Kirin Beer Case

DeBeers

Q1. Identify the main reasons for De Beers’ success in the West- with reference to their general marketing strategy, and in particular their communications and positioning tactics.

Luxury is only perceived. It has no intrinsic value or benefits for the people who desire it, yet the desire is there. An itch, to own something ‘valuable,’ something worth nothing we can describe. Diamonds are a manifestation of our aspirations; our deep rooted thirst for validation and love. This wasn’t always true, it took De Beers years of molding the human mind, nudging it towards making diamonds – mere stones – one of the most precious possessions in the world.

If we minutely examine the story, the pivotal reasons for De Beers’ success can be attributed to the following points:

1. Defining Goals – De Beers clearly defined its goal of making diamonds one of the most sought-after possessions and attaching value to them in the minds of people.

2. Crafting Strategy – To create everlasting value for a commodity which serves no real purpose in life but luxury, it was paramount to make diamonds an intrinsic part of our life and culture

3. Positioning – De Beers thus set out to position diamonds as a symbol of something which lasts forever and then set out to attach this to something that we all which could last forever, love. De Beers attached diamonds to one of the most important things in a person’s life, their marriage by making diamond rings an essential for engagement rituals

4. Communication – Armed with human insights of what drives people – the desire of love and of making a mark, of measuring their self-worth through possessions – De Beers told people that these awe-inspiring, sparkling stones are a promise of everlasting love ‘A diamond is Forever’, and thus an ad campaign invented the diamond engagement ring