De Beers: A study of strategic marketing
De Beers must focus on the retail of natural and synthetic diamonds, as its dominance in the area of extraction and distribution leaves little room to expand further, without being sued (again) for abuse. On the way to be better known to the general public: De Beers enjoys worldwide recognition because of its size and power and the company remains relatively unknown to the general public.
De Beers should strive to be better known, by powerful advertising campaigns, including putting forward its alliance with LVMH, which is a benchmark for luxury products in the public eye and finding an icon embodying its brand. This would double the positive outcome for the brand to be better known and improve the poor image that the firm may have (diamond smuggling, etc).
Also to be better known to the public, De Beers must open outlets in various strategic cities. For example, in France, De Beers diamonds are available in the spring of luxury, but are not present on the Parisian squares on which all reputable jewelers are found. Similarly in China, De Beers is in Hong Kong but not in Shanghai, though the city is growing and attracts people who may be interested in De Beers diamonds. Appropriate behavior: De Beers must also behave in a way that helps deal with the existing competition in the market of jewelry. It must be available to the client (this is starting to be implemented with, for example, the internet can obtain an appointment with a private De Beers jeweler) and must offer products with a level of excellence and incorporate a price policy taking into account for other market players.
De Beers must have knowledge with respect to mastery of its diamonds, while maintaining its control of the production in order to remain an industry leader. It is essential that De Beers continues to lead the bulk of production. New partners must be found in different countries, which will allow De Beers to expand both its network and to communicate a new image; a corporate image that is less opaque and more acceptable with respect to competition.
The diamond industry has built its sustainable advantage by being present in the major countries of the world with a consistent supply. In global industries, competition in a country depends on the competition that takes place in another country; the competitive advantages are transferable from one country to another. The reference market is affected by the world. They are sold at prices, 10% to 50% less than natural diamonds.
Their annual production reaches 3 billion carats (600 tones) and an amount of one billion dollars, compared to 130 million carats (26 tons) of mining. The production of synthetic diamond is primarily for industry and the diamond is used for its hardness and precision that it provides. All diamonds are not for jewelry but the slightest defect can displace a stone path of the jewelry and it will then be used for industry.
Keys:Synthetic diamonds, diamond industry, global industries, natural diamonds