1. to global topics like the ones previously

1.     You can demographically define the target audience of Debeers as
millennials within an age range of 20-37 years old, with an ethnicity belonging
to the following countries: Japan, India, China and the United States. Both
genders would be part of the targeted audience, but the advertising is usually
directed to male consumers. Another important trait of this demographic sector
of consumers to mention, would be income levels, millennials usually have a
much more limited purchasing power when compared to their predecessors.

 

On the psychographic aspect of the target audience for
Debeers, we can see characteristics like high value consciousness regarding
environmental concerns and social responsibility. The amount of information
processed by a millennial is not the same that was processed by their
predecessors, which has provided the millennial with a more concerned approach
to global topics like the ones previously mentioned. Another important factor
we can point out is their interests, millennials are more interested with
valued experiences than giving a lot of importance to physical luxurious goods.

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And even when they choose a physical product like jewellery to show their love,
they would prefer something more tailored to their specific needs and
purchasing power.

 

Regarding the values and life style of the Debeers target audience, you
can say that millennials are a hard-working generation, with limited time and
resources, who live in a competitive time. They are highly aware of their
surroundings and often take in consideration the consequences of their actions
in society and the environment. According to the research made regarding the
Values and lifestyles, (Values and
lifestyles research, marketing and strategy terms, 2017) there are 8
different types of VALS frequently used to study customers and classify them. I
would say that the millennials are more like 2 of those 8 different types. The
two different types where Thinkers: who are mainly mature people, that are well
educated and use different types of information sources to make their
purchases. The second type would be strivers, who follow trends and often seek
others approval when purchasing something.

 

1.     According to the current description of the target audience I believe I
would define millennials needs in the diamond and substitutes market as the
need to have a token or a symbol of love and caring that you can give to your
loved one and can last for ever. The wants for the same audience, would be
being able to gift away a ring that will follow tradition and will be of an
indestructible, beautiful and prestigious material. The want will probably be
more oriented to the size of the stone and the price range, as well as the
colour and special characteristics. According to the 5 types of needs by
Kotler, we can have a better appreciation of this needs wants and demands:

 

State needs:
Customer wants a ring that is not expensive, but will still be of decent
quality.

Real needs:
Customer wants a ring that’s durable expresses the feeling wanting to be
transmitted.

Unstated needs:
Customer expects the ring was made from material that was properly extracted
and processed. (environmental and social concerns)

Delight needs:
Customer would like the ring to have many carats, and be uniquely cut.

Secret needs:
Customer wants friends and family to be surprised with the ring, but also wants
to feel affection and emotional attachment to this purchase.

 

 

2.     The current value proposition offered by Debeers is based on the
symbolic gesture of love that is achieved when purchasing a diamond for a loved
one. Debeers provides the finest quality and standards with diamonds for all
types of occasions, so that the customer can show a tangible token of their
love to their significant other. A long lasting, fine quality gem that will go
through generations. Based on the information and insights we have obtained of
millennials, I would say there are several adjustments that need to be taken
into consideration for this value proposition. The high quality and symbol of
love should remain, but Debeers needs to take into consideration the concerns, interests
and financial capabilities of their current target market (millennials). The
new value proposition should try to establish, how Debeers commitment is to
still provide those tokens of love for their customers, but at the same time
evidence how they are committed to the environmental safety in their procedures
of making those gems.

 

Debeers should try to create more value to their customer, by showing
them that they are fully aware of the situation and priorities of the world and
their consumers. Debeers should know that customers are not only looking for
luxurious and indestructible gifts, but they are also looking for affordable
options that suit their concerned lifestyle. They want to show their customers
how they will try and find an accessible solution for everyone’s needs, no
matter the income level and the social class that customer belongs too. And
they should also try to show their consumers that one of their primary
concerns, is to have an environmental consciousness regarding their production
process and the safety of their workers.

 

3.     The 3 actions suggested are the following: a. The first action would be
to reform their current campaigns to include points and ideas that are more
relevant to their new target market. Including social and environmental
responsibility as part of their brand image in new advertising, could make
millennials change their perspective on diamonds and the companies that create
them. Usually companies of this sort are not seen as the social responsible
type. Therefore, investing in these specific types of actions could provide
Debeers with a much more actualized and fresh image. To measure the
effectiveness and viability of this tactic, they could use the Return on
Advertising spend marketing metric, which would tell them how much profit they
have made from the advertising incurred.

 

b. The second action would be to try to link the purchase of the ring to
other business using partnerships, in which they could offer benefits for the
consumers who purchase Debeers jewellery. We must remember that one of the
biggest concern of millennials regarding jewellery is that they don’t seem to
like the idea of physical goods over valued experiences. Therefore, if Debeers
partners up with hotels, spa’s, or even airlines. They could offer discounts on
those other businesses for the purchase of a diamond. This would make
millennials feel that their purchase is not vain and only of a physical good,
but it also includes a valued experience that will go along with their desire
to show love or gratitude. The metrics that should be used to assess this
tactic, would be Customer retention rate, to see how it works for the company
to retain new customers with these new tactics. And they should also consider
the cost per action of this strategy, because they could incur in additional
expenses or situations with the partnership they would need to implement.

 

c. Finally, the third action to be implemented, should be to have a
stronger online presence in the market. Most millennials have a strong presence
in the online market, so targeting this market could prove useful to reach that
audience. An additional factor to put in place in the online market, could be
the selling of refurbished or renewed (used) rings. This could help them reach
consumers that are not within the income range to buy a new product, but still
want to have the quality and commitment of buying a Debeers product. For these
actions, the marketing metric that should be used to analyse the effectiveness
of it, would be Cost per action. We believe this would work for this action
because it will allow them to analyse how much the incursion of an online
presence has costed them and how much it has paid off.

 

 

 

References:

 

Marketing metrics used:

 

“5 critical marketing metrics to
follow” Matthew Goulart, Ignite Digital. Entrepeneur online magazine.

 

·      
Extracted from: https://www.entrepreneur.com/article/2787580

 

Values and Lifestyle (VALS):

 

“Values and Lifestyles
(VALS) research” Marketing and strategy Terminology.

 

Extracted from: https://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/11415-values-and-lifestyles-vals-research.html

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