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IAMONDS…

WHICH ADVERTISEMENT D S ?
M ON
I A
CAMPAIGN
E D
T A R
WHAT
HAS
HA ATTRACTS
CONVINCED WOMEN
WOMEN TO
W
TOWARDS
COME DIAMONDS?
LETSDIAMONDS?
BUY SEE WHAT MEN &
WOMEN
ARE DIAMONDS REALLY
HAVE GOT TO ANSWER?
GIRLS BEST FRIEND?
Introduction

Greek word adamas, meaning “unconquerable”

It is a mineral a naturally crystalline substance


the transparent form of pure carbon

It is likely the oldest thing you will ever own,


probably 3 billion years in age, fully two thirds
the age of the Earth
Diamonds in India
Every batch of 10 diamonds made in the world,
7.5 are made in India

World's largest diamond processing center

Surat city is known as diamond city of India

About 80% of country's diamond processing


work is being done in Gujarat(50% is
conducted at Surat)
4C’s of Diamonds

CUT CLARITY

COLOR CARAT WEIGHT


Certification
It is called a “ diamond grading report, diamond
dossier or diamond quality report ”

It is the guarantee of the quality


and value of the diamond

A grading report documents the characteristics


of a diamond, like the four Cs
Types of Diamonds

Synthetic Diamonds

Treated Diamonds

Natural Fancy Colour Diamonds


What is De Beers?
NOT retailer

NOT manufacturer

BUT

miner and seller of 70% of the world's rough


diamonds

arbiter of the prices


De Beers
Over 115 years

Leads the world - diamond exploration,


mining, recovery, sorting, valuation and
MARKETING.

Selling Arm – DTC, London

Markets 2/3rd of global supply


Mining
The world's largest diamond miner

Produce 40% of annual world diamond


production

Active in every category of industrial diamond


mining: open-pit, underground, large-scale
alluvial, coastal and deep sea

Mining - Botswana, Namibia, South Africa,


Tanzania and Canada
Segmentation, targeting &
positioning
Mass
Mass Marketing
Marketing
Same
Same product
product to
to
all
all consumers
consumers
Level of Market Segmentation
Target Market

Product
specialization
M1 M2 M3

P1
P2
P3
Positioning

‘A Diamond is Forever’

Other Positioning Strategies :

 Not as a product but as a ‘Symbol’


 ‘Timeless and Everlasting’
 ‘Valuable’ and the right thing to buy for a
Women’
 ‘Women’s Best Friend
Marketing Mix

Product

Price

Place
SWOT Analysis
STRENGTHS WEAKNESSES

1. Owns over 40% of the rough 1. High production and inventory


diamond Industry carrying costs
2. Prides itself for its High quality 2. Association with conflict diamond
diamonds
3. Influence Prices
4. Offers diamond dealers a package
of value added services

OPPORTUNITIES THREATS
1. New available markets explorations 1. Increase entry of competition
in Europe, Middle East and 2. Faces threats from
Australia Synthetic/Cultural Diamonds
2. Can increase brand recognition by
marketing De Beers
Competitors
4 major competitors : Alrosa, BHP Billiton, Rio
Tinto, and Aber
Company Market Share of the industry’s
rough diamonds
De Beers Around 50%
Alrosa 20%
Billiton, Rio Tinto, and Aber Each less than 10%

BHP Billiton, Rio Tinto and Aber are not


primarily diamond mining businesses
Re – Gain Position
“Supply of Choice Strategy”

Formalizing Conflict Sale of the De Increase


of a written Diamonds Beers brand demand for
contract – “Best name – diamonds
process Practices” LVMH
between De
Beers and its
sightholders
Advertising Campaign
DTC focused in 2 key areas:

The “Celebrating
“Celebrating
“Occasion Women”
Women”
Purchase”
Marketing Strategies
Strategies
Hired one of the largest American Ad agencies
“diamonds are symbol of love and commitment”

Hollywood - convinced starlets to wear diamonds

Screenwriters to use them as symbols of love

Placing celebrity stories and photographs in


magazines and newspapers to reinforce the link
between diamonds and romance ( Sales – 55% )

“Diamond Blue”
StrategieS contd…
Fashion designers (Radio Programs) – “Trend
towards Diamonds”

Fundamental part of “Engagement and wedding”

Small Diamonds

Not just engagement – Any important Occasion

“Diamonds are Forever”


Other Campaigns
“Eternity Ring” (as a symbol of continuing
affection and appreciation)

Forevermark Diamonds

Enlisting the British Royal Family

Sponsoring the 2007 Formula 1 car for


Scuderia Ferrari Marlboro
OTHER CAMPAIGNS contd…
Bigger is better…again! (2002)
Revenue for Bigger is better…again!
Medium Amount
Magazines $33,417.96
Network TV $27,390.30
National Syndication $6.90
National Outdoor $1,046.82
USA Today $1,168.10
Wall Street Journal $1,056.52
New York Times $153.56
Cable TV $7,525.29
Newspapers – Sunday $105.51
Newspapers – Daily $1,418.05
Spot TV $107.94
B2B Magazines $294.50
Local Magazines $27.36
Internet $1,564.52
Total $75,283.33
Iman, the face of De Beers, wearing the ‘Millennium Star’ at the
Cannes Film Festival in May 2002
DTC on the Internet
Internet plays important role in purchasing
decision in case of luxury goods
Importance of medium in buying decision

50
40
30
20
10
0
Articles/Reviews
Internet/Website

Magazine Ads
Newspaper Ads

Programs/Commer
cials
TV
Dtc on the interneT contd…

adiamondisforever.com.

“Non-biased” view of the diamond


experience

Design Gallery
Boston Consulting Group Matrix a.k.a.
BCG Matrix of De Beers
Ansoff Matrix a.k.a. Product - Market Expansion Grid of
De Beers
G.E.Matrix a.k.a. Industry Attractiveness : Biz
Strength Grid of de beers

De Beers
Future Marketing
Strategies
Advertise in Europe, Australia, the Middle East,
and in the United States

Awareness regarding the difference between


cultural and synthetic diamonds ($350 million
dollars )

New advertisement campaign “Every diamond


has a story. What's yours?”
Future marketing
strategieS contd…

Most popular magazines like Vogue,


Cosmopolitan, BusinessWeek, InStyle, and etc.
( $50 million dollars )

De Beers is expecting cultural shows


DIAMONDS
Introduction
Wholesaler of rough diamonds

World leader in finding, mining and


processing mineral resources

About 25% of the world’s rough diamonds


Business Structure
B2B Process

– Select Diamantaire Customer Mark – B2B


customer relationship programme
“Rio Tinto's Select Diamantaire is a well-executed
programme with clear and strict processes to ensure
that the Mark adheres to the highest standards and
retains maximum value for its customers”
RIO TINTO DIAMONDS
(INDIA)
Head office in Mumbai, responsible for the
planning and implementation of the IADC
initiative in the US

Improved cutting techniques, publishing a


technical bulletin, providing training assistance
and presentations and seminars at the Indian
Jewellery Show

August 2003,launched the Rio Tinto


Diamonds Business Excellence Model(BEM).
MARKET DEVELOPMENT
AND PROMOTION
Major elements of IADC are :

Retail market entry strategies


Product development, pricing and follow-through to
sales
Differentiation of member product offerings 
Management of buyer communication
Staff training 
Representation at the JCK show in Orlando and Las
Vegas 
Exclusive Viewing Shows for product
exhibitions to targeted retailers
MARKET DEVELOPMENT
AND PROMOTION
contd…

Another programme aimed at stimulating


demand for champagne and cognac diamonds

Impetus on canadian diamonds


Marketing Mix

Product

Price

Place

Promotion
conclusion
“In a materialistic world, gem diamonds are, after all, of no practical use.

They are not used in the making of things or the breaking of things; they

don’t make cars go faster or planes fly higher. They are not used in the

production of anything – except happiness. And therein lies their secret:

they don’t feed our bodies, but they do feed something in our soul. And,

because of this, we have come to understand that, while they may not be

necessary to our physical survival, they are essential to our emotional well

being. A thing of beauty in its own right, the perfect marriage of the art of

man and the art of nature, the diamond is also an enduring symbol of all

that is best in us and our aspirations: purity, love and commitment”. Said

Nicky Oppenheimer, Chairman of De Beers.


Stars have lost their shine!!
But Diamonds will shine forever
will shine forever !!!
Special Thanks
To
Ms. Priya Kenkare

Also we Thank:
Vibhav Raut
Sagar Ramchandani
Rohit Semlani
Sharmishtha
Prajakta
Meghna
PRODUCT

Pink Diamonds

Champagne Diamonds

Natural Coloured Diamonds

Argyle Signature Stones


PRICE
Supply/demand fundamentals determine rough
diamond prices

Rough supply has generally been higher than


required to meet retail consumption of diamonds

It resulted in an increase in polished inventories in


the cutting centres

Rough diamond market is anticipated to


remain strong for some time
Place

Diavik Diamond Mine:-


Headquartered in Yellowknife,
Northwest Territories, Canada

Merlin:- Based in Northern

Territory of Australia

Murowa:- Project is based in Zimbabwe


PROMOTION

No Promotion strategies for Consumers

Launched new collection of champagne diamonds


and is promoting it and has a dedicated website

A trade organisation was created to promote


natural color diamonds Natural Color Diamond
Association (NCDIA), Belgium
DTC
Sales and Marketing arm

World’s Largest & most effective distributor of


rough diamonds

Sort, value & sell around 40% (by value) of all the
uncut diamonds in the world

Offices - London & Kimberley in South Africa &


at their Government joint venture operations in
Botswana and Namibia
The “Occasion Purchase”
“Three Stone Anniversary Ring”
“Past, Present and Future” Advertising
“Celebrating Women”
“Celebrate Her” Advertising
“Left Hand Ring” Advertising
Forevermark Diamonds
Natural, untreated, responsibly sourced, and cut and
polished by a specially selected diamantaire

Icon and identification number inscribed on the


table facet of the diamond

Inscription is 1/500 of the depth of a human hair

Astute Repositioning (2001)


cut
Most directly influenced by man

The biggest diamond cutting center for small


roughs

Cut of a diamond is confused with its shape

Diamonds are usually cut with 58 facets, or separate


flat surfaces
color
Conception - diamond is as a colorless stone
Color Grading Scale

Best color is no color DEF GH IJ KL M–Z Z+

Colorless Near Colorless Faint Light Fancy


Yellow Yellow Yellow

The color range from exceptional whites (categories


D, E and F) to tinted colors (categories M to Z)

Also occur in shades of pink, blue, green, amber, or


even red
clarity
To determine clarity, an expert views it under 10
power magnifications

Clarity is made up by inclusions (internal) and


blemishes(external)

The fewer the imperfections, the rarer and


valuable is the diamond
Carat weight
Carat is the unit of measure used to determine the
weight of a diamond

One Carat = 0.2 gms. Each carat is divided into 100


points

Diamonds of less than one carat in weight are known as


"pointers“

Diamonds are priced per carat, according to their size


and quality

The rarity of a diamond is greatly affected by its size


product
Rough diamonds and Cut diamonds
place
1. It is active in every category of industrial diamond
mining: open-pit, underground, large-scale alluvial,
coastal and deep sea

2. Mining takes place in Botswana,Namibia,South Africa,


Tanzania and Canada

3. Trading of rough diamonds takes place through the


DTC through wholly-owned and joint venture
operations in South Africa(DTCSA), Botswana(DTCB),
Namibia(NDTC) and the united Kingdom(DTC)
price

1. Demand / Supply basis

2. Control Mining Production

3. Worst Hit-Small diamonds, colour and


clarity goods in the 1- to 7-pointer size
range.

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