Infomat (2008) mentioned that the inspection report of Renzo Rosso identified Diesel as a number one brand in the fashion and style industry that grabs the market through its new and unique design in denim products. Simultaneously, currently, this company entered into the male beauty product market with the collaboration of L’Oreal through their perfume products branded as Fuel for Life and Only the Brave. The splendid success of these products inspires Diesel to introduce more male beauty products in the market. This paper mainly focuses on the future product line of Diesel in male beauty products through a number of analyses. It shows the current market situation of male beauty products, which includes the existing product line, stage of the competition, main players of the market, etc. The latter section includes a thorough study on the various aspects of the brands related to the current study. Finally, this study explains some strategies to establish the brand in the market of future male beauty products in the market.
The present market data demonstrates that the European and American companies mainly dominate the global male beauty product market. Historically males are not much aware of their beauty products such as females are. As a result, the market for male beauty products was small. Nowadays males are more conscious about beauty and the market for those products is flourishing at a good pace. Currently, the male beauty product market mainly dominates by a number of top-rated companies of Europe with offerings of male beauty products are as follows:
|TOTAL Body and skin care||TOTAL Shaving|
| || |
|TOTAL Hair||TOTAL Toiletries and facial skin care|
| || |
The above-mentioned products are supplied by a number of companies, which market this product in a global market. Cravens & Piercy (2006) argued global market is a composition of firms who do their business on a global basis. Leading companies use a well set of distribution channels for reaching their product to the target market. The male beauty product market is still emerging. Therefore, the growth opportunity is very high.
In the male beauty product market, there is strong competition among the large companies with their strong brand existence in the market. The major brands include Gillette, Adidas, Nivea, Dove, etc. The competition in this market has based on quality and brand loyalty rather than price. Here a list of top brands shows the conditions of the market.
The current market for male beauty products shows an upward trend. The main customers for these products are young people. Some study shows the current market trends of these products.
Data gathered based on the customers of four European countries, the above-mentioned table demonstrates customers concern about the beauty products, which constitute a big market for these products among the customers’ age ranged around 15 to 30 years..
Diesel has a strong brand identity in the market especially in denim, when it entered the male beauty product market with its perfume it also gained the same success. However, in Europe, there are also other brands, which are stronger than Diesel, and currently, Gillette and Hugo Boss have captured the major market share. The market shares of these two companies are as follows:
The preference of the customers is showing in the figure were around fifty percent of the people like Gillette as a brand of male beauty product and another forty- seven percent of people know to prefer Hugo Boss. This data shows a strong presence in the market of these two brands. Diesel still does not enter this market. However, people know about Diesel. Here, a SWOT analysis is preparing for assessing the future position of the Diesel brand in the market.
- Diesel has a strong brand identity in the market.
- It has a quality workforce to manage the operation.
- Diesel always nourishes its designer at R&D who is dedicated to innovation.
- It has a global operation with strong financial capabilities.
- Diesel has more than ten thousand sales points in the world and more than forty outlets under possessing.
- The main weakness of Diesel is that it is just a new entrant in the market.
- Diesel has not owned production facilities for a male beauty product.
- Diesel brand loyalty among the customer of male beauty products is very low.
- Diesel has already established its brand values in the market and using this brand values it has a good opportunity to grab the market.
- Diesel’s mission and strategy have been designed in a customer-driven manner that helps them to interact with the customer more closely.
- By introducing the perfume, it already positioned its brand in a male beauty product market.
- It has a strong channel of communication to deliver its message to the customer that can use for new product promotion.
- The main threat for Diesel is the gigantic competitors of the male beauty product market.
- The quality of the other outsourcing products is also concerning for threats for Diesel.
- The ever-changing natures of the customers also represent threats for Diesel.
Diesel already entered the male beauty product market by introducing its perfume though it mainly produces jeans or denim products for men. As it has a strong customer base for male products, it has the chance to get an easy entry for male beauty products, as it is relevant to their existing network of customers. Their current product line includes various jeans and three special types of perfume named ‘Fuel for Life’, ‘Fuel for Life Unlimited’ and ‘Only the Brave’. The future product range of male beauty products may be as follows:
- Total shaving solution: including the pre-shaving cream or bum, shaving foam, gel, aftershave lotion, shaving razor with multiple blade and toner with the special brand name;
- Skin Care product: including deodorant, facial cleansing cream or gel, facial toner, skincare cream etc.;
- Hair solution: including shampoo, conditioner, hair dye, hair gel or lotion or spry, special product for head skin.
- Bath product: including shower cream or gel, salt gel, soap for man, etc.
Diesel’s current product line has driven mainly on the style and fashion of men and introduced male fragrance into the market as well as getting success. This success proves their ability to enter the male beauty product market. Diesel’s target customers are typically the young generation. They focus their denim design to attract young people. Because these target people are much more conscious about fashion and style. Oudghiri et al (2005) reported that most of the young people are the main customer of the beauty product especially student belongs to parents prone to bring the beauty products. Infomat (2008) described that Diesel is an international brand with more than 10000 outlets in fifty countries of the globe. Diesel itself runs more than forty stores with strong distribution channels and outsourcing product quality. All these show its capabilities and position in the market.
Moreover, Diesel’s main aim is to supply new and innovative products in the market as a result, it always strives to bring new stylish products through its supply chain. To enhance and survive in the market new product is essential and at Diesel, product line extension is one of the popular ways to enhance the market. Therefore, male beauty product is a good option for the company. Using its current brand image and market positioning can ensure the success of the future product line. Another thing is that Diesel has a contract with L’OREAL to market their premium product. L’OREAL is an international brand for beauty products with a strategy that also matches with Diesel. Therefore, Diesel can provide a quality product in the market depending on the quality of the products of L’OREAL and the legal bindings with the L’OREAL force Diesel to bring these new products in the market.
Jones J. C. (2007) argues that brand positioning is an inference by the customer about the particular brand of the respective company. It is actually how people feel about the particular brand. There are two ways to positioning a brand firstly to creating brand awareness to the customer in a way that when people think about a particular product certainly, they think of a specific brand of that product. As an example, when people think about television, certainly Sony comes to mind first. Secondly, customers would like to ensure superior quality and unique characteristics of the product with an affordable price and the customers would buy the product when these unique features may with a brand. In the case of male beauty products, there are some strong existing brands in the market and if Diesel wants to penetrate the market, they need to choose the latter one. In Diesel’s existing positioning, there are some unique features. They are as follows:
- Diesel tries to build a brand, which is different from other luxurious brands.
- Its product is fashionable and trendy;
- It is the pioneer in their industry;
- Diesel’s product is very close to the customer even in the street.
- Diesel’s brand shows substantial growth opportunity not only in denim but also in other categories related to their product range.
- It does not follow any conventional rule in their product, as fashion and style are always unconventional;
- It believes in a strong brand image;
- It brings happiness to their customer mind and acts positively to the trend.
Depending on the existing brand, the positioning of Diesel’s new male beauty product should be in a way that reflects its status. It can achieve this through the following ways described by Fennell & Allenby (2004):
Geographic Area: Diesel first selects the geographic area or areas where they should first launch and market the product; this strategy is extremely essential because these areas are the sources of the customers, (this sets the basis of market segmentation). Now European market is the most attractive location for launching beauty products for both males and females, and market leaders of the industry are very active recently. Diesel’s main market is Europe, and therefore, it can launch a new product in that market.
Time Dimensions: Time dimension refers to the instance when the product has launched in the market. Timing is very important for a number of reasons; the most significant one is the product life cycle. If the specific product reaches maturity and then to the decline stage, brand positioning for this product would be very tough. The male beauty product market is in the development stage so that it is preeminent to enter the market as quickly as possible.
The Product Line: The product line is important for brand positioning. Although a diversified product line is tough to position, Diesel’s future product line closely relates to each other, therefore, the job is easy for the company.
Target Customer: to determine the target customers, successful brand positioning is crucial, though it is difficult to attract everyone with the same brand. Diesel’s target customers for its existing product line are young cohorts (the customers for male beauty products are also alike). Therefore, it is easy for Diesel to select its target customer for the new product.
Price Setup: Although price is essential for middle-income earners, Diesel’s customers are premium in nature and they rarely concern about the price; rather they are concerned about the quality. Therefore, Diesel should set a price that is rational as well as competitive with other luxurious brands of the market.
Communication: Without communication, a customer cannot know about the brand, so, extensive communication and promotional packages are significant to notify them about it. Diesel has a well set of communication mediums to prop up the brand.
Place: Place means the point of sales where customers get the expected products of the specific brands. Diesel has many retail outlets for its assorted brands, and for male beauty products, it requires setting up a new sales point or outlet. This outlet should be in an admirable area, possessing nice grooming facilities, as the sale point is also a means of communication to the customers.
Competitor: competitor is very important in brand positioning, as they always compare one brand with another and try to identify the extra benefits and features those possess. In the male beauty product market, there are already numerous competitors with their strong brands, so Diesel should carefully analyze those features with their new ones and add further advantages to them. It is the core issue of brand positioning.
Pomerantz Career Center depicted brand as a composition of physical and emotional involvement of a customer with a product. It is something more than the product or its attributes. The brand describes all the distinctiveness and perceptions of the product. Therefore, branding is all those activities concerned with the creation of a brand. Diesel has a well set of distribution channels and market, now it requires building strong brand awareness in the market for its new product. Diesel should take a branding strategy to build awareness in customers’ minds. Bueno B. J. (2007) described seven strategies for elevating a new brand in the market. They are as follows:
- Determine the Current Position: In the denim market, Diesel is the market leader. However, in the male beauty market, it is new and the customer does not about the product offering. In Diesel, the focus is on the style, there is no special benchmarking for the design, and the standard is determining by the innovation and its acceptability in the market. The revenue comes from the sales of the existing product line. The main competitors in the market are Gillette, Adidas, Axe, Nivea, Head & Shoulder, etc. these brands are very popular and provide quality products at premium prices.
- Identify the Brand User: The brand of Diesel’s male beauty product must portray accurately the need of the customer. It must include the preference and choices of the customers. The brand contains a group of words, which will best describe the core value of Diesel. It must take feedback from the customer and they are satisfied with the product. In the product, the benefit of the customer should be clear. Finally, Diesel generates a brief statement, which states the brand attributes with the customer satisfaction. It is the whole process of identifying the brand lover and gain satisfaction from the customer.
- Give Attention to Human Need: the new product must have some benefits, which will fulfill the basic needs of humans. Diesel’s new product should fulfill the basic needs that mean the basic reason for which people buy the product. After satisfying the basic need, the product or brand must possess some extra feature, which will satisfy people into the upper level. It is much more similar to the self-esteem need that indicates the brand should match with the individual needs. When someone treats people individually, they will be happier. It will create brand loyalty to the customer. Direct collection of preferences from the customer and act accordingly create more loyal customers.
- Address the Channel: A brand is nothing but all about the information about the product. When branding, Diesel must keep in mind the three dimensions that affect the customer about the brand. These dimensions are the product offer to the customer, the place of offering the product, and the time when the product is offered. The offering must be worth something, which will fulfill the need. The place, where the product offers must be convenient to the customer. Finally, the product offers must be on due time. Suppose, in winter, the sun-protection product has not much appeal to the customer. Through analyzing the customer, Diesel must identify which media will be best for the specific customer or group of customers. In this part, at least three modes must be select to communicate.
- Select and Use Communication Channel: through previous sections analysis, Diesel can identify its customer more than any other general business people can. Now, the company starts to communicate with their customer through various modes. It can use a billboard to communicate the brand to the customer. Here are three things need to keep in mind are Look, Say and Feel. Diesel should use the advertising mode by which people are able to look at the product. Everyone likes to talk as well as hear. Therefore, Diesel should the medium through which somebody talks about the brand. Air media including television ads or radio ads will best serve the purpose. Communication is confining to not only word or image; sometimes it is a matter of feeling. When people think that, any product specially produces for the person then s/he feels better. Diesel has its own advertising for its existing line. It can use it for the new product also.
- Training of Employees: Employees of Diesel especially the marketing people for a new product should train well. They must understand the value of the customer and try their best to serve the customer and keep in mind that the customer is the core business unit. Customer-driven employees are essential for building a new brand.
- Implication of Knowledge: Every member of the work team of Diesel must exercise their knowledge for the improvement of the service. In this section Diesel, need to take some sort of risk in the market. It should promote innovative ideas from any corner and try to learn from the competitors.
Diesel has a good prospect in the male beauty product market as it already has well brand recognition in the market for its unique Diesel Jeans. Diesel always introduces a premium product for their customer, which leans with the male beauty product market, as market competition is largely base on quality than price. The market trend shows that the customer segment of this market is young people, which is similar to the customer segment of Diesel. In SWOT analysis, the strength and opportunity indicate that Diesel has the capabilities to compete in the male beauty product market. This paper suggests a future product line for the company and brings a straightforward strategic guideline to position Diesel’s new product brand in the market.
Bueno B. J. (2007) Seven Steps to Understanding Your Customer and Cultivating Brand Loyalty. Web.
Cravens D. W. & Piercy N. F (2006) Strategic Marketing. (8th ed). New York: McGraw-Hill.
Fennell. G & G. M. Allenby (2004) Brand Positioning. Web.
Infomat (2008) Company Profile, Diesel Jeans. Web.
Jones J. C. (2007) Brand Positioning. Web.
Oudghiri R. & Geoffray M. & Potereau J. (2005) Junior Attitudes. IPSOS Trends & Prospective Department. Web.