Diolee Pestle Analysis

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1. Introduction 1.1 Description In the last few years, wearing a hair ornament to an event has become something very popular. However, if we take our look back, we will see that they were already typical in the 20s with Charleston’s headbands or during 30s with the designs introduced by Channel. Nowadays, this fashion has come back and as it is said in the fashion world, it is a “must” to wear one to a wedding or even to a party. Diadème is a company specialized on manufacturing and selling low cost wedding or party ornaments. It is a unique firm, as ornaments are handmade with high quality materials. Initially, Diadème is going to supply only hair ornaments including headdresses, hair bands and turbans. This firm will give the possibility…show more content…
As stated on the book Business analysis techniques: 72 essential tools for success, PESTEL corresponds to the acronym of Political, Economical, Socio-cultural, Technological, Ecological/Environmental and legal. We are looking for factors that are outside the sphere of the company and that will have some level of impact over it. Political and economical frame In the recent years, developed countries have suffered a financial crisis. Briefly, the main cause of the start of the recession in 2008 was the lack of supervision on the grant of high-risk mortgages in the USA. American banks sold mortgage-backed securities to Europe without taking into account that a default risk could occur. When interests rates increased, borrowers could not pay back those loans, which led to bank defaults and therefore, the decline of the housing and stock markets (Karanikolos and al.…show more content…
Marketing analysis The American Association of Marketing (AMA) defines marketing as “an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders. ” (AMA, 2004). This section aims to identify, on the one hand the marketing strategy, which according to Kotler (2011) “is the marketing logic by which the company hopes to create customer value and achieve profitable customer relationships.” For this reason it is important to segment the market and to define the positioning strategies. On the other hand, the marketing-mix, which according to Kotler (2011) it is “the set of tactical marketing tools— product, price, place, and promotion— that the firm blends to produce the response it wants in the target market.” 3.1 Market segment According to the book Marketing management by Kotler, a market segment is a group of clients that share a set of similar (homogeneous) needs and desires. There is a need to segment de market in order to satisfy the clients. In this section, Diadème aims to adjust its marketing strategy to the diversified

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