Tiffany & Co. By: Brandie Wong, Tawny Brodie , Bri Castro, & Margaret Rissman. About Tiffany & Co.
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
Tiffany & Co. By: Brandie Wong, Tawny Brodie, Bri Castro, & Margaret Rissman
About Tiffany & Co. Tiffany & Co. was founded by Charles Lewis Tiffany and Teddy Young in New York in 1837. The store initially sold stationary and fancy goods. It was known as Tiffany, Young and Ellis in lower Manhattan. In 1845, Tiffany, Young and Ellis began selling “real” jewelry. The name changed to Tiffany & Co. in 1853 when Charles Tiffany took control. Charles Tiffany bought one of the largest and fanciest yellow diamond followed by the purchase of the French Crown Jewels. By doing so he established his shop for America’s source for ultimate luxuries and was known as “ The King of Diamonds”. Tiffany acquired customers that were and are unique and unexpected such as magnates, socialites, heads of state, celebrities, the affluent, seek out collectibles and turn to Tiffany. Since 1860, Tiffany trophies have been at the center of American sports as well as championship rings honoring the highest achievements in sports. Athletes have been competing for this honor over 100 years. In 1867, Tiffany first achieved international recognition at the Paris Exposition Universelle. Tiffany & Co. added china, silverware, timepieces, and other luxury goods during the 1940’s. In the late 1980’s, Tiffany ventured into the fragrance business. Tiffany for Women and Tiffany for Men. Tiffany & Co. has managed to cement their position through out history as the leading competitor in the jewelry industry and creating a luxury brand that is timeless and exudes superior quality, craftsmanship, exclusivity, and worth. • Female ages 28-54 • Educated • Affluent • Upper upper class to upper middle class • High net worth • Strong interest in fashion, shopping and luxury products • Technically savvy • Urban Tiffany & Co. Image
Spring 2012 Advertisements: Tiffany provides many advertisements to their consumers including billboards, magazine advertisements, and internet advertisements. They are consistently releasing advertisements for new collections and new products such as house ware and fragrances. Tiffany does collections for Fall, Winter, Spring/Summer and for each season something new is out for them to advertise. Typically, they advertise new collections like the collections shown on the slide. This year, Tiffany’s advertisements were both on engagement rings and house ware. The main advertisement was on engagement rings. For the fall season Tiffany’s usually uses warm colors for their advertisements and this year was no different. The company is very traditional and uses repetition for their advertisements. A good example of repetition is their winter season advertisements. Every year consumers see the new holiday collection and a corresponding advertisement. Spring is habitually different then the other seasons because it is combined with summer. Tiffany’s always focuses on one of the seasons and this year it was spring. This spring season the company focused on a classic spring wedding, using bright colors and having the models give the impression of having fun. Winter 2011 Promotion Activities Fall 2011 http://www.youtube.com/user/OfficialTiffanyAndCo#p/c/92DD5FB78BCC2BC8/4/T4jBlJV9SzU
PROMOTION ACTIVITIES Special Events: In September, Tiffany’s Fifth Avenue flagship store hosted a disco-themed party to celebrate Fashion’s Night Out & the new Tiffany Era Collection. The outside of the building had live models displaying the new collection in the windows. There was a special performance by Leighton Meester & Check in the Dark. Also, the party’s deejay was DJ Kiss. Having special events can definitely benefit the brand and promote the brand’s product. Tiffany & Co is no different then any other company when throwing a big bash for promotion and interacting with other companies and consumers. The biggest party Tiffany’s had this year was their party for Fashion’s Night Out. The event’s main purpose was to show off their Tiffany Era collection. They actually chose one part of the collection which was the 70s Disco Theme. Throwing events such as this one can definitely help promote the brand and also bring in more customers and knowledge of the brand. Public Relations: Public Relations is mainly about the company’s image and how they promote their product. For example, Anne Hathaway wore Tiffany & Co. jewelry to The Academy Awards and not only is she a celebrity, but she was also the host so the main focus was on her. Tiffany’s is a luxury brand and using celebrities definitely maintains that image. Another example is sponsorship. This year, Tiffany’s designed a trophy for a polo match, and Kate Middleton presented the trophy to the winning team, which was her husband Prince William’s team. Another example of having a good public image is giving back. Tiffany’s teamed up with Vogue to provide two grants to up and coming jewelers to help start their image. All of these examples help Tiffany’s with their image, which is the main reason of public relations. Co-host Anne Hathaway in Tiffany’s 94-carat, $10 million Lucida® Star diamond necklace, diamond earrings and a diamond ring at the 83rd Academy Awards® in L.A. CFDA/Vogue Fashion Fund & Tiffany & Co presented their grant to two young jewelers. Both received checks up to $150,000. The money is used to help their independent companies grow. Each had to submit a lengthy application to enter. The Duchess of Cambridge presents The Duke of Cambridge a Tiffany-designed trophy to him & his teamafter they won The Foundation Polo Challenge. Held In Santa Barbara. http://www.youtube.com/user/OfficialTiffanyAndCo#p/c/92DD5FB78BCC2BC8/2/toLhlBsZgls
Tiffany & Co. S W • Recognition of brand • Visual identity- Tiffany blue box and color • Icon for luxury • International reputation as a premiere jeweler • “Classic” store positioning • Brands advertising reinforces the brands association with luxury, sophistication, style and romance, while other advertising is primarily intended to increase demand for particular products. • Public Relations-significant aspect, image enhanced by charity sponsorships, grants & merchandise donations • Tiffany engages in retail promotions & media to maintain consumer awareness • Spending less on promotion & advertisement • Regularly advertises primarily in newspapers & magazines & periodically conducts product promotional events • Management currently anticipates a decline in advertising spending • Limited media • Lacks word of mouth (buzz) • Business seasoanlity T O • Challenging economic global economy • Decline in marriage rate • Consumer attitude on spending • Competitors increased budget on advertisement & promotion • Decline in sales & remain flat • Foreign currency will weaken U.S. dollar requiring to raise prices or shrink profit margins outside the U.S. • Lose exclusivity license arrangements with Ms. Peretti & Ms. Picasso • Target a more fashion forward consumer in promotion • Expand media coverage in Men’s magazine
Major Competitors Blue Nile was founded in 1999 and is the largest, well-known online retailer. Like Tiffany’s, it is known and recognized for their color, midnight blue. Blue Nile focuses on engagement rings and believes that it should not be complicated because diamonds are beautiful and simple. They have a simple brand name and simple slogans to match their simple jewelry. Their jewelry is not bold. This company uses consumer-oriented sales promotion to have the consumer try, buy and become loyal consumers. Bulgari began in 1884 and with their fine jewelry has gained their loyal consumers. Their inspiration is from the “timeless beauty Greek and Roman art” (Jacques & Kepos, 2010). They seem to use models to constantly show their product. They want their consumers to imagine themselves in the product. Bulgari promotes their product with a distinct Italian look. Bulgari is a bold look that is elegant and starves for the attention. Tiffany & Co. was founded in 1837 and gained a well-known, respected brand name. This company is well known for their Tiffany blue color and usually advertises with presents implying consumers to buy as a gift. Tiffany’s main promotion is when a consumer sees the color; they know it is Tiffany’s. They focus more on their image rather than the product. This company is consumer-oriented. Tiffany’s has celebrities wear their products to sell the product for them. They hold trunk shows to see which product will sell. Tacori promotes their product through slogans and ads making their simple, but elegant jewelry into meaning more for the consumer than just a simple piece of jewelry. An example would be this ad shown above; with the slogan “Adorn her like a Queen.” They try to get a creative message across with pictures covered in jewelry with their simple slogans just like the product they sell. They tie in passion, seduction, glamour, sweet love, temptation, and several more. They create strong reasons for why their product must be bought. Comparison All of these companies advertisements and promotion is simple and sweet. They get right to the point and want consumers to see their classical and elegant look. All companies have evolved with time by furthering and advancing their promotion with technology. Tiffany and Blue Nile have facebook, mobile apps, and blogs, while Tacori and Bulgari. do not have mobile apps quite yet, but are in the process. They all have their own website to advertise their products.
Tiffany & Co. Evaluation Promotional Activities: The target markets for engagement rings specifically are young women age 20-35. Tiffany’s does an excellent job strategizing where and when to promote engagement rings to the young women consumers. For example, young women like to watch Award shows to view and enjoy what the celebrities are wearing. Many times Tiffany’s lends out some of their jewelry to certain celebrities to display on the red carpet, knowingly that the media would ask the celebrity what brand of jewelry they are wearing. This year, host Anne Hathaway wore 10 million dollars worth of jewelry on the red carpet. Along with Anne, other popular celebrities wore Tiffany’s to big awards shows as well such as Minka Kelly, Angelina Jolie, Natalie Portman and Lea Michele. Tiffany’s strategy is well thought out because young women like to view what celebrities are wearing for inspiration and for entertainment. Competitors like Tacori apply their advertisements towards young women by using other items that young women would be quick to find irresistible. On the other hand, Bulgari has an exotic image to their brand that young women like to imagine themselves in. Blue Nile’s strategy is very clean and simple similarly to Tiffany’s. Tiffany’s strategy is to promote tradition and simplicity, which has been effective for many years. The reason these companies are successful is because they have their own image and are consistent to maintain their reputation. Conclusion: Known for their iconic blue boxes, Tiffany does an excellent job with keeping a distinct visual identity apart from its major competitors Tacori, Blue Nile, and Bulgari. Tiffany exerts its luxury brand by showcasing its timeless fine jewelry. Because this is how Tiffany is recognized, they should continue to keep the blue boxes as well as their classic pieces. Although the company is already successful, it does have some weaknesses. The first is limited media. To reach a larger target market, Tiffany needs to find other means of promotion in addition to the ads they already have in magazines and newspapers. The second is that Tiffany usually makes the most sales during the popular seasons where proposals occur, which is spring and fall. In order to further maximize the sales of engagement rings in the spring, Tiffany should include incentives to attract more customers who are not already loyal to its company. Complimentary Tiffany gifts in the signature blue box can be given to the customers who purchase an engagement ring.
Promotional Plan Promotion Objectives/ Goals: To increase sales during spring season by offering free gift with purchase. Promotion Activities to Achieve the Goals: • To gain more loyal customers than Tiffany already has, the company should have an incentive for purchasing an engagement ring from their store. When a customer buys an engagement ring, they should be able to choose a free Tiffany box from a selection of other less expensive Tiffany items. The customer will enjoy picking his or her own blue box and the surprise of opening it will reveal the item they get to take home for free. This promotional objective is an effective way to gain customers, because every one wouldn’t mind a free gift with purchase. By word of mouth this incentive will spread across the nation, increasing sales during the spring season.
Promotion Plan “Add a little sparkle, To blossom yourlove.”
Justification Our group promotional plan will work because when one person receives a free Tiffany & Co. gift they will tell their friends and family their experience and will be personally advertising for the company by word of mouth. This will be better than the current practice because it is a new way to gain consumers; possibly the ones that normally would not choose Tiffany and usually their main competitors. Tiffany & Co. will be doing more for their consumers and these consumers will notice their the company thriving to make their customers happy and satisfied with each gift they receive from Tiffany & Co. Advertisement There are three ads: a billboard, magazine, and online ad. They are different advertisements, but have a unifying theme. All of these ads have the company logo. Our first ad is a billboard ad that’s slogan is: “Diamonds are the seeds to endless love.” It is a Tiffany & Co. box with an engagement ring inside surrounded by seeds in the ground to symbolize growing love. The second ad is in a magazine with the slogan: “Keep your love growing.” This is a cherry blossom tree growing and engraved with a heart. Inside the heart is T&C engraved which is made to represent Tiffany and Co.; the love for the company, but also the love for others. The third and last ad is an online advertisement with the slogan: “Put a little sparkle to blossom your love.” This ad is the Tiffany blue color background with a cherry blossom blooming and inside the blossom is the engagement ring which is representing a new beginning to love.
References Jacques, D., & Kepos, P. (2010). International directory of company histories. (Vol. 106, pp. 82-87). New York: Gale Cengage Learning. Grant, T., P. (2006). International directory of company histories. (Vol. 78, pp. 396-401). New York: Thomas Gale. Jacques, D., & Kepos, P. (2011). International directory of company histories. (Vol. 121, pp. 76-80). New York: Gale Cengage Learning.
Appendix A Billboard Ad
Appendix C Online Ad