Week 14 - Segmenting and Targeting Markets (chapter 8)

Tiffany is always on the lookout for new customers. With 71 million Americans born between 1977 and 1944, there is a new generation entering adulthood. This segment spends over $36.3 billion on clothes and jewelry annually. This segment is the largest spending segment.
Tiffany generates revenues from many areas around the world. In total, the company operates 151 stores. Tiffany has established themselves as not only the leader in the fine jewelry market, but also as an example of the company that is able to increase the value of their products through effective marketing and attention to details.
From the young to the old, Tiffany & Co. has been able to accomplish what other companies can only wish for. Tiffany has been able to attract not only one target market segment but rather target nearly all market segments. Tiffany has something for everyone. The company offers not only female's jewelry,but male's jewelry as well.

Tiffany's target market can be divided into five common market segments. These five segments are demographic, geographic, psychographic,benefit, and usage-rate segmentation. Tiffany & Co. targets white-collar adult males and females of all nationalities and religions with a flexible income to spend on luxury items. Their products are priced from affordable to aspirational. Many Tiffany products are purchased to symbolize or mark a period in one's adult life such as engagement, wedding, anniversary, birthday, or retirement. Tiffany & Co. is found not only in North America, but in Europe and Asia. The United States presently have 38 stores. Throughout the continents, the Tiffany stores and boutiques are found in upper-class cities. The psychographic segmentation is represented by the customers that can "appreciate and desire" Tiffany products. Tiffany shoppers live the life of glitz and glamour. Even the simple Tiffany Blue Box, which contains the purchase, is a symbol of the classic look. The benefit sought by Tiffany customers is a product that gives the consumer enduring value. A piece with the Tiffany name symbolizes exceptional quality and style that will endure the lifetime. The customers of Tiffany vary in the number and frequency of purchases. Many generations have been loyal to the company since 1837. Since the nature of their products is luxury, purchases are not on a constant basis. However, some customers may return to Tiffany for all their holiday and special occasion purchases.

Week 13 - Developing and Managing Products

Since 1837, Tiffany & Co. has been in the business of creating original designs of remarkable beauty. The company balances its product assortment with greater emphasis on high-priced, quality jewelry.
Tiffany & Co. is a design-driven company. The Tiffany Legacy Collection is the best example. The company has maintained an active pace every year in introducing new products. A successful example would be the introduction of the ATLAS collection.Customers have responded to the ATLAS collection very well ant the sales of that collection have exceeded expectations. Another example is the "Elsa Peretti Diamonds by Yard earrings", an original design copyrighted by Elsa Peretti. In 2004, the company introduced new collections and new designs in tableware and accessories. Tiffany also introduced a new line of jewelry focused on pearl jewelry named "Iridesse".
This year 2010 Tiffany Collection was revealed on July in a private cocktail party a their Fifth Avenue flagship store. The collection was full of geometric florals and art deco inspired pieces, many of them looking like they could have come straight from 1920s or 1930s. Colored precious stones glittered in decadent abundance, as did architectural golden wires and Tiffany diamonds. One of the most outstanding pieces was the dazzling necklace in Tiffany's signature turquoise- blue, designed by Jean Schlumberger for Tiffany & Co. The necklace features meticulously selected turquoise and hundreds of diamonds set in 18K yellow gold and platinum, and retails for $125,000.

Week 12 - Customer Relationship Management

Today, Tiffany & Co. is a public company worth about $5.4 billion. Company's success today is the product of a strong business. Building strong and long-lasting relationships with its customers is a part of  a strong business. The customer relationship management of the company focuses on the regular monitoring of consumer perception and evolving preference using focus groups and survey research. Tiffany & Co. has a database that includes more than 50,000-60,000 customers who have spent more than $5,000 in the past 18 months. These customers are offered meetings with personal shoppers, free engraving, shipping, champagne receptions on the mezzanine of the New York flagship store, free gifts such as Tiffany desk diaries, and occasional private events. One of the company's touch points is Web. Tiffany uses Web sited for luring people into their stores by providing outstanding customer service or product-related information.
Tiffany's management also believes that consumers associate company's brand with high quality jewelry, excellent customer service, an elegant store and online environment, upscale store locations, and high-quality packaging materials. In order to meet their expectations, company uses different strategies for maintaining this image. Tiffany & Co.stores are always staffed with knowledgeable professionals who provide excellent service.

Week 11: Integrated Marketing Communications

Tiffany & Co. has a competitive advantage. In order to stimulate consumers' purchasing, company uses sales promotions such as coupon codes, promotion codes and discount deals. One of the other promotional methods that company uses are special membership discounts for their loyal customers. There are three types of membership: silver, gold and diamond. Silver membership gives 15%. Holders of gold membership receive 18% off all orders. Diamond membership gives 20% to their holders.
Tiffany & Co. distributes advertising through television, internet, catalogs, newspapers, magazines, and campaigns. However, the company spends only 6% of revenues on advertising.Tiffany advertising is focused on brand, and specifically on sending a consistent brand image. Tiffany is synonymous with famous wrappings. All of its gifts come wrapped in exclusive blue boxes. Tiffany is trying hard to remind people of connection between color and brand. The company's strategy for enhancing potential customers' awareness is to advertise and expand its public relations programs. This would include activities like educating customers about the brand and its fine products. For example, Tiffany has advertised its products via posters on telephone kiosks as well as full-page advertisements in special publications around the world. The company aims to maintain a strong voice to customers that they can experience the joy of shopping at Tiffany.

Week 10 - Product Concepts. Part 2

Tiffany is the company with high brand equity. Its brand name is one of the most widely recognized luxury-product brands in the world.Company's product item is engagement ring. It was Tiffany & Co. that introduced the engagement ring as we know it today. The celebrated six-prong "Tiffany Setting" lifts the diamond above the band and into the light. The result is a ring whose beauty has never been equaled. The quality of Tiffany diamonds was in the past, and remains now, exemplary.

Tiffany's packages are also unique. Tiffany & Young introduced its signature Little Blue Box as a presentation box during its first year of operation. Company's product mix includes fine jewelry, engagement/bridal jewelry, timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories.

Week 10 - Product Concepts. Part 1

Tiffany & Co. has long been known for its specialty products such as luxury jewelry, which it markets to wealthy people and delivers in its signature blue boxes. Tiffany products have the image of exclusivity along with a brand name and quality.
However, in the 1990s, the company expanded its product assortment to appeal more to the middle class, following the widespread trend of "affordable luxury." Tiffany introduced a silver charm bracelet, priced at $110, and a "Return to Tiffany" line that became very popular among teenagers and resulted in explosive sales growth for the company. Tiffany stores were bustling with people, but the lower-end silver jewelry was what attracted the crowds. The company hoped it would gain lifetime customers from this strategy- adults who had bought the jewelry when they were teenagers would continue to buy the brand throughout their lives. Instead, the short-term success of the less expensive silver jewelry alienated older, more affluent clientele who now viewed Tiffany as an inexpensive, common brand.
In response the company increased prices on its silver products by 30%, though the market took 2 years to respond to the price increase with a sales drop. Its continued attempts to revive its luxury image include store renovations with champagne available to shoppers and private rooms to create an intimate feel. By featuring high-end products like $2.5 million pink diamond rings, Tiffany reclaimed its luxury image.

Week 9 - Sales Promotion and Personal Selling

Tiffany & Co. uses many tools for consumer sales promotion. One of the tools the company is using is coupon. Coupons allow customers to purchase exclusive jewelry pieces at discounted prices. Some of the other tools the company is using are complimentary shipping and membership discounts. Tiffany & Co. invented new "Elsa Peretti" designer promotion, using core collection in all stores, and generated record sales. Tiffany also conceived first national program resulting in largest selling event ever. Pioneer "Tiffany-Only" regional lifestyle weekends for Tiffany Register customers resulted to 37% growth in statement jewelry sales. "Tiffany-Only" attractions secure presence of most profitable customers. In oredr to help consumers to make a better decision by purchasing Tiffany jewelry, the company started "What makes a Tiffany Diamond" workshop-selling seminars, demonstrating value with exclusivity.