Live, breathe and wear passion
A Diesel case study

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Page 5: Price

The price of a product is so much more than a little, or rather big, number on a tag. The price of a product is the most direct and immediate tool a business can use to convey the quality of its product at the point of sale. If done right, the price reinforces the rest of the marketing, drawing in the target customers by conveying the appropriate quality.

Pricing strategies

Diesel uses a model based on premium pricing. As we have discussed, Diesel is far more a lifestyle than a clothing brand. ¬†Through the vision and passion of Renzo Rosso, the company has created a whole new approach to engaging with its customers. The price of Diesel”s products needs to reflect the substance and value of that experience.

A strategy such as penetration pricing used by businesses making high-volume, relatively low-margin products would be inappropriate as it would undermine the quality association thus devaluing the brand and experience.

We do not pay a premium price for Diesel jeans because they are a premium quality, that is taken for granted. We pay a premium price because the jeans and the brand fit in with and even encourage a premium, dynamic lifestyle built “for successful living”, as Diesel would say.

The team at Diesel must be intimately in tune with that lifestyle so they can see how their diverse range of products from jeans to fragrances and even bike helmets fits within that lifestyle. That feel for what Diesel is and how we, the potential customers, interact with it allows the company to price those products in a way which complements and neatly fits into that lifestyle.

Diesel | Live, breathe and wear passion
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