Diesel for Successful Living

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Diesel for Successful Living:
Branding Strategies for an Up-market Line Extension in the Fashion Industry

This case was the overall winner of the 2007 European Case Clearing House Awards This case received the 2006 European Case Clearing House Award in the category “Marketing”

01/2008-4948 This case was written by Vadim Grigorian (INSEAD MBA 2000) and Pierre Chandon, Assistant Professor of Marketing at INSEAD, as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. We thank Maurizio Marchiori, Antonella Viero, and Giovanni Pungetti from Diesel SpA for their help and support. Copyright © 2004 INSEAD

It was the end of summer 1998. In less than a month, the first StyleLab catwalk fashion show would be held in London. Renzo Rosso needed to make tough decisions about the branding strategy of this new line and he needed to make them fast. StyleLab was the new upscale product line of Diesel SpA, the Italian casual wear company famous for its cult Diesel jeans and controversial advertising. One of the fastest-growing fashion companies of the 1990s, Diesel was No. 2 in the jeans industry in Europe and had high expectations for StyleLab. StyleLab was designed to exploit growth opportunities in the emerging luxury segment of the casual wear market, competing with the likes of D&G (from Dolce & Gabbana) and Miu Miu (from Prada). It was also seen as a way to counteract the unprecedented diffusion of the main denim D-Diesel line which might jeopardize the exclusivity and status of the brand. Furthermore, StyleLab would allow Diesel’s cherished designers to express their creativity by experimenting with new cuts and fabrics. Renzo Rosso, Diesel’s president and founder, was confident that…...

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