Monday, September 27, 2010

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.

Sunday, September 26, 2010

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. 

Wednesday, September 22, 2010

Country of Origin

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

Sunday, September 19, 2010

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.

Sunday, September 12, 2010

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.

Sunday, September 5, 2010

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