Running head: DE BEERS GROUP: DIAMONDS TO MILLENNIALS CASE STUDY 1

De Beers Group: Diamonds to Millennials Case Study

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 DE BEERS GROUP: MARKETING DIAMONDS TO MILLENNIALS CASE STUDY 2

De Beers Group: Marketing Diamonds to Millennials Case Study

1. De Beers Group Company began its operations in the 1870s after the invention of South

African diamond mines by Cecil Rhodes. De Beers Group grew and developed due to the

monopoly in the diamond business. Moreover, the diamond business was seen as a luxury

but helped in setting status, glamour, and romance. The diamond business was successful

due to the availability of raw materials from the mines in Africa and the finishing

processes of diamond products.

2. A conflict began in the 1980s whereby the mining of diamonds in Africa became

dangerous due to illegal mining that facilitated the wars between nations in Africa. The

illegal mining was seen as the cause of conflicts and the spread of violence and human

right abuse and ruined the reputation of the diamond business. Fortunately, the fight of

illegal diamond mining developed a program named as Kimberly Process which was

aimed at ascertaining the genuineness of the diamonds in the market.

3. De Beers Group has been facing the problem of revenues due to the emergence of

millennials. The current market for diamonds is not famous compared to the traditional

era. Therefore, De Beers Group is introducing a campaign named as “Real is Rare” that

would persuade the millennials the importance of diamonds.

4. Millennials are the generations born between 1976 and 1998 termed as generation Y or

the Net Generation. Millennials have failed to recognize the importance of diamonds in

the market.

5. The De Beers Group has used the marketing strategy of “Diamond Forever” in adverts to

create awareness on the importance diamonds in the market. However, the marketing

strategy worked in the early market in response to class and status. Furthermore, the new

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 DE BEERS GROUP: MARKETING DIAMONDS TO MILLENNIALS CASE STUDY 3

marketing strategy “Real is Rare” can achieve the organizational objective of getting the

attention of the millennials. Diamonds are expensive and luxurious products that

symbolize a specific class and status in the community. Therefore, the targeted millennial

consumers are expected to purchase the diamond products mostly to show their

commitments in their relationships. The company should revise the campaign by

including the need for the millennials to purchase the diamond products for themselves to

show self-worth. The campaign would attract many customers, not in need of using the

products in engagements.

6. The diamond business has slowed in the recent market with the rise of the millennial

generation. For instance, the millennial generation has various debts and has a lower

purchasing power. Moreover, the millennials are not getting married as seen in the earlier

generations. Another factor affecting the diamond business in the millennial era is the

desire to own the product whereby the new generation has other priorities other than

diamonds.

7. The marketing strategies of diamond and other luxury products have been affected by the

millennial’s perception of expensive products. For instance, the millennials go for

alternatives to the available products. Additionally, the marketing strategies of Real is

Rare is faced with the challenge of targeting a specific consumer population whereby the

millennials do not value the quality of the product. The costs of the products are

relatively high compared to their incomes.

8. The millennials have been changing their purchasing habits of the diamond products

based on the costs of the products. For example, the millennials do not have the

purchasing power and lack a good flow of cash. Moreover, the availability of alternatives

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 DE BEERS GROUP: MARKETING DIAMONDS TO MILLENNIALS CASE STUDY 4

and second-hand diamonds has affected the diamond business. Additionally, the

millennials have different preferences other than diamond.

9. The campaign can benefit the diamond market by influencing the millennials in

purchasing the products. For instance, the campaign will create awareness on the need for

having the products. Similarly, the campaign can help in elevating the commitment and

connection within the youths. However, the campaign can fail based on the availability of

alternatives and the change in the preferences of the consumers. The campaign as well

lacks reliability in driving the concept of commitment in the marriages whereby a

diamond does not guarantee commitment rather it symbolizes luxury and status.

10. De Beers Group should lower the prices of diamond to promote the sales in the current

market. Moreover, the company should abolish illegal mining of diamonds. The company

should as well improve the quality of the products.

11. The advertisement of diamond in the market should be based on the need of improving

the customer awareness about the purpose of the product towards the lives of the

consumers. Similarly, the adverts should contain credibility and ensure that there are

minimal cases of illegal mining.

12. Critical Factor 1: The advertisements targeting the millennials is important based on the

creation of awareness. Critical Factor 2: Millennials expects the product to improve their

lives in various ways as well as the creating a sense of romance, status, and glamour.

Critical Factor 3: The adverts should target the people with high revenues who could

afford the diamond products.

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