De Beers\' ingenious marketing campaign PDF

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De Beers' ingenious marketing campaign...

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Each year, the world's five largest diamond companies exploit and market more than 140 million carats of diamonds. Therefore, physical scarcity is not the reason why diamonds are expensive. The secret lies in one of the most successful marketing strategies of all time. Rough diamonds do not have a high price, although they meet the three important Cs in quality (weight - Carat, purity - Clarity, color - Clour). 60% of diamond jewelry value is in the final stage, it is crafted (this step creates the brightness for the stone through the number and method of cutting the face). However, the true value of diamonds is less than half of what you spend, and diamonds have become the symbol of power, wealth and affection in the United States for only three quarters of a century. , Surprise? Background: When the world's largest diamond trading company loses its reputation South Africans used diamond as a savings deposit in banks hundreds of years ago, because this land has the world's leading diamond reserves. Diamonds have never been so rare, though the method of exploitation today is hardly any better than before. In 1870, huge diamond mines in South Africa were discovered. Shortly thereafter, British oligarchs holding these mines realized that if left alone, the diamond market would be saturated. In 1888, they established the De Beers joint venture in order to own and control absolute monopoly of diamond trading in the world. In the 1900s, De Beers controlled 90% of the world's rough diamonds and controlled both supply and demand. Diamonds are not uncommon, but they are collected by all and sold only according to the strategy to control prices. Who to sell, how much to sell, what price they sell is their right. After World War I, diamonds were severely devalued throughout Europe due to the economic recession and the change in the status of the upper class in the defeated countries. De Beers' market share fell continuously and stood at risk of bankruptcy. The price of diamonds in the early 1930s was very cheap, due to the impact of the overproduction and the aftermath of World War I. Customers are now more interested in things like food, fuel, instead of luxury and less valuable items. To restore the price for this monopoly business, De Beers - the world's largest diamond trading company - has launched one of the most successful marketing campaigns of all time.

De Beers choose N.W. Ayer worked as an advertising partner in 1936, initially aiming to help the company first reach the US market. Strategy: Legend of diamonds In the late 1930s, N.W.Ayer conducted research and found that Americans thought diamonds were luxuries, only for super-giants with cars, of them. Therefore, Ayer must market to consumers from different income groups. How do customers rush to buy diamonds in a difficult economic context? Ayer must find a way to assign diamonds to human emotions. What is both an emotional and social value that is both perpetual and emotional? It is love and marriage! Ayer's plan is to "create a situation where all those who are going to marriage are required to have a diamond ring". The tradition of giving engagement rings has been around since the Middle Ages but has not been widely accepted. Before World War II, the number of engagement rings with diamonds accounted for only about 10%. With a wise strategy, Ayer not only revived this tradition but also changed the world. From a gem, diamonds become indispensable in love and marriage. Men claim that diamonds are the ultimate weapon of love and with women, love is to have diamonds. The first slogan in this campaign is called "Diamonds are forever". Both a symbol of love and a symbol of long-term, eternal connection, De Beers makes customers want to buy more, without wanting to sell off. Proceed: Diamond is forever First, De Beers had to make diamonds appear everywhere. Hollywood superstars are paid huge amounts of money to mythize diamonds with scenarios where lovers and married couples must use diamonds as gifts. Newspapers posted throughout the story of famous people kissing each other with diamond rings, also telling specifically what kind of diamond, what size and value. The wings of fashion design are also "out" all day about the emerging diamond trend on the radio. De Beers then took a longer step than using television to promote (at that time television was seen as a most modern and noble media). The company makes extensive use of these new media networks to deliver a message to the rich, "Diamonds are forever" or "Diamond is forever".

But De Beers and Ayer said: "We do not sell directly, nor try to engrave the brand name into the public mind, but only marketing a simple idea: eternal emotional value of impulse. around the diamond. " Distorted is that the stories revolve around those who give and receive diamonds, and how diamonds make them happy and immersed in love. From 1938 to 1941, diamond sales in the US increased by 55%, and De Beers pocketed a number of positions as the sole mining enterprise of the largest diamond mines in South Africa. "Diamond is forever", which is the century slogan that Ayer has devised for De Beers. This slogan is so deep that many people do not know its original commercial character. A double hit the target! It not only praises eternal diamonds as love, but also makes people no longer want to bring diamonds to resell to anyone. Because diamond giant De Beers understands that if a large amount of diamonds are resold, not only will the market be broken, but the price of diamonds will also be pulled down, revealing its "shocking" value. In 1999, Ayer launched a campaign aimed at the group of people who spent the most money on diamonds: men. The slogan "Two months is not a very small price to own an eternal thing?". The "two-month salary" principle was born and deeply embedded in the American people's subconscious mind. Diamond slogans are also changed, to "A Diamond Is Forever", as an affirmation: love and marriage cannot be complete without diamonds. Phishing or marketing talent At first, De Beers created bridges and controlled the demand for exclusive diamond diamonds, later changing the attitude of Americans, making everyone believe that marriage without diamonds was not complete. So is this the "biggest fraud" in history or is it a good example of talent marketing? Everyone who studies science knows that diamonds are not eternal like De Beers' lie because it has a half-life. Diamonds can be smashed, faded, worn out, burned ... like other minerals. Diamond selling prices are not always higher than the purchase price as advertised. In addition, anyone who has seen the movie Blood Diamond of Leonard De Capri sees the dirty side of the production and sale of diamonds in Zaire. The goodness of the capitalist De Beers is to know how to apply the crowd control art. De Beers knows diamonds have no intrinsic value like gold and silver, so instead of marketing for products, they market for value. Specifically, they attribute it to love, marriage..

Even the witches of politics or religion are applying the De Beers model in developing and strengthening the position of the faction. The core is "the myth of" everything big or small, broken or real, alive or dead, as Hitler said, "The lies that repeat every day in the mind of the people will turn them into reality”. Article "There is only one way to make money" (Is Only One Way To Make Money) posted on Forbes in 2011 has written about two types of companies: one is finding value and then selling it to customers, the other is create your own value from 0. Most companies are in the first group, they react to the present, as Kraft Foods changes the market strategy when it sees customers shifting their attention from direct promotions to junk food for children. De Beers is typical of the latter group, when they see a decline in diamond demand they immediately embark on a campaign to change, not harmony, to adapt to contemporary social attitudes. Agree to be smart and successful, but this marketing also opens up many ethical issues, the world "eats" the trick! With a clever marketing strategy, Ayer and De Beers turned a relatively inexpensive product into luxury, turning a luxury into an essential item. This strategy helped rebuild one of the industries costing tens of billions of dollars from zero, with a simple, seemingly simple way: Repeating the lie until they come true. in the subconscious of customers....