ANSOFF MATRIX

Market Development

By creating an association of a lifestyle with their products, Diesel’s loyal customers trust in the brand and the quality that they recieve in both service and product.

It is easier for them to market the same products to a different set of customers who already have knowledge of the brand.

An example of this is the emerging luxury market in China. The chinese market holds no individuality, duplicating existing products with no desire for a new brand experience.

Market Penetration

This is Diesel’s main method of growth as it is very easy for them to market more of the same products to the same market.

To gain a larger number of loyal customers Diesel could introduce a loyalty scheme where their customers can recieve points or discounts for their purchases and because Diesel is a premuim brand with high prices this will make it easier for their consumers to purchase new items.

Product Development

In the stage of product development, Diesel would attempt to market different products to the same people.

In order to do this successfully, they would need to develop exisiting products or repackage them. For example, if Diesel were to take a pair of their most iconic jeans (772) and modify the designs to modernise them. Diesel’s largest competitor Levi’s has already been doing this with their iconic 501 jeans, therefore, attracting new customers and generating more sales.

Diversification

Currently, Diesel has been seen to diversify themselves from their competitors in the form of the type of products they offer to their consumers. Diesel offers a wide range of products including flooring and ceramic tiles to their customers - this was a risky step forwards for Diesel because they are not a well known brand for providing such products, therefore consumers do not know to go there for such needs, and instead may go to better known businesses such as B&Q and Homebase.

Instead, to diversify themselves from the competition Diesel could focus on their service and what their competitors are doing that Diesel could do better in order to give them a competitve advantage.

For example, Levi’s offers a station within their store where customers can personalise and design their own pair of jeans. Diesel has done this in the past but only as a popup, if they were to make it permanent it will show they are going that extra mile for their customers.