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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
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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
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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
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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
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Brand Positioning Model for
Diesel
OPPORTUNITIES FOR DIESEL
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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
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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.
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Opportunity in Skin careOPPORTUNITIES FOR DIESEL
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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
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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
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Communication Approaches
Underlying differentiation from competitors
A premium niche
Inherent brand visibility
Easy-to-reach audiences
OPPORTUNITIES FOR DIESEL
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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.
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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)
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Indian consumer socio-economic classification.
TARGET
STRATEGIC APPROACH
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Socio-Economic Classification Grid
STRATEGIC APPROACH
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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
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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