Diamonds Are Forever, By De Beers Diamond Company

This case was created in order to come to a decision on Chris Prangel’s dilemma involving the Mountain Man Brewing Company and its declining profit margins. Located in the Analysis section is the current situation of MMBC’s product and the different kind of consumers their brand serves. Along with the distinctions of their product and customers is a definition of what a brand is and how brand equity is created and impacted. The analysis was conducted by having a firm understanding of the case and Prangel’s current situation. This report recommends that Prangel should consider his financial and marketing situation of both choices before making his choice. Finally, it was decided that to make it in the tough industry, MMBC should take the harder and more rewarding path of risking creating a new lite version of their Mountain Man Lager.

For centuries, diamonds have been regarded as one of the most valuable commodities in the world and the industry has evolved into billions of dollars. At the top, De Beers dominated the entire industry worldwide, from exploration to retail selling. However, it has a reputation of a monopolist, where it influences supply and demand. The two critical factors that De Beers carefully maintained throughout the century to remain in monopoly was to create the illusion of the scarcity of the diamonds and to keep the prices high. Realizing the benefits of the cooperation and the dangers of the oversupply, most

Today, over two thirds of the world’s diamonds come from one company, De Beers. The London based company was one the first companies involved in the mining for diamonds in Africa immediately following their discovery. Cecil Rhodes was attracted to the new prospects of mining in African and he started his search for diamonds in 1870. Another English immigrant miner named Barney Barnato, Rhodes’ rival, also fought to control the same diamond claims as Rhodes. By 1880, Rhodes had bought out Barnato and had founded De Beers Consolidated Mines Ltd. Rhodes envisioned controlling the whole diamond market. By 1888, he had realized his vision and he had gained monopolistic control over the whole diamond market. He completed his monopoly with the formation of cartel, the London Diamond Syndicate, who were that biggest diamond merchants of the time. His syndicate allowed him to perfectly match supply with demand. They provided him with critical information about the diamond market allowing him to create an artificially controlled supply of diamonds. In return for their assistance, the diamond merchants were guaranteed a certain amount of diamonds from Rhode’s mines.

GBBC’s competitive advantage was product differentiation of both its restaurant and beer. The beer had a good brand image because it was fresh and high quality compared to the alternatives available in the market. The restaurant served only home brewed beer that gave it a premium perception. The restaurant was German style, moderately priced dinning and high quality and served trendy cuisines. GBBC chose the restaurant location strategically and modified the restaurant, while keeping the basic idea intact, to meet the preferences of local customers.

This essay supports the statement “The price of diamonds is too high”. Diamonds have always been presumed to be rare. They have been present in history as a symbol of wealth and luxury as they were so difficult to find. Nowadays diamonds are mined and are found all over the world but they are sold through a cartel. (Epstein 1982) A cartel limits the supply of a product in order to keep prices high and to limit competition. (South African Pocket Oxford Dictionary: 2002) This raises the question of whether diamonds are actually worth their price. This essay focuses on the origins and the basic theory behind the diamond cartel; the early operation of the cartel; De Beers’ strong market campaign; determining De Beers’ current

Also, there needs to be a more defined definition of a blood diamond (“War on Blood Diamond Trade Loses its Lustre in Age of Digital”). The Central African Republic fails to realize that the diamonds being bought come from instances of executions, child labor, as well as looting (“Companies must Not Profit from Blood Diamonds”). Obviously, Africa is rich in minerals, which is its curse (Ainger et al.367: 9-27). Consequently, there has been 50 wars, fighting for control of resources. Political, social, and economical factors matter in these resource wars (Ainger, et al.367: 9-27). Recently, the Kimberly process fails to uphold in central Africa, Cameroon. As a result, Cameroon is flooding with conflict diamonds because of mediocre leadership along with corruption (“Conflict Diamonds from CAR Entering International Markets Via Cameroon”). This may be the effect after the African Republic was internationally embargoed in 2013 (“Conflict Diamonds from CAR Entering International Markets Via Cameroon”). Therefore, “As the Kimberley Process visits Cameroon, it must take action immediately and demonstrate to companies, retailers-and most importantly to consumers-that it is able to stop the flow of conflict diamonds," Offah Obale. Presently, the diamond industry is in a bit of a mix as the Kimberly process is expected to help countries receive clean diamonds in order to restore international market relationships ("War on Blood Diamond Trade Loses its Lustre in Age of Digital"). Now, it is known that the common life-span is estimated to be 34 years old in Africa, Sierra Leone. Also, “We have always maintained that the conflict is not about ideology, tribal or regional difference... The root of the conflict is and remains diamonds” says UN ambassador of Sierra Leone, Ibrahim Kamara. At the present time, there is a cease fire in the Republic of Congo since

“We covet diamonds in America for a simple reason: the company that stands to profit from diamond sales decided that we should.”

The De Beers Group of Companies established itself in the diamond industry in the late 1800’s and it was only a matter of time until De Beers owned virtually every diamond mine in South Africa. Diamond distributors joined up with De Beers because of similar interests: they wanted to create a scarcity of diamonds, so that high prices would follow. Eventually, De Beers would establish exclusive contracts with suppliers and buyers, making it impossible to deal with diamonds outside of De Beers. For the remainder of the 20th century, the business model was the same: A subsidiary of De Beers would buy the diamonds and De Beers would determine the amount of diamonds they wanted to sell, and at what prices. In turn, De Beers funneled all of the

The story of these infamous diamonds all started with a fifteen year old who found a diamond in his father 's arm. The diamond business started in 1935 when “De Beers” took all control over dining prospects in Sierra Leone. De Beers are a group of companies has a main role in the exploration of diamonds, as well as diamond mining, diamond retail, diamond trading, and industrial diamond manufacturing sectors.This group was founded in 1888, and they are responsible for the problems Sierra Leone is facing today. These diamonds can be found in volcanic pipes. Diamonds are a pure form of carbon in a transparent state. Diamonds have always been a sign of wealth. Historically kings and queens were known for wearing these. Over time many people began lusting over them.

Although there are no firm estimates of how many diamonds are in circulation, to put these numbers into perspective, one out of 25 diamonds to three out of 20 diamonds will trace back to an illegal source. However many of the diamonds that are mined today are claimed to be conflict free. De Beers, the largest producer of diamonds in the world, states on its website that “more than 99% (99.8%) of the world’s diamonds are certified conflict free” (FAQs). This statement from the De Beers Company shows that there is progress being made however there is still a gap in the industry for which conflict diamonds may sneak through. Although miniscule amounts of blood diamonds are being traded today, they still pose a threat to the world if any rogue nation decides to begin buying blood diamonds thus filling the coffers of the warlords and perpetuating the violence that already plagues countries like Sierra Leone.

It is difficult to look at a diamond for what it truly is: a rock. The over-glamorization of diamonds has spiked an increase in diamond mining activity in Canada. As the name suggests, diamond mining is the excavation of these gemstones through a series of processes. Canada’s climate in the north provides the perfect environment for diamonds to spawn, thus reinforcing Canada’s position as the “third-largest diamond producers in the world.” The internet reimagined many things into current, popular trends. Similarly, the simpleness of diamond-encrusted jewelry was not enough; it opened up the possibilities of diamond-embellished cars, handbags, chess sets and even TV’s. However, there are many steps to undertake in order to successfully excavate

Have you ever glanced at your ring finger and admired the beautiful diamond on it? Now have you ever wondered where that diamond came from or how many lives were affected just to get it? Those are the questions you should ask yourself the next time you visit your local jewelry store for a visit. People worldwide should make an effort to stop buying conflict diamonds. They are funding wars in Africa everyday. Workers working in the mining business are in a danger zone. Innocent men, women, and children are getting caught in between the conflict and are being forced to work. If people would stop buying conflict diamonds from conflict areas, Africa would be a better and more productive place.

Products or services need to be bought. Without marketing, this is generally not going to happen. Marketing is a planned set of phases, either simple or complex, or in between. Marketing plans include an overview, mission statement, SWOT analysis, marketing objectives and strategies, and, lastly, implementation, evaluation, and control. This is the exploration of such a marketing plan for a new product line of a non-alcoholic craft beer, “Mountain Brew Review” (MBR), created under the umbrella of parent company, Molson Coors (MC).

The premium beer segment is poised to grow at around 10% per annum and in the past year itself the growth of the premium beer has been at 9.1% by volume. (Appendix A: Exhibit 2)

Color. Clarity. Cut. Carat Weight: These four words are what jewelers in the industry use to determine the monetary value of a diamond. However in 1947 De Beers found a way to not only boost their sales but also make a psychological necessity out of this sparkly stone, and it all began with four vastly different words, “A Diamond Is Forever” (Frances Garety), and accompanied by phrases such as “Isn’t two months’ salary a small price to pay for something that lasts forever (N.W. Ayers)?