KEY ISSUES AFFETING DIESEL

One of the main issues affecting Diesel is their main competition Levi’s. Through observation it is as though in recent years that Diesel and Levi’s have swapped places.

Diesel was one of the most popular brands in the 90s and 00s while Levi’s had lost a lot of their popularity among the mass, but in recent years it can be seen that Levi’s has regained its popularity as a premium brand within the luxury retail sector - while Diesel’s popularity has gone into decline by some (Refer to appendix 4).

The first recommendation would be for Diesel to focus heavily on their social media, specifically Instagram because it is the most popular social media platform “with more than 500 active users” and now “considered the best social media platform for customer engagement”. Currently Diesel does not have a great influential social media presence over the public in comparison to their competitor, Levi’s (Refer to appendix 8). While Levi’s has 2.9M followers, Diesel only has 1.3M. Levi’s is doing better than Diesel because, unlike Diesel they upload multiple posts daily, purposely attracting the attention of their consumers/followers; Levi’s are also uploading multiple photos in the one post which is effectively grabbing the viewers’ attention for a longer period of time.

In order for Diesel to attract a larger social media following with dedicated followers they must make their posts exciting and interactive for the viewer; this may involve putting entire outfits together or having one statement piece of clothing that will make their consumers feel like they have to own it.

Diesel could also upload videos where a stylist creates a full Diesel look on a celebrity or model and lastly refrain from using an excessive amount of hashtags in their captions as it turns younger followers of because they like short, simple and catchy captions (DeMers, 2017).

Another main issue affecting Diesel is that although Diesel and their parent group OTB are advocates for fighting social inequality and contributing to sustainable development they have shared very little information about their supply chain and the impact they have as a brand socially and environmentally from all of the work they do (Refer to appendix 9). OTB have also failed to announce what their objectives will be to improve social and environmental conditions within in their supply chain.

A recommendation to resolve this issue may be for OTB to begin publicizing detailed information of their supply chain as they currently do not disclose the countries where their suppliers are located or their names and addresses, and the yearly objectives they set in order to improve the social and environmental issues they are very vocal about changing such as global warming.

OTB could also share more information and make people aware of the innovative projects that they have been a part of – not only would this raise awareness but it would help create a brand recognition that consumers can identify with and have their minds set at ease that they are buying into an ethical and sustainable brand and lifestyle (ProjectJust.com).

A third key issue that affects Diesel is that they are a part of the luxury market which has become in recent years oversaturated with new and emerging premium brands. In order for Diesel to remain as a top premium brand against the competition in this oversaturated luxury market, they must learn to reposition themselves. “To be successful today, you must touch base with reality. And the only reality which counts is what’s already in the prospects mind. The basic approach of positioning is not to create something new and different but to manipulate what’s already up there in the mind, to retie the connections that already exists. Today’s marketplace is no longer responsive to the strategies that worked in the past. There are too many products, too many companies, and too much marketing noise. The mind, as a defence against the volume of today’s communications and rejects much of the information offered it. In general, the mind accepts only that which matches prior knowledge or experience.” Ries, A & Trout, J; Positioning The Battle For Your Mind (2001); McGraw-Hill; pg. 5&8.

The best approach to take is the oversimplified message. Diesel must focus on the prospect rather than their product in order to communicate effectively; it is a selection project, and they must select the material that as the most chance of getting through. Because so little of their message will get through anyway, they must ignore the sending side and turn attention to the receiving end; concentrating on the perceptions of the prospect, not the reality of the product. Ries, A & Trout, J; Positioning The Battle For Your Mind (2001); McGraw-Hill; pg. 5&8.

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