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.

Week 8 - Advertising and Public Relations

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.

Also Tiffany's advertising campaign uses world famous models for promoting new products. For the Fall 2008, Tiffany's campaign was featuring Liya Kebede, Lily Cole, Shalom Harlow and Sasha Pivovarova. All the models were exemplifying the classic glam that Tiffany represents with simple make-up, soft feminine outfits, and diamond encrusted accessories. 
Tiffany & Co. is considered one of the best campaigns that touts the value of high-end product. The company uses these tag lines: "Dreams Can Still Come True" and "For less than you imagined, the best there is."

In 2009 Tiffany & Co. used mobile to promote its new product line to female consumers who use iPhone or Blackberry smart-phones. Researchers showed that the majority of Tiffany target consumers are iPhone or Blackberry users. The mobile site let visitors find out about new store, get directions via Google maps and click-to-call the store. Visitors could also browse a limited collection of jewelry, choose their favorite pieces and save their selections to create their own jewelry tray that could also be assembled in-store for them to try on the pieces in person.

Addition to Retailing

On Monday I went to the Tiffany store on the 57th st & 5th ave. When I just entered the store, I was greeted by one of the sales representatives. He asked me what I am specifically looking for and gave me a quick description of the store. The store has 6 floors. On the first floor they sell fine jewelry and watches. I was amazed by the Tiffany's collection of watches. I even took a chance to try them on. On the second floor they have a big variety of engagement rings and wedding bands. On the third floor they sell sterling silver jewelry. On the fourth floor they have china, fragrance, stationery and on the sixth floor is a customer service. The atmosphere in the store was very relaxing. All the sales representatives were very nice and looked very presentable.

Week 7 - Retailing

Tiffany & Co. is an independent retailer. Company's retail sales consist of sales transacted in Tiffany & Co. stores, internet and catalog sales. Tiffany distributes catalogs of selected merchandise to its proprietary list of customers and to mailings lists. Selected Tiffany & Co. merchandise is sold to independent distributors for resale in markets in the Central/South American, Caribbean and Canadian regions, Russia and Asia-Pacific markets.     
In 2008, Tiffany opened a new store in the United States that offers a selected product assortment which excludes engagement and high-end jewelry. Management anticipates that Tiffany will open additional locations in this smaller format, while continuing to open full assortment stores as well. The selection allows the store to concentrate high-margin products in a smaller space. Management also believes that this new format will be highly efficient and will give the company the opportunity to open stores in smaller U.S. cities and to better serve larger markets where the company already operates full assortments stores.                                           

Operating by its mission statement to be the world's most respected retailer, Tiffany focuses heavily on customer service. New employees complete six to eight weeks of training in knowledge, skills and product training. They must also pass a written test before they are allowed to meet with customers. Once in the field, sales representatives work for two years to complete a certification process.

Week 6 - Consumer decision making

Tiffany & Co. is the global company recognized all over the world for the value,quality and style of their products. According to Tiffany & Co., "Tiffany is about things that last forever..." The company is not focused on the fashion, but is dedicated to the timeless style and design. The company is focused on the customers who appreciate finer things in life and the emotional pleasure of owning the best there is. As one of the most famous jewelers in the world, Tiffany & Co. established themselves as an example of the company that is able to increase the value of their products through effective marketing and attention to detail. They believe that  the best way to attract new customers is to educate them about their products and to sell them not only the jewelry but the piece of art and culture at the same time.
 Tiffany  customers are exposed to two external information sources: nonmarketing -controlled  and marketing-controlled. A nonmarketing-controlled information source is represented by personal sources such as family, friends and coworkers. The marketing-controlled information sources are associated with mass media advertising such as television, magazine advertising and Internet.

Week 5 - Developing a Global Vision

Tiffany & Co. expanded internationally in 1986 with its first store in London which then laid a solid foundation for the expanding of European markets. Nowadays, Tiffany & Co. is operating 220 stores in 17 countries. Tiffany products are highly valued between customers in Japan, France, Germany, Spain, United Kingdom. Tiffany is also steadily penetrating the Chinese market. In China's economical city Shanghai and capital Beijing, customers can buy authentic Tiffany jewelries. In Canada, there are also two stores that sell noble and elegant Tiffany &Co. jewelries. In the beautiful country Australia, there are also seven stores for people to pursue Tiffany jewelry. Big cities such as Sydney, Melbourne, Brisbane all have established long cooperation relationship with Tiffany & Co. Tiffany opened an online store in 1999 with the strategy to allow customers who did not live near a Tiffany store to have access to Tiffany's products.
On 12, 2010 USA Basketball and Tiffany & Co.  announced a new multiyear global marketing partnership that will make one of the world's most recognizable brands an Official Partner of USA Basketball. The creation of the Global Community Cup trophy, which will commemorate USA Basketball's journey as it competes in international competitions on an annual basis, will highlight the partnership. Prior to each competition, USA Basketball will play a series of exhibitions against top national teams in both the United States and abroad. The Global Community Cup, which Tiffany & Co. will design and create, will be awarded after each game with engravings honoring both teams, the standout player of the game, and a charity supported by USA Basketball.

Corporate Irresponsibility: Starbucks against Ethiopian coffee farmers

In 2006 global coffee giant Starbucks had to face a daunting task of living up to its socially responsible image. For over a year, Ethiopia has sought a dialogue with Starbucks about supporting the country's efforts to return more of the price of its coffees in world markets to the farmers who produce them by seeking trademark rights for Sidamo, Harar and Yirgacheffe coffees. These coffees have been sold under Starbucks' Black Apron Exclusives line for up to $26 a pound, but Ethiopian coffee farmers receive only 5-10% of the retail price, in a country where millions live on just a dollar a day. Ethiopia is one of the world's poorest countries, and coffee is among the most valuable commodities of the country. These rights could help to lift farmers and their families out of poverty. 

"Starbucks continues to break its promises to the poorest communities," said Seth Petchers, coffee lead in Oxfam International's Make Trade Fair campaign. "The company has branded itself as a friend to poor farmers. But when these farmers seek the right to own their coffee brands and compete in the global market on an even playing field, Starbucks refuses to support them."

After a year, Starbucks finally issued a joint release with the government of Ethiopia stating that the company would no longer stand in the country's way to obtain trademarks. However, Starbucks had refused to engage in good-faith discussions with Ethiopia about the trademark initiative.

Week 4 - The Marketing Environment

Tiffany & Co. is a name that, throughout its long history, has symbolized luxury. The company targets white-collar adult males and females of all nationalities and religions with a flexible income to spend on luxury jewelry. Many Tiffany & Co. products are purchased to symbolize or mark a period in one's adult life such as engagement, wedding, anniversary or birthday.
Tiffany & Co. currently has more than 150 stores in 17 countries. The United States has 38 stores and is expected to double in the next decade. Throughout the continents, the stores and boutiques are found in upper-class cities. As the annual report states, "....we will only select locations where Tiffany & Co. products are most appreciated and desired.'' The customers that can "appreciate and desire" Tiffany products are upper-class adults seeking luxury. Tiffany shoppers live a life of glitz and glamour. Even the simple Tiffany Blue Box, which contains the purchase, is a symbol of the classic look. Tiffany customers are rewarded with a valuable piece that will last a lifetime.
Also besides distributing products from the stores, Tiffany & Co. engages in direct marketing activities. The company sells products through e-commerce, catalog and business gift sales. 

Country of Origin

• Sweater - Made in China
• Jeans - Made in China
• Shirt - Made in Sri Lanka
• Shoes - Made in China

Week 3 - Ethics and Social Responsibility

From its foundation in 1837, Tiffany & Co. has been always socially and environmentally responsible company. Tiffany & Co. has established a Code of Business Ethics in order to help employees to identify what the company recognizes as acceptable business practices.
 Also, the Tiffany & Co. Foundation was established in 2000 to focus the company's philanthropic endeavors by providing grants to nonprofit organizations working in two main program areas: the environment and the arts.The mission of its environmental program is to support organizations dedicated to the conservation of natural resources in the ares of responsible mining, coral conservation and land protection. The mission of their art program is to advance the arts by supporting the critically important work of educational, artistic and cultural institutions. In the United States, Tiffany & Co. is also working to support reform of the General Mining Law of 1872 and to pass legislation to assist in cleaning up abandoned hard rock mines.
In order to improve the environment and to minimize the negative effects on the physical environment Tiffany & Co. is using only Forest Stewardship Council (FSC)-certified packaging materials and catalogs. FSC certification assures that wood and paper products come from renewable and well-managed resources. Also Tiffany & Co. is focused on energy conservation. As a part of the Climate Leaders program, the company is working on developing comprehensive climate change strategies.

Week 2 - Strategic Planning

Today, Tiffany & Co. is a public company worth about $5.4 billion. The company is engaged  in product design, manufacturing, and retailing activities. Tiffany & Co. is a jeweler and specialty retailer, whose merchandise offerings include an extensive selection of jewelry, as well as timepieces, sterling silverware, china, crystal, stationery, fragrances and accessories. Today, more than 200 Tiffany & Co. stores are operating across North America, Asia and Europe.
Tiffany & Co. success today is the result of a strong business. As we know, to achieve this success company has to have a strong strategic plan. The key growth strategies of the company are:
- to increase sales in existing stores by developing new products;
- to increase its control over product supply and achieve improved profit margins through direct diamond sourcing and internal jewelry manufacturing;
- to selectively expand its channels of distribution in important markets around the world without compromising the long-term value of the Tiffany & Co. trademark;
- to enhance customer awareness through marketing and public relations programs;
- to provide customer service that ensures a superior shopping experience.
    Tiffany & Co. have a sustainable competitive advantage. SWOT analysis:
- strengths - famous artists as designers who also make their jewelry lines; Paloma Picasso - Loving Heart collection
- weaknesses - they have very few partnerships
- threats - new competitor Blue Nile.

Week 1 - Overview of Marketing ( brief company history and mission statement)

Tiffany & Co. was found on September 18, 1837 by Charles Lewis Tiffany and John B. Young. The company began its existence as a stationery and fancy goods store with a starting capital of $1000. Nowadays, Tiffany & Co. has become the world's premier jeweler and America's house of design. The company's main strategy is to emphasize a feeling of emotional attachment to their product. Tiffany's famous "blue box" has become an American icon of style and sophistication. This company is especially recognized for their diamonds that have an exquisite design. Also, the perceived value of their product is what separates them from their competitors. The mission statement of Tiffany's is "To bring beauty into the lives of our customers."
For more information you can visit this link:
http://www.tiffany.com/About/Timeline.aspx