2. Diamond Industry: Present
Scenario
• Global diamond industry is worth around $65
billion
• U.S. leading consumer of polished diamonds
• Retail sales over $ 30billion despite recession
• 70% of the world’s diamonds cut and polished in
India
• Export of cut and polished diamonds down by 8
percent (near about $13024.53 million) in 2010
as against $14194 in India. Yet fastest growing
diamond market today.
3. De Beers: Brief Overview
• Founded in 1888 by Cecil Rhodes, it’s a cartel of 12 companies
spread across the globe
• Historically owned 85% share of the diamond market.
• Infamous for influencing supply and demand to control prices
- Purchasing and stockpiling same diamonds as other manufacturer
- Flooding the market with diamonds similar to their competition that
refused to join their monopoly
• Diamond Trading Company (DTC) is the sales and distribution arm
of the De Beers Group
- Uses DTC as brand name and ForeverMark logo for marketting
purposes
- Exclusive De Beers boutiques operate in select countries
• N. W Ayer & Son was De Beer’s primary advertising agency.
Advertising Age named "A Diamond Is Forever“ best advertising
slogan of the twentieth century.
4. • Losing its Grip on the Market
In 1990s, several events happened:
- Soviet Union collapsed, weakening partnership
- Huge Argyle mine in Australia broke off from cartel
- New mines in Canada discovered
- Increasing popularity of synthetic diamonds
•Market share fell from 85% to 45%
• The Aftermath
- Stopped trying to control market and instead focus on
using its marketing and brand
- Spent $180M on marketing in 2004
- Partnered with Louis Vuitton to open retail outlets
• In 2003, earned sales of $5.5B and income of $676M
5. De Beers’ Marketing Strategy
1. To push the idea that diamonds were eternal, forever
linked with romance, emotionally valued and a
necessary luxury.
2. To strengthen the tradition of the diamond
engagement ring – “make it a psychological
necessity”
6. De Beers’ multifaceted advertising plan
included…
• Public Relations
• Direct advertising in print and radio
• Specific radio programs publicizing
diamond trends
• Weekly service called Hollywood
Personalities which published stories in
over 125 leading newspapers with
descriptions of diamonds worn by major
celebrities.
10. • Series of successful
magazine ads
featuring works of
The Great Four –
Picasso, Derain,
Dali & Dufy. Other
artists were Jean
Hugo, Bernard
Lamotte
25. Other gimmicks
• To mark its 40th
year, De Beers
launched the
most expensive
Barbie doll till
date priced at
$85,000
decorated with
160 diamonds
and gold (1999)
26. Recent Ads…
‘Right Hand Ring’ campaign to attract
non-bridal market base (2003)
30. Analysis
• Long term strategy – to change mindset
and behaviour pattern of people rather
than simply driving short term sales
• Ads appeal to emotion rather than the
product itself
• Despite dire economic situations –
Depression and the IInd World War – De
Beers reinterpreted prevailing trends
rather than fighting them
