Tiffany and Co.|
Quality Perceptual Map
Exclusivity Perceptual Map
The Fine Jewelry Market Defined
“The consumers in the fine jewellery market segment are quality conscious individuals who appreciate and understand the prestige and pride of ownership when purchases are made in such companies and markets.”
Tiffany and Co. is a fine jewelry company that was established in 1837 in New York City (Tiffany and Co., 2012). In 1886, Tiffany and Co. created their first engagement ring, which has since become one of their most successful product lines (Tiffany and Co., 2012). Since then Tiffany and Co. has expanded their product lines to include jewelry, sunglasses, handbags, leather goods and house wears. They have established themselves to be an iconic luxury brand that competes in the fine jewelry category, as well as the category of engagement rings.
There are numerous reasons for a consumer to be driven to purchase an item at Tiffany’s. Drive is defined as the desire to satisfy a biological need to reduce physiological desire (Solomon, Zaichkowsky, & Polegato, 2011). However, expectancy theory explains that cognitive factors can drive behaviour as well, and consumers are driven to purchase items because of what they expect to gain. People who purchase Tiffany’s do it for cognitive reasons; either because they feel like owning a fine piece of jewelry from a prestigious brand like Tiffany’s as a status symbol, or for the purchase of engagement rings, to symbolize their love and commitment.
Tiffany & Co. Direct Competitors
* Blue Nile
* Harry Winston
* De Beers
Tiffany & Co. Indirect Competitors
* The Bay
Fine Jewelry customers are those with a higher disposable income than average who often live in a metropolitan area and take pride in supporting their desired brand names. They are loyal to the company, trusting of the company, and appreciative of the extra step that the company will take in order in ensure they are completely satisfied with the product and feel value of their investment. The icons that symbolize the brand’s image and identity are very important to these customers. Industry Key Success Factors
* Brand image associated with prestige
* Popularity amongst those with high social status (celebrities, iconic figures, politicians) * High quality
* A sense of pride that comes with ownership
* World-renowned logo or symbol (Tiffany’s little blue box) * A large consumer market segment
* The appropriate geographical location for the market
* Both new and classic designs and features
* A competitive advantage – something competitors don’t have or cannot imitate * World famous designer jewelry lines
* Excellent customer service
* High exclusivity
Competitor Factor| Tiffany & Co.| Birks| Blue Nile| Cartier| Harry Winston| De Beers| Year Established| 1837| 1879| 1999| 1847| 1932| 1888| Location| New York City| Montreal| Internet| France| New York City| Luxembourg| Product| Fine Jewelry, Fragrances, Awards, Home Décor, Accessories| Fine Jewelry| Fine Jewelry| Fine Jewelry, Watches, Accessories| Fine Jewelry| Fine Jewelry, Diamonds| Quality| Very High| High| Above Average/High| Very High| Very High| High| Price| Very High| High| Above Average/High| Very High| Very High| High| Customer Service| Excellent| Excellent| High| Excellent| Excellent| Excellent| Reputation| Excellent| Very Good| Good| Excellent| Excellent| Excellent| 2008 Sales| $1.6 Billion| $314 Million| $290 Million| $330 Million| $609 Million| $6.89 Million| Strengths| Competitive advantage| High quality at lower prices| Large consumer market...