Decision Sheet

Name: Shrey Shaji

Reg No and Class: 2327346, 2MBAD
Subject: Marketing Management
Case Name: DE Beers Group: Marketing Diamonds to Millennials
Protagonist: DE Beers Group
Facts of the case:
1. Industry Overview:
- The diamond industry's value chain includes exploration, mining, sorting, trading, cutting,
polishing, and retailing.
- De Beers, as of 2017, was a leading company involved in diamond exploration, mining,
retailing, and trading.
- The industry faced volatility, and De Beers adjusted its diamond production levels
accordingly.
2. De Beers Overview:
- Founded in 1870 after the discovery of diamond deposits in Kimberley, South Africa.
- No longer held a monopoly in the 2000s but still sold roughly one-third of all rough
diamonds globally.
- Engaged in significant research and development through its technology arm, DebTech,
focused on improving mining processes.
3. Diamonds:
- Evaluated based on the "4Cs": carat, clarity, cut, and color.
- Diamonds were considered luxury purchases with poor investment potential.
- Advertisements emphasized emotional and symbolic aspects, portraying diamonds as
symbols of romance, status, and glamour.
4. Conflict Diamonds:
- Prior to the 2000s, diamonds were associated with unethical practices, including the
financing of wars and human rights abuses.
- The Kimberley Process, implemented in 2003, aimed to certify diamonds and end the
trade of conflict diamonds.
- Concerns remained about the narrow definition of problematic diamonds and the coverage
limited to rough diamonds.
5. Diamond Engagement Rings:
- The practice of giving diamond engagement rings gained popularity in the late 1930s
through successful marketing by De Beers.
- The iconic slogan "A Diamond Is Forever" was launched in 1947, contributing to the
cultural significance of diamond engagement rings.
- By 2015, engagement diamonds in the United States accounted for 40% of global
diamond sales.
6. Millennial Consumption of Diamonds:
- Millennials (born between 1981 and 1998) represented a substantial consumer group,
making up 39% of potential consumers in key markets.
- Changing consumption patterns included delayed marriages, lower purchasing power, and
a preference for experiences over physical goods.
- Increased interest in diamond alternatives, including synthetic diamonds, moissanite, and
other gemstones.
7. "Real is Rare" Campaign:
- In response to changing millennial preferences, De Beers, in partnership with the
Diamond Producers Association, launched the "Real is Rare" campaign in 2017.
- The campaign aimed to position diamonds as symbols of commitment in non-traditional
relationships, reflecting contemporary views of partnership.
- Online articles sponsored by the campaign suggested alternatives to traditional
engagement rings.
8. Challenges and Questions:
- Concerns about negative press around conflict diamonds and ethical issues.
- The rise of diamond alternatives and changing attitudes toward traditional engagement
rings posed challenges.
- Questions remained about the future of the diamond industry, the impact of negative
publicity, and the influence of diamond alternatives on sales.
Issues and Dilemma:
1. Negative Public Perception: Negative publicity around conflict diamonds and unethical
practices in the diamond industry.
2. Changing Consumer Preferences: Shifting attitudes of millennials towards delayed
marriages, lower purchasing power, and a preference for experiences over material goods.
3. Competition from Diamond Alternatives: Growing popularity of diamond alternatives,
including synthetic diamonds, moissanite, and other gemstones.
4. Digital Marketing and Brand Image: Effectiveness of the "Real is Rare" campaign in
resonating with millennials and reshaping the brand image.
5. Product Diversification: Limited product offerings focused on traditional diamond
engagement rings.
6. Ethical and Sustainable Practices: Address concerns about the negative impact of the
diamond industry, ethical sourcing, and sustainability.
7. Impact of Digital Trends: Adapt to the impact of digital trends on consumer behavior and
preferences.
8. Second-Hand Diamond Market: Growing popularity of the second-hand diamond
market.
9. Perception of Luxury and Symbolism: Millennials' high value consciousness, concerns
about sustainability, and skepticism toward the premium jewelry industry.
10. Global Economic Factors: Economic factors impacting millennials' purchasing power,
including high education costs and challenging job markets.
Problem Statement:
De Beers faces the challenge of reshaping its brand image and market strategy to effectively
engage and capture the millennial consumer segment, amidst changing preferences, negative
perceptions related to conflict diamonds, and the growing popularity of alternative diamond
options. The company must navigate these complexities to sustain its position in the diamond
industry and foster a positive connection with the millennial demographic.
Criteria for decision making:
1. Consumer Engagement:
Evaluate the effectiveness of the "Real is Rare" campaign in resonating with
millennials.
Explore ways to enhance emotional connections with the brand.
2. Digital Presence:
Assess the impact of online articles and streaming on YouTube in shaping consumer
perceptions.
Consider strategies to leverage social media and online platforms to engage
millennials.
3. Product Strategy:
Analyze the potential of diversifying product offerings beyond traditional engagement
rings.
Explore the inclusion of lab-created diamonds and other gemstones in product lines.

Alternatives:
1. Enhanced Digital Marketing:
Invest in targeted online campaigns to reinforce the authenticity and uniqueness of
mined diamonds.
Collaborate with influencers and online platforms to reach a wider millennial
audience.
 2. Diversification of Product Portfolio:
Introduce a range of products beyond traditional engagement rings.
Emphasize the craftsmanship, ethical sourcing, and sustainability of new product
lines.
3. Educational Initiatives:
Develop educational content addressing concerns about conflict diamonds and
promoting ethical practices.
Highlight the positive impact of the diamond industry, including contributions to local
economies and communities.
Analysis:
Enhanced Digital Marketing:
Pros:
 Leverages targeted online campaigns for authenticity.
 Collaborates with influencers for wider reach.
Cons:
 May not address concerns about ethical practices.
Diversification of Product Portfolio:
Pros:
1. Introduces a range of products beyond traditional rings.
2. Emphasizes craftsmanship and sustainability.
Cons:
 May require significant investment and resources.
Educational Initiatives:
Pros:
 Addresses concerns about conflict diamonds.
 Highlights positive industry impacts.
Cons:
 May take time to change perceptions.

Table Rating Method:

A1 A2 A3 Total
C1 4 3 5 12
C2 3 4 4 11
C3 2 5 4 11
(1 = Poor, 5 = Excellent)
Recommendations:
Given the complexity of changing consumer perceptions and the need for a comprehensive
and ethical approach, the recommendation is to focus on educational initiatives. This strategy
aligns with the company's goals of reshaping perceptions, fostering a positive brand image,
and addressing the concerns of the millennial consumer segment.