Renzo Rosso, the president and founder of Diesel SpA, the innovative Italian casual wear company famous for its controversial 'For Successful Living' advertising campaign, is pondering how to brand its new upscale line of clothing: StyleLab. The objectives set for StyleLab are: (1) to enter the new and attractive high casual wear market; (2) to create an aura of prestige for the core D-Diesel line; and (3) to provide Diesel's designers with the opportunity to experiment with new cuts and fabrics, which may eventually trickle down to the main D-Diesel brand.
The case focuses on the selection of the branding strategy for StyleLab: should it be an independent brand with no link to Diesel, a sub-brand of Diesel, or an independent brand endorsed by Diesel? It can also be used to discuss critical issues in the marketing of fashion and luxury brands. In particular, it illustrates how Diesel has managed to grow without losing its core identity. The main objectives of the case are to develop an understanding of the key issues involved in managing a portfolio of brands and to evaluate alternative branding strategies for launching a new brand using a structured approach and tools. The case also illustrates critical issues in the marketing of fashion and luxury brands, most notably brand extensions. This case has been successfully taught in an MBA course on brand management. It can also be used in a session on branding in a marketing management course. The large corpus of Diesel's controversial print and television advertisements also make the case suitable for an advertising course or the advertising module of a marketing management course. Finally, the case can also be used in a market research course to illustrate the value of experimental methods for studying the effects of branding.
- Brand Managmenet
- Brand Extension
- Luxury Goods