De Beers Diamond Stimulus Strategy

Although, diamond is surely a luxury good, De Beers has tried to inject necessity into it. From this idea, De Beers has implemented the tradition that diamond is needed for any couple. De Beers has being convinced every woman that she should receive a diamond ring from her fiance and convincing each groom-to-be to pay "two-months salary" for that ring to show how much his love is worth. De Beers has actively promoted diamonds as being symbolic of eternity and love, and therefore the ideal jewel for an engagement or wedding ring. This idea of connecting diamonds to romance was captured in a brilliant ad campaign, causing demand for diamonds to increase. Later ads by De Beers told consumers to hold onto their family's diamond jewelry and to cherish it as heirlooms-- and it worked. This eliminated the aftermarket for diamonds, which further enabled De Beers to control the market. Without people selling their diamonds back to jewelers or to other people, the demand for new diamonds increased. De Beers also succeeded in portraying the idea that diamonds were rare. With De Beers controlling world’s price of diamond, the high price of diamond imply the idea that diamond is scarcity. Hence, the images of luxury diamond become more distinct and the demand for diamond is being sustained. One of the most successful in the history of the DeBeers Company and in the history of advertising campaigns is "A Diamond is Forever" campaign. This advertising campaign was created and launched by DeBeers in 1938. Although the DeBeers brand name was not present in this campaign, it successfully advertised and promoted diamonds and attached a special meaning to them. At that time such world's largest diamond markets as the market of America needed a reviving; and some other prospective markets were completely closed for diamond products. Nevertheless, through the "Diamonds Are Forever" advertising campaign DeBeers was able to attach such romantic and sacred feelings such as love, affection and faithfulness to diamonds. In 2010, De Beers has launched a new campaign “Everlon Diamond Knot” which, as usual, related to romance. Everlon comprises of a background story and a design. It is based on the proposition that the only thing stronger than a diamond is love. The Everlon Diamond Knot is based on the Hercules knot, secured by a diamond at its centre. “It is a tribute to the enduring strength of love - without the diamond, the knot would unravel,” De Beers said. De Beers said it had very positive feedback from participating retailers, saying Everlon met or exceeded expectations and, without exception, they are all signed up for year two. This means even in this era, the idea that diamond and romance can’t be separate is still ongoing. It also imply that De Beers always create a new trend when the old one is rotten. New campaign always be launched to stimulate diamond demand.

Cite this page