De Beers focuses on building brand
Nothing is forever in business, not even diamonds.
Ask De Beers, which runs the world 's diamond cartel. The London-based company, actually De Beers/Centernary, has developed and inflated the connection between diamonds and romance -- a link that goes back only to the 19th century.
Its highly effective advertising slogan, "Diamonds are forever," was established in 1948 and is still going strong.
"De Beers ' operating strategy has been pure and simple," says Donna J. Bergenstock of Muhlenberg College and James M. Maskulka of Lehigh University, both in Pennsylvania.
It is "to restrict the number of diamonds released into the market in any given year and perpetuate the myth that they are scarce and should therefore command high prices," the two wrote in Business Horizons, published by Indiana University.
One …show more content…
These are diamonds mined in Angola, Sierra Leone and other West African states embroiled in war. These diamonds are sold outside the De Beers cartel and are often used to finance rebellions in Africa and to buy arms.
The diamond producers are worried, and they should be, that widespread discussion about blood diamonds can ruin their business. The equation of diamonds and children killed or maimed in African wars could make buying diamonds unfashionable.
The diamond merchants could wind up facing the same problems that have hit the fur industry. Actually, no one really needs diamonds -- except industrial diamonds that are used to cut tough materials like some metals.
De Beers is counting on its branding campaign to assure potential customers that its diamonds are the very top in terms of cut and clarity.
In effect, it is a guarantee of quality and authenticity backed by De Beers and its reputation. Sort of a Good Housekeeping Seal of Approval.
The De Beers brand also would assure customers that these are clean diamonds. That is, that by buying the gem, they aren 't indirectly financing wars and
Nothing is forever in business, not even diamonds.
Ask De Beers, which runs the world 's diamond cartel. The London-based company, actually De Beers/Centernary, has developed and inflated the connection between diamonds and romance -- a link that goes back only to the 19th century.
Its highly effective advertising slogan, "Diamonds are forever," was established in 1948 and is still going strong.
"De Beers ' operating strategy has been pure and simple," says Donna J. Bergenstock of Muhlenberg College and James M. Maskulka of Lehigh University, both in Pennsylvania.
It is "to restrict the number of diamonds released into the market in any given year and perpetuate the myth that they are scarce and should therefore command high prices," the two wrote in Business Horizons, published by Indiana University.
One …show more content…
These are diamonds mined in Angola, Sierra Leone and other West African states embroiled in war. These diamonds are sold outside the De Beers cartel and are often used to finance rebellions in Africa and to buy arms.
The diamond producers are worried, and they should be, that widespread discussion about blood diamonds can ruin their business. The equation of diamonds and children killed or maimed in African wars could make buying diamonds unfashionable.
The diamond merchants could wind up facing the same problems that have hit the fur industry. Actually, no one really needs diamonds -- except industrial diamonds that are used to cut tough materials like some metals.
De Beers is counting on its branding campaign to assure potential customers that its diamonds are the very top in terms of cut and clarity.
In effect, it is a guarantee of quality and authenticity backed by De Beers and its reputation. Sort of a Good Housekeeping Seal of Approval.
The De Beers brand also would assure customers that these are clean diamonds. That is, that by buying the gem, they aren 't indirectly financing wars and