SWOT ANALYSIS

Strengths

- Well established brand.

- ‘Lifestyle’ brand makes consumers feel included.

- Global presence (over 80 countries and 400 stores).

- Omni channel (online and instore)

- Technology instore

- Subscription via email.

Opportunities

- Social media (create a desirable image to attract a large following).

- Allow consumers to personalise their items at a Diesel store.

- Create an app where consumers can purchase items and be updated on news about Diesel.

- Create a budget friendly collection.

- Hire younger digital marketers to improve their social media presence.

Weaknesses

- Weak social media pressence.

- Premuim price (doesn’t fit younger consumers which Diesel targets).

- Advertisements are not broadcasted enough.

Threats

- Largest competitor Levi’s (more affordable premuim brand and has been successful in marketing to young adults).

- High street stores duplicating Diesel’s designs for a lower price.

- As a worldwide brand, Diesel are opening themselves up to a larger market and therefore more competitors.

An important strength of Diesel’s is that it is a prestigious, well established brand that is extremely popular globablly in the luxury market.

The brand is always reinventing itself, straying from market norms and constantly coming up with new ways to differentiate themselves from their competitors, by taking classic designs and putting an exciting twist on them.

WA huge weakness for Diesel is their lack of presence on social media (Refer to appendix 8). In comparrison to their competitors Diesel lacks the same following and engagement that competitors such as Levi’s recieve. For example Diesel has 1.3M instagram followers with an average engagement of 8,000 likes; while Levi’s has 3M instagram followers with and average engagement of 23,000 likes.

Another weakness of Diesel’s is their premuim price. Although Diesel does not have a specific target market they focus mainly on younger consumers; this is a problem because young adults cannot afford to pay the premuim prices which Diesel offers (Refer to appendicies 6&7). It is recommended that Diesel creates a budget friendly line for their younger consumers to successfully transform consumers who invest in a one off purchase into returning customers.

There is an opportunity for Diesel to improve their competitive advantage by creating an app like many of their competitors. This would allow their consumers to be consumed by a world of Diesel. This would give their consumers 24/7 access and relevant information into what Diesel is currently doing.

Another large opportunitiy for Diesel is personalisation. Consumers today continually want ‘VIP treatment from brands that will respect their time, their individuality and can inspire them in unique, personal ways’. In the past Diesel had a pop-up shop were consumers were able to personalise their jeans by putting designs, emelishments or initials on them. It is recommended that Diesel makes this personalisation a permanent feature of the consumers instore experience.

TDiesel’s biggest threat is their largest competitor Levi’s; voted the most popular denim brand in 2016. Although Levi’s is a luxury brand with high quality products, it is a more affordable brand in comparrison to Diesel; this means that Levi’s are not limiting their market in terms of who can afford to purchase their products.

Diesel spends a lot of time and resources into creativing inovate, authentic designs unlike that of their competitors. With the continuing trend of high street stores duplicating luxury brand designs and producing them quickly for a fraction of the price, Diesel is loosing out on potential business.