1. Weakness The skin care market is still in a nascent stage in India Penetration levels for both the urban and rural market are low. High duty structure and market complexities (such as investment rules) 20% global brands on an average in local markets among skin care. Possible brand dilution. Price Sensitivity of customers in competitive markets. SWOT Analysis

2. Opportunities India represents one of the fastest growing beauty markets globally, growing at 13% annually, and valued at $6.3 billion. According to Kline & Co: Skin care accounts for approximately $180 million. Current market for male grooming products in India $185 million. Exponential growth in 2008. Changing socio-economic status of the Indian consumers Indians are increasingly becoming very brand conscious and buy designer brands as a status symbol. Inherent brand visibility : Loads yet to be explored. SWOT Analysis

3. Threats Regional brands appeal by using local models and targeted advertising. Private Label. Competition from regional distribution Many consumers prefer to use home-made and traditional products to cure the skin problems Diesel: growing so much can damage their reputation as a non mainstream brand SWOT Analysis

4. OPPORTUNITIES FOR DIESEL Positioning and image Business performance Products (packaging design, range composition) Market share The mix (price, promotions, etc.) Consumers Communication strategy focused on public awareness

5. Brand Positioning Model for Diesel OPPORTUNITIES FOR DIESEL

6. Specialists benefit from the booming emerging markets. Direct selling (internet) are set to benefit by the recession. Luxury is no longer a premium price tag, but more of a lifestyle status. OPPORTUNITIES FOR DIESEL

7. Masstige –a winning formula. Men’s beauty masstige items can become affordable luxuries in a tough economic climate. Presence across the whole beauty product spectrum. Successful marketing strategies by better interaction with consumers and clear communication of product efficacy. Personalized approach to marketing. Innovative Strategy OPPORTUNITIES FOR DIESEL Big Opportunity in Mass Luxury.

8. Opportunity in Skin care OPPORTUNITIES FOR DIESEL

9. Communicating its Image The message is important - a common way of seeing things. Non Product oriented advertising. The target is urban daydreaming and lusciously loving nature as an quirk ecological impulse. Association with the consumers: Youth, vitality, happiness, hedonism, sex, worry-less. OPPORTUNITIES FOR DIESEL

10. Communication Approaches Rich Customer Interaction Potential Target the customer psyche, concentrate on the message and use the ambiguity of the brand to win potential customers. Cultural connection and personal expression value Addendum to a cultural component, hedonism and symbol of constructing rebellion Interesting positive news The innovation appears on all the lines, from watches to clothing and users are always expecting edgy and fresh stuff. OPPORTUNITIES FOR DIESEL

11. Communication Approaches Underlying differentiation from competitors A premium niche Inherent brand visibility Easy-to-reach audiences OPPORTUNITIES FOR DIESEL

12. Communication Mode Media Communication Diesel ads will never be seen in mainstream media. Campaigns Cosmetics Magazines Hoardings OPPORTUNITIES FOR DIESEL Non Media Communication – Unconventional Methods Product placement amongst actors, musicians and other celebrities Movies Internet (www.diesel.com, one of the first clothing website)www.diesel.com Diesel built The Pelican Hotel in South beach, Miami Video games for play station.

13. STRATEGIC APPROACH Segmenting Consumer Markets GEOGRAPHIC Region : Asia-Pacific,Western Europe,North America,Latin America City : Tier 1. DEMOGRAPHIC Age : 20-35 years Family Size : Young,Single; Young,Married,No Children; Young,Married,Youngest child under 6; Gender : Male Income : High (above Rs 160,000 p.a)

14. Indian consumer socio-economic classification. TARGET STRATEGIC APPROACH

15. Socio-Economic Classification Grid STRATEGIC APPROACH

16. PSYCHOGRAPHIC Socio-economic : A1,A2 Personality : Rebel, Young, Urban, Hedonistic, Sensuality. BEHAVIORAL Occasion Regular Benefits : Cleansing, Freshness Usage Rate : Light. Loyalty Status : Strong Readiness : Aware, Informed,Interested, Desirous, Intending to buy Attitude toward product : Enthusiastic, Positive. STRATEGIC APPROACH

17. Market Targeting Need Based Segmentation: Men exposed to heat,travel,dust and exertion. Segment Identification: Luxury Segment. Segment Attractiveness: Market Growth, Competitive Intensity and Market Access. Segment Profitability: Niche market, High profit margins Segment Positioning: Brand Icon,Brand Personality. Marketing Mix Strategy: Product,Price,Promotion,Place. STRATEGIC APPROACH