Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Austin Casillas
Marketing 305
Professor Rizkallah
March 23, 2017
Tiffany Co.
Part 1: The Marketing Environment
A. Markets
Tiffany & Co. found in 3 continents on the world; North America, Europe, and Asia.
The United States currently has 38 stores. Throughout the continents, the Tiffany
stores and boutiques are mostly located in upper-class cities. Tiffany & Co major
markets and publics are white-collar adult males and females of all ethnic groups and
religions with elastic incomes to invest on a luxury item that will last a lifetime.
There are several segment that Tiffany & Co. break down and target. One way they
do this is by making a segment group of the customers’ nationality, gender,
engagement and wedding anniversaries, child births, and other celebrations. When it
comes to nationality, Tiffany uses the strategy of using famous Chinese models in the
commercials and prints in the attempt to reach out to the prospective customers who
can relate themselves to the models. For gender Tiffany & Co has a selection for male
and female that also have flexible price ranges for many potential buyers. Another
segment if for people who are preparing to propose (which is the most popular
segment) which is why they have professionals who help consumers make one of the
most important choices in their life. For couples who are expecting or have recently
given birth; they have a collection of items that are made specially to capture the
moment of life giving. And Lastly Tiffany & Co. breaks down into the psychographic
which is based on the lifestyle, tastes, personalities, and social class.
Management regularly evaluates potential markets for new TIFFANY & CO. stores
with a view to the demographics of the area to be served, consumer demand and the
proximity of other luxury brands and existing TIFFANY & CO. locations.
Management recognizes that over-saturation of any market could diminish the
distinctive appeal of the Brand, but believes that there are a significant number of
opportunities remaining in new and existing markets that will meet the requirements
for a TIFFANY & CO. location in the future. As part of its long-term strategy to open
additional stores, management plans to add 13 Company-operated stores and close
four existing stores in 2014: opening four in the Americas, five in Asia-Pacific, two in
Japan, and one each in Europe and Russia, while closing one each in the Americas,
Asia-Pacific, Japan and the U.A.E. The Company currently operates e-commerce
enabled websites in 13 countries. Sales transacted on those websites accounted for
6% of worldwide net sales in 2013, 2012 and 2011. The Company periodically
invests in enhancing these websites and intends to expand its e-commerce sites to
additional countries in the future. (“SEC Form 10-K". U.S. Securities and Exchange
Commission. 2014-01-31. Retrieved 2017-3-3.)
B. Customers
When customers shop at Tiffany’s they know exactly what they are getting
themselves into and know that they will be purchasing the best of the best. The
signature blue box with the white ribbon that seals the gift represents much more than
the jewelry inside. It’s a symbol of the quality, service and emotional experience that
capture the customers’ loyalty. For customers who use their products continuously,
Tiffany’s provides a lifelong cleaning service, checkups, and repairs for their jewelry.
The Company understands that selecting an engagement ring is one of the biggest
decisions of your life so they rise to the occasions and to be the best. With stricter
diamond standards, ethical service, life time warranty, and the promise that “We will
always be there for you” earns the trust and loyalty of customers
For the present and expected future state of customers’ needs from this company
really is not much change for their older and more loyal customers, but for their
younger audience they seem to be taking a turn in the wrong direction. CEO of
consulting firm Conlumimo Neil Saunders wrote “While Tiffany still has a strong
brand, it is notable that the brand resonates most with affluent older shoppers. Among
affluent younger shoppers the brand is not viewed negatively but is seen as
representing 'old world luxury' which does not entirely chime with their lifestyles and
values. This means Tiffany often loses out among this important, and growing,
group.” (Schlossberg, Mallory. "Teens Are Experiencing a Major Attitude Shift, and
It's Destroying Tiffany." Business Insider. Business Insider, 18 Mar. 2016. Web. 20
Mar. 2017.) In the future Tiffany’s really wants to secure and establish something for
the younger market and if they can’t find something that will work, there is the
chance of them taking some product lines out.
C. Competitors
The Company’s major competitors are Cartier, BVLGARI, Harry Winston, Chopard,
Fred Leighton, Michael Katz. All of these companies including Tiffany’s are higher
end luxury products that target a market of wealthy and established customers.
For trends that could be seen with the competition with these other luxury brands
really comes down to the company. Tiffany’s net profit margin of 11.4% in fiscal
2015, ended January 31, 2015, is on the higher side among its peers in the jewelry
industry (XRT), including Signet Jewelers and Fossil .Being a luxury brand, Tiffany
does not believe in pricing-related promotions. An introduction of more silver items
and fashion jewelry helps to attract more profit for the company. Tiffany is well-
known for its sterling silver jewelry. Along with geographic expansion, Tiffany is
focused on broadening its assortments of silver and fashion jewelry. The company is
also looking beyond jewelry with its luxury watch collection. Tiffany exited the
watch business in 2011 after controversy with its joint venture partner The Swatch
Group. In April 2015, the company launched its vintage-inspired CT60 watch
collection, considering the growth opportunities in the global luxury timepiece market
worth $27.8 billion. (Diana Key | Dec 9, 2015 1:08 Am EDT. "Weighing Tiffany's
Strengths and Opportunities." Weighing Tiffany's Strengths and Opportunities -
Market Realist. N.p., n.d. Web. 21 Mar. 2017.)
D. Macro Environment
The main developments when it comes to the demography, economy, technology, and
culture are top of the line and best in class when it comes to Tiffany’s. The culture of
being to best and most well known in the business helps establish the face and pride
of this company. With growing technology and being able to take material resources
and craft them into one of a kind prized diamonds is what makes Tiffany’s so great.
They are able to relate to their market on many levels and have been very successful
for many years.
Part II: The Marketing System Review
The Tiffany & Co. brand is the single most important asset of Tiffany. The strength of the
brand goes beyond trademark rights and is inherent in consumer perceptions of the brand.
Tiffany’s management monitors the strength of the brand through focus groups and
survey research. Tiffany’s management believes that consumers associate the brand with
high-quality gemstone jewelry, particularly diamond jewelry; excellent customer service;
an elegant store and online environment; upscale store locations; “classic” product
