Marketing principles

Marketing principles

Diesel is a worldly famous brand which specializes in offering fashion products. The company now employs some 2,200 people globally with a turnover of £1.3 billion and its products are available in more than 5,000 outlets. The biggest objective of the company is to build something special, something “cool” and something which can change the world through fashion. This report is implemented with the aim of analyzing Diesel marketing concepts including marketing process, marketing orientation, environmental influence, segmentation, targeting strategy.

1.1. Explain the various elements of the marketing process for DIESEL in Vietnam.

According to Kotler & Amstrong, the elements of the marketing process are defined as a set of controllable tools that the firm blends to produce the response it wants in the target market, so it consists of everything the firm can do to influence the demand for its product (Kotler & Armstrong, 2004.). The marketing process involves a chain of different steps. Some elements of the steps are implemented constantly while others are performed annually. Basically, marketing process involves 3 main elements: Situation analysis, marketing strategy and implementation & control.

Situation analysis: Diesel is a big brand with a long history of formation and development. The company has had over 5000 outlets all over the world. Its products are diversified and highly favored by young people, especially in US. However, Vietnam and US are two completely different markets, so the business environment is completely different as well. Vietnam is a new and complex market for Diesel. In Vietnam market, Diesel can gain some advantages. For example, Vietnam government adopts policies to promote foreign investment and facilitate the foreign companies to join in the domestic market. The political and economic environment is stable. Therefore, Diesel can comfortably invest in Vietnam without fear of high taxes or crisis. Moreover, currently, customers in Vietnam care more about their appearance as well as have higher preference for famous brands while Diesel is a famous brand that is highly appreciated in the international market. With the high quality and recognition, Diesel completely superior than many other brands in Vietnam market. Despites these advantages, if entering Vietnam market, Diesel will have to cope with various disadvantages. Vietnam market already exists a variety of international apparel brands, Diesel is a new brand. Therefore, its product will meet intense competition from many strong competitors. It makes marketing decisions more difficult. If Diesel do not have the right strategy, this brand cannot exist in the market.

Marketing strategy: Marketing strategy involves some key terms including segmentation, targeting, positioning. To long-term develop in Vietnam, Diesel needs to determine which marketing strategy it will follow. It can be customer strategy, products strategy, price strategy or promotion strategy.
Customer strategy: Entering into a completely new market, Diesel need to determine who target customers of the company is. Because Diesel’s products are designed for young people, so its target customer should be the youth. From that, the company will have the specific strategy to gain many loyal customers. These customers will bring the main source of profit for the company, so customer strategy should be the top strategy of the Diesel Company.

Product strategy: Product is the top priority for any company. Therefore, to develop in the Vietnam market, Diesel Company needs have a clear product strategy to create competitive advantage over rivals. Currently, the main product lines of Diesel include Diesel – the key product, Diesel Black Gold and Diesel Kid. The company should continue focusing on building product’s image and innovation. This will help to attract interest of young customer and increase revenue.

Price strategy: In terms of pricing, stores which have many varied products with different prices will be good assessment. This will probably be an advantage for the Diesel Company. In addition, the company’s products mainly focus on senior market, so the price of these products is higher than price of unbranded products in Vietnam market. However, company still can get customer satisfaction if it can create difference by serving or product quality.

Promotion strategy: Diesel Company expects to increase stability, gain confidence in the customer’s mind in Vietnam, thus promoting activities are very important. Diesel has successful implemented promoting activities such as sponsorship, donation, partnership, so the company needs continue implementing these activities.

Implementation and control: At this point, the company has understood the market and competitors and selected an appropriate segment. The company will start to develop a marketing message, set sales goals and marketing and execute. If the company implements marketing process successfully, they can completely adapt to Vietnam market, raise sales revenue, attract more customers and increase awareness of customers about the company’s brand. Besides that, the marketing process needs to be regularly controlled and supervised. If there is any change in the market, the company needs to change its strategy to quickly catch up with market trend.

1.2. Evaluate the benefits and costs of a marketing orientation of DIESEL in Vietnam.

Marketing orientation is generally referred to the basic orientation that governs the relationship of a firm with its market and more particularly, with its customers (Lambin Jean-Jacques, Chumpitaz Rubén, 2001). Market orientation analyses the needs and wants of the customer in developing a product. The method will help company to collect information and data about customers and develop a right product. With this marketing approach, the product will be based on customer demand. As a leading producer, supplier and distributor of apparel products, Diesel will certainly bring the best products and service to customers in Vietnam. Entering Vietnam market, marketing orientation of Diesel exposes some following benefits and costs.


– The marketing orientation significantly supports Diesel in determining market trend as well as understanding the demands of the customers. From that, Diesel can create products which satisfy and attract customer most, help to increase revenue and bring profit for the company.
– Normally, when the customers are satisfied with company’s products, they will continue putting their belief into these products and introduce them to their acquaintance. This will help to popularize the company’s products, develop company’s image as well as increase brand awareness.

– Obviously, marketing orientation consumes company’s time, money and energy. Before launching products in Vietnam market, company needs to implement a range of actions including studying customers, analyzing market, etc. These actions often extend in a long time and require a lot of money and energy.
– When the change in purchasing decisions of customers happens, the company has to adjust to accommodate these changes. Small changes in customer need can address by changing the advertising message. However, for big changes, a product redesign or an entirely new product may be needed.

2.1. Show macro and micro environmental factors which influence marketing decisions of DIESEL in Vietnam.

The micro environment is all internal factors in the company which impact directly on the company and its operation include factors such as customers, suppliers, competitors, intermediaries…
The macro environment refers to external factors of the company which have impact on large scale. Factors affecting organisation in macro environment are known as PESTEL: Political-Legal; Economic; Environment; Social and cultural and Technological factor.

Micro Factors:

Any company desires to satisfy customer needs to sell their products. However, this is not easy because the customer requirement changes continuously and gets higher. In the Vietnam market, although the living standard has improved, customer’s income increases, they also pay more attention to their looks and appearance to affirm their status in the society, the upper class products are still quite strange for most customer. The price of these products is also too high in comparison with currently unbranded products. This creates a large challeng for Diesel when they want to enter into Vietnam market.


Currently, in Vietnam market, Diesel has to face with intense competition not only from famous apparel brands such as adidas, Nike, Viet Tien, Nha Be…but also unbranded products. They also launch a range of promotion actions to attract customers. Their price and products are also diversified and competitive. Customers therefore have a plenty of choices. If Diesel wants to develop in Vietnam, it needs to build a marketing plan suitably, conduct marketing survey carefully, so that they can have a strategic advantage over their competitors.

Company itself

Micro factors related to company itself include leadership capacity, financial resources, facilities, etc. If the company desires its marketing plan go smoothly, it needs to have a strong leadership capacity, financial resources and facilities. A good leadership capacity will help to assure that the marketing activities are strictly managed and implement effectively. Strong financial resources make sure that marketing act ivies are carried out fully. Facilities are the basis and tool to implement marketing activities.

Marketing intermediaries is process to help a business can sell or advert their products to the customers or buyers. Diesel uses franchise to distribute products, so intermediaries play a extremely important role for company. In Vietnam market, the company needs to choose a prestigious distributor to make sure that genuine products will be delivered to customers.

Marco Factor Marketing (PESTEL analysis)

Political analysis: Political environment in Vietnam is quite stable. Vietnam has not recently faced any serious threat to its powers. If Diesel Company invests in Vietnam, they will have a stable future and don’t need worry about war or crisis.

Economic analysis: Vietnam is a true emerging market offering ground floor and growing opportunities for foreign exporters and investors. In the recent years, living standard has been increased; a consumer’s income is also raised dramatically. According to statistics in the 2013, Vietnam’s GDP reached 1.960 USD. In 2014, it is expected to increase 5, 8% compared with 2013. Besides that, inflation in Vietnam has been a serious issue in the past, but has been recently controlled Vietnam. Moreover, Vietnam has the strong labor force with low labor costs. When access to the Vietnam market, company can save costs and easily find the qualified employees. All these elements create a favorable condition for Diesel Company to invest in Vietnam market.

Social analysis: Vietnam has the large population. The population of Vietnam is 89.2 million according to record of CIA, 2010. The educational level is increasingly high, so the Diesel’s products are easily recognized and popular.

Technological analysis: The technology markets in Vietnam are currently growing. Diesel should take this advantage to implement online marketing strategy and develop their products. Legal analysis: Vietnam strives to create a favorable legal environment for all investors. Vietnam has a tight legal system. Vietnam government always desires to create a fair competition environment for both domestic and foreign companies. Since join in WTO, Vietnam has implement many policies to adjust import and export regulations, especially tax policies. This affects largely to marketing plan of Diesel.

Environmental analysis: Nowadays, people are more and more interested to the environment’s factor. They tend to care more about environmentally friendly products. Therefore, Diesel also should attache special importance to protecting to the environment as well as researching and producing environmentally friendly products. This will help to achieve customer’s affection and build company image in customer mind.

2.2. Propose segmentation criteria to be used for DIESEL products in different markets in Vietnam

Segmentation is simply the process of dividing a particular market into sections, which display similar characteristics or behaviour. When the company knows how to segment their market, it can get the opportunities, easily satisfy customer and promote their products. Criteria of marketing segmentation for Diesel Company are geographical, demography and social status or class.


In term of geography, Diesel products will be segmented based on geographic location. In Vietnam, the urban and the rural areas are quite different. In the urban, people often have a higher living standard and income. They also pay more attention to their appearance than in the rural, so obviously the demands of the fashion items in the urban people is much higher. In case of Diesel, it focuses on providing upper fashion items. Therefore, the urban area will be target market of the company. Vietnam has 3 main big city: Hanoi, HoChiMinh and Danang. Diesel should focus on developing their products in these cities that will bring a big opportunity for company’s development.

Demography: According to this division, the Diesel market will be separated based on characteristic of population. Vietnam is one of countries which has the dense population in the region (over 92,000,000 people). The urban population accounts for 31% of total population mainly in the big cities as Ho Chi Minh City, Hanoi, Da Nang… In addition, Vietnam is a country with the young population. Vietnamese are mainly from 18 to 39 year olds. This is an opportunity for the Diesel because its products are fashion goods and the young are company’s target customer. They are more willing to pay money to get company’s products and more interested in the design and quality of the product.
Social status and class:

In recent years, the avarage income of Vietnam people has improved. People are more interested in the foreign fashion brands because of its trendy design and gurranteed quality. However, not all people can afford these items because they often have a high price. Diesel is also senior brand which specializes in offering upper products so the company’s target customer should be narrowed from middle class upwards. They are people who have stable income and can buy company’s products.

2.3. Choose a targeting strategy for a selected DIESEL product in Vietnam.

There are 3 targeting policy: Undifferentiated, Differentiated and Concentrated.
Undifferentiated marketing “is marketing that does not target a particular segment of the market. Instead the firm adopts one marketing strategy and hopes that it will appeal to as many people as possible” (Learnmarketing, ND)

Differentiated marketing strategy means that “firm decides to target several segments of the market, it is engaging in a differentiated marketing strategy. Under a differentiated marketing strategy, a firm will develop products and services with separate marketing mix strategies for each of the segments chosen by the firm”. (Learnmarketing, ND)

Concentrated marketing strategy “occurs when a business concentrates its marketing effort on one segment of the market. The firm will develop a product that caters for the needs of that particular group”. (Learnmarketing, ND)

Before engaging in marketing campaigns and promotions businesses need to decide who they would like to aim their products at. Following marketing’s view of Diesel, the company should choose the differentiated strategy. In the case of Diesel, they are big player with 3 main products including Diesel, the main line, and Diesel Black Gold, a new collection in the casual-luxury segment and Diesel Kid for children. They should focus on the product, quality of their service, product. They want their product to become the best in the world, they add more value into their product, if the customer love that, price of product will not be a problem. If choose their strategy is differentiated, they should focus on developing quality and style of the products. Diesel company should add more and more value in their product to make attract more young customer, they will buy it even they are expensive. In the first time, it is better that the company use the products that were bring directly from the own country. After getting achievement in Vietnam, they should take a factory in here, company will discount the price to travel product from their own country to Vietnam

2.4. Demonstrate how buyer behavior affects marketing activities in different buying situations for DIESEL products in Vietnam.

Buyer behavior is the decision processes and acts of people involved in buying and using products. Factors affecting to buyer behavior include: cultural factors, social factors, personal factors and psychological factors.

1. Cultural factors:

Cultural factor refers to the shared beliefs, customs, behaviors, and attitudes that are ruled in a society. Curare affects directly to customer buying habit. Vietnam has a traditional culture which was built a long time ago. Currently, this ideology still exists deeply in the Vietnamese thinking. This is shown by their dress. Normally, they prefer discreet and simple dress. Although Vietnam has been affected by the western countries, generally, their dress still keeps the nation’s culture. Therefore, to develop in Vietnam, Diesel should take this issue in to careful consideration so that they can provide suitable products to adapt Vietnam culture.

2. Personal factors:

Personal factors affecting to buyer decision can be occupation, income, lifestyle and favorite
Occupation: People with different professions will have different demands about clothes.
Income: normally, when the income is higher, people have more demand. The customers who have the high income will tend to buy the luxury products rather than popular products
Lifestyle and favourite: each person has their own lifestyle and favoutire, so the choice of clothes in each person is not similar. For instance, the people have the modern lifestyle; they will buy the clothes suitable with the fashion trend.

3. Social factors

The social role and status: profoundly influences the consumer behavior and customer’s purchasing decisions. Currently, people tend to use famous brand because for them, clothes is a signs of social status. Luxurious clothing brand will help the customers to be more confident.

Reference group and the family: It implies that buying decision of a person is largely affected by surrounding people. In Vietnam, people often have a crowd psychology. It means that when a person has a fashion clothes, other people also desire to get ones. Additionally, Vietnamese often have a habit of asking their acquaintance before buying a products, so Diesel should care about this issues to have proper marketing plan/

4. Psychological factors: Vietnamese often like the products which have cheap price but high quality. The Diesel product’s prices are higher than the price of products made in Vietnam. Therefore, Diesel should consider and adjust their prices for being suitable with Vietnamese’s income so that the company can sell more products.

2.5. Propose new positioning for selected DIESEL products in Vietnam

Positioning is the act of helping customer to identify the image and evaluate the value of the company’s brand in the target consumers ‘mind. In other word, it refers to how organisations want their consumers to see their product. When the company indentifies its positioning, it can create a strong and specific image in customer to compete with another brand. Although, diesel has a specific market target and a marketing strategy but they also do not avoid competitions of different fashion brands which also have good qualities. It creates challenges for developing of Diesel. To long term develop, Diesel needs to have the balance between two elements: price and quality. The company needs make its price more suitable for the Vietnamese income. Moreover, the company needs to Improve fashion products in term of both design and quality to be more suitable for Vietnam culture and help customers to have more choices. The company also should promote advertising activities through Internet, paper, magazine, etc so that customers can easily get company’s information and order products. The atmosphere in their store is also very important. This is first impression of the customer when they come to company store. Therefore, decor of the store should be cool and unique which makes the customer feel attractive and impressed. Staffs need to be enthusiasm and dynamic to satisfy customer.

Generally, to develop in Vietnam market, Diesel has to overcome many challenges. The most important thing is that the company need carefully analyze and profoundly understand the market concepts such as segmentation, targeting and positioning, buyer behavior, etc. Diesel is a big brand, so hope that the company will successfully enter into Vietnam market.

Booms, Bernard H.; Bitner, Mary Jo (1981). Marketing Strategies and Organization Structures for Service Firms”. Marketing of Services. American Marketing Association: 47–51
Kilter, P., & Armstrong, G. (2004). Principles of marketing (10th ed.). Upper Saddle River, NJ: Prentice Hall.
Kotler, Philip (2012). Marketing Management. Pearson Education.
Kotler, P. and Keller, K. (2006), Marketing and Management, Pearson Prentice Hall, Upper Saddle River, NJ, USA.
Lambin Jean-Jacques, Chumpitaz Rubén. (2001). Market-Orientation and Corporate Performance. Symphonya. Emerging Issues in Management pp. 23-37.
Market targeting options. ND. Online available at: <> . [Retrieved 15.06.2014]

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