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De Beers Group Case
Problem Summary
The Beers Group of Companies (De Beers) wants to change the marketing strategy to capture its essential market. The leading company has to partner with other leading diamond companies to run campaigns aiming at Millenials. De Beers need to change the mindset that millennials have developed over the engagement rings. To be a giant, it has been over the years in the diamond industry; the company needs to act quickly in its marketing strategy.
Analysis of the Problem
There are six aspects that the management of the Beers Group of Companies needs to understand and evaluate. The evaluation needs to be in-depth before making a final decision on which marketing strategy to employ.
- There are new entries into the market, and they handle their production of diamond products in a different way than the older methods of cutting.
- Most Millenials do not engage their time in viewing mainstream media. A lot of time is involved in social media, where they also get much information.
- There has been less value in engagement ceremonies among the lovebirds in this generation.
- Over the past decade, the sales of diamonds are keeping on fluctuating.
- The 50 Million Carats of diamonds produced in 2008 by the company remains to be the highest amount to be provided over the recent past.
- Within different countries, the general consumption of old consumers remains to be higher in comparison to the younger millennials. The United States houses a more significant market share globally.
The general manager needs to keep in mind that in the changing generations, there are various consumptions and preference shifts; hence the market dynamics need to be keenly analyzed.
Recommendations
The senior management team should, therefore, do the following:
- Adopt new technologies in production to enable the highest quality of the pieces of diamond amidst the top competition.
- Massive investment should be channeled to the online advertisement. The online ad will be structured to capture the attention of the millennials. In this platform, the company employs an IT team in setting applications through which ordering and delivering of the products are made.
- With the generational change, there should be set a team of inquiries in digging out what each regional market wants. The benefit of the need to satisfy the specific country’s needs will quickly diversify the market. However, there is a slight drawback involved in that the company needs to use more funds than the normal.
- Increase customer feedback and response to the dissatisfactions. The fluctuations in sales are greatly influenced by dissatisfied customers. In handling the feedback, then the customers will feel appreciated and maintain their loyalty, thus maintaining a constant volume of sales.
- Introduce a better-mechanized system in extracting the raw materials from their natural setting. In mechanization, the production level is boosted, thereby increasing a million carats produced annually. The challenge to this recommendation is the depletion of the ore over time.
- Diversifying the end products needs to be made. In sticking to the old products, the company faces outdating in their products. Rendering the diamonds to other ornaments is a strategy that will accommodate more customers. In expanding the market size, the company will make more sales and occupy a more significant market.
In conclusion, the management will have to incur extra costs to implement the recommendations. The bright side is that the returns are more profitable than the incurred cost.