in this case study. A conclusion is set at the end of the paper to give an overview of the discussion by pointing out some of the major issues and strategies that have been presented for Diesel Fashion Retailers. Marketing Management Issues & Strategic Options in Relation to Diesel Diesel has branded itself as a global brand in the retail of clothing and lifestyle products. It has been in existence for over 30 years now. It has its products sold in over 5000 outlets. It has adopted and implemented a philosophy of building something that is special, able to change with time in fashion and as such, it sees issues of sales and profit second to its vision. Basing on the competition that is in the market today, Diesel has set out a strong mission that is able to keep its clients on the look out for the latest release of designer clothes on their brand. The mission statement is “To create an apparel line perfect for individual people who follow their own unique path in life and for those style-makers who express their individuality by the way they dress”. Marketing managers in diesel are faced with issues such as customer analysis where choosing the right segment to focus on in their marketing activities has not been an easy thing. Marketing analysis is supposed to be done by breaking down the pool of customers into consumer segments for the fashion products that Diesel does retail. Marketing managers for this company have to develop a very detailed profile of various segments (Diesel, 2011). Their focus is to be placed on the different variables which make the segments differ from each other and these variations may take into consideration the demographic, geographic, psycho-graphic, behavioural, and finally, needs-benefit factors. It is important that Diesel’s marketing managers track down these identified segments in order to establish their perceptions on the kinds of fashion products that it offers (Kotler & Armstrong, 2006). Another marketing issue that needs to be addressed by Diesel is the company analysis where the focus should be on the cost structure and their cost position as compared to what the competitors are offering. Besides, they need to find out what their core competencies are in order to find ways of harnessing them for the betterment of their business practices. The profits earned by the company are very important components of company analysis and this also requires that the product lines be re-examined. As such, periodic audits of brands would be quite appropriate for Diesel marketing managers to do (Lee, et al., 2001, pp.35-48). Diesel has managed to bring on board some specialized collaborators such as Adidas. These joint or cooperative approaches to doing marketing management are very important in ensuring that a win-win outcome is achieved. Diesel needs to also look at a broader pool of collaborators because cooperation rather than competition has been proven a useful tool in marketing and general company operations. This pool of collaborators includes suppliers, distributors and some proven channels such as partnerships, and joint ventures. While looking at this pool of collaborators, issues such as complimentary products are very important (Blythe, 2006, pp.112-125). The other vital issue that confronts Diesel is the competitor analysis. It is necessary for diesel to look at the competitors it faces in the marketplace. As it is the situation now, there are other major competitors in the market which are well established and pose a greater challenge to this company’s market share. Some of these competitors include Marks & Spencer, Evans, Dan Marconi, among others. A thorough SWOT analysis needs to be done to establish relative competitiveness in terms of strengths and weaknesses. Diesel fashion has to ensure that they employ the most effective strategies in order to ensure that they meet the competition in the market, and more so win competitive advantage. The strategies available to diesel in addressing the marketing issues could be looked at in terms of marketing mixes. The products for this company are made taking into account high levels of quality. The concept of Diesel being a lifestyle actually works (Diesel, 2011). However, a serious marketing campaign has not been done to promote and sell these products well. The best strategic option would therefore be to combine both lifestyle and advertisements in order to create awareness and inform the global consumers. If it can combine this with the current approach it has to variety, then growth is assured (Altstie & Grow, 2006, pp.123-125; Chauduri & Holbrook, 2001, pp.81–94). Marketing strategies that will help Diesel fashion achieve its business objectives The first strategy that has worked well for Diesel fashion is the relationship that they have established and maintained with their customers. The Diesel fashion marketing company has worked out a strong way to keep in touch with the consumer. They have a way in which they encourage their clients to continually interact with them. This way they get to know their clients needs and wants especially when considering new designs. Diesel could use it developed strong culture to communicate the product to consumers and also use branded stores to distribute these products. It could also continue partnering with other retailers in order to make them help distribute Diesel’s products (Morgan & Hunt, 1994, pp.20–39). Diesel needs to go beyond its promotion phrase of ‘Be Stupid’ to a more sophisticated campaign. To remain in line with the lifestyle slogan, it would be necessary that Diesel’s promotion takes on engaging customers rather than flooding the mass media with advertisements that make no sense to many consumers (Aaker, 1999, pp.45–58). Finding a way to create dialogue with the consumers in a two-way manner would be a perfect fit for Diesel. The marketers for Diesel need to come out and show their energy and passion to the consumers. Teamwork and creating a sense of belonging could work to the advantage of Diesel. This people oriented strategy is crucial and could be made to focus on customers. Focusing on customers has been proven to be a sustainable way of doing business. Neglecting the needs of customers is an automatic request for failure (Morgan & Hunt, 1994, pp.20–39). The use of internet technology is a sure way of ensuring that distribution, reaching people, and promoting this company’s products is realized. Online marketing has been noted to be a major determinant in the success of marketing management in the current economic environment and should thus be used comprehensively. As such, Diesel should relook at its website and try find out what improvements it could make to appeal to customers and potential clients (Joines, et al., 2003, pp.90-118). In addition to internet marketing, it is beneficial for Diesel fashion to consider the use of media channels such as radio and television. The other strategy would consider the prices of products being charged. Given the brand name and image that this company has managed to created, it would be important for it to continue with its premium pricing strategy. As such, penetrating pricing model would not be suitable for this company’s products (Anderson & Vincze, 2004, pp.78-89). Just as it has been in the past, Diesel has focussed primarily on giving the best designs and fashion to its clients, and has made profit a second priority so as to satisfy their customers. More importantly Diesel fashion has to ensure that they continually make sure that they make diesel fashion a lifestyle. Conclusion Understanding the various marketing issues that confront Diesel is essential in ensuring that marketers formulate strategies that work and drive the company to higher grounds. Understanding the consumer is necessary because one cannot serve the needs he does not have an idea about or even the person he does not know (Anderson & Vincze, 2004, pp.78-89). Customer specifications keep changing, especially in the fashion industry and it is important to remain glued to customers so that their needs can be taken care of and information gathered on changes that occur to help R&D be in line with consumer needs. Understanding the company itself is also an issue to marketing managers (Jobber, 2004, pp.45-48). Diesel fashion has one of the greatest potential that it can maximise on to become the best in the fashion industry. That is unlike the other fashion line Diesel has the most effective strategies including the premium price strategy, and the lifestyle strategy. Diesel has had many success stories in its business model due to its culture and way of marketing its products. What this company needs is to fine tune its strategies in order to respond to the current economic environment as discussed above. List of References Altstie, T. & Grow, J. (2006) Advertising strategy: Creative Tactics from the outside in. Sage, 123-125 Aaker JL (1999). “The Malleable Self: The Role of Self-Expression in Persuasion”, J. Mark. Res., 36(1): 45–58 Anderson, C. H. & Vincze, J. W. (2004). Strategic Marketing Management, 2nd Ed, Houghton Mifflin, UK, 78-89 Blythe, J. (2006), Principles and Practice of Marketing, London, Thomson Learning, UK, 112-125 Chauduri A & Holbrook MB (2001). “The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty”. J. Mark., 65(2): 81–94 Diesel, (2011) about diesel, retrieved on 10th November 2011, from, http://www.diesel.com/ Hooley, G., Saunders, J., Piercy, N.F. & Nicoulaud (2007) Marketing Strategy & Competitive positioning. 4th Edition. FT Prentice Hall, 89-95 Jobber, D. (2004), Principles and Practice of Marketing, 4th Edition, McGraw Hill, 45-48 Joines J, Scherer CW, & Scheufele DA (2003). Exploring motivations for consumer Web use and their implications for e-commerce. J. Consum. Mark. 20(2/3): 90-118 Kotler, P. & Armstrong, G. (2006) Principles of Marketing, 11th Edition. Prentice Hall Kotler, P & Kevin Lane Keller (2006). Marketing Management, 12th ed. Pearson Prentice Hall. 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