NATIONAL INSTITUTE OF FASHION TECHNOLOGY

HYDERABAD

DEPARTMENT OF FASHION MANAGEMENT STUDIES

MFM - SEMESTER III

Global Marketing

SUBMITTED TO: Professor A.Rajyalakshmi

SUBMITTED BY -

Priyanshi (MFM/23/80)
 Declaration

I, hereby declare that the project work submitted is certified that this project is my work,

based on my study and research and that I have acknowledged all material and sources used

in its preparation, whether they be books, articles, reports, lecture notes, and any other kind of

document, electronic or personal communication.

I also certify that this project has not previously been submitted for assessment in any

academic capacity.

Submitted by: Date: 25 November 2025

Priyanshi
 Acknowledgement

I, hereby acknowledge and express our sincere gratitude to Professor A. Rajyalakshmi, my

project guide, and my professor for Global Marketing , for his guidance and support in

completing my project on “Case Study on Diesel”. The learning experience was invaluable.

I am very grateful that he provided valuable suggestions for the betterment of the project, and

I greatly appreciate him for doing so.

Submitted by: Date: 25 November 2025

Priyanshi
 TABLE OF CONTENTS

Sr no. Topic Page no.

1. History of Diesel 5
2. Diesel’s Entry into international Market 7
3. PESTL Analysis 10
4. Global Expansion Strategies 12
5. Conclusion 14
6. References 15
 Chapter 1 : History of Diesel
Inception
Diesel founder Renzo Rosso began stitching jeans on a sewing machine at the age of fifteen.
He used his mother's sewing machine to produce low-riding, bell bottomed jeans, which he
would wear himself and sell to his friends for 3500 lire a piece. He later attended an industrial
textile manufacturing high school in Padua.
In 1976 Rosso began working for a clothing manufacturer called Moltex, which was owned
by Adriano Goldschmied. After working with the company for two years, he used a loan
from his father to buy a 40% holding in the company, which changed its name to Diesel, and
marketed jeans under the Diesel brand and many others.Rosso bought out Goldschmied's
interest in the Diesel brand name in 1985 for US$500,000, becoming the sole owner of the
company. Rosso has said that he learned marketing from the US, creativity from Italy, and
systems from Germany.

Fig-Renz Rosso

1900s
During the first part of the 1990s, Rosso pioneered Diesel into the fashion world and set the
grounds for its establishment in global markets. In 1990, Russ Togs, Inc. received the license
to market and distribute Diesel lines in the United States and Mexico.By 1991, Russ Togs
was going out of business, and sold Diesel Sportswear to Rosso upon ending the licensing
deal. As a result of Russ Togs collapse, the creation of made in the USA Diesel products
never came to fruition, and Diesel instead placed its made-in-Italy jeans and clothing in US
stores.

In 1991, the company launched its first international marketing effort with the highly
successful 'Guides for Successful Living' campaign series. The campaign won a Grand Prix at
the Cannes Lions International Advertising Festival, the world's leading awards in
advertising, in 1992. In the same year, Diesel also became the title sponsor for the World
Superbike racing circuit.Diesel continued to ignore common marketing rules and began to
establish itself as a major brand in the global fashion market. This was a result of Rosso's
ambition to always break new grounds and his aspiration to work with most creative agencies
and photographers around, including David LaChapelle, Terry Richardson, Ellen von
Unwerth, Rankin, and Erwin Olaf.

Later in 1995, the company launched one of its most popular yet provocative campaigns ever,
featuring two kissing sailors staged at the peace celebration of World War II. Shot by
photographer David LaChapelle, it was the first major public advertisement to show a
homosexual couple kissing and was published at height of the "Don't ask, Don't tell" debates
in the US, which had led the U.S. Government to refuse entry to military service for openly
gay, lesbian, or bisexual persons. At the same time, Diesel launched one of the first
significant fashion retail websites, which housed images of each of its collections. The first
Diesel jeans to be sold online were available in Finland and Sweden starting in 1997. It then
opened a virtual store that allowed home delivery for further markets the following year.

Fig- Diesel 1995 Campaign

In 1999, Diesel opened large flagship stores in New York City, San Francisco, Rome, and
London, and began to open other mono-brand stores for Diesel in order to augment its points
of sale in department and other multi-brand retails stores. Further flagship stores (also known
as "StyleLabs") opened, including stores in Berlin, Barcelona, and Paris. Diesel also produces
illustrated catalogues for its retail lines. The company also won the Premio Risultati award
for Best Italian Company of the Year from the Bocconi Institute in 1996. In 1998 The Wall
Street Journal called Diesel "the label of the moment".
 Fig- Diesel New York Store
2000’s

Throughout the 2000s, Rosso increased Diesel's share in the global fashion market, mainly
through opening more company owned stores,embarking on a series of brand collaborations,
and by expanding on the business of Diesel.Diesel founder Rosso also began purchasing
additional fashion companies in 2002, under the parent company Only The Brave, which
Diesel was brought under as well. Companies purchased by Only the Brave included Maison
Martin Margiela, Viktor & Rolf, Marni, and licensing company Staff International.In 2005
Diesel released the book "Fifty" upon Rosso's fiftieth birthday, an illustrated history of the
company, with a print-run of ten thousand.

Diesel's headquarters are in Breganze, on the former Moto Laverda factory area, and had
twelve international subsidiaries as of 2005. As of 2008, the company had five thousand
points of sale across eighty countries, with 270 mono-brand Diesel stores. Diesel itself owns
170 of those, with the rest owned by franchisees.Turnover was over €1.3 billion in 2009, and
by 2010 the company had over 400 stores. In 2012 Diesel founder Rosso was listed on the
Forbes list of billionaires for the first time. In 2015 the company held the exhibition
Welcome to Diesel World in Shanghai, which provided an overview of the company's history,
in conjunction with its collection debut. Another exhibition was held in Tel Aviv to mark the
company's twentieth year in Israel.

In the spring of 2013, Rosso named Nicola Formichetti, the former stylist of Lady Gaga and
creative director of Mugler, as Diesel's Artistic Director. The announcement followed days of
speculation and was met with positive response across the fashion world and daily news
press.In an interview with V magazine following the announcement, Rosso said "I finally met
somebody as crazy as I am", and explained that Formichetti's new responsibilities will be
overseeing "the total view" of Diesel's brand, including product, communications, marketing
and interior design. Formichetti's first project's included launching a groundbreaking
crowd-funded advertising campaign with Tumblr. The campaign, titled #Reboot and shot by
Inez van Lamsweerde and Vinoodh Matadin, featured prominent, young creatives ranging
from graffiti artists to film students instead of common models, with varying body shapes,
sizes and personal styles.
 Chapter2:Diesel's International Market Entry

Diesel's international expansion was a strategic move fueled by its unique brand identity and
growing global appeal. The brand employed a multi-pronged approach to enter foreign
markets:

1. Strategic Market Selection:

○ Key Fashion Capitals: Diesel initially focused on major fashion capitals such
as London, Paris, and New York. These cities were known for their
trendsetting culture and discerning consumers.
○ Emerging Markets: As the brand's global reach expanded, it ventured into
emerging markets with significant growth potential, such as China and India.
2. Strategic Partnerships:

○ Retail Partnerships: Diesel collaborated with renowned department stores

and multi-brand retailers to establish its presence in key markets.
○ Licensing Agreements: The brand entered into licensing agreements with
local partners to manufacture and distribute products in specific regions.
3. Innovative Marketing Campaigns:

○ Global Campaigns: Diesel launched iconic global campaigns like "For

Successful Living" to create brand awareness and generate buzz.
○ Localized Marketing: The brand adapted its marketing strategies to suit local
cultural nuances, ensuring that its message resonated with consumers in
different regions.
4. E-commerce:

○ Online Presence: Diesel established a strong online presence, allowing

customers to shop from anywhere in the world.
○ Localized E-commerce: The brand tailored its e-commerce platforms to cater
to specific regional preferences and payment methods.
PESTL and Cultural Issues Faced

Diesel, like any global brand, faced a range of PESTL (Political, Economic, Social,
Technological, Legal, and Environmental) and cultural challenges during its international
expansion:

● Political Instability: In some regions, political instability and government regulations

can create challenges for businesses.
● Economic Fluctuations: Economic downturns can impact consumer spending and
affect sales.
● Cultural Differences: Understanding and adapting to different cultural norms and
preferences is crucial for successful international operations.
● Language Barriers: Effective communication can be hindered by language barriers,
requiring careful translation and localization of marketing materials.
● Legal and Regulatory Differences: Compliance with varying legal and regulatory
frameworks can be complex and time-consuming.
● Intellectual Property Rights: Protecting brand identity and intellectual property
rights in foreign markets can be challenging.
 Chapter3:Diesel's Global Expansion- Navigating Cultural Challenges

Diesel's journey into the international market has been marked by both triumphs and
challenges. While the brand's rebellious spirit and innovative designs have resonated with a
global audience, it has also faced a myriad of cultural hurdles.

1. Cultural Sensitivity and Local Adaptation

● Modesty Norms: In markets like the Middle East, where more conservative dress
codes are prevalent, Diesel has had to adapt its designs to cater to local preferences.
For instance, they have introduced longer hemlines and more covered silhouettes for
women's wear.
● Color Symbolism: In some Asian cultures, certain colors hold specific meanings. For
example, white is often associated with mourning in China. Diesel has had to be
mindful of such cultural nuances when designing and marketing its products.

2. Language and Communication Barriers

● Effective Translation: Accurate and culturally sensitive translation of marketing

materials is crucial. A poorly translated slogan or advertisement can lead to
misunderstandings and negative perceptions.
● Localizing Messaging: Diesel has adapted its marketing messages to resonate with
local cultures. For instance, in Japan, the brand has emphasized its Italian heritage and
craftsmanship.

3. Economic and Social Factors

● Income Disparity: In emerging markets like India and Brazil, where income
inequality is prevalent, Diesel has introduced more affordable product lines to cater to
a wider range of consumers.
● Social Norms: In some cultures, public displays of affection are frowned upon.
Diesel has had to be mindful of such social norms when designing advertising
campaigns and in-store experiences.
4. Legal and Regulatory Challenges

● Intellectual Property Rights: Protecting brand identity and intellectual property

rights in foreign markets can be challenging, especially in countries with weak IP
protection laws.
● Import and Export Regulations: Compliance with complex import and export
regulations can be a significant hurdle.

5. Supply Chain and Logistics

● Quality Control: Ensuring consistent quality standards across different

manufacturing and distribution channels can be difficult, especially in regions with
varying labor practices and regulations.
● Logistics and Customs: Navigating complex customs regulations and logistics
challenges can be time-consuming and costly.

Despite these challenges, Diesel has successfully established itself as a global fashion brand.
By carefully considering cultural nuances, adapting its marketing strategies, and forging
strong partnerships with local distributors, the brand has been able to overcome obstacles and
achieve significant growth.

Regional Strategies

Diesel employed different strategies to cater to the specific needs and preferences of
consumers in different regions:

Europe

● Strong Brand Heritage: Leveraging its European roots and heritage, Diesel focused
on maintaining a strong brand identity.
● High-End Retail: The brand invested in premium retail stores in major European
cities to cater to discerning consumers.

North America

● Youth-Centric Marketing: Diesel targeted a younger demographic with edgy and

rebellious marketing campaigns.
 ● Celebrity Endorsements: Collaborations with American celebrities helped to boost
brand awareness and appeal.

Asia-Pacific

● Local Partnerships: The brand partnered with local distributors and retailers to
ensure effective market penetration.
● Cultural Sensitivity: Diesel adapted its product offerings and marketing messages to
suit the cultural nuances of different Asian markets.

By carefully considering these factors and tailoring its strategies to specific regions, Diesel
has been able to successfully navigate the complexities of the global market and maintain its
position as a leading fashion brand.